LOUISIANA PROPERTY AND CASUALTY INSURANCE
EXAM 2024 ACTUAL 500 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS) /
ALREADY GRADED A+
Adverse Selection - ANSWER: lower or poorer risks more prone to losses than normal
risks.
Aleatory Contract - ANSWER: the consideration that is being exchanged is unequal or
unrelated to the consideration given by the other party.
Basic - ANSWER: named peril coverage, the least coverage available. In dwelling
policies it includes: fire, lightning, removal, and internal explosion.
Broad - ANSWER: named peril coverage, covering more named perils than the basic
form. In dwelling coverage it covers all perils under basic including EC and V&MM
plus: damage by burglars (not theft); weight of ice, snow or sleet; accidental
discharge or overflow of water or steam; freezing of plumbing, heating, a/c, or
sprinkler systems; falling objects; artificially generated electrical current; and tearing
apart, cracking, burning, or bulging of a steam or water system.
Builder's risk - ANSWER: used to insure buildings under construction.
Business income - ANSWER: covers loss of income when a business has to suspend
because of a direct loss. Business income is covered over the time the operations are
suspended while the building is being repaired or replaced. It is calculated as the net
income that would've been earned if the loss occurred and the cost to continue
operations including payroll.
Cancellation - ANSWER: termination of a policy by either the insurer or insured
before the expiration date.
Cargo - ANSWER: what the ship is hauling.
Causes of Loss - ANSWER: after choosing commercial property coverage for the type
of property your business needs covered, you then need to choose the causes of loss
that will be covered. A business may choose Basic, Broad, or Special cause of loss
forms and the extra is Earthquake (volcanic eruption additional) - that state the
perils protected against.
Cease & Desist - ANSWER: an official legal document that will require an individual to
stop doing something.
Certificate of Authority - ANSWER: makes the insurer an admitted company and
proves that the Department of Insurance finds the company financially sound and
, structured well enough to meet the requirements of the state insurance code to
conduct insurance business in Louisiana.
Class Rating - ANSWER: computing a rate for insurance that applies to all applicants
in a certain risk class.
Collapse - ANSWER: covers unexpected falling down or caving in of a building.
Collision - ANSWER: collision coverage pays for direct and accidental loss due to
upset or collision of the vehicle with another object. Collision coverage would
provide protection for an insured auto due to collision with another vehicle, collision
with another object such as a bridge or tree, and upset or overturn of the vehicle
subject to a deductible.
Common Carrier - ANSWER: a carrier is a commercial organization that transports
goods or passengers. A carrier is classified as a common carrier when it dedicates its
property to public use in such a manner that its services are available to the public
on a regular basis. Common carriers hold themselves out to the public as engaged in
the business of transporting persons or property from site to site for compensation
or a fee. Examples of common carriers include railroads, bus companies, trucking
firms, taxicab companies, airlines, and ferries.
Common Conditions - ANSWER: conditions that apply to all coverage parts such as
cancellation, changes, inspections, examination of books and records, etc.
Common Declarations - ANSWER: provides information as to who, what, when,
where and how much. It will include the insurance company name, the named
insured, policy period, business description, coverage parts, premium, and policy
forms. All policies take effect on 12:01 AM at the mailing address of the insured
listed in the policy. It contains the list of 7 coverage parts followed by the
appropriate premium if there is coverage for the part, but no premium listed if the
part is not included in the package.
Compulsory - ANSWER: states with laws that require employers to provide worker's
compensation insurance under penalty of law.
Controlled Business - ANSWER: when a producer gets into the insurance business in
Louisiana to sell only to themselves, their family and employer.
Elective - ANSWER: in states that have elective laws for workers compensation, an
employer does not have to be subject to the State's WC laws, but if they choose not
to be subject to it they lose their common law defenses against liability suits.
Employer's Liability - ANSWER: insurance for claims that are not covered under
Workers compensation laws including: exempt employments, illegal employments,
and non-compensable injuries.
