VA P&C Practice Exam Questions and
Answers
1.Which of the following represents pure risk?
A. Purchase of stock in a new company
B. An investment in real estate
C. Purchase of a lottery ticket
D. Chance of fire in a dwelling
Answer D. Chance of fire in a dwelling
2.WHICH OF THE FOLLOWING IS A PERIL?
A. ATTITUDE TOWARDS SAFETY
B. FIRE
C. DEDUCTIBLE
D. AN EXCLUSION
Answer B. FIRE
3.Direct loss refers to
A. Fire damage to a dwellings roof
B. Cost of increased living expenses due to a fire
C. Reduction in the value of in the insured's 401k
D. Exclusions
Answer A. Fire damage to a dwellings roof
,4.When property is unique in value, which of the following may be used
to develop premium?
A. Actual Cash Value
B. Replacement Cost
C. Stated Value
D. Salvage Value
Answer C. Stated Value
5.There is a condition in most property policies that may exclude coverage
for certain perils depending on the occupancy of the building at the time of
loss. If the insured moved to a new dwelling 60 days before the loss, which
of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty
Answer B. Vacancy
6.There is a condition in most property policies that may exclude coverage
for certain perils depending on the occupancy of the building at the time of
loss. If the insured has a vandalism claim while they are on vacation, which
of the following conditions might apply?
A. Unoccupancy
B. Vacancy
,C. Use limitation
D. Protection warranty
Answer A. Unoccupancy
7.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
A. Negligent
B. Absolutely liable
C. Vicariously liable
D. Not liable
Answer B. Absolutely liable
8.When an insured is held liable for a product they manufactured that
caused injury an negligence does not need to be proven, what type of
liability is this?
A. Negligence
B. Vicarious liability
C. Not liable
D. Strict liability
Answer D. Strict liability
9.In a commercial insurance policy, the person with the responsibility
, of administering the policy, making payments, etc. is the
A. Named insured
B. Additional insured
C. First named insured
D. Lienholder
Answer C. First named insured
10.All of the following are duties of the insured as detailed in the
Conditions of the policy EXCEPT
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster
Answer D. Assist in selecting an insurance adjuster
11.Which of the following is true regarding the insurer's rights to
claim settlement?
A. The insured must agree to all aspects of the settlement.
B. The insurer may not settle a claim unless there is a court order.
C. The insurer may settle a liability claim without the insured's permission.
D.The insured retains complete rights of claim settlement.
Answer C. The insurer may settle a liability claim without the insured's
permission.
12.Which of the following statements concerning a proof of loss is NOT true?
Answers
1.Which of the following represents pure risk?
A. Purchase of stock in a new company
B. An investment in real estate
C. Purchase of a lottery ticket
D. Chance of fire in a dwelling
Answer D. Chance of fire in a dwelling
2.WHICH OF THE FOLLOWING IS A PERIL?
A. ATTITUDE TOWARDS SAFETY
B. FIRE
C. DEDUCTIBLE
D. AN EXCLUSION
Answer B. FIRE
3.Direct loss refers to
A. Fire damage to a dwellings roof
B. Cost of increased living expenses due to a fire
C. Reduction in the value of in the insured's 401k
D. Exclusions
Answer A. Fire damage to a dwellings roof
,4.When property is unique in value, which of the following may be used
to develop premium?
A. Actual Cash Value
B. Replacement Cost
C. Stated Value
D. Salvage Value
Answer C. Stated Value
5.There is a condition in most property policies that may exclude coverage
for certain perils depending on the occupancy of the building at the time of
loss. If the insured moved to a new dwelling 60 days before the loss, which
of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty
Answer B. Vacancy
6.There is a condition in most property policies that may exclude coverage
for certain perils depending on the occupancy of the building at the time of
loss. If the insured has a vandalism claim while they are on vacation, which
of the following conditions might apply?
A. Unoccupancy
B. Vacancy
,C. Use limitation
D. Protection warranty
Answer A. Unoccupancy
7.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
A. Negligent
B. Absolutely liable
C. Vicariously liable
D. Not liable
Answer B. Absolutely liable
8.When an insured is held liable for a product they manufactured that
caused injury an negligence does not need to be proven, what type of
liability is this?
A. Negligence
B. Vicarious liability
C. Not liable
D. Strict liability
Answer D. Strict liability
9.In a commercial insurance policy, the person with the responsibility
, of administering the policy, making payments, etc. is the
A. Named insured
B. Additional insured
C. First named insured
D. Lienholder
Answer C. First named insured
10.All of the following are duties of the insured as detailed in the
Conditions of the policy EXCEPT
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster
Answer D. Assist in selecting an insurance adjuster
11.Which of the following is true regarding the insurer's rights to
claim settlement?
A. The insured must agree to all aspects of the settlement.
B. The insurer may not settle a claim unless there is a court order.
C. The insurer may settle a liability claim without the insured's permission.
D.The insured retains complete rights of claim settlement.
Answer C. The insurer may settle a liability claim without the insured's
permission.
12.Which of the following statements concerning a proof of loss is NOT true?
