PROPERTY AND CASUALTY EXAM PREP QUESTIONS AND ANSWERS 2023

All of the following activities would warrant the imposition of absolute liability EXCEPT risky transportation. In which of the following situations would workers' compensation benefits be covered for an injured employee? a slip and fall while on the job at work The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by providing which of the following? subsidies, loss sharing or excess coverage All of the following specify limits of insurance for the commercial general liability EXCEPT legal defense. Which of the following is correct for amounts paid as supplementary payments covered in the personal auto policy Part A liability? They do not reduce the policy limit. What does an application for insurance contractually represent for the insured? an offer Mobile homes can be insured in all of the following ways EXCEPT with a HO-8 Modified Coverage form. According to the Nationwide Definition of marine insurance, which category is an eligible marine risk? imported goods Which of the following policy assignment rights occurs when the named insured dies? The insured's legal representative takes over the policy. Which of the following business liability exposures does a slip and fall loss fall under? premises and operations Which of the following is the standard amount of Coverage A-dwelling provided by the HO-6 Unit-Owners Policy? $1,000 Which of the following would be covered by a commercial package policy? loss due to crime An insureds place of business is broken in to and merchandise unlawfully taken during the night, the insured is the victim of which type of crime? burglary Which exposure is unique to mobile homes? loss from collision damage Which Homeowner Form covers fixtures, installations, and improvements made or acquired at the insured's expense? HO-4 When the insured's child spills red juice on the carpet of insured's covered automobile, which of the following coverages will apply? comprehensive Which of the following describes why the insuring agreement is the heart of an insurance policy? It describes property covered and perils insured. Which of the following best describes the commercial general liability?s general aggregate annual limit as it applies to the coverage parts of the CGL? Coverage A, B, and C apply in sum and are the most that will be paid subject to the general aggregate annual limit. All of the following are considered compensatory special damages when an insured is found legally liable for the loss of another EXCEPT mental anguish. Which of the following is the financial injury sustained by the insured caused by an accident for which the insurer, in consideration of the premium, has undertaken to indemnify the insured? loss Which of the following would be eligible to collect survivor and death benefits from workers' compensation in the event of the covered injury resulting in the death of an employee? spouse of employee The description of the insured will be found in which part of an insurance policy? declarations An insured has transportation expenses coverage under Part D of the personal auto policy when involved in a collision. Coverage provides which of the following? rental reimbursement until claim is settled by insurance What is the purpose of the causes of loss form that lists specific exclusions? to state which perils are insured against Which of the following professionals would purchase Errors And Omissions insurance to manage the liability risk associated with their business endeavors? attorney Which of the following types of policy BEST describes the DP-2 Broad form policy? named perils The claims-made liability form provides coverage from a date that precedes the policy effective date. Which of the following defines that date? retroactive date The insured causes an accident in which three persons are injured. One person claims $50,000, the second claims $100,000, and the third claims $250,000. The insured has a combined single limit of $250,000 liability on his automobile policy. What is the sum total the policy will pay? $250,000 Workers' compensation benefits for loss of wages include which of the following? replacement of a portion of lost wages A bank customer's identity was compromised and the thieves made numerous purchases from a retailer by signing the customer's checks. When the bank refused to make payment for the goods, the retailer brought suit against the bank. Which coverage indemnified the bank for liability in the suit? forgery and alteration The policy conditions as well as state laws permit the insurance company to cancel or rescind a policy when any of the following exist EXCEPT representations For the commercial general liability coverages of bodily injury, property damage and medical payments, which of the following limits of insurance apply if the aggregate limit is NOT met? per occurrence All of the following are elements of a valid contract EXCEPT provisions All of the following are excluded losses under Part D-damage to an auto of the personal auto policy EXCEPT due to destruction or confiscation by civil authorities In which of the following DP forms is the dwelling covered under open perils and the personal property on a named peril basis? DP-3 All of the following are considered an insured under the liability part of a personal auto insurance policy EXCEPT a stranger who takes the car without permission. Which of the following hazards is an example of a physical hazard? burning debris near the building on a calm sunny day Bodily injury includes all of the following EXCEPT comprehensive. The following are all types of disability categories under workers' compensation insurance EXCEPT temporary permanent. Which of the following is an example of risk avoidance? not driving a car to prevent getting in an accident Which of the following is the special limit of coverage on the homeowners policy form for property damage to personal watercraft? $1,500 Which of the following provides insurance for employers when workers not covered by workers' compensation insurance are injured on the job and sue for compensation? employer liability Under the insured's personal auto policy, which of the following is CORRECT for a newly acquired car to be covered prior to reporting it to the insurance company? all coverage extends if the insured reports the car within fourteen days. All of the following are the most commonly used personal inland marine forms EXCEPT builder's floater form. Which policy condition applies when an insurer covers property losses at cash value rather than an amount that exceeds the repair or replacement value? loss settlement condition The insured purchased a car for $40,000 and added $5,000 in insured modifications. Four years later it was worth $24,000 when it was totaled in a crash. According to the principle of indemnity, how much should the insured receive from the insurance proceeds? $24,000 Workers' compensation coverage is rated on the basis of which of the following? employer's payroll Which of the following forms trigger coverage for a loss under the commercial general liability policy if a loss happens during the policy period? occurrence form Which of the following would trigger coverage under business income form with extra expense coverage? Carpet cleaning after a water main break Which of the following is an example of replacement cost valuation? cost new without depreciation at the time of loss Which of the following created The National Flood Insurance Program? the United States Congress Which of the following is an example of a financial loss caused by a home being damaged in a windstorm? direct loss An insured operates a auto repair shop and has a garage coverage form with garagekeepers insurance when an employee on a test drive with a customer's car is involved in a crash. How will the customer's car be covered by the insured's policy? The customer's car is covered for any physical damage while in the custody of the insured.