Pearson Vue Casualty Insurance Exam
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 50 multichoice Questions with Answers
1. Which of the following sections of an insurance policy would explain the
term "auto" ?
A.Declarations
B.Definitions
C.Insuring agreement
D.Obligations of the insurance company
Answer: B
2. In an application for marine insurance, a yacht owner states that the yacht will only be sailed on inland waters.
If the insured subsequently sails the yacht on the seas, coverage may be denied because the insured has breached
A.the Inchmaree clause
B.the policy clause
C.a representation
D.a warranty
Answer: D
3. The attempt to restore an insured to the insured's previous financial condi- tion before the loss occurred is
BEST described as
A.indemnification
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,B.subrogation
C.coinsurance
D.self-insurance
Answer: A
4. Which of the following injuries is covered under the Medical Payments section of an insured's
Commercial General Liability policy?
A.An employee breaks an ankle in the insured's warehouse.
B.An individual is injured while participating in an athletic event on the in- sured's property.
C.A supplier is injured while visiting the insured's showroom.
D.A tenant in the insured's apartment building slips in their apartment and requires x-rays.
Answer: C
5. Which of the following occurrences would be included under the definition of a personal injury?
A.A customer injured in a department store when a sign falls on her sues the store for medical costs and pain and
suffering.
B.An employee injured lifting a heavy carton sues his employer for costs.
C.An individual fired from her job sues her employer for unemployment ben- efits.
D.A tenant evicted by his landlord sues the landlord for invasion of privacy and wrongful eviction.
Answer: D
6. A legal obligation for injuries that are sustained due to failure to perform a duty is known as
A.negligence
B.liability
C.physical hazard
D.claims payment
Answer: B
7. An insurance binder is best described as
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, A.a large bound volume of rules, rates, and forms
B.a rate manual supplied by one of the rating organizations
C.a temporary agreement to pay a claim pending final settlement
D.temporary short-term evidence of coverage
8. Under a Commercial General Liability policy, Personal and Advertising In- jury Liability coverage does
NOT apply to damages resulting from
A.slanderous statements made by an advertising firm
B.copyright infringement by a department store
C.harmful, truthful information published by a realtor
D.invasion of an individual's privacy
Answer: A
9. Actual cash value is most often defined as
A.replacement cost less depreciation
B.original purchase price less depreciation
C.stated amount a policy will pay
D.cost to replace
Answer: A
10. W, an electrician, caused damage to the main wiring of a shopping center while working on another
building. As a result, the shopping center was forced to close early for the day. The loss resulting from this damage
would be considered which of the following types under W's Commercial General Liability policy?
A.Products
B.Completed Operations
C.Premises
D.Operations
Answer: D
11. The Conditions section of an insurance policy states the
A.deductible amount, if any
B.policy term
C.policy provisions
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Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 50 multichoice Questions with Answers
1. Which of the following sections of an insurance policy would explain the
term "auto" ?
A.Declarations
B.Definitions
C.Insuring agreement
D.Obligations of the insurance company
Answer: B
2. In an application for marine insurance, a yacht owner states that the yacht will only be sailed on inland waters.
If the insured subsequently sails the yacht on the seas, coverage may be denied because the insured has breached
A.the Inchmaree clause
B.the policy clause
C.a representation
D.a warranty
Answer: D
3. The attempt to restore an insured to the insured's previous financial condi- tion before the loss occurred is
BEST described as
A.indemnification
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19
,B.subrogation
C.coinsurance
D.self-insurance
Answer: A
4. Which of the following injuries is covered under the Medical Payments section of an insured's
Commercial General Liability policy?
A.An employee breaks an ankle in the insured's warehouse.
B.An individual is injured while participating in an athletic event on the in- sured's property.
C.A supplier is injured while visiting the insured's showroom.
D.A tenant in the insured's apartment building slips in their apartment and requires x-rays.
Answer: C
5. Which of the following occurrences would be included under the definition of a personal injury?
A.A customer injured in a department store when a sign falls on her sues the store for medical costs and pain and
suffering.
B.An employee injured lifting a heavy carton sues his employer for costs.
C.An individual fired from her job sues her employer for unemployment ben- efits.
D.A tenant evicted by his landlord sues the landlord for invasion of privacy and wrongful eviction.
Answer: D
6. A legal obligation for injuries that are sustained due to failure to perform a duty is known as
A.negligence
B.liability
C.physical hazard
D.claims payment
Answer: B
7. An insurance binder is best described as
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19
, A.a large bound volume of rules, rates, and forms
B.a rate manual supplied by one of the rating organizations
C.a temporary agreement to pay a claim pending final settlement
D.temporary short-term evidence of coverage
8. Under a Commercial General Liability policy, Personal and Advertising In- jury Liability coverage does
NOT apply to damages resulting from
A.slanderous statements made by an advertising firm
B.copyright infringement by a department store
C.harmful, truthful information published by a realtor
D.invasion of an individual's privacy
Answer: A
9. Actual cash value is most often defined as
A.replacement cost less depreciation
B.original purchase price less depreciation
C.stated amount a policy will pay
D.cost to replace
Answer: A
10. W, an electrician, caused damage to the main wiring of a shopping center while working on another
building. As a result, the shopping center was forced to close early for the day. The loss resulting from this damage
would be considered which of the following types under W's Commercial General Liability policy?
A.Products
B.Completed Operations
C.Premises
D.Operations
Answer: D
11. The Conditions section of an insurance policy states the
A.deductible amount, if any
B.policy term
C.policy provisions
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