Property and Casualty Insurance Exam Questions with All
Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Which of the following are the authorities that an agent can hold? ✔Correct Answer-Express
and implied
Which of the following terms refers to such disabilities the loss of a limb, hearing , or eye sight?
✔Correct Answer-Permanent partial disability
Who is NOT considered an employee in an commercial general liability (CGL) policy?
✔Correct Answer-Temporary worker
The major portion of the premium of an equipment breakdown policy pays? ✔Correct
Answer-For inspections and examinations
An insured owns a building valued at $400,000. To comply with the 80% coinsurance provision
of his insurance policy, how , much should he insure the property for? ✔Correct Answer-80%
of the property's replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must ✔Correct Answer-Respond to the
consumer's complaint.
All of the following are found in the declarations section of a policy EXCEPT the ✔Correct
Answer-Exclusions.
The cost of restoring farm records is an additional coverage offered under a farm policy. How
much will the policy pay to restore the records? ✔Correct Answer-Up to $2,000
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT ✔Correct Answer-Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage form under an
inland marine policy? ✔Correct Answer-a) Computer hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards and discs
,The party to a surety or fidelity bond who promises to fulfill the obligation is the ✔Correct
Answer-Principal
The transfer of money from inside a banking premises to a person other than a messenger
outside those premises or to a place outside those premises is covered under which commercial
crime coverage? ✔Correct Answer-Computer fraud
Which of the following would NOT be covered under the liability section of a personal auto
policy? ✔Correct Answer-Bodily injury is caused by the insured's negligence while driving a
three-wheel all-terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her residence or
business address, he/she must notify the Department of Insurance and any company for which
the producer holds an appointment within ✔Correct Answer-30 days.
What will happen if a house covered by a standard mortgage clause is a total loss? ✔Correct
Answer-The insurer pays the mortgagee according to the mortgagee's interest in the property.
What is the civil penalty for violating a cease and desist order of the Commissioner? ✔Correct
Answer-$10,000
The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the
following EXCEPT ✔Correct Answer-Business liability.
If a property is covered by Company A for $20,000 and Company B covers the same property for
$40,000, how much will Company A pay on a $24,000 loss? ✔Correct Answer-$8,000
The risk management technique that is used to prevent a specific loss by not exposing oneself
to that activity is called ✔Correct Answer-Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will
be paid by ✔Correct Answer-The insurer.
Which of the following entities must approve all continuing education courses in this state?
✔Correct Answer-The Commissioner
An applicant knowingly fails to communicate information that would help an underwriter make
a sound decision regarding coverage. This is an example of ✔Correct Answer-Concealment
A common exclusion found under physical damage to your auto includes ✔Correct Answer-
Mechanical breakdown.
Which of the following is true regarding a risk retention group? ✔Correct Answer-It is a
liability insurance company owned by its members.
, Which of the following best describes a misrepresentation? ✔Correct Answer-Issuing sales
material with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? ✔Correct Answer-
Completed value form
An insured has a liability policy that sets the amount for all claims that arise from a single
incident at $50,000. Which type of limit of liability does this insured's policy have? ✔Correct
Answer-Per occurrence
Which of the following is an example of a protective safeguard in a businessowners policy?
✔Correct Answer-Automatic sprinkler system
If a licensee wants to transact insurance under a different name than that listed on his or her
producer's license, which of the following must occur? ✔Correct Answer-The change must be
reported to the Commissioner.
If more than one person has an insurable interest in the property covered under a dwelling
policy, ✔Correct Answer-The insurer will be liable for only the insured's interest in the
damaged property.
Bob's home is insured for $100,000 under a dwelling policy. Yesterday his home suffered
$20,000 damage from a fire. Today the home was struck by lightning, starting another fire that
completely destroyed the structure. Bob's policy will pay ✔Correct Answer-$100,000.
An automobile that is owned by a nontraditional household, not consisting of a husband and
wife, may be insured under a personal auto policy if ✔Correct Answer-A joint ownership
coverage endorsement is added.
Which of the following is defined as a covered cause of loss in businessowners property
coverage? ✔Correct Answer-Leakage from fire-extinguishing equipment
The insured's mother-in-law broke her leg falling down the front steps of the insured's premises.
The insured's homeowners medical payments coverage will ✔Correct Answer-Apply to
injuries of any guests or visitors.
All of the following are exclusions under farm property coverage EXCEPT ✔Correct Answer-
Loss of use.
Coverage for medical payments under a personal auto policy applies to expenses following a
covered accident that are incurred and services rendered within what maximum time period?
