Property and Casualty Exam- Louisiana
Questions & Answers 100% Correct
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk,
in the event of a loss, the insured must notify - ANSWER-Any of the insurers providing
coverage.
The policy conditions define - ANSWER-How parties to the contract must act following a
loss.
Because an insurance policy is a legal contract, it must conform to the state laws
governing contracts which require all of the following elements EXCEPT - ANSWER-
Conditions.
The value placed on property insured under a fire insurance policy is used to determine
the policy's - ANSWER-Premium.
Shipbuilders and repairers are covered by the - ANSWER-U.S. Longshore and Harbor
Workers Compensation Act.
Which of the following terms refers to a person's ability to do some work or the need to
do alternative work? - ANSWER-Temporary partial disability
Insurer examinations must occur no less frequently than every - ANSWER-5 years.
If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment
of premium, how much prior notice must the insurer give to the first named insured? -
ANSWER-10 days
The Residential Condominium Building Association Policy (RCBAP) is used for
residential condominium building associations to cover the entire building under one
policy. Which of the following statements about RCBAP is true? - ANSWER-It does not
protect the individual owner from loss to personal property owned exclusively by the unit
owner.
What is surplus lines insurance? - ANSWER-Insurance placed with an unauthorized
insurer
How long is a waiting period upon purchase of flood coverage through NFIP? -
ANSWER-30 days
,Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from - ANSWER-Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of - ANSWER-
$250.
Rates that are established based on the similarities of the risk with other risks are
known as - ANSWER-Manual rates.
The personal injury liability endorsement to an HO policy applies to all the following
EXCEPT - ANSWER-A third party breaks a leg when the insured knocks him down.
The process an insurer uses to evaluate applications and determine if a policy should
be issued and on what terms, conditions, and rates is known as - ANSWER-
Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA
to the year - ANSWER-2020
According to the Fair Credit Reporting Act, all of the following would be considered
negative information about a consumer EXCEPT - ANSWER-Disputes regarding
consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling
policies when - ANSWER-At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income that
occurs when a business must suspend operations because of a direct loss. Which of
the following terms best describes the nature of this type of coverage? - ANSWER-Time
element
Under which type of coverage does the insurer agree to pay for bodily injury or property
damage liability which the insured has agreed to assume under a written contractual
agreement? - ANSWER-Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not necessarily
happen during the policy period but was revealed during the policy period? - ANSWER-
Discovery form
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 - ANSWER-
Respond to the consumer's complaint.
Workers compensation benefits are provided for an employee injury or death that arises
out of the course of normal employment in all of the following situations EXCEPT -
, ANSWER-On his evening stroll, an employee of an advertising company is injured while
watching a competitor's billboard sign being removed from an advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance
contract does this describe? - ANSWER-Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - ANSWER-The
vehicle has no liability bond or insurance in force.
Which of the following are the authorities that an agent can hold? - ANSWER-Express
and implied
All of the following are supplemental payments found in liability policies EXCEPT -
ANSWER-Costs the insured incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss? - ANSWER-Coverage E
A producer who fails to segregate premium monies from his own personal funds is guilty
of - ANSWER-Commingling
What is the name for the type of property damage coverage that protects the insured or
the covered auto in an accident with someone who does not have coverage? -
ANSWER-Uninsured motorist
If a farm building or structure is vacant or unoccupied, which is true? - ANSWER-If for
120 consecutive days, the limits applicable to the building and its contents are reduced
by 50%.
Workers compensation laws provide all of the following types of benefits EXCEPT -
ANSWER-Compensatory benefits.
Which of the following liability exposures is most likely for a small specialty clothing
retail boutique? - ANSWER-Premises liability exposure
When are the limits for uninsured motorist coverage set? - ANSWER-When the
coverage is purchased
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - ANSWER-Warranty
Residential structures, including individual condominium units, and their contents are
insured by what part of the National Flood Insurance Program? - ANSWER-Dwelling
policy form
Questions & Answers 100% Correct
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk,
in the event of a loss, the insured must notify - ANSWER-Any of the insurers providing
coverage.
