Property and Casualty Exam
1. Items of property that would be difficult to appraise after a loss are bestinsured with:
stated-amount insurance
2. Which of the following is NOT consideration in an insurance policy?: theapplication
given to a perspective insured
3. Who is considered a nonresident agent?: an agent who is licensed in anotherstate, but is
allowed to transact insurance in this state
4. Events or conditions that increase the chances of an insured loss occur-ring are called?:
hazards
5. An insured has purchased a used car. When does collision coverage forthis car begin?:
immediately
6. An insurance agent sold an insurance policy to his spouse. What type oftransaction is
this?: controlled business
7. In the split limit coverage in personal auto policies, which limit indicated the maximum
amount the policy will pay for bodily injury per person?: 1st limit
8. When a vehicle travels from one state to another, what happens to the limitsof policy liability
in a personal auto policy?: They do not change
9. Which of the following coverages is NOT included in the DP-1 form?: addi-tional living
expense
10. Which of the following perils would not be covered by the dwelling policyif the dwelling
has been vacant for over 60 days?: vandalism
11. When doing business in this state an insurance company that is formed under the laws of
another state is classified as what type of insurer?: foreign
12. What is the main purpose of insurance regulation?: to protect the generalpublic
13. Representations are statements made by the applicant for insurance thatare: considered
true to the best of the applicant's knowledge
14. Fair Rental Value coverage in the dwelling policy is similar to which home-owners policy
form?: Loss of use
15. All of the following coverages are included in the businessowners formwithout requesting
coverage extensions except: newly acquired property
16. Section I of a Businessowners policy pertains to what type of coverage?-
: property
17. Coverage A- Bodily Injury and Property Damage in the commercial generalliability policy
will cover: Losses due to the insured's negligence
18. Within the first 60 days of coverage under the dwelling policy form, howmuch notice is
, required for policy cancellation?: 10 days
19. What is the maximum number of boarders per unit that would be allowedthe homeowners
policy?: 2
20. In a personal auto policy, which of the following describes coverage foruninsured
motorist?: Part C
21. In property insurance, insurable interest in the property covered in a policymust be proven:
at time of loss
22. Who is covered by an HO-4 policy?: tenants
23. What is the maximum number of roomers or boarders for properties in-sured under the
dwelling policy?: 5
24. The transfer of a legal right or interest in an insurance policy is called: anassignment
25. Dwelling policy Coverage C- Personal Property will cover all of the follow-ing EXCEPT:
animals and birds
26. To be considered an insurable risk, a loss may NOT be: catastrophic
27. Which of the following persons would be required to hold a producerlicense?: a
nonresident agent who negotiates insurance contracts
28. Which of the following is the oldest known type of insurance?: ocean marine
29. The contents coverage on a homeowners policy would pay how much afterthe loss of one
of a pair of golden candlesticks?: the difference in the actual cash value as a pair and as a
single
30. Which of the following additional perils is covered under both of the Basicand Broad
forms in dwelling policies?: internal explosion
31. When would a misrepresentation on the insurance application be consid-ered fraud?: If it
is intentional and material
32. A bond is written for a set limit, and the surety will be liable only for thisamount. This
limit is known as the: penalty
33. In insurance, an offer is usually made when: the application is submitted
34. All of the following actions by a producer may be grounds for licenserevocation or non-
renewal EXCEPT: participating in controlled business
35. In personal auto policies, the term "you" refers to: the named insured
36. Business personal property coverage form covers all of the followingexcept:: automobiles
held for sale
37. in dwelling policies, automatic increase in insurance is: coverage by en-dorsement
38. To be eligible for businessowners policy (BOP) coverage, an office buildingCANNOT be
higher than: 6 stories
1. Items of property that would be difficult to appraise after a loss are bestinsured with:
stated-amount insurance
2. Which of the following is NOT consideration in an insurance policy?: theapplication
given to a perspective insured
3. Who is considered a nonresident agent?: an agent who is licensed in anotherstate, but is
allowed to transact insurance in this state
4. Events or conditions that increase the chances of an insured loss occur-ring are called?:
hazards
5. An insured has purchased a used car. When does collision coverage forthis car begin?:
immediately
6. An insurance agent sold an insurance policy to his spouse. What type oftransaction is
this?: controlled business
7. In the split limit coverage in personal auto policies, which limit indicated the maximum
amount the policy will pay for bodily injury per person?: 1st limit
8. When a vehicle travels from one state to another, what happens to the limitsof policy liability
in a personal auto policy?: They do not change
9. Which of the following coverages is NOT included in the DP-1 form?: addi-tional living
expense
10. Which of the following perils would not be covered by the dwelling policyif the dwelling
has been vacant for over 60 days?: vandalism
11. When doing business in this state an insurance company that is formed under the laws of
another state is classified as what type of insurer?: foreign
12. What is the main purpose of insurance regulation?: to protect the generalpublic
13. Representations are statements made by the applicant for insurance thatare: considered
true to the best of the applicant's knowledge
14. Fair Rental Value coverage in the dwelling policy is similar to which home-owners policy
form?: Loss of use
15. All of the following coverages are included in the businessowners formwithout requesting
coverage extensions except: newly acquired property
16. Section I of a Businessowners policy pertains to what type of coverage?-
: property
17. Coverage A- Bodily Injury and Property Damage in the commercial generalliability policy
will cover: Losses due to the insured's negligence
18. Within the first 60 days of coverage under the dwelling policy form, howmuch notice is
, required for policy cancellation?: 10 days
19. What is the maximum number of boarders per unit that would be allowedthe homeowners
policy?: 2
20. In a personal auto policy, which of the following describes coverage foruninsured
motorist?: Part C
21. In property insurance, insurable interest in the property covered in a policymust be proven:
at time of loss
22. Who is covered by an HO-4 policy?: tenants
23. What is the maximum number of roomers or boarders for properties in-sured under the
dwelling policy?: 5
24. The transfer of a legal right or interest in an insurance policy is called: anassignment
25. Dwelling policy Coverage C- Personal Property will cover all of the follow-ing EXCEPT:
animals and birds
26. To be considered an insurable risk, a loss may NOT be: catastrophic
27. Which of the following persons would be required to hold a producerlicense?: a
nonresident agent who negotiates insurance contracts
28. Which of the following is the oldest known type of insurance?: ocean marine
29. The contents coverage on a homeowners policy would pay how much afterthe loss of one
of a pair of golden candlesticks?: the difference in the actual cash value as a pair and as a
single
30. Which of the following additional perils is covered under both of the Basicand Broad
forms in dwelling policies?: internal explosion
31. When would a misrepresentation on the insurance application be consid-ered fraud?: If it
is intentional and material
32. A bond is written for a set limit, and the surety will be liable only for thisamount. This
limit is known as the: penalty
33. In insurance, an offer is usually made when: the application is submitted
34. All of the following actions by a producer may be grounds for licenserevocation or non-
renewal EXCEPT: participating in controlled business
35. In personal auto policies, the term "you" refers to: the named insured
36. Business personal property coverage form covers all of the followingexcept:: automobiles
held for sale
37. in dwelling policies, automatic increase in insurance is: coverage by en-dorsement
38. To be eligible for businessowners policy (BOP) coverage, an office buildingCANNOT be
higher than: 6 stories
