Property and Casualty Exam Louisiana Insurance Agent Test Review Questions and Answers 100% Correct

All of the following situations would be covered under a professional liability policy - ANSWER-An accountant's error that inflated a bid and caused a client to lose a major account., Negligence of an architect who designed an unsafe building., Failure of a doctor to render the quality of care that is customary in the medical field, .EXCEPT The failure of an attorney to properly defend a client due to his personal dislike of the client Under a professional liability policy - ANSWER-Intentional breach of duty would not be covered An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? - ANSWER-$0 Damage that results from domestic animals - ANSWER-is excluded under the special form dwelling policy What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement? - ANSWER-$25 The towing and labor costs endorsement - ANSWER-provides a basic limit of $25 for towing and labor costs incurred at the place a vehicle is disabled. Higher limits are available for an additional premium Which of the following is NOT consideration on the part of an insured? - ANSWER-Promise to submit timely claims The binding force in any contract is - ANSWER-consideration Consideration on the part of the insured is - ANSWER-the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is - ANSWER-the promise to pay in the event of loss A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss? - ANSWER-$30,000 For the total amount of a partial loss to be paid - ANSWER-a house must be insured for at least 80% of its value on the date of loss The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called - ANSWER-Consent to Settle Loss When insureds accept loss payment from the insurance company, they must - ANSWER-transfer their rights to recovery to the insurer. This prevents the insured from collecting twice for the same loss, and allows the insurer to indemnify the insurance company Which of the following statements is NOT true regarding mobile agricultural machinery and equipment coverage? - ANSWER-This coverage must be written as part of farm coverage. Mobile agriculture machinery and equipment coverage may also be written on a separate stand-alone policy The following statements are true regarding mobile agricultural machinery and equipment coverage - ANSWER-It relates to devices used in the everyday farm operation. It covers detached parts and accessories of mobile devices. It insures eligible equipment for open perils. Insurer examinations must occur no less frequently than every - ANSWER-5 years In