ExamFx property and casualty| 976 Questions | With Complete Solutions

1. In dwelling policies, automatic increase in insurance is (Choose from the following options) 1. Coverage for newly acquired property. 2. Coverage by endorsement. 3. Automatic coverage. 4. Coverage without additional premium. correct answer: 2. Coverage by endorsement. 2. Personal business property out in the open is covered under Commercial Property Policy only while (Choose from the following options) 1. Within 150 feet of the described premises. 2. Within 100 feet of the described premises. 3. Located on the described premises. 4. Specifically described on the declarations. correct answer: 2. Within 100 feet of the described premises. 3. Under a Commercial Crime Coverage Part, following a covered loss, the insured must submit a written proof of loss within (Choose from the following options) 1. 60 days. 2. 90 days. 3. 120 days. 4. One year. correct answer: 3. 120 days. 4. Which of the following provisions requires an insurer to document all correspondence with an insured? (Choose from the following options) 1. Claims settlement 2. Entire contract 3. Errors and omissions 4. Unfair trade practices correct answer: 3. Errors and omissions 5. Which statement is true regarding Workers Compensation law in California? (Choose from the following options) 1. Injured workers may sue an employer for negligence only when fault is clearly established against the employer. 2. Injured workers may always sue an employer for negligence regardless of the degree of fault against the employer. 3. Injured workers cannot sue an employer for negligence. 4. Injured workers may sue an employer for negligence when any degree of fault is established against the employer. correct answer: 3. Injured workers cannot sue an employer for negligence. 6. In order to determine whether to test a life insurance applicant for HIV or AIDS, the insurer may do which of the following: I. Base its decision to test on the incidence of AIDS in the person's ZIP code; II. Test only persons who are single and under age 30; III. Establish minimum uniform standards for testing all applicants for insurance; or IV. Not test anyone for HIV or AIDS, because it is discriminatory. (Choose from the following options) 1. III only. 2. I and II. 3. IV only. 4. I, II, III and IV. correct answer: 1. III only. 7. A provision found in most claims-made liability policy forms that provide a specified period of time following the policy expiration, during which claims arising out of occurrences during the policy period may be made against the policy at no extra cost, is called (Choose from the following options) 1. Extension of coverage. 2. Supplemental extended reporting period. 3. Grace period. 4. Basic extended reporting period. correct answer: 4. Basic extended reporting period. 8. The personal injury liability endorsement to an HO policy applies to all the following EXCEPT (Choose from the following options) 1. False arrest. 2. A third party breaks a leg when the insured knocks him down. 3. Slander. 4. Invasion of privacy. correct answer: 2. A third party breaks a leg when the insured knocks him down. 9. What license allows an agent to transact only automobile, personal watercraft, residential property, earthquake, flood, inland marine and umbrella insurance? (Choose from the following options) 1. Limited Lines 2. Applicable Lines 3. Personal Lines