Virginia Property and Casualty Final Exam
Best Studying Material with All Questions
from Actual Past Exam ALREADY GRADED A
Which of the following actions is performed by an insurance consultant rather than by an agent?
A
Charging a fee for advisory services
B
Negotiating insurance coverage
C
Earning commission from the sale of a policy
D
Giving advice on policy coverage - ANSWER>>Charging a fee for advisory services - Only
consultants can charge a fee for contracted insurance advisory services—agents cannot.
Coverage C on the HO-3 would cover which of the following losses?
A
Fire loss to the personal property of a boarder who is not related to the insured
B
Lightning damage to a structure held for rental to tenants as a private garage
C
Vandalism loss to property the insured borrows from a neighbor
D
Damage to furniture caused by wild animals - ANSWER>>Vandalism loss to property the insured
borrows from a neighbor
Inland Marine Insurance is not typically used to insure which type of property?
A
Cameras
B
Stamps
C
Autos
D
,Jewelry - ANSWER>>Autos - Autos are not a covered class of property.
Which coverage is not included in a Workers' Compensation insurance policy?
A
Medical benefits
B
Disability income benefits
C
Employers liability
D
Second injury fund - ANSWER>>Second injury fund
Which of the following constitutes the acceptance of an offer?
A
When an insurer issues a binder
B
When the applicant completes the application
C
When the agent assures the applicant they will be covered
D
When the insurer makes a counteroffer - ANSWER>>When an insurer issues a binder
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar
engineering projects. If workers from ABC Industries cause damage to a taxicab while pouring the
foundation for a new overpass, ABC Industries has been exposed to which type of legal liability?
A
Premises
B
Contractual liability
C
Completed operations
D
Operations - ANSWER>>Operations
Which commercial property coverage form provides coverage for an indirect loss?
A
Business Income Coverage Form
, B
Legal Liability Coverage Form
C
Building and Personal Property Coverage Form
D
Builders Risk Coverage Form - ANSWER>>Business Income Coverage Form
ACV is generally used for which of the following types of claims?
A
Auto Physical Damage
B
Umbrella
C
Workers' Compensation
D
Businessowners Property - ANSWER>>Auto Physical Damage
A Commercial Crime policy written with the Inside the Premises - Robbery or Safe Burglary of
Other Property Insuring Agreement would cover which of the following?
A
A robber breaks glass display cases and steals the jewels inside
B
A masked gunman confronts a cashier and demands money
C
An employee breaks into the company safe and steals precious metal
D
A messenger is robbed while transporting high-end computer components - ANSWER>>A
robber breaks glass display cases and steals the jewels inside
Under the Businessowners policy, if there is other insurance covering the same loss, how will the
policy respond?
A
The Businessowners policy pays 50% of the loss or damage
B
The Businessowners policy will pay its proportional share of the loss or damage
C
Best Studying Material with All Questions
from Actual Past Exam ALREADY GRADED A
Which of the following actions is performed by an insurance consultant rather than by an agent?
A
Charging a fee for advisory services
B
Negotiating insurance coverage
C
Earning commission from the sale of a policy
D
Giving advice on policy coverage - ANSWER>>Charging a fee for advisory services - Only
consultants can charge a fee for contracted insurance advisory services—agents cannot.
Coverage C on the HO-3 would cover which of the following losses?
A
Fire loss to the personal property of a boarder who is not related to the insured
B
Lightning damage to a structure held for rental to tenants as a private garage
C
Vandalism loss to property the insured borrows from a neighbor
D
Damage to furniture caused by wild animals - ANSWER>>Vandalism loss to property the insured
borrows from a neighbor
Inland Marine Insurance is not typically used to insure which type of property?
A
Cameras
B
Stamps
C
Autos
D
,Jewelry - ANSWER>>Autos - Autos are not a covered class of property.
Which coverage is not included in a Workers' Compensation insurance policy?
A
Medical benefits
B
Disability income benefits
C
Employers liability
D
Second injury fund - ANSWER>>Second injury fund
Which of the following constitutes the acceptance of an offer?
A
When an insurer issues a binder
B
When the applicant completes the application
C
When the agent assures the applicant they will be covered
D
When the insurer makes a counteroffer - ANSWER>>When an insurer issues a binder
ABC Industries contracts with municipal governments to build bridges, viaducts, and similar
engineering projects. If workers from ABC Industries cause damage to a taxicab while pouring the
foundation for a new overpass, ABC Industries has been exposed to which type of legal liability?
A
Premises
B
Contractual liability
C
Completed operations
D
Operations - ANSWER>>Operations
Which commercial property coverage form provides coverage for an indirect loss?
A
Business Income Coverage Form
, B
Legal Liability Coverage Form
C
Building and Personal Property Coverage Form
D
Builders Risk Coverage Form - ANSWER>>Business Income Coverage Form
ACV is generally used for which of the following types of claims?
A
Auto Physical Damage
B
Umbrella
C
Workers' Compensation
D
Businessowners Property - ANSWER>>Auto Physical Damage
A Commercial Crime policy written with the Inside the Premises - Robbery or Safe Burglary of
Other Property Insuring Agreement would cover which of the following?
A
A robber breaks glass display cases and steals the jewels inside
B
A masked gunman confronts a cashier and demands money
C
An employee breaks into the company safe and steals precious metal
D
A messenger is robbed while transporting high-end computer components - ANSWER>>A
robber breaks glass display cases and steals the jewels inside
Under the Businessowners policy, if there is other insurance covering the same loss, how will the
policy respond?
A
The Businessowners policy pays 50% of the loss or damage
B
The Businessowners policy will pay its proportional share of the loss or damage
C
