C
Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
Terms in this set (137)
Driver A has a personal auto c) $50,000
policy with Part C: UM/UIM
limits of 100/300. He is Underinsured motorist coverage acts as excess over the at-fault
injured by Driver B who has motorist's coverage. It will pay the difference between the
Part A: Bodily Injury insured's UIM limits and the at-fault driver's bodily injury
Liability limits of 50/100. It limits (in this scenario, $100,000 of the insured's coverage
is minus $50,000 of the other driver's). Because of the per
determined that Driver B is at person limits of Driver A's underinsured
fault for the accident. Driver A motorist coverage, the policy will pay the amount necessary to
has $125,000 in medical bring payment up to the per person limit. The policy will not
expenses. How much will his pay more than the limits of liability.
Part C: UM/UIM coverage
pay?
a) $125,000
b) $75,000
c) $50,000
d) $25,000
,Because an insured owns a lot of b) Coverage C limits will no longer apply to the jewelry insured by the
expensive jewelry, her endorsement.
insurance agent has advised
her to purchase a scheduled When items are scheduled, they are excluded from Coverage C as
personal insured items, and are covered only under the scheduled
property endorsement. If the
personal property endorsement.
insured adds this endorsement
to her homeowners
policy, which of the following
statements would be correct?
a) The endorsement becomes
primary coverage and the
HO contract is
secondary.
b) Coverage C limits will no
longer apply to the jewelry
insured by the endorsement.
c) The amount of coverage will be
doubled.
d) The endorsement
becomes excess coverage.
Which of the following terms b) Temporary partial disability
refers to a person's ability to
do some work or the need to The insuring agreement is the part of the policy structure that
do alternative work? describes the insured perils and the method of
indemnification.
a) Temporary total disability
b) Temporary partial disability
c) Permanent partial disability
d) Permanent total disability
Which of the following b) It provides errors and omissions coverage for an agency.
statements is NOT true
regarding a personal umbrella Personal umbrella policies cover the personal exposure of the
liability policy? insured. Errors and omissions coverage is provided only in a
professional liability policy.
a) It provides excess liability
coverage over underlying
personal liability.
b) It provides errors and
omissions coverage for
,an agency.
c) It may cover certain
exposures not provided
under the primary layer.
d) It may require the
payment of a self- insured
retention.
A mortgage company is b) The loss is payable to the insured and the mortgagee.
named as a loss payee on the
insured's homeowners policy, Loss is payable to the insured and mortgagee to protect the
under the standard mortgage mortgage company's interest. This prevents the insured from
clause. If the insured suffers a cashing the check and not completing
repairs.
loss due to a fire, which of the
following is true?
a) The entire loss is payable to the
insured.
b) The loss is payable to the
insured and the mortgagee.
c) The mortgagee should submit
a claim to its insurer, and the
insured should submit a claim
to the HO policy.
d) The entire loss is
payable to the
mortgagee.
, Under which type of coverage b) Contractual liability policy
does the insurer agree to pay
for bodily injury or With this coverage, the insurer agrees to pay for bodily injury
property damage liability which or property damage liability which the insured has agreed to
the insured has agreed to assume under a written contractual
agreement.
assume under a written
contractual agreement?
a) Bodily injury liability policy
b) Contractual liability policy
c) Personal liability policy
d) Property damage liability
policy
In a personal auto policy, the a) Accident insurance, because it pays medical expenses regardless of fault.
medical payments coverage is
similar to Medical payments will pay for accidental bodily injury of an
insured, regardless of fault or auto. It will pay medical
a) Accident insurance, expenses of others occupying the insured auto.
because it pays medical
expenses regardless of fault.
b) Accident insurance, because
it has the same limits.
c) Bodily injury coverage,
because it pays the insured's
doctor bills.
d) Bodily injury coverage, because
it
provides legal protection if the
insured causes injuries to
others.
The designation symbols used in b) Covered Auto
commercial auto policies can be
found in which policy section? Section I - Covered Auto of a commercial auto policy explains
the designation symbols used in that coverage.
a) Conditions
b) Covered Auto
c) Liability Coverage
d) Definitions
Louisiana Property and Casualty Insurance Exam/ 2025-2026
Verified Questions With Answers.
