VA PC PRACTICE EXAM QUESTIONS

PDF Download VA P&C PRACTICE EXAM QUESTIONS Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All of the following statements regarding the business income coverage form

are true EXCEPT:

• it is coverage for business interruption losses
• it covers time element losses
• it covers suspension of operation for any reason
• its coverage applies to losses and expenses related to an interruption of normal

business operations

Answer:

• it covers suspension of operation for any reason

Question 2: When an insured decides to cancel a fire policy mid-term, the cancellation is

effected on a/an:

• pro rata basis
• equitable basis
• excess basis
• short-rate basis

Answer:

• short-rate basis

Question 3: If information on consumer reports differs from an applicant's statements and

causes the insurer to reject the application, the insurer has made a/an:

• Adverse underwriting decision
• Unfair decision
• Unfair discriminatory decision
• Negative underwriting decision

Answer:

• Adverse underwriting decision

Question 4: All of the following are indirect loss coverage available under equipment breakdown

forms EXCEPT:

• business income
• business interruption
• consequential damage
• extra expense

Answer:

• business income

Question 5: In which of the following instances would coverage be triggered under a claims made form?

• When a claim is reported and filed
• When a covered employee is injured on the job
• When bodily injury to others occurs following a retroactive date, if any
• When injury or damage occurs during the policy period

Answer:

• When a claim is reported and filed

Question 6: An agent who shares his commission with a prospective insured in return for the purchase of a policy has engaged in

• Twisting
• Coercion
• Defamation
• Rebating

Answer:

• Rebating

Question 7: Virginia property cancellation regulations do NOT apply to policies which have been in effect for less than how many days?

• 30
• 60
• 90

D. 180

Answer:

• 60

Question 8: If an insured purchases 2 separate fire policies for 2 separate insurers with identical limits of liability and then suffers a loss, payment will be made on which of the following bases?

• reimbursement basis
• all-risk basis
• pro rata basis
• specified basis

Answer:

• pro rata basis

Question 9: If a neighbor accidentally drove his vehicle into the insured's fence, this would:

• be covered under a basic form - dwelling policy with the extended coverage perils
• not be covered under any of the dwelling policy forms
• be covered under the broad form - dwelling policy
• be covered as part of the extension of coverage under all dwelling coverage forms

Answer:

• be covered under the broad form - dwelling policy

Question 10: When an individual or business causes harm to another, the injured party will expect their damages to be covered by the person causing the injury. If the individual or business causing harm will be held responsible for the damages regardless of negligence, we

say they are:

• Negligent
• Absolutely liable
• Vicariously liable
• Not liable

Answer:

• Absolutely liable

Question 11: Which of the illnesses would qualify as occupational disease in VA?

• Anxiety caused by work-related stress
• Cancer cause by exposure to chemicals at the work site
• Hearing loss caused by excessive noise on a factory assembly line
• Carpal tunnel syndrome from using power tools

Answer:

• Cancer cause by exposure to chemicals at the work site