Washington State Insurance Property & Casualty Exam Questions with Correct Answers

If a building under a BPP has been vacant over 60 days, the BPP will cover? Correct Answer Fire, Wind, Explosion, and Volcano are all covered after 60 days of vacancy A CGL provides liability coverage for: Correct Answer A person whose reputation is harmed by the insured's innocent dissemination of information. Law of Large Numbers Correct Answer A principle stating that the larger the number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss. Insurable losses will be listed where? Correct Answer Insuring agreements Commercial Liability Correct Answer Purchased to cover completed operations/ products liability Is crime covered under a CPP? Correct Answer Yes, crime is covered under a CPP Insured's Responsibilities are listed where? Correct Answer Conditions Policy coverages will be found where? Correct Answer Insuring agreements Does a broad form policy cover volcano Correct Answer Yes Strict Liability Correct Answer The legal responsibility for damage or injury even if you are not negligent - a lawnmower manufacturer is liable if a blade flies off the mower. Seasonal inventory variable Correct Answer 25% in addition to the policies limit of liability. Ex: $200,000 limit of liability, for total loss policy pays $250,000 (200,000x25%) Is homeowners personal property covered on an ACV or RC basis? Correct Answer It's covered to 50% of A on an ACV basis. ($100,000 limit of liability x 50%) covers up to $50,000 Who is the principal in a principal agent relationship? Correct Answer The insurer is the principal in a .. Under HO policy, coverage for removal of a fallen tree may apply if Correct Answer Tree blocks: access to driveway, handicap ramp, or tree damages a covered structure. But NOT if the tree is blocking access to the front steps.