Property Casualty - Mike Russ Practice Test Flashcards

Property & Casualty - Mike Russ Practice Test Flashcards

An umbrella policy covers:A. Outside events (carnivals,

fairs, etc.)B. Excess liability and property damage to the insuredC. Excess liability coverage beyond the underlying limits on a homeowners policy and auto policyD. Excess liability beyond the underlying limits on an auto policy only

• Excess liability coverage beyond the underlying limits on

a homeowners policy and auto policy

The term marine in the Business of Insurance refers to:A.

WaterB. TransportationC. SeaD. Ocean

• Transportation

In addition to the common conditions and 2 or more coverage forms, a commercial package policy must

contain:A. Commercial General LiabilityB. Commercial

Property FormC. Common ExclusionsD. Common Declarations

• Common Declarations

To be eligible for social security how many credits does a participant need.A. 50B. 65C. 40D. 25

• 40

A situation where two or more perils occur at the same time

or in sequence to cause a loss is called:A. proximate

causeB. additional coverageC. special causes of lossD.concurrent causation

• concurrent causation

An applicant for an insurance license must submit which of

the following items:1 - Department of Insurance application

form2- fees3 - certificates showing completion of necessary course materialA. 2 and 3 OnlyB. 1 OnlyC. 1, 2 and 3D. 1 and 3 Only

• 1, 2 and 3

Which of the following would not be eligible for coverage under a personal auto policy?A. A vanB. A pickup truckC. A sports carD. A motorcycle

• A motorcycle

The coverage C limit is typically what percentage of the Coverage A amount under a homeowners policy?50% A newly acquired auto is to replace a covered auto that has liability coverage only. How long will the insured have to

request collision coverage on the new auto:A. 20 daysB. 4

daysC. 30 daysD. 14 days

• 4 days

Which of the commercial property causes of loss forms cover theft?A. Only the special formB. Theft is excluded from all formsC. The broad and special formsD. The broad form

• Only the special form

All of the following are true regarding Binders except:A.

Binders apply to Life or Disability Insurance only.B. A binder shall be valid for the period specified therein not exceeding 90 days from the date of execution of the binder or, if not specified, for that period of 90 days.C. A binder

shall be deemed an insurance policy for the purpose of proving that the insured has the insurance coverage specified in the binder.D. Binder means a writing which includes the name and address of the insured and any additional named insureds, mortgagees, or lienholders, a description of the property insured, if applicable, a description of the nature and amount of coverage and any special exclusions not contained in a standard policy, the identity of the insurer and the agent executing the binder, the effective date of coverage, the binder number or the policy number where applicable to a policy extension.

• Binders apply to Life or Disability Insurance only.

There are three types of Long term care sold in California; Nursing facility and residential care, home care only, comprehensive long-term care.True or False?True

All of the following are endorsements under the Business

Auto Policy except:A. Rental ReimbursementB. Medical

PaymentsC. Physical DamageD. Uninsured Motorists

• Physical Damage

What is not available under a commercial package policy?Workers Compensation The insured has liability limits of 15/30/5 on their auto, if the insured is involved in an at fault accident in another state, where the financial responsibility limits are higher, what

must the insureds company do:A. Pay up to 15/30/5B.

Deny the claimC. Meet the minimum requirements of the other state for an additional premiumD. Meet the minimum requirements of the other state with no additional premium due

• Meet the minimum requirements of the other state with

no additional premium dueSubmit In a commercial Property Policy with a vacancy permit endorsement for a loss to be covered the loss must

occur:A. During the policy periodB. 2 months after policy

inceptionC. During the permit periodD. 6 months after policy inception

• During the permit period

The earthquake cause of loss form must be used with:A. at

least one of the other causes of loss formsB. the property declarations and conditionsC. all of the choicesD. the property coverage part

• all of the choices

The CGL coverage territory includes all of the following

except:A. Puerto RicoB. U.S. Virgin IslandsC. Toronto,

CanadaD. Mexico City, Mexico

• Mexico City, Mexico

Under a CGL policy, the word occurrence refers to:A. An

accident, including a continuous or repeated exposure to the same harmful conditionsB. Only an accidentC.Prolonged exposure to harmful conditionsD. A slip and fall situation

• An accident, including a continuous or repeated

exposure to the same harmful conditions Coverages provided by a personal umbrella policy that are broader than the coverages provided by an underlying

policy are called:A. contractual liability coveragesB. split

limits of coverageC. drop-down coveragesD. compensatory damages

• drop-down coverages

Lucy purchased an HO-2 policy. She accidentally hits the gas pedal instead of the brake and her car runs into the corner of her house, causing extensive damage. Under her HO-2 policy, what, if any, coverage does she have?A.Coverage for damage to neither house nor carB. No coverage for damage to the house.C. Coverage for damage to the carD. Coverage for damage to both house and car

• No coverage for damage to the house

Lines of Insurance that require rates to be filed and

approved by the state before they can be used would be:A.

Judgment RatingB. Prior ApprovalC. File and UseD.

Mandatory

• Prior Approval

Which of the following types of personal property would NOT be covered under a homeowners policy?A. JewelryB.