CHEAT SHEET - PROPERTY CASUALTY EXAM QUESTIONS

PDF Download CHEAT SHEET - PROPERTY & CASUALTY EXAM QUESTIONS Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -57 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: HO-5

Answer:

Comprehensive Form; owner-occupant (open to all except exclusions)

Question 2: Extra expense

Answer:

Coverage that reimburses the insured for expenses incurred to keep a business going after a loss caused by a covered peril.

Question 3: HO-3

Answer:

Special Form; owner occupant

Question 4: The no benefit to bailee condition

Answer:

Bailee is not reimbursed by insured's commercial property insurance.

Question 5: Dwelling Broad Form

Answer:

DP-2

Question 6: Control of property

Answer:

States that an act of neglect of a person beyond the insured's direction or control will not affect the

insurance. Meaning: People are beyond your control within your building.

Question 7: Umbrella insurance

Answer:

Refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. Some insureds need higher limits of liability coverage than can be provided by their auto or homeowners policies. This need can be met through a personal umbrella policy.

Question 8: Commercial Package Policy

Answer:

Usually begins with coverage for property and general liability insurance and then other forms of insurance are added on to create a bundle. A majority of commercial risks may be eligible for coverage under the CPP. You must have 2 or more policies to be a package.

Question 9: What are the three separate cause of loss forms?

Answer:

Basic Broad Special (open)

Question 10: IM or property floaters

Answer:

Cover exposures that involve property and merchandise while in transit or "floating." Includes items in transit, held by bailee, at fixed location, or movable type of goods that are often in different locations.

Question 11: HO-8

Answer:

Modified Form for Special Risks (such as older homes that would cost more to rebuild than they're worth)

Question 12: DP-1

Answer:

Dwelling basic form that provides certain other coverages that are automatically included for not additional premium.-Other structures allows use of up to 10% of the Coverage A limit of liability for covered losses to other structures as described in coverage B.-Debris removal pays for the expense of removing debris as the result of a loss covered by the policy.-Reasonable repairs pays for reasonable costs to make necessary repairs to protect property from further damage following a covered loss.-Improvements, alterations, and additions provide coverage for insureds who are tenants for improvements or alterations made to the dwelling at the tenant's expense -Fire department service charge - pays up to $500 for fire department charges incurred when they're called to save or protect property.-Worldwide coverage provides 10% of coverage C (personal property on premisis) -Rental value - provides up to 20% of Coverage A (dwelling) limit of liability for loss of fair rental value.

Question 13: Nationwide definition of Inland Marine

Answer:

-Imports -Exports -Personal floaters -Domestic Shipments -Instrumentalities of transportation or communication -Commercial property floater risks

Question 14: DP-2

Answer:

Includes all the coverages in DP-1 plus some other coverages that are not found in DP-1.

+ BIG AFFECT

-Trees, shrubs, and other plants pays up to 5% of Coverage A limit for damage to trees, shrubs, plants.etc. Policy will not pay more than $500 for damage.-Collapse pays for the collapse of the dwelling caused by a specified list of perils. To be considred a collapse, the loss must involve the building or part of building abruptly falling or caving.-Glass or safety glazing material pays for the breakage of glass or safety glazing material and damage to covered property caused by glass breakage.-Ordinance or law coverage allows payment of up to 10% of coverage A limit of liability for the increased cost to repair or rebuild a dwelling or other structure to conform to applicable building and land use codes.-Property removed from the premises to protect from damage is covered for 30 days.

Question 15: Domestic shipments

Answer:

are covered through a variety of inland marine transportation forms that cover anything being transported

Question 16: Definition of a flood

Answer:

-Temporary water from a natural source -Covers two or more acres that are usually dry -Mudflow -Water from inside the house is NOT a flood

Question 17: Coverage E (farm)

Answer:

Scheduled farm personal property allows choise of items to be specifically insured.

Question 18: Protection and indemnity (yacht policies)

Answer:

A form of bodily injury and property damage liability insurance

Question 19: BAILED

Answer:

Bonds Aid (first aid) Interest Loss earnings Expenses Defense cost

Question 20: Business income without extra expense coverage form

Answer:

Replaces the extra expense coverage with an expenses to reduce loss coverage that covers expenses the insured incurs to reduce loss, up to the amount the loss is reduced.