Louisiana Property and Casualty Insurance Exam New

Louisiana Property and Casualty Insurance Exam New Latest Version with All Questions from Actual Exam and 100% Correct Answers

Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement?

a) Bodily injury liability policy

b) Contractual liability policy

c) Personal liability policy

d) Property damage liability policy ---------- Correct Answer ---------- b) Contractual

liability policy

With this coverage, the insurer agrees to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement.

In a personal auto policy, the medical payments coverage is similar to

a) Accident insurance, 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. ---------- Correct Answer ---------- a) Accident insurance, because it pays medical expenses regardless of fault.

Medical payments will pay for accidental bodily injury of an insured, regardless of fault or auto. It will pay medical expenses of others occupying the insured auto.

The designation symbols used in commercial auto policies can be found in which policy section?

a) Conditions

b) Covered Auto

c) Liability Coverage

d) Definitions ---------- Correct Answer ---------- b) Covered Auto

Section I - Covered Auto of a commercial auto policy explains the designation symbols used in that coverage.

Which of the following statements regarding coverage for the flood and earthquake perils is true?

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a) Flood insurance is usually provided in property policies, but earthquake coverage is

available by endorsement only.

b) Both flood and earthquake are excluded perils in all property policies.

c) Flood and earthquake coverage is available in all policies.

d) Flood and earthquake coverage is available only through government insurance ------

---- Correct Answer ---------- b) Both flood and earthquake are excluded perils in all property policies.

Flood and earthquake are both excluded perils in all property policies. However, coverage for both or either one usually can be purchased separately for an additional premium (by endorsement).

Supplementary payments on a CGL provide all of the following EXCEPT

(Choose from the following options)

• Pre-judgment and post-judgment interest.
• The cost of bonds to release attachment.
• Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds.
• $100 in gasoline costs by the insured driving a witness to and from court. ----------

Correct Answer ---------- 3. Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds.

Under the business auto coverage form, mobile equipment is covered for liability insurance

(Choose from the following options)

• When listed on the declarations.
• When coverage is written as Symbol 1.
• When being carried or towed by a covered auto.
• On an excess basis. ---------- Correct Answer ---------- 3. When being carried or towed

by a covered auto.

In which of the following situations would off-premises coverage in a broad theft endorsement apply?

(Choose from the following options)

• The insured's live-in maid's quarters are burglarized.
• The insured's jewelry is stolen from her vacation home after she returns home.
• The insured's vacuum cleaner is stolen from her apartment.
• The insured's camera is stolen from his vacation home while he is there. ----------

Correct Answer ---------- 4. The insured's camera is stolen from his vacation home while he is there

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Which of the following coverages will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury or property damage caused by an occurrence to which the coverage applies?

(Choose from the following options)

• Coverage C - Personal Property
• Coverage D - Loss of Use
• Coverage E - Personal Liability
• Coverage F - Medical Payments to Others ---------- Correct Answer ---------- 3.

Coverage E - Personal Liability

Unless the insured has rejected Uninsured Motorist Coverage, the insurer must provide coverage for damage to the insured auto caused by an uninsured auto in the amount of

(Choose from the following options)

• The actual cash value of the insured auto or $10,000, whichever is less.
• A stated amount determined by the insured.
• The replacement cost of the insured auto.
• The market value of the insured auto. ---------- Correct Answer ---------- 1. The actual

cash value of the insured auto or $10,000, whichever is less.

Which of the following liability exposures is most likely for a small specialty clothing retail boutique?

a) Operations liability exposure

b) Product liability exposure

c) Completed operations liability exposure

d) Premises liability exposure ---------- Correct Answer ---------- d) Premises liability

exposure

The premises liability exposure exists when there is use of the premises. Operations liability exposure relates to activities in addition to use. Product liability exposure is the possibility that the public might be injured by the product. Completed operations liability refers to liability for work already performed or completed. For a boutique retail store, the only possible liability would arise from customer injury while on the premises.

All of the following are true of Coverage B - Other Structures EXCEPT

a) It must be added by endorsement to a homeowners policy.

b) This coverage is not applicable on the HO-4 policy form.

c) The amount of coverage provided by Coverage B is an amount equal to 10% of

Coverage A.

d) Land where the other structures are located is not covered. ---------- Correct Answer -

--------- a) It must be added by endorsement to a homeowners policy. 3 / 4

Homeowners policies automatically provide an amount of insurance in Coverage B that is equal to 10% of the amount written as Coverage A. This amount may be increased by endorsement.

All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT

a) Up to $100 for the cost to secure the release of a vehicle from an impoundment lot

following a covered accident.

b) Up to $200 a day for loss of earnings due to attendance at hearings or trials.

c) Premiums on appeal bonds in any suit the insurer defends.

d) Up to $250 for bail bonds required because of a covered accident. ---------- Correct

Answer ---------- a) Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident.

A personal auto policy does not pay the cost of the release of a vehicle impounded by a law enforcement agency.

Driver A has a personal auto policy with Part C: UM/UIM limits of 100/300. He is injured by Driver B who has Part A: Bodily Injury Liability limits of 50/100. It is determined that Driver B is at fault for the accident. Driver A has $125,000 in medical expenses. How

much will his Part C: UM/UIM coverage pay?

• $125,000
• $75,000
• $50,000
• $25,000 ---------- Correct Answer ---------- c) $50,000

Underinsured motorist coverage acts as excess over the at-fault motorist's coverage. It will pay the difference between the insured's UIM limits and the at-fault driver's bodily injury limits (in this scenario, $100,000 of the insured's coverage minus $50,000 of the other driver's). Because of the per person limits of Driver A's underinsured motorist coverage, the policy will pay the amount necessary to bring payment up to the per person limit. The policy will not pay more than the limits of liability.

Because an insured owns a lot of expensive jewelry, her insurance agent has advised her to purchase a scheduled personal property endorsement. If the 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. ---------- Correct Answer ---------- b)

Coverage C limits will no longer apply to the jewelry insured by the endorsement.

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