The policy conditions define - ANSWER-How parties to the contract must act following a
loss.
Because an insurance policy is a legal contract, it must conform to the state laws
governing contracts which require all of the following elements EXCEPT - ANSWER-
Conditions.
The value placed on property insured under a fire insurance policy is used to determine
the policy's - ANSWER-Premium.
Shipbuilders and repairers are covered by the - ANSWER-U.S. Longshore and Harbor
Workers Compensation Act.
Which of the following terms refers to a person's ability to do some work or the need to
do alternative work? - ANSWER-Temporary partial disability
Insurer examinations must occur no less frequently than every - ANSWER-5 years.
If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment
of premium, how much prior notice must the insurer give to the first named insured? -
ANSWER-10 days
The Residential Condominium Building Association Policy (RCBAP) is used for
residential condominium building associations to cover the entire building under one
policy. Which of the following statements about RCBAP is true? - ANSWER-It does not
protect the individual owner from loss to personal property owned exclusively by the unit
owner.
What is surplus lines insurance? - ANSWER-Insurance placed with an unauthorized
insurer
How long is a waiting period upon purchase of flood coverage through NFIP? -
ANSWER-30 days
,Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from - ANSWER-Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of - ANSWER-
$250.
Rates that are established based on the similarities of the risk with other risks are
known as - ANSWER-Manual rates.
The personal injury liability endorsement to an HO policy applies to all the following
EXCEPT - ANSWER-A third party breaks a leg when the insured knocks him down.
The process an insurer uses to evaluate applications and determine if a policy should
be issued and on what terms, conditions, and rates is known as - ANSWER-
Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA
to the year - ANSWER-2020
According to the Fair Credit Reporting Act, all of the following would be considered
negative information about a consumer EXCEPT - ANSWER-Disputes regarding
consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling
policies when - ANSWER-At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income that
occurs when a business must suspend operations because of a direct loss. Which of
the following terms best describes the nature of this type of coverage? - ANSWER-Time
element
Under which type of coverage does the insurer agree to pay for bodily injury or property
damage liability which the insured has agreed to assume under a written contractual
agreement? - ANSWER-Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not necessarily
happen during the policy period but was revealed during the policy period? - ANSWER-
Discovery form
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 - ANSWER-
Respond to the consumer's complaint.
Workers compensation benefits are provided for an employee injury or death that arises
out of the course of normal employment in all of the following situations EXCEPT -
, ANSWER-On his evening stroll, an employee of an advertising company is injured while
watching a competitor's billboard sign being removed from an advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance
contract does this describe? - ANSWER-Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - ANSWER-The
vehicle has no liability bond or insurance in force.
Which of the following are the authorities that an agent can hold? - ANSWER-Express
and implied
All of the following are supplemental payments found in liability policies EXCEPT -
ANSWER-Costs the insured incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss? - ANSWER-Coverage E
A producer who fails to segregate premium monies from his own personal funds is guilty
of - ANSWER-Commingling
What is the name for the type of property damage coverage that protects the insured or
the covered auto in an accident with someone who does not have coverage? -
ANSWER-Uninsured motorist
If a farm building or structure is vacant or unoccupied, which is true? - ANSWER-If for
120 consecutive days, the limits applicable to the building and its contents are reduced
by 50%.
Workers compensation laws provide all of the following types of benefits EXCEPT -
ANSWER-Compensatory benefits.
Which of the following liability exposures is most likely for a small specialty clothing
retail boutique? - ANSWER-Premises liability exposure
When are the limits for uninsured motorist coverage set? - ANSWER-When the
coverage is purchased
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - ANSWER-Warranty
Residential structures, including individual condominium units, and their contents are
insured by what part of the National Flood Insurance Program? - ANSWER-Dwelling
policy form