✔Correct Answer-3 years
Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Which of the following are the authorities that an agent can hold? ✔Correct Answer-Express
and implied
Which of the following terms refers to such disabilities the loss of a limb, hearing , or eye sight?
✔Correct Answer-Permanent partial disability
Who is NOT considered an employee in an commercial general liability (CGL) policy?
✔Correct Answer-Temporary worker
The major portion of the premium of an equipment breakdown policy pays? ✔Correct
Answer-For inspections and examinations
An insured owns a building valued at $400,000. To comply with the 80% coinsurance provision
of his insurance policy, how , much should he insure the property for? ✔Correct Answer-80%
of the property's replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must ✔Correct Answer-Respond to the
consumer's complaint.
All of the following are found in the declarations section of a policy EXCEPT the ✔Correct
Answer-Exclusions.
The cost of restoring farm records is an additional coverage offered under a farm policy. How
much will the policy pay to restore the records? ✔Correct Answer-Up to $2,000
All of the following could be considered rebates if offered to an insured in the sale of insurance
EXCEPT ✔Correct Answer-Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage form under an
inland marine policy? ✔Correct Answer-a) Computer hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards and discs
,The party to a surety or fidelity bond who promises to fulfill the obligation is the ✔Correct
Answer-Principal
The transfer of money from inside a banking premises to a person other than a messenger
outside those premises or to a place outside those premises is covered under which commercial
crime coverage? ✔Correct Answer-Computer fraud
Which of the following would NOT be covered under the liability section of a personal auto
policy? ✔Correct Answer-Bodily injury is caused by the insured's negligence while driving a
three-wheel all-terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her residence or
business address, he/she must notify the Department of Insurance and any company for which
the producer holds an appointment within ✔Correct Answer-30 days.
What will happen if a house covered by a standard mortgage clause is a total loss? ✔Correct
Answer-The insurer pays the mortgagee according to the mortgagee's interest in the property.
What is the civil penalty for violating a cease and desist order of the Commissioner? ✔Correct
Answer-$10,000
The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the
following EXCEPT ✔Correct Answer-Business liability.
If a property is covered by Company A for $20,000 and Company B covers the same property for
$40,000, how much will Company A pay on a $24,000 loss? ✔Correct Answer-$8,000
The risk management technique that is used to prevent a specific loss by not exposing oneself
to that activity is called ✔Correct Answer-Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will
be paid by ✔Correct Answer-The insurer.
Which of the following entities must approve all continuing education courses in this state?
✔Correct Answer-The Commissioner
An applicant knowingly fails to communicate information that would help an underwriter make
a sound decision regarding coverage. This is an example of ✔Correct Answer-Concealment
A common exclusion found under physical damage to your auto includes ✔Correct Answer-
Mechanical breakdown.
Which of the following is true regarding a risk retention group? ✔Correct Answer-It is a
liability insurance company owned by its members.
, Which of the following best describes a misrepresentation? ✔Correct Answer-Issuing sales
material with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? ✔Correct Answer-
Completed value form
An insured has a liability policy that sets the amount for all claims that arise from a single
incident at $50,000. Which type of limit of liability does this insured's policy have? ✔Correct
Answer-Per occurrence
Which of the following is an example of a protective safeguard in a businessowners policy?
✔Correct Answer-Automatic sprinkler system
If a licensee wants to transact insurance under a different name than that listed on his or her
producer's license, which of the following must occur? ✔Correct Answer-The change must be
reported to the Commissioner.
If more than one person has an insurable interest in the property covered under a dwelling
policy, ✔Correct Answer-The insurer will be liable for only the insured's interest in the
damaged property.
Bob's home is insured for $100,000 under a dwelling policy. Yesterday his home suffered
$20,000 damage from a fire. Today the home was struck by lightning, starting another fire that
completely destroyed the structure. Bob's policy will pay ✔Correct Answer-$100,000.
An automobile that is owned by a nontraditional household, not consisting of a husband and
wife, may be insured under a personal auto policy if ✔Correct Answer-A joint ownership
coverage endorsement is added.
Which of the following is defined as a covered cause of loss in businessowners property
coverage? ✔Correct Answer-Leakage from fire-extinguishing equipment
The insured's mother-in-law broke her leg falling down the front steps of the insured's premises.
The insured's homeowners medical payments coverage will ✔Correct Answer-Apply to
injuries of any guests or visitors.
All of the following are exclusions under farm property coverage EXCEPT ✔Correct Answer-
Loss of use.
Coverage for medical payments under a personal auto policy applies to expenses following a
covered accident that are incurred and services rendered within what maximum time period?
✔Correct Answer-3 years
