PEARSON VUE: CASUALTY INSURANCE PRACTICE EXAM

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PEARSON VUE: CASUALTY INSURANCE PRACTICE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: If an insured intentionally conceals a material fact about an auto to be covered

by a policy, coverage may be:

• voided
• suspended
• reduced
• restricted

Answer:

A Question 2: In insurance, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or damage neither expected nor intended?

• An accident
• An occurrence
• An event
• A condition

Answer:

B

Question 3: Products Liability coverage would insure damages that arise from which of the following situations?

• A manufacturer is required to recall a defective product.
• A contractor installs inferior-grade siding on a building.
• A customer receives an electrical shock from a curling iron during an in-store demonstration.
• A bicycle rider is injured when a wheel malfunctions.

Answer:

D Question 4: An insurance binder is best described as:

• a large bound volume of rules, rates, and forms
• a rate manual supplied by one of the rating organizations
• a temporary agreement to pay a claim pending final settlement
• temporary short-term evidence of coverage

Answer:

D Question 5: Under a Commercial General Liability policy, Personal and Advertising Injury

Liability coverage does NOT apply to damages resulting from:

• slanderous statements made by an advertising firm
• copyright infringement by a department store
• harmful, truthful information published by a realtor
• invasion of an individual's privacy

Answer:

A

Question 6: A business insured under a Commercial General Liability policy has a General Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured party is awarded $100,000. What limits will remain available to the insured?

• General Aggregate of $1,000,000; Occurrence limit of $100,000
• General Aggregate of $900,000; Occurrence limit of $100,000
• General Aggregate of $1,000,000; Occurrence limit of $0
• General Aggregate of $900,000; Occurrence limit of $0

Answer:

B Question 7: The Fair Credit Reporting Act requires the:

• insurance company to review the applicant's credit history prior to underwriting a policy
• insurance producer to summarize a policy for the insured
• insurance producer to review the applicant's credit history prior to issuing a policy
• insurance company to inform the applicant a credit report may be obtained

Answer:

D Question 8: The act of intentionally withholding from an insurance application a fact that would

affect issuance of the policy is referred to as:

• concealment
• misrepresentation
• defamation
• twisting

Answer:

A

Question 9: Which of the following liability coverages may require the insured's consent before the insurance company settles and pays a loss?

• Professional
• Automobile
• Products
• Contractual

Answer:

A Question 10: Under a Fidelity Bond, which of the following individuals is considered the obligee?

• An employer
• An employee
• A subcontractor
• A creditor

Answer:

A Question 11: Premium costs for standard Workers Compensation insurance are paid by:

• employers only
• employees only
• employers and employees jointly
• the Workers Compensation Board

Answer:

A