PROPERTY AND CASUALTY INSURANCE
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,Wanda suggests to a client that his credit rating might suffer if coercion
he does not purchase a homeowners insurance policy from
her. This is an unfair trade practice known as which of the Coercion is an unfair trade practice and occurs when a person is compelled to buy an
following? insurance policy under duress or an express or implied threat.
twisting
defamation
coercion
rebating
Which of the following statements regarding the concept of Only pure (not speculative) risks are insurable, but not all pure risks are insurable.
insurable risk is true?
Not all risks are insurable. First, only pure risks are insurable. Even then, before an insurer
Every risk is insurable, if there is a dollar value associated with agrees to insure the risk, it must first determine if the risk conforms to certain standards
it. and requirements.
All pure risks are insurable, but only some speculative risks are
insurable.
All pure risks are insurable, but speculative risks are never
insurable.
Only pure (not speculative) risks are insurable, but not all pure
risks are insurable.
Which of the following is identical in all six homeowners policy liability coverage
forms?
There are six different homeowners insurance forms currently in use. The only differences
liability coverage contained in the forms is in Section I Property Coverages. Section II Liability Coverages is
property coverage identical in all six forms.
endorsements
exclusions
,Which policy provision reduces or eliminates coverage if the vacancy provision
covered premises contain no furnishings and there were no
residents for three consecutive months prior to a loss? The vacancy provision in a property policy eliminates or reduces coverage if the insured
premises contain insufficient personal property for a specified period of time, such as 60
vacancy provision consecutive days.
no benefit to bailee provision
loss payable clause
coinsurance clause
Mary Beth is employed by the JKL Insurance Company in its direct marketing system
home office to market its insurance policies directly to
consumers through the use of mass media and social media Insurers using the direct marketing system, sometimes referred to as direct writers,
promotions. She is employed by what type of marketing market insurance through employees of the insurer rather than through agencies or
system or arrangement? independent contractors.
exclusive agency system
direct marketing system
independent agency system
independent contractor arrangement
Monument Farms Grocery submits a claim under its It denies the claim under the Inventory Shortages exclusion.
commercial crime policy because several items of stock are
missing. How does the policy respond? The Inventory Shortages exclusion excludes coverage for claims based solely on
inventory computation or profit and loss figures.
It pays the claim under Employee Theft coverage.
It pays the claim under Other Property coverage.
It denies the claim under the Warehouse Receipts exclusion.
It denies the claim under the Inventory Shortages exclusion.
, Kim was stopped at a red light when she was rear-ended by $1,000
Paige, who didn't have auto liability insurance. Kim's car
sustained $3,000 in damages and she suffered $1,000 of Because Kim's UM coverage only provides insurance for bodily injury, it will not pay for
bodily injury. Her uninsured motorists limits of liability are the damage to her vehicle.
$15,000 per person for bodily injury and $30,000 per accident
for bodily injury. How much will her UM coverage pay for her
loss?
$0
$1,000
$3,000
$4,000
Which one of the following Other Coverages are provided in fire department service charge
all three unendorsed dwelling policy forms?
Of those listed in this question, only fire department service charge coverage (up to
fire department service charge $500) is provided in all three unendorsed forms.
trees, shrubs, and other plants
collapse
ordinance or law
An insurer will consider an injured employee to have reached 104 weeks have passed since the date income benefits were first due.
maximum medical improvement when:
The date of maximum medical improvement means the earliest of the date that, based on
52 weeks have passed since the date income benefits were reasonable medical probability, further improvement from an injury can no longer
first due. reasonably be anticipated or 104 weeks from the date that income benefits begin to
104 weeks have passed since the date income benefits were accrue.
first due.
the injury is cured or the disease is in remission.
three years have passed since the date the employee notifies
the employer about the injury.
