EXAMFX - P&C GUARANTEE EXAM QUESTIONS WITH COMPLETE SOLUTIONS

A golfer slices a tee shot and the ball goes through the window of a house beside the fairway. The broken glass is paid for by correct answer: The golfer's homeowners liability coverage What was the purpose of the Motor Carrier Act of 1980? correct answer: To establish financial responsibility requirements for interstate motor carriers How does insurance distribute the financial consequences of individual losses? correct answer: It transfers the risk to all persons insured Within how many days of the final disposition of the matter must a producer report administrative actions taken against him or her to the Commissioner? correct answer: 30 days What part of the insurance contract describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured? correct answer: Insuring agreement All of the following are true regarding a producer's fiduciary responsibilities EXCEPT correct answer: Producers may commingle personal funds with company funds Wagering on a sporting event is an example of what type of risk? correct answer: Speculative An aleatory contract is based on what kind of exchange? correct answer: Unequal exchange of values Which of the following would be covered under a building and personal property coverage form? correct answer: Outdoor sign When does the insurer's duty to defend a suit or claim end in a commercial general liability policy? correct answer: When loss payments equal the applicable limit of insurance Chris, who is unlicensed, works part-time in her father's insurance agency. She may perform all of the following activities EXCEPT correct answer: Collect premium for in-force policies and explain coverages to clients that have existing polices written by her father. A producer continues to use an unapproved trade name for 10 days after being notified by the Commissioner to stop using the unapproved name. What is the maximum fine the producer may face? correct answer: $5,000 Late one night on his way home from a local bar, a man runs his covered auto into an insured's car. The man was operating his vehicle while under the influence of alcohol. The insured had no personal injuries, but her car had damage. Her insurance policy paid for the damages to her car. The subrogation provision in her policy allows correct answer: The insurer to attempt to recover the damages from the man and/or his insurance company. How long is the period of time in which a licensee must renew his or her license? correct answer: 90 days prior to