PROPERTY CASUALTY PRACTICE EXAM QUESTIONS

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EXAM QUESTIONS

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-Format: Multiple-choice / Flashcard

Question 1: Underwriters are permitted to use all of the following when underwriting an application for insurance EXCEPT

Answer:

age, race, and religion Question 2: Which policy condition encourages policy holder to insure to at least 80% of replacement value to avoid a penalty with partial losses?

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coinsurance Question 3: All of the following are exclusions are found under the personal auto policy Part A liability coverage, EXCEPT

Answer:

bodily Injury to an insured?s nonresident family member or relative.

Question 4: All of the following demonstrate insurable interest EXCEPT

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insuring an engagement ring given to fiancée.

Question 5: Which of the following types of crime best describe the unlawful act of taking property from the care and custody of another person while threatening to cause bodily harm?

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robbery Question 6: Which of the following business liability insurance policies would provide coverage to ABC Company in a suit brought by a fired employee for wrongful discharge?

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Employment Practices Liability Question 7: For the CGL coverages of bodily injury, property damage and medical payments, which of the following limits of insurance apply if the aggregate limit is NOT met?

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per occurence Question 8: Which type of hazard is an example of a person who increases the chance of loss through carelessness or by irresponsible actions?

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morale hazard Question 9: Which document would a lender ask an insured for as evidence that a policy has been written?

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Certificate Question 10: Determining adequate indemnification after a loss is a principle duty of which of the following?

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insurance company Question 11: Which of the following is an example of a financial loss caused by a home being damaged in a windstorm?

Answer:

direct loss

Question 12: Which of the following is the standard amount of coverage A-dwelling provided by the HO-6 Unit-Owners Policy?

Answer:

$1000 Question 13: All of the following would be eligible expenses after a loss under Coverage E Additional Living Expense EXCEPT

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mortgage expenses.Question 14: Purchasing boat owners insurance is an example of which of the following?

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transfer Question 15: All of the following are a covered cause of loss under the Homeowners HO-2 Broad form EXCEPT

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discharge or overflow of water from a sump Question 16: Which coverage forms are used when the insured sustains loss of revenue due to direct physical loss from a peril insured against that forces the insured to suspend operations during the period of restoration?

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Business Income Coverage forms Question 17: Which of the following provides insurance for employers when workers not covered by workers compensation insurance are injured on the job and sue for compensation?

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employer liability Question 18: Which of the following created The National Flood Insurance Program?

Answer:

the United States Congress

Question 19: If the insured has a loss with a private passenger nonowned temporary substitute vehicle how will the loss be treated by the insureds own policy for physical damage?

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the broadest coverage available extends from the insured's policy.

Question 20: Which of the following hazards is an example of a physical hazard?

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burning debris near the building on a calm sunny day Question 21: An injured employee covered under workers compensation is entitled to reasonably justifiable expenses for retraining. this benefit falls under which of the following?

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vocational rehabilitation Question 22: When the policy term ends and either the insured or the insurance company wants to discontinue coverage which provision is applied?

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nonrenewal Question 23: Which of the following Homeowners form provides the most comprehensive coverage?

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HO-5 Question 24: The insured purchases a car for $40000 and added $5000 in insured modifications.Four years later it was worth $24000 when it was totaled in a crash. According to the principle of indemnity, how much should the insured receive from the insurance proceeds?

Answer:

$24000

Question 25: Which of the following defines the term peril?

Answer:

cause of loss