P&C EXAM QUESTIONS WITH ALL CORRECT & 100%
VERIFIED ANSWERS |ACTUAL COMPLETE UPDATE |
ALREADY GRADED A+
Which of the following is NOT settled on an actual cash value basis while covered under the
business property coverage form?
a) Manuscripts
b) Works of art or antiques
c) Valuable papers and records
d) Property of others ✔Correct Answer-c) Valuable papers and records are valued at the cost
of blanket materials for reproducing the records and labor to copy the records.
Which of the following is NOT considered an insured contract under the commercial general
liability policy?
a) A written agreement which indemnifies a person for fire damage to the premises rented to
the insured
b) An elevator maintenance agreement
c) An obligation as required by ordinance to indemnify a municipality, except for work for a
municipality
d) A written lease agreement on the insured premises ✔Correct Answer-a) General liability
covering premises includes automatic coverage for written Lisa's of promises, sidetrack
agreements, elevator maintenance agreements, easements agreements, municipality
indemnification. Protection from claims arising from fire damage to non own property would
need to be covered by fire damage legal liability
Because an agent is using stationary with the logo of an insurance company, applicants for
insurance assume that the agent is authorised to transact on behalf of that insurer. What type
of agent authority does this describe?
a) Express
b) Implied
c) Assumed
d) Apparent ✔Correct Answer-d) Apparent authority also known as perceived authority is the
appearance or the assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created
A policy may be cancelled for nonpayment of premium, licence suspension or relocation,
violations of any policy terms or conditions, or obtaining insurance through fraudulent
misrepresentation only if the policy has been in effect for at least how many days?
, a) 10 days
b) 15 days
c) 30 days
d) 60 days ✔Correct Answer-d) After the initial 60 day period, the policy may be cancelled for
nonpayment of premium, licence suspension or relocation, violations of any policy terms or
conditions, and obtaining insurance through fraudulent misrepresentation.
Within how many days must ensure a knowledge communication regarding an insurance claim?
a) 15 days
b) 30 days
c) 90 days
d) There are no specified limits ✔Correct Answer-a) It is considered to be unfair trade
settlement practices if insurer fails to acknowledge communications with respect to insurance
claim within 15 days of receipt
When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
a) Legal purpose
b) Contract of adhesion
c) Acceptance
d) Consideration ✔Correct Answer-d) Consideration is something of value that each party
gives to the other. The consideration on the part of the insured is the payment of premium and
the representations made in the application.
Which of the following best describes the amount of loss assessment coverage included under a
homeowners policy liability coverage section?
a) Up to $2500 per occurrence
b) Up to $10000 aggregate for the policy
c) Up to $5000 aggregate for the policy
d) Up to $1000 per occurrence ✔Correct Answer-d) Section II - loss assessment coverage -
applies to assessments against the insured by a condominium association or other cooperative
body of property owners. Coverage is limited to $1000, but an increased limit of coverage is
available by endorsement.
If uninsured is in the process of moving to a new location, his personal property coverage under
the dwelling policy will apply on a pro rata basis at both locations for
a) 60 days
b) 90 days
c) 5 days
VERIFIED ANSWERS |ACTUAL COMPLETE UPDATE |
ALREADY GRADED A+
Which of the following is NOT settled on an actual cash value basis while covered under the
business property coverage form?
a) Manuscripts
b) Works of art or antiques
c) Valuable papers and records
d) Property of others ✔Correct Answer-c) Valuable papers and records are valued at the cost
of blanket materials for reproducing the records and labor to copy the records.
Which of the following is NOT considered an insured contract under the commercial general
liability policy?
a) A written agreement which indemnifies a person for fire damage to the premises rented to
the insured
b) An elevator maintenance agreement
c) An obligation as required by ordinance to indemnify a municipality, except for work for a
municipality
d) A written lease agreement on the insured premises ✔Correct Answer-a) General liability
covering premises includes automatic coverage for written Lisa's of promises, sidetrack
agreements, elevator maintenance agreements, easements agreements, municipality
indemnification. Protection from claims arising from fire damage to non own property would
need to be covered by fire damage legal liability
Because an agent is using stationary with the logo of an insurance company, applicants for
insurance assume that the agent is authorised to transact on behalf of that insurer. What type
of agent authority does this describe?
a) Express
b) Implied
c) Assumed
d) Apparent ✔Correct Answer-d) Apparent authority also known as perceived authority is the
appearance or the assumption of authority based on the actions, words, or deeds of the
principal or because of circumstances the principal created
A policy may be cancelled for nonpayment of premium, licence suspension or relocation,
violations of any policy terms or conditions, or obtaining insurance through fraudulent
misrepresentation only if the policy has been in effect for at least how many days?
, a) 10 days
b) 15 days
c) 30 days
d) 60 days ✔Correct Answer-d) After the initial 60 day period, the policy may be cancelled for
nonpayment of premium, licence suspension or relocation, violations of any policy terms or
conditions, and obtaining insurance through fraudulent misrepresentation.
Within how many days must ensure a knowledge communication regarding an insurance claim?
a) 15 days
b) 30 days
c) 90 days
d) There are no specified limits ✔Correct Answer-a) It is considered to be unfair trade
settlement practices if insurer fails to acknowledge communications with respect to insurance
claim within 15 days of receipt
When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
a) Legal purpose
b) Contract of adhesion
c) Acceptance
d) Consideration ✔Correct Answer-d) Consideration is something of value that each party
gives to the other. The consideration on the part of the insured is the payment of premium and
the representations made in the application.
Which of the following best describes the amount of loss assessment coverage included under a
homeowners policy liability coverage section?
a) Up to $2500 per occurrence
b) Up to $10000 aggregate for the policy
c) Up to $5000 aggregate for the policy
d) Up to $1000 per occurrence ✔Correct Answer-d) Section II - loss assessment coverage -
applies to assessments against the insured by a condominium association or other cooperative
body of property owners. Coverage is limited to $1000, but an increased limit of coverage is
available by endorsement.
If uninsured is in the process of moving to a new location, his personal property coverage under
the dwelling policy will apply on a pro rata basis at both locations for
a) 60 days
b) 90 days
c) 5 days
