LOUISIANA PROPERTY CASUALTY EXAM - PSI EXAMFX

PDF Download LOUISIANA PROPERTY & CASUALTY EXAM - PSI & EXAMFX Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -41 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A agent's license may be suspended or revoked for all of the following reasons EXCEPT...

Answer:

b) Sharing commissions with another agent.

The Commissioner has the power to suspend, revoke, or refuse to renew a producer's license for failure to comply with the Insurance Code or licensing regulations, as well as for fraud and failure to pay income taxes, among other violations. Sharing commissions is allowed as long as both agents are properly licensed.Question 2: How long is the period of time in which a licensee must renew his or her license?

Answer:

• 90 days prior to expiration

Licensees may renew their license 90 days prior to its expiration.Question 3: HMS Toys carries more inventory from October 1 to December 31. Which of these would provide higher coverage limits during those months and lower limits the rest of the year?

Answer:

d) Peak season

The peak season endorsement provides higher limits when needed for a known time period. Reporting forms are appropriate for risks whole value fluctuate both up an down throughout the policy period.

Question 4: Which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation or replacement?

Answer:

d) Nonrenewal

Nonrenewal is the termination of an insurance policy at its expiration date by not offering a continuation of the existing policy or a replacement policy.Question 5: What type of policy, which may be added by endorsement or purchased separately, may an insured purchase in order to provide coverage for other types of contracts?

Answer:

a) A contractual liability policy

In order to provide coverage for other types of contracts, the insured may purchase a contractual liability policy, which may be added by endorsement or purchased separately. With this coverage, the insurer agrees to pay for bodily injury or property damage liability that the insured has agreed to assume under a written contractual agreement.Question 6: Which of the following injuries under Coverage C - Medical Payments of a commercial general liability policy?

Answer:

b) Injuries to a member of the general public that occurs on premises

Medical payments coverage makes payment of necessary medical & first aid for injuries to third parties occurring on the insured premises, regardless...Question 7: Two men are partners in a moving company. They have two trucks used to move property of others. They should insure their trucks under a ...

Answer:

a) Business auto policy

The business auto policy would be the correct policy to insure vehicles used in business. A minimum of

• vehicles would be necessary to insure as a fleet.

Question 8: The defendant being released on a surety bail bond is the

Answer:

b) Principal.

The defendant has made a promise to show up in court at the specified time. The principal makes a promise to perform.

Question 9: An insurer must notify the consumer in writing that an investigative consumer report has been requested, within how many days of the initial request?

Answer:

• 3 days

If a consumer report is requested, the insurer must notify the consumer at least 3 following the initial request.Question 10: Which of the following would NOT be eligible for coverage under a personal auto policy?

Answer:

b) A vehicle purchased 90 days ago

A covered auto includes automobiles listed in the declarations, owned trailers, newly acquired autos (for 30 days), nonowned temporary substitute vehicles, and additional temporary vehicles due to repair, servicing, breakdown, or loss.Question 11: Coverage B - Personal and Advertising Injury Liability responds to claims arising from...

Answer:

a) Suits alleging infringement of a copyright.

Coverage B combines both personal injury and advertising injury into a single insuring agreement and limit of liability.Question 12: According to the Insured Duties after a Loss provision in homeowners policies, in the event of loss, the insured must do all of the following EXCEPT...

Answer:

a) Promptly hire an adjuster to evaluate the property damage.

Hiring an adjuster is not one of the requirements for the insured. The rest of the options are required insured's duties.Question 13: Which of the following is NOT found in a commercial package policy?

Answer:

a) Common policy declarations

b) Interline endorsements

c) Certificate of authority

d) Common policy conditions

Question 14: In order to get a nonresident license in Louisiana, producers must

Answer:

a) Apply & pay a fee to a nonresident state that reciprocates

In order to get a nonresident license in this state, producers must apply & pay a fee to a nonresident state that reciprocates.Question 15: Which of the following is a federal act that covers crews of ships the same as railroad workers?

Answer:

a) The Jones Act

The Jones Act is a federal act that covers ships' crews with the same remedy available to railroad workers.Question 16: Under Coverage B - Other Structures, a homeowners policy provides coverage for other structures on the residence premises. Which of the following statements is NOT true of this coverage?

Answer:

b) Any loss paid under Coverage B reduces the Coverage A limit of liability.

The automatic limit for Coverage B is 10% of the limit of liability that applies to Coverage

• Use of this coverage does not reduce the Coverage A limit of liability.

Question 17: The limit on controlled business is...

Answer:

25% Question 18: Insureds covered under a Mobile Homeowners Policy move their mobile home to prevent it from being damaged by a fire. What is the maximum amount the policy will pay for this?

Answer:

• $500

A Mobile Homeowners Policy will pay up to $500 if the insured moves the mobile home to a safer area to protect it from loss by a covered peril.Question 19: The owner of a rental dwelling, insured under a DP-2, turns off the heat in the insured dwelling during the winter months because the dwelling is not occupied. The building's water pipes freeze and break, causing damage. How will the policy react to this loss?

Answer:

c) This loss is excluded from coverage.

Freezing and breaking of pipes is not covered unless the insured maintains heat in the building.