MO PROPERTY AND CASUALTY EXAM

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MO PROPERTY AND CASUALTY EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -72 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: In liability insurance policies, supplementary payments are made

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In addition to the limit of liability Question 2: Which of the following is NOT a punishment for violating the Director's cease and desist order?

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Community service Question 3: Which of the following types of valuation works best for property whose value does not fluctuate much?

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Agreed value Question 4: Which of the following is NOT settled on an actual cash value basis while covered under the business property coverage form?

Answer:

Valuable papers and records

Question 5: The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what max time period?

Answer:

• year

Question 6: Under the professional liability loss settlement provision, what must an insurer do before offering to pay a claimant to settle a claim?

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Get the insured's consent Question 7: Under the commercial property coverage program, the basic causes of loss form insures against loss caused by...

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Sprinkler leakage Question 8: Which method of loss valuation is contrary to the basic concept of indemnity?

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Replacement cost Question 9: All of the following are true statements regarding the supplementary payments of a CGL policy EXCEPT

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They pay defense costs even after the aggregate limit has been reached Question 10: Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages?

Answer:

Special

Question 11: Which of the following would NOT qualify as a hired auto?

Answer:

An auto borrowed from an employee

Question 12: Which of the following authorities is required to conduct a financial examination of the state's insurers?

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Director Question 13: Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?

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Professional liability Question 14: The insured with a claims-made commercial general liability (CGL) policy may request in writing claim and occurrence information from the insurer at any time up to 60 days after the policy period ends. The insurer must provide the information...

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Within 45 days Question 15: Which of the following actions is prohibited by the state regulations on producer commissions and compensation?

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Retrospective commissions Question 16: Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?

Answer:

$5,000

Question 17: Replacement cost is defined as

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Full replacement of property at its current cost, new and without reduction for depreciation

Question 18: Which of the following is true of dwelling policy coverage?

Answer:

Exclusions apply to all three policy forms

Question 19: All of the following statements describe the concept of strict liability EXCEPT

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It is imposed on defendants engaged in hazardous activities Question 20: Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?

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Mechanical breakdown Question 21: When a property policy is cancelled under the Missouri Basic Property Insurance and Placement Program, the insurer must send the insured a notice of cancellation. Which of the following is FALSE regarding the notice?

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It must be sent at least 15 days prior to the date of cancellation Question 22: Under businessowners policy Section I, if an insurer wants to nonrenew a policy for nonpayment of premium, how many days before the expiration date must the insurer notify the mortgageholder?

Answer:

10 days Question 23: An insured owns and operates a commercial business. He has included a business income coverage form with his commercial package policy. When the insured's business is severely damaged by fire, the business income coverage will pay for

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Net income plus continuing expenses of the business Question 24: How many hours of continuing education must be completed in ethics and Missouri law each licensing period?

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3 Question 25: In order to form a business entity providing medical malpractice insurance, how many licensed persons are required?

Answer:

3