Property and Casualty Insurance Licensing Exam
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1. To prevent recovery beyond the amount of the in- An Other Insurance Clause
sured's actual loss, the policy will contain:
2. Collision coverage of an auto policy covers: B) upset of the vehicle
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects
3. The maximum amount of payable for all losses result- a) occurrence limit
ing from one event is known as the:
a) occurrence limit
b) aggregate limit
4. Which of the following is a cause of loss form? d) Basic form
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form
5. The minimum flood deductible is: c) $500
a) $100
b) $250
c) $500
d) $1000
6. The insured intentionally did not inform the insurer d) concealment
that the insured owned only 35% of the property. The
insurer can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment
, Property and Casualty Insurance Licensing Exam
Study online at https://quizlet.com/_5h1grs
7. Which of the following is NOT a defense against neg- c) presumption of negli-
ligence? gence
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk
8. The presumed authority necessary to carry out the b) implied authority
producer's routine tasks is known as:
a) expressed authority
b) implied authority
9. Which of the following statements regarding the Tow- b) there is no coverage for
ing and Labor endorsement is false? roadside labor costs
a) it will pay to the limit stated in the endorsement
each time a covered vehicle is disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above
10. A licensee may violate federal law and be subject to a b) sending threatening
fine and prison for doing which of the following? letters to the state insur-
a) selling insurance w/ a nonresident license ance regulator
b) sending threatening letters to the state insurance
regulator
c) fraudulently telling an insured a claim isn't covered
on the policy
d) murdering an applicant
11. Which of the following is not an insured location for a) a restaurant party room
liability coverage under the homeowners policy? the insured has rented for
a) a restaurant party room the insured has rented for a business meeting
, Property and Casualty Insurance Licensing Exam
Study online at https://quizlet.com/_5h1grs
a business meeting
b) the insured's cemetery plot
c) a restaurant party room the insured has rented for
a birthday party
d) vacant land owned by the insured
12. Special covers each of the following EXCEPT: d) floods and earthquakes
a) theft
b) mysterious disappearance
c) Acts of God
d) floods and earthquakes
13. Sam has underinsured motorist coverage with limits b) $50,000
of $100/$300. Sam is injured by Quincy who has limits
of $50/$100. Sam's injuries are valued at $125,000.
Sam's underinsured motorist coverage will pay;
a) $25,000
b) $50,000
c) $75,000
d) $125,000
14. The contract agreement may be referred as the: c) meeting of the minds
a) legal interest test
b) good faith
c) meeting of the minds
d) promise of indemnification
15. Which of the following boats owned by the insured c) a boat with a 15 horse-
would require the HO watercraft endorsement for lia- power inboard motor
bility coverage?
a) a boat with 25 horsepower outboard engine
b) a sailboat with 25 ft. in length
Study online at https://quizlet.com/_5h1grs
1. To prevent recovery beyond the amount of the in- An Other Insurance Clause
sured's actual loss, the policy will contain:
2. Collision coverage of an auto policy covers: B) upset of the vehicle
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects
3. The maximum amount of payable for all losses result- a) occurrence limit
ing from one event is known as the:
a) occurrence limit
b) aggregate limit
4. Which of the following is a cause of loss form? d) Basic form
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form
5. The minimum flood deductible is: c) $500
a) $100
b) $250
c) $500
d) $1000
6. The insured intentionally did not inform the insurer d) concealment
that the insured owned only 35% of the property. The
insurer can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment
, Property and Casualty Insurance Licensing Exam
Study online at https://quizlet.com/_5h1grs
7. Which of the following is NOT a defense against neg- c) presumption of negli-
ligence? gence
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk
8. The presumed authority necessary to carry out the b) implied authority
producer's routine tasks is known as:
a) expressed authority
b) implied authority
9. Which of the following statements regarding the Tow- b) there is no coverage for
ing and Labor endorsement is false? roadside labor costs
a) it will pay to the limit stated in the endorsement
each time a covered vehicle is disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above
10. A licensee may violate federal law and be subject to a b) sending threatening
fine and prison for doing which of the following? letters to the state insur-
a) selling insurance w/ a nonresident license ance regulator
b) sending threatening letters to the state insurance
regulator
c) fraudulently telling an insured a claim isn't covered
on the policy
d) murdering an applicant
11. Which of the following is not an insured location for a) a restaurant party room
liability coverage under the homeowners policy? the insured has rented for
a) a restaurant party room the insured has rented for a business meeting
, Property and Casualty Insurance Licensing Exam
Study online at https://quizlet.com/_5h1grs
a business meeting
b) the insured's cemetery plot
c) a restaurant party room the insured has rented for
a birthday party
d) vacant land owned by the insured
12. Special covers each of the following EXCEPT: d) floods and earthquakes
a) theft
b) mysterious disappearance
c) Acts of God
d) floods and earthquakes
13. Sam has underinsured motorist coverage with limits b) $50,000
of $100/$300. Sam is injured by Quincy who has limits
of $50/$100. Sam's injuries are valued at $125,000.
Sam's underinsured motorist coverage will pay;
a) $25,000
b) $50,000
c) $75,000
d) $125,000
14. The contract agreement may be referred as the: c) meeting of the minds
a) legal interest test
b) good faith
c) meeting of the minds
d) promise of indemnification
15. Which of the following boats owned by the insured c) a boat with a 15 horse-
would require the HO watercraft endorsement for lia- power inboard motor
bility coverage?
a) a boat with 25 horsepower outboard engine
b) a sailboat with 25 ft. in length