Terms in this set (137)
Driver A has a personal auto c) $50,000
policy with Part C: UM/UIM
limits of 100/300. He is Underinsured motorist coverage acts as excess over the at-fault
injured by Driver B who has motorist's coverage. It will pay the difference between the
Part A: Bodily Injury insured's UIM limits and the at-fault driver's bodily injury
Liability limits of 50/100. It limits (in this scenario, $100,000 of the insured's coverage
is minus $50,000 of the other driver's). Because of the per
determined that Driver B is at person limits of Driver A's underinsured
fault for the accident. Driver A motorist coverage, the policy will pay the amount necessary to
has $125,000 in medical bring payment up to the per person limit. The policy will not
expenses. How much will his pay more than the limits of liability.
Part C: UM/UIM coverage
pay?
a) $125,000
b) $75,000
c) $50,000
d) $25,000
,Because an insured owns a lot of b) Coverage C limits will no longer apply to the jewelry insured by the
expensive jewelry, her endorsement.
insurance agent has advised
her to purchase a scheduled When items are scheduled, they are excluded from Coverage C as
personal insured items, and are covered only under the scheduled
property endorsement. If the
personal property endorsement.
insured adds this endorsement
to her homeowners
policy, which of the following
statements would be correct?
a) The endorsement becomes
primary coverage and the
HO contract is
secondary.
b) Coverage C limits will no
longer apply to the jewelry
insured by the endorsement.
c) The amount of coverage will be
doubled.
d) The endorsement
becomes excess coverage.
Which of the following terms b) Temporary partial disability
refers to a person's ability to
do some work or the need to The insuring agreement is the part of the policy structure that
do alternative work? describes the insured perils and the method of
indemnification.
a) Temporary total disability
b) Temporary partial disability
c) Permanent partial disability
d) Permanent total disability
Which of the following b) It provides errors and omissions coverage for an agency.
statements is NOT true
regarding a personal umbrella Personal umbrella policies cover the personal exposure of the
liability policy? insured. Errors and omissions coverage is provided only in a
professional liability policy.
a) It provides excess liability
coverage over underlying
personal liability.
b) It provides errors and
omissions coverage for
,an agency.
c) It may cover certain
exposures not provided
under the primary layer.
d) It may require the
payment of a self- insured
retention.
A mortgage company is b) The loss is payable to the insured and the mortgagee.
named as a loss payee on the
insured's homeowners policy, Loss is payable to the insured and mortgagee to protect the
under the standard mortgage mortgage company's interest. This prevents the insured from
clause. If the insured suffers a cashing the check and not completing
repairs.
loss due to a fire, which of the
following is true?
a) The entire loss is payable to the
insured.
b) The loss is payable to the
insured and the mortgagee.
c) The mortgagee should submit
a claim to its insurer, and the
insured should submit a claim
to the HO policy.
d) The entire loss is
payable to the
mortgagee.
, Under which type of coverage b) Contractual liability policy
does the insurer agree to pay
for bodily injury or With this coverage, the insurer agrees to pay for bodily injury
property damage liability which or property damage liability which the insured has agreed to
the insured has agreed to assume under a written contractual
agreement.
assume under a written
contractual agreement?
a) Bodily injury liability policy
b) Contractual liability policy
c) Personal liability policy
d) Property damage liability
policy
In a personal auto policy, the a) Accident insurance, because it pays medical expenses regardless of fault.
medical payments coverage is
similar to Medical payments will pay for accidental bodily injury of an
insured, regardless of fault or auto. It will pay medical
a) Accident insurance, expenses of others occupying the insured auto.
because it pays medical
expenses regardless of fault.
b) Accident insurance, because
it has the same limits.
c) Bodily injury coverage,
because it pays the insured's
doctor bills.
d) Bodily injury coverage, because
it
provides legal protection if the
insured causes injuries to
others.
The designation symbols used in b) Covered Auto
commercial auto policies can be
found in which policy section? Section I - Covered Auto of a commercial auto policy explains
the designation symbols used in that coverage.
a) Conditions
b) Covered Auto
c) Liability Coverage
d) Definitions
