PROPERTY AND CASUALTY
COMPREHENSIVE TEST SOLVED QUESTIONS
◉ Which of the following persons is required to hold a producer
license? Answer: A person who negotiates insurance contracts
◉ If an insurance company wishes to order a consumer report on an
applicant to assist in the underwriting process, and if a notice of
insurance information practices has been provided, the report may
contain all of the following information EXCEPT the applicant's
Answer: Ancestry
◉ Which of the following would NOT be classified as personal
property for insurance purposes? Answer: A house
◉ Under the "limited tort insurance" option, an insured may not
seek recovery for pain and suffering or other nonmonetary damages
UNLESS Answer: The injuries fall within the definition of "serious
injury."
◉ Which of the following statements is true regarding the
commercial general liability policy's Coverage C - Medical Payments?
Answer: The coverage is considered good will because payments are
made without regard to fault.
,◉ Homeowners policies provide coverage for Answer: Business
property while on the residence premises.
◉ Who will transport the property of anyone who hires them?
Answer: Common carriers
◉ In property and casualty insurance, what is the term for the
amount of a loss that the insured must cover out of pocket, and the
insurer will only pay for the additional amount of the loss above this
limit? Answer: Deductible
◉ A restaurant is out of business for 3 days after an insured's
automobile hits an electrical pole. The pole falls and hits the
building, knocking out all electrical power supply. Which of the
following is NOT covered under the insured driver's auto policy?
Answer: Lost revenues from the restaurant
◉ How much is the premium for the dwelling under construction
endorsement under the dwelling policy? Answer: The average
amount of insurance during construction
◉ With regards to the personal auto policy, in the event of a claim or
loss, the insured is required to do all of the following EXCEPT
,Answer: Immediately report to an emergency room for medical
examination.
◉ Which insurers are required to participate in the Pennsylvania
Automobile Insurance Plan (Assigned Risk Plan)? Answer: All
insurers authorized to write auto liability insurance in the state
◉ A licensee serving in the military is unable to fulfill her continuing
education requirement. What would the licensee have to do to
renew the license? Answer: The licensee may submit a request to the
department to have requirements and fees waived. The department
will then determine if the request is permissible.
◉ Which of the following is NOT true regarding a Certificate of
Authority? Answer: It is issued to group insurance participants.
◉ What is the required limit of insurance in the coinsurance clause
for Coverage F - Unscheduled Farm Personal Property? Answer:
80% (note-Coverage F - Unscheduled Farm Personal Property
insures all farm personal property on a blanket basis. Coverage F is
subject to an 80% coinsurance clause.
)
◉ Which of the following would be considered an unfair claims
settlement practice? Answer: A claims adjuster advises the insured
, that if the claim goes to arbitration, the insured would probably
receive less than what is currently being offered
◉ Which of the following policies must contain, at a minimum,
policy language equal to the Standard Fire Policy? Answer: All of the
above
◉ Under the dwelling policy, Coverage C - Personal Property is
Answer: Limited to covering a servant's property while at the
insured location.
◉ Which of the following criminal activities would be sufficient
violation to warrant rejection, revocation, or suspension of an
insurance producer's license? Answer: Forgery
◉ In dwelling policies, automatic increase in insurance is Answer:
Coverage by endorsement.
◉ What is the maximum amount of protection available to insureds
under the Pennsylvania Property and Casualty Insurance Guaranty
Association? Answer: The amount of loss up to the amount of
coverage in the original policy, not to exceed $300,000 (per
claimant)
COMPREHENSIVE TEST SOLVED QUESTIONS
◉ Which of the following persons is required to hold a producer
license? Answer: A person who negotiates insurance contracts
◉ If an insurance company wishes to order a consumer report on an
applicant to assist in the underwriting process, and if a notice of
insurance information practices has been provided, the report may
contain all of the following information EXCEPT the applicant's
Answer: Ancestry
◉ Which of the following would NOT be classified as personal
property for insurance purposes? Answer: A house
◉ Under the "limited tort insurance" option, an insured may not
seek recovery for pain and suffering or other nonmonetary damages
UNLESS Answer: The injuries fall within the definition of "serious
injury."
◉ Which of the following statements is true regarding the
commercial general liability policy's Coverage C - Medical Payments?
Answer: The coverage is considered good will because payments are
made without regard to fault.
,◉ Homeowners policies provide coverage for Answer: Business
property while on the residence premises.
◉ Who will transport the property of anyone who hires them?
Answer: Common carriers
◉ In property and casualty insurance, what is the term for the
amount of a loss that the insured must cover out of pocket, and the
insurer will only pay for the additional amount of the loss above this
limit? Answer: Deductible
◉ A restaurant is out of business for 3 days after an insured's
automobile hits an electrical pole. The pole falls and hits the
building, knocking out all electrical power supply. Which of the
following is NOT covered under the insured driver's auto policy?
Answer: Lost revenues from the restaurant
◉ How much is the premium for the dwelling under construction
endorsement under the dwelling policy? Answer: The average
amount of insurance during construction
◉ With regards to the personal auto policy, in the event of a claim or
loss, the insured is required to do all of the following EXCEPT
,Answer: Immediately report to an emergency room for medical
examination.
◉ Which insurers are required to participate in the Pennsylvania
Automobile Insurance Plan (Assigned Risk Plan)? Answer: All
insurers authorized to write auto liability insurance in the state
◉ A licensee serving in the military is unable to fulfill her continuing
education requirement. What would the licensee have to do to
renew the license? Answer: The licensee may submit a request to the
department to have requirements and fees waived. The department
will then determine if the request is permissible.
◉ Which of the following is NOT true regarding a Certificate of
Authority? Answer: It is issued to group insurance participants.
◉ What is the required limit of insurance in the coinsurance clause
for Coverage F - Unscheduled Farm Personal Property? Answer:
80% (note-Coverage F - Unscheduled Farm Personal Property
insures all farm personal property on a blanket basis. Coverage F is
subject to an 80% coinsurance clause.
)
◉ Which of the following would be considered an unfair claims
settlement practice? Answer: A claims adjuster advises the insured
, that if the claim goes to arbitration, the insured would probably
receive less than what is currently being offered
◉ Which of the following policies must contain, at a minimum,
policy language equal to the Standard Fire Policy? Answer: All of the
above
◉ Under the dwelling policy, Coverage C - Personal Property is
Answer: Limited to covering a servant's property while at the
insured location.
◉ Which of the following criminal activities would be sufficient
violation to warrant rejection, revocation, or suspension of an
insurance producer's license? Answer: Forgery
◉ In dwelling policies, automatic increase in insurance is Answer:
Coverage by endorsement.
◉ What is the maximum amount of protection available to insureds
under the Pennsylvania Property and Casualty Insurance Guaranty
Association? Answer: The amount of loss up to the amount of
coverage in the original policy, not to exceed $300,000 (per
claimant)
