PROPERTY AND CASUALTY INSURANCE TEST QUESTION

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PROPERTY AND CASUALTY INSURANCE TEST QUESTION

NOTES Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -95 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What type of coverage covers a mobile home in transit?

Answer:

Trip-Transit coverage Question 2: In an extra expense coverage form, what amount of days are meant if the coverage

states: 40%/80%/100%

Answer:

30 days or less will pay 40% 31-60 days will pay 80% 61+ days will pay 100%

Question 3: What part of the insurance policy shows the premium payment?

Answer:

Declarations page Question 4: What is a contract or device for transferring risk from a persons, business, or organization to an insurance company?

Answer:

Insurance

Question 5: What is the state legal minimum for fire liability?

Answer:

$50,000

Question 6: How much will DP-2 and DP-3 cover for trees, shrubs, and other plants?

Answer:

$500 for any one tree/shrub/plant Question 7: How long does an Extended Reporting Period cover claims made after the expiration date of the policy?

Answer:

Extended, 60 days Covered up to 5 years with basic tail extension

Question 8: What are the elements of an insurable risk?

Answer:

CANHAM

Calculable, Affordable, Non-Catastrophic, Homogeneous, Accidental, Measurable

Question 9: When does mobile home coverage take effect?

Answer:

As soon as the mobile home is set on a permanent foundation

Question 10: What is the method of handling risk that involves a deductible?

Answer:

Retention (loss or portion of loss)

Question 11: What is it meant by "Express Authority"?

Answer:

Authorities are written in agent contract

Question 12: What is an interline endorsement?

Answer:

An endorsement that may be used with more than one line of insurance

Question 13: When an insured decides to cancel an insurance policy before the expiration date, how is the unearned premium returned?

Answer:

Short-Rate basis

Question 14: What is Reinsurance?

Answer:

When insurance companies purchase insurance to cover their own exposures to loss Question 15: Which section of the Homeowners policy does not contain a deductible?

Answer:

Section II - Liability Question 16: What type of policy is designed to provide coverage for catastrophic liability coverage for business risks?

Answer:

Commercial umbrella liability Question 17: What is the amount of reimbursement that an insured can receive for loss of earning due to the time spent in court if an insurance company requests the insured to testify in court?

Answer:

Up to $200 a day Question 18: Which auto coverage symbol covers a customer's auto left with the insured for service?

Answer:

Symbol 30

Question 19: What is a peril?

Answer:

A Peril is a cause of loss

Question 20: What is the minimum fire legal liability?

Answer:

$50,000

Question 21: For a homeowners policy, how much is covered for the fire department service charge?

Answer:

Up to $500, no deductible

Question 22: What is a hazard?

Answer:

Something that increases the chance of a loss

Question 23: What act specifies a theft as a burglary?

Answer:

Signs of forced entry/exit

Question 24: Theft excludes what type of coverage?

Answer:

Mysterious Disapearance

Question 25: Property coverage B provides coverage for what?

Answer:

Other structures; 10% of A Question 26: BOP building coverage includes materials, equipment, supplies, and temporary structures that are on or within how may feet of the premises?

Answer:

100 feet Question 27: What are some characteristics that allow a business to be eligible for a BOP policy?

Answer:

Less than 100 employees Revenue of $300 million or less Business occupying up to 25,000 sqft Less than six stories