EXAM 2024 ACTUAL 500 QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS) /
ALREADY GRADED A+
Adverse Selection - ANSWER: lower or poorer risks more prone to losses than normal
risks.
Aleatory Contract - ANSWER: the consideration that is being exchanged is unequal or
unrelated to the consideration given by the other party.
Basic - ANSWER: named peril coverage, the least coverage available. In dwelling
policies it includes: fire, lightning, removal, and internal explosion.
Broad - ANSWER: named peril coverage, covering more named perils than the basic
form. In dwelling coverage it covers all perils under basic including EC and V&MM
plus: damage by burglars (not theft); weight of ice, snow or sleet; accidental
discharge or overflow of water or steam; freezing of plumbing, heating, a/c, or
sprinkler systems; falling objects; artificially generated electrical current; and tearing
apart, cracking, burning, or bulging of a steam or water system.
Builder's risk - ANSWER: used to insure buildings under construction.
Business income - ANSWER: covers loss of income when a business has to suspend
because of a direct loss. Business income is covered over the time the operations are
suspended while the building is being repaired or replaced. It is calculated as the net
income that would've been earned if the loss occurred and the cost to continue
operations including payroll.
Cancellation - ANSWER: termination of a policy by either the insurer or insured
before the expiration date.
Cargo - ANSWER: what the ship is hauling.
Causes of Loss - ANSWER: after choosing commercial property coverage for the type
of property your business needs covered, you then need to choose the causes of loss
that will be covered. A business may choose Basic, Broad, or Special cause of loss
forms and the extra is Earthquake (volcanic eruption additional) - that state the
perils protected against.
Cease & Desist - ANSWER: an official legal document that will require an individual to
stop doing something.
Certificate of Authority - ANSWER: makes the insurer an admitted company and
proves that the Department of Insurance finds the company financially sound and
, structured well enough to meet the requirements of the state insurance code to
conduct insurance business in Louisiana.
Class Rating - ANSWER: computing a rate for insurance that applies to all applicants
in a certain risk class.
Collapse - ANSWER: covers unexpected falling down or caving in of a building.
Collision - ANSWER: collision coverage pays for direct and accidental loss due to
upset or collision of the vehicle with another object. Collision coverage would
provide protection for an insured auto due to collision with another vehicle, collision
with another object such as a bridge or tree, and upset or overturn of the vehicle
subject to a deductible.
Common Carrier - ANSWER: a carrier is a commercial organization that transports
goods or passengers. A carrier is classified as a common carrier when it dedicates its
property to public use in such a manner that its services are available to the public
on a regular basis. Common carriers hold themselves out to the public as engaged in
the business of transporting persons or property from site to site for compensation
or a fee. Examples of common carriers include railroads, bus companies, trucking
firms, taxicab companies, airlines, and ferries.
Common Conditions - ANSWER: conditions that apply to all coverage parts such as
cancellation, changes, inspections, examination of books and records, etc.
Common Declarations - ANSWER: provides information as to who, what, when,
where and how much. It will include the insurance company name, the named
insured, policy period, business description, coverage parts, premium, and policy
forms. All policies take effect on 12:01 AM at the mailing address of the insured
listed in the policy. It contains the list of 7 coverage parts followed by the
appropriate premium if there is coverage for the part, but no premium listed if the
part is not included in the package.
Compulsory - ANSWER: states with laws that require employers to provide worker's
compensation insurance under penalty of law.
Controlled Business - ANSWER: when a producer gets into the insurance business in
Louisiana to sell only to themselves, their family and employer.
Elective - ANSWER: in states that have elective laws for workers compensation, an
employer does not have to be subject to the State's WC laws, but if they choose not
to be subject to it they lose their common law defenses against liability suits.
Employer's Liability - ANSWER: insurance for claims that are not covered under
Workers compensation laws including: exempt employments, illegal employments,
and non-compensable injuries.