Which of the following is a "newly acquired auto"? the named insured's private passenger car
the named insured's motorcycle A "newly acquired auto" is a private passenger auto, or a pickup or van with a gross
the named insured's private passenger car vehicle weight (GVW) of less than 10,000 pounds, of which the named insured becomes
the named insured's rental car owner during the policy period.
the named insured's company car
EXAM Q'S | COMPREHENSIVE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Wanda suggests to a client that his credit rating might suffer if coercion
he does not purchase a homeowners insurance policy from
her. This is an unfair trade practice known as which of the Coercion is an unfair trade practice and occurs when a person is compelled to buy an
following? insurance policy under duress or an express or implied threat.
twisting
defamation
coercion
rebating
Which of the following statements regarding the concept of Only pure (not speculative) risks are insurable, but not all pure risks are insurable.
insurable risk is true?
Not all risks are insurable. First, only pure risks are insurable. Even then, before an insurer
Every risk is insurable, if there is a dollar value associated with agrees to insure the risk, it must first determine if the risk conforms to certain standards
it. and requirements.
All pure risks are insurable, but only some speculative risks are
insurable.
All pure risks are insurable, but speculative risks are never
insurable.
Only pure (not speculative) risks are insurable, but not all pure
risks are insurable.
Which of the following is identical in all six homeowners policy liability coverage
forms?
There are six different homeowners insurance forms currently in use. The only differences
liability coverage contained in the forms is in Section I Property Coverages. Section II Liability Coverages is
property coverage identical in all six forms.
endorsements
exclusions
,Which policy provision reduces or eliminates coverage if the vacancy provision
covered premises contain no furnishings and there were no
residents for three consecutive months prior to a loss? The vacancy provision in a property policy eliminates or reduces coverage if the insured
premises contain insufficient personal property for a specified period of time, such as 60
vacancy provision consecutive days.
no benefit to bailee provision
loss payable clause
coinsurance clause
Mary Beth is employed by the JKL Insurance Company in its direct marketing system
home office to market its insurance policies directly to
consumers through the use of mass media and social media Insurers using the direct marketing system, sometimes referred to as direct writers,
promotions. She is employed by what type of marketing market insurance through employees of the insurer rather than through agencies or
system or arrangement? independent contractors.
exclusive agency system
direct marketing system
independent agency system
independent contractor arrangement
Monument Farms Grocery submits a claim under its It denies the claim under the Inventory Shortages exclusion.
commercial crime policy because several items of stock are
missing. How does the policy respond? The Inventory Shortages exclusion excludes coverage for claims based solely on
inventory computation or profit and loss figures.
It pays the claim under Employee Theft coverage.
It pays the claim under Other Property coverage.
It denies the claim under the Warehouse Receipts exclusion.
It denies the claim under the Inventory Shortages exclusion.
, Kim was stopped at a red light when she was rear-ended by $1,000
Paige, who didn't have auto liability insurance. Kim's car
sustained $3,000 in damages and she suffered $1,000 of Because Kim's UM coverage only provides insurance for bodily injury, it will not pay for
bodily injury. Her uninsured motorists limits of liability are the damage to her vehicle.
$15,000 per person for bodily injury and $30,000 per accident
for bodily injury. How much will her UM coverage pay for her
loss?
$0
$1,000
$3,000
$4,000
Which one of the following Other Coverages are provided in fire department service charge
all three unendorsed dwelling policy forms?
Of those listed in this question, only fire department service charge coverage (up to
fire department service charge $500) is provided in all three unendorsed forms.
trees, shrubs, and other plants
collapse
ordinance or law
An insurer will consider an injured employee to have reached 104 weeks have passed since the date income benefits were first due.
maximum medical improvement when:
The date of maximum medical improvement means the earliest of the date that, based on
52 weeks have passed since the date income benefits were reasonable medical probability, further improvement from an injury can no longer
first due. reasonably be anticipated or 104 weeks from the date that income benefits begin to
104 weeks have passed since the date income benefits were accrue.
first due.
the injury is cured or the disease is in remission.
three years have passed since the date the employee notifies
the employer about the injury.
Which of the following is a "newly acquired auto"? the named insured's private passenger car
the named insured's motorcycle A "newly acquired auto" is a private passenger auto, or a pickup or van with a gross
the named insured's private passenger car vehicle weight (GVW) of less than 10,000 pounds, of which the named insured becomes
the named insured's rental car owner during the policy period.
the named insured's company car
