Insurance Licensing Final Exam
Questions And Already Passed Answers.
Which one of the following statements about license issuance and renewal is NOT correct?
A) Renewal applications must be accompanied by a $100 late renewal fee
B) Licenses automatically expire if the renewal application and fee are not received by the expiration
date
C) An expired license must be reinstated within six months of the termination date
D) Producer licenses expire every four years - Answer C
What part of the personal auto policy covers losses caused by malicious mischief, vandalism, hail, or
floods?
A) Liability
B) Property damage
C) Collision
D) Other than collision - Answer D
Every state requires that each person be able to prove he is financially prepared if involved in an
accident. Suppose your state requires minimum liability limits of 25/50/10. What is the name of that
law?
A) Financial responsibility law
B) Compulsory insurance law
C) Tort law
D) Unsatisfied judgment law - Answer A
,A producer's license may be suspended for up to how many months?
A) 6
B) 18
C) 25
D) 12 - Answer D
Knowingly lying on an application to obtain coverage would be an example of
A) concealment
B) misrepresentation
C) fraud
D) recession - Answer C
An insured has a homeowners policy for $60,000 on the dwelling. Lightning completely destroys the
home, which has a replacement cost of $40,000. How much will the insured receive?
A) $40,000
B) $6,000
C) $20,000
D) $60,000 - Answer A
An insurance producer's license must state all of the following EXCEPT
A) date of issuance and expiration
B) social security number of the licensee
C) name and address of the licensee
D) lines of insurance that the licensee is authorized to transact - Answer B
, While driving to work one morning, Joe is hit from behind by a car driven by Sam. Joe is injured and
taken to the hospital where he is admitted with a broken shoulder and other internal injuries. During the
police investigation, it is determined that Sam was 100% negligent and did not have automobile
insurance. What coverage will indemnify Joe for his injuries?
A) Joe's bodily injury liability coverage
B) Joe's uninsured motorist bodily injury coverage
C) Sam's uninsured motorist bodily injury coverage
D) The state's unsatisfied judgment coverage - Answer B
Statements made on an application that are guaranteed to be true are
A) representations
B) warranties
C) misrepresentations
D) promises - Answer B
Which of the following statements about revising the premium rates of commercial risk insurance
policies is CORRECT?
A) Insurers must provide at least 90 days' written notice before increasing rates by more than 25%
B) If timely notice of the increase is not given, the insurer must extend the policy until notice is given or
until replacement coverage is obtained, whichever occurs first
C) The Director must approve all rate increases at least 60 days before they take effect
D) Insurers must extend the existing policy for 30 days if they do not give written notice of the increase
within the prescribed period - Answer B
Which of the following statements about umbrella policies is NOT correct?
A) They are written only for commercial risks
B) They provide coverage above the limits of underlying policies
Questions And Already Passed Answers.
Which one of the following statements about license issuance and renewal is NOT correct?
A) Renewal applications must be accompanied by a $100 late renewal fee
B) Licenses automatically expire if the renewal application and fee are not received by the expiration
date
C) An expired license must be reinstated within six months of the termination date
D) Producer licenses expire every four years - Answer C
What part of the personal auto policy covers losses caused by malicious mischief, vandalism, hail, or
floods?
A) Liability
B) Property damage
C) Collision
D) Other than collision - Answer D
Every state requires that each person be able to prove he is financially prepared if involved in an
accident. Suppose your state requires minimum liability limits of 25/50/10. What is the name of that
law?
A) Financial responsibility law
B) Compulsory insurance law
C) Tort law
D) Unsatisfied judgment law - Answer A
,A producer's license may be suspended for up to how many months?
A) 6
B) 18
C) 25
D) 12 - Answer D
Knowingly lying on an application to obtain coverage would be an example of
A) concealment
B) misrepresentation
C) fraud
D) recession - Answer C
An insured has a homeowners policy for $60,000 on the dwelling. Lightning completely destroys the
home, which has a replacement cost of $40,000. How much will the insured receive?
A) $40,000
B) $6,000
C) $20,000
D) $60,000 - Answer A
An insurance producer's license must state all of the following EXCEPT
A) date of issuance and expiration
B) social security number of the licensee
C) name and address of the licensee
D) lines of insurance that the licensee is authorized to transact - Answer B
, While driving to work one morning, Joe is hit from behind by a car driven by Sam. Joe is injured and
taken to the hospital where he is admitted with a broken shoulder and other internal injuries. During the
police investigation, it is determined that Sam was 100% negligent and did not have automobile
insurance. What coverage will indemnify Joe for his injuries?
A) Joe's bodily injury liability coverage
B) Joe's uninsured motorist bodily injury coverage
C) Sam's uninsured motorist bodily injury coverage
D) The state's unsatisfied judgment coverage - Answer B
Statements made on an application that are guaranteed to be true are
A) representations
B) warranties
C) misrepresentations
D) promises - Answer B
Which of the following statements about revising the premium rates of commercial risk insurance
policies is CORRECT?
A) Insurers must provide at least 90 days' written notice before increasing rates by more than 25%
B) If timely notice of the increase is not given, the insurer must extend the policy until notice is given or
until replacement coverage is obtained, whichever occurs first
C) The Director must approve all rate increases at least 60 days before they take effect
D) Insurers must extend the existing policy for 30 days if they do not give written notice of the increase
within the prescribed period - Answer B
Which of the following statements about umbrella policies is NOT correct?
A) They are written only for commercial risks
B) They provide coverage above the limits of underlying policies
