PROPERTY AND CASUALTY INSURANCE EXAM QUESTIONS

PDF Download

PROPERTY AND CASUALTY INSURANCE EXAM QUESTIONS

AND ANSWERS PART ONE

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

-Format: Multiple-choice / Flashcard

Question 1: Which of the following would NOT be covered under the liability section of a personal auto policy?

Answer:

Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle.Question 2: If a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss?

Answer:

$8,000

Question 3: How much is the premium for the dwelling under construction endorsement under the dwelling policy?

Answer:

The average amount of insurance during construction Question 4: A common exclusion found under physical damage to your auto includes

Answer:

Mechanical breakdown.

Question 5: The cost of restoring farm records is an additional coverage offered under a farm policy. How much will the policy pay to restore the records?

Answer:

Up to $2,000

Question 6: Who will transport the property of anyone who hires them?

Answer:

Common carriers Question 7: Who is NOT considered an employee in an commercial general liability (CGL) policy?

Answer:

Temporary worker Question 8: The legal liability coverage form provides coverage for damages for which the insured is legally liable arising from

Answer:

Direct physical damage to property of others in the insured's care.Question 9: Under the Motor Vehicle Financial Responsibility Law, First Party Benefits would NOT be denied for which of the following injuries?

Answer:

Injury incurred while the person was under the influence of drugs or alcohol Question 10: Under the workers compensation system, who is responsible for the expenses resulting from work-related injuries and occupational diseases?

Answer:

The employer, regardless of whether it was at fault for the injury or disease Question 11: A mortgage company is named as a loss payee on the insured's homeowners policy, under the standard mortgage clause. If the insured suffers a loss due to a fire, which of the following is true?

Answer:

The loss is payable to the insured and the mortgagee.

Question 12: If more than one person has an insurable interest in the property covered under a dwelling policy,

Answer:

The insurer will be liable for only the insured's interest in the damaged property.Question 13: According to the loss payment condition in HO policies, losses must be paid within how many days of the insurer receiving proof of loss?

Answer:

60 days Question 14: All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Answer:

Dividends from a mutual insurer.Question 15: Which of the following would be considered an unfair claims settlement practice?

Answer:

A claims adjuster advises the insured that if the claim goes to arbitration, the insured would probably receive less than what is currently being offered Question 16: An insured has a personal property replacement cost endorsement under her homeowners policy. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement?

Answer:

Nothing Question 17: Which of the following criminal activities would be sufficient violation to warrant rejection, revocation, or suspension of an insurance producer's license?

Answer:

Forgery Question 18: In a personal umbrella policy, the amount paid by the insured for certain losses not covered under the primary coverage is called

Answer:

Self-insured retention.

Question 19: Which of the following is an example of a protective safeguard in a businessowners policy?

Answer:

Automatic sprinkler system

Question 20: What is not a consideration when paying an inland marine claim?

Answer:

Market value when the property was first purchased Question 21: Which insurers are required to participate in the Pennsylvania Automobile Insurance Plan (Assigned Risk Plan)?

Answer:

All insurers authorized to write auto liability insurance in the state Question 22: With regards to a homeowners policy, which coverage provides for indirect or consequential losses?

Answer:

Coverage D Question 23: An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have?

Answer:

Per occurrence Question 24: If an insured lives in a high-risk area and can't find an insurer that will cover his/her property, which of the following would most likely provide coverage?

Answer:

The FAIR Plan Question 25: A meteorite hits the insured's car, causing damage. Under which of the following coverages in a personal auto policy would this loss be paid?

Answer:

Other-than-collision