PROMETRIC PRACTICE TEST EXAM QUESTIONS

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PROMETRIC PRACTICE TEST EXAM QUESTIONS

Qs and Ans - Expert- Explanation - ing score -31 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: An insurance contract drafted by the company and offered to the prospective

insured for acceptance or rejection without negotiation is called a:

• Personal contract
• Unilateral contract
• Contract of subrogation
• Contract of adhesion

Answer:

d Question 2: Monetary damages awarded to an injured party must be based on all of the

following elements EXCEPT:

• Damages as the proximate result

b Negligence

• Available insurance
• A legal duty owed

Answer:

c

Question 3: A group-owned insurer whose primary activity consists of assuming and spreading

the liability risks of its members is the definition of:

• Reinsurer
• Risk retention group
• Insurance purchasing group
• Pure off-shore captive

Answer:

b Question 4: Which of the following is NOT used in determining the amount an insured can receive under the Personal Property Replacement Coverage Endorsement to a Homeowners Policy?

• Full cost of repair at the time of loss
• Depreciated market value
• The Coverage C amount
• Special limits stated in the policy

Answer:

b Question 5: Which one of the following is eligible property for a Dwelling Policy?

• A four-family dwelling
• A six-family dwelling
• A single family dwelling with the third floor rented to five boarders
• A two-family dwelling with the ground floor rented for a beauty parlor

Answer:

a

Question 6: A driver of a vehicle failed to stop for a red light and hit a light pole but did not hit a nearby vehicle. Which element of negligence is missing for legal action to be taken by the driver of the nearby vehicle?

• Legal duty
• Failure to meet the standard of care
• Proximate cause
• damage

Answer:

d Question 7: An unendorsed liability insurance policy provides coverage for:

• Criminal actions
• Unintentional torts
• Intentional torts
• Moral obligations

Answer:

b

Question 8: A Federal Flood Insurance Policy covers which of the following?

• Power tools stored in an attached garage
• Furniture in a basement family room
• Patio furniture on an open deck
• Recreational vehicles parked in the driveway

Answer:

a

Question 9: Which one of the following is a major section of a liability insurance policy?

• Property covered
• Perils
• Loss payment
• Conditions

Answer:

d Question 10: A licensed producer or agent may receive commission compensation for all of the

following services EXCEPT:

• Negotiation of any insurance contract
• Procurement of any insurance contract
• Acting as a consultant to provide insurance advice
• Adjustment of claims arising from insurance contracts

Answer:

c Question 11: cash value is generally accepted to mean:

• Original purchase price of the property
• Market value at the time of the loss
• Cost to replace at the time of loss, plus appreciation
• Cost to replace at the time of loss, less depreciation

Answer:

d