MINNESOTA PROPERTY AND CASUALTY INSURANCE EXAM

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MINNESOTA PROPERTY AND CASUALTY INSURANCE EXAM

EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: personal inland marine

Answer:

broader coverage for personal property

Question 2: specific(scheduled) covered property

Answer:

detailed list of covered items(engagement ring)

Question 3: messenger

Answer:

someone who has care and custody of property OUTSIDE premises

Question 4: adverse selection

Answer:

risks that have a greater than average chance of loss

Question 5: coverage B-other(detached) structures

Answer:

insures building on the premises that are separated from the dwelling by a clear space or connected only by fence, utility line, or similar connection (10% of coverage A)

Question 6: robbery

Answer:

unlawful taking of property from another. violence or threat

Question 7: representation

Answer:

believed to be true

Question 8: watch person

Answer:

someone retained specifically by the insured whose sole duty is to have care AND custody of property inside the premises

Question 9: HO-5

Answer:

comprehensive form, owner occupant(cadillac coverage)

Question 10: first-named insured

Answer:

first on the declarations

Question 11: obligee

Answer:

party whom the promise is made(me)

Question 12: appraisal

Answer:

disagreement on the amount of loss

Question 13: direct loss

Answer:

immediate loss caused by a peril

Question 14: law of large numbers

Answer:

the larger the group, the more accurately losses can be predicted

Question 15: warranty

Answer:

promise

Question 16: insuring agreement

Answer:

promise to pay and perils covered

Question 17: theft

Answer:

unlawful taking of property

Question 18: subrogation

Answer:

insurance company can sue the at-fault party

Question 19: domestic

Answer:

state where a company is incorporated

Question 20: market value

Answer:

selling price, seldom used

Question 21: indirect loss

Answer:

loss over time as a result of the direct loss

Question 22: blanket covered property

Answer:

no detailed list(inventory)

Question 23: coverage F- medical payment to others

Answer:

pays all necessary medical expenses incurred within 3 years of an accident the causes bodily injury

Question 24: insureds

Answer:

by definition

Question 25: coverage M- medical payments to others

Answer:

medical and bills of others, no fault, 3 years, on and off premises

Question 26: custodian

Answer:

someone who has care or custody of property INSIDE premises

Question 27: fiduciary

Answer:

person in a position of financial trust

Question 28: functional replacement

Answer:

replace with modern construction

Question 29: extended coverage(EC) perils

Answer:

WCSHAVVER, V&MM wind, civil commotion, smoke, hail, aircraft, vehicles, volcanic eruption, explosion, riot, vandalism and malicious mischief