PROPERTY AND CASUALTY INSURANCE EXAM QUESTIONS AND CORRECT VERIFIED ANS WERS LATEST UPDATE JUST RELEASED THIS YEAR

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PROPERTY AND CASUALTY INSURANCE EXAM
QUESTIONS AND CORRECT VERIFIED ANS WERS
LATEST UPDATE JUST RELEASED THIS YEAR



Question: Which of the following may be covered by electronic data processing coverage form

under an inland marine policy? - CORRECT ANSWER✔✔a) Computer hardware that is

specifically scheduled.




b) Extra expense the insured incurs to continue the business following a loss.




c) Data processing media, including magnetic tapes or paper tapes, punch cards and discs




Question: The party to a surety or fidelity bond who promises to fulfill the obligation is the -

CORRECT ANSWER✔✔Principal




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Question: The transfer of money from inside a banking premises to a person other than a

messenger outside those premises or to a place outside those premises is covered under which

commercial crime coverage? - CORRECT ANSWER✔✔Computer fraud




Question: Which of the following would NOT be covered under the liability section of a

personal auto policy? - CORRECT ANSWER✔✔Bodily injury is caused by the insured's negligence

while driving a three-wheel all-terrain vehicle.




Question: When a producer holding a certificate or a broker's license has a change in his/her

residence or business address, he/she must notify the Department of Insurance and any

company for which the producer holds an appointment within - CORRECT ANSWER✔✔30 days.




Question: What will happen if a house covered by a standard mortgage clause is a total loss? -

CORRECT ANSWER✔✔The insurer pays the mortgagee according to the mortgagee's interest in

the property.




Question: What is the civil penalty for violating a cease and desist order of the Commissioner?

- CORRECT ANSWER✔✔$10,000



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Question: The Business Pursuits endorsement under Section II of a homeowners policy will

cover all of the following EXCEPT - CORRECT ANSWER✔✔Business liability.




Question: If a property is covered by Company A for $20,000 and Company B covers the same

property for $40,000, how much will Company A pay on a $24,000 loss? - CORRECT

ANSWER✔✔$8,000




QUESTION: Which of the following are the authorities that an agent can hold? - CORRECT

ANSWER✔✔Express and implied




Question: Which of the following terms refers to such disabilities the loss of a limb, hearing , or

eye sight? - CORRECT ANSWER✔✔Permanent partial disability




Question: Who is NOT considered an employee in an commercial general liability (CGL) policy?

- CORRECT ANSWER✔✔Temporary worker




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Question: The major portion of the premium of an equipment breakdown policy pays? -

CORRECT ANSWER✔✔For inspections and examinations




Question: An insured owns a building valued at $400,000. To comply with the 80% coinsurance

provision of his insurance policy, how , much should he insure the property for? - CORRECT

ANSWER✔✔80% of the property's replacement cost or more




Question: Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the

information contained in his or her report, the reporting agency must - CORRECT

ANSWER✔✔Respond to the consumer's complaint.




Question: All of the following are found in the declarations section of a policy EXCEPT the -

CORRECT ANSWER✔✔Exclusions.




Question: The cost of restoring farm records is an additional coverage offered under a farm

policy. How much will the policy pay to restore the records? - CORRECT ANSWER✔✔Up to

$2,000




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