PROPERTY AND CASUALTY PRACTICE EXAM
PREP QUESTIONS AND ANSWERS 2024
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and
mathematics. These disciplines not only have distinct areas of focus but also require unique approaches to assessment
A morale hazard - answer Arises through an individual's carelessness or irresponsible
actions
They do not tell the agent that their son, Who lost his drivers license due to drunk
driving, uses one of their cars on a regular basis to drive to work. The company found
out about their son after he had an accident, and they denied the claim. What legal
concept can be cited as the reason for claim denial? - answer Concealment
Which of the following would be covered under the building coverage and the building
and personal property coverage form? - answer Fixtures
Which of the following forms is used to insure private passenger and commercial auto
exposures? - answer Business Auto Coverage Form
Businessowners Policy (BOP) - answer Provides a prepackaged policy of property and
liability coverages for certain types of small businesses
Of the four coverages provided under section 1 of the homeowners policy, which one
provides coverage against loss of use, an indirect loss? - answer Coverage D
, Which of the following is covered under a businessowners policy? - answer A small
business
Who of the following would be considered an Insured for liability coverage under the
personal auto policy? - answer The named insured's son, Who lives with the insured,
while driving a neighbors car with permission
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not
only have distinct areas of focus but also require unique approaches to assessment
Which of the following types of benefits is generally not provided by a state's workers'
compensation law? - answer Pain and suffering
Which of the following is NOT covered in the inland marine sign coverage form? -
answer A sign that breaks during installation
Each of the following kinds of property may be covered under a building and personal
property coverage form EXCEPT: - answer Autos for sale
Which of the following would NOT generally be included in the supplementary payments
portion of a liability policy? - answer Damage to property owned by the insured
Which commercial property coverage form covers damage to the property of others in
the insured's care, custody, or control, but only if the insured is legally liable? - answer
Legal liability coverage form
Under the Commercial General Liability policy, a separate Aggregate Limit applies to -
answer The products - completed operations
, Coverage for sums an employer becomes legally obligated to pay under common law as
a result of a work related injury to an employee is provided by - answer Part two-
Employers liability section of the Workers Comp policy
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not
only have distinct areas of focus but also require unique approaches to assessment
Which of the following losses would be covered by a flood policy? - answer Heavy
rains cause a lake to overflow and flood the basement and first floor of a house
In a liability loss, the person to whom the insured caused damage is referred to as -
answer The third-party
The purpose of a binder is to - answer provide temporary protection for the insured
between the time the application is made and the policy is issued or the binder expires
The purpose of insurance is to - answer Transfer risk from a person, business, or
organization to an insurance company that agrees to pay for losses in exchange for a
premium.
Additional living expense coverage that is included under the broad and special dwelling
forms protects the insured against - answer extra living costs incurred when the home
becomes uninhabitable due to damage by a peril insured against
What is a common name for Part D of the personal auto policy? - answer Physical
Damage Coverage
An insurance agent who needs liability coverage for her professional liability exposure
can obtain it by purchasing - answer errors and omissions insurance
PREP QUESTIONS AND ANSWERS 2024
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and
mathematics. These disciplines not only have distinct areas of focus but also require unique approaches to assessment
A morale hazard - answer Arises through an individual's carelessness or irresponsible
actions
They do not tell the agent that their son, Who lost his drivers license due to drunk
driving, uses one of their cars on a regular basis to drive to work. The company found
out about their son after he had an accident, and they denied the claim. What legal
concept can be cited as the reason for claim denial? - answer Concealment
Which of the following would be covered under the building coverage and the building
and personal property coverage form? - answer Fixtures
Which of the following forms is used to insure private passenger and commercial auto
exposures? - answer Business Auto Coverage Form
Businessowners Policy (BOP) - answer Provides a prepackaged policy of property and
liability coverages for certain types of small businesses
Of the four coverages provided under section 1 of the homeowners policy, which one
provides coverage against loss of use, an indirect loss? - answer Coverage D
, Which of the following is covered under a businessowners policy? - answer A small
business
Who of the following would be considered an Insured for liability coverage under the
personal auto policy? - answer The named insured's son, Who lives with the insured,
while driving a neighbors car with permission
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not
only have distinct areas of focus but also require unique approaches to assessment
Which of the following types of benefits is generally not provided by a state's workers'
compensation law? - answer Pain and suffering
Which of the following is NOT covered in the inland marine sign coverage form? -
answer A sign that breaks during installation
Each of the following kinds of property may be covered under a building and personal
property coverage form EXCEPT: - answer Autos for sale
Which of the following would NOT generally be included in the supplementary payments
portion of a liability policy? - answer Damage to property owned by the insured
Which commercial property coverage form covers damage to the property of others in
the insured's care, custody, or control, but only if the insured is legally liable? - answer
Legal liability coverage form
Under the Commercial General Liability policy, a separate Aggregate Limit applies to -
answer The products - completed operations
, Coverage for sums an employer becomes legally obligated to pay under common law as
a result of a work related injury to an employee is provided by - answer Part two-
Employers liability section of the Workers Comp policy
IntroductionExams serve as a fundamental tool in evaluating a student's understanding of a subject, particularly in fields as diverse as business, law, and mathematics. These disciplines not
only have distinct areas of focus but also require unique approaches to assessment
Which of the following losses would be covered by a flood policy? - answer Heavy
rains cause a lake to overflow and flood the basement and first floor of a house
In a liability loss, the person to whom the insured caused damage is referred to as -
answer The third-party
The purpose of a binder is to - answer provide temporary protection for the insured
between the time the application is made and the policy is issued or the binder expires
The purpose of insurance is to - answer Transfer risk from a person, business, or
organization to an insurance company that agrees to pay for losses in exchange for a
premium.
Additional living expense coverage that is included under the broad and special dwelling
forms protects the insured against - answer extra living costs incurred when the home
becomes uninhabitable due to damage by a peril insured against
What is a common name for Part D of the personal auto policy? - answer Physical
Damage Coverage
An insurance agent who needs liability coverage for her professional liability exposure
can obtain it by purchasing - answer errors and omissions insurance
