Exam Fx-Property and Casualty Exam
1.
2. A bond is written for a set limit, and the surety will be liable only for this amount. This
limit is known as the - ANS-penalty
3. A businessowners policy is - ANS-a self-contained prepackaged policy
4. A liability policy has spilt limits of 25/50/30. Which of the following indicates the
maximum amount payable for damage to a person's property? - ANS-$30,000
5. A policy that provides coverage for an injury or damage only if it is first reported during
the policy period is called - ANS-claims-made form
6. A runaway shopping cart injures a customer in a supermarket's parking lot. Coverage for
this claim would be provided under - ANS-premises and operations
7. A specific coverage part is listed on the commercial package policy declarations page,
but there is no premium shown. What does that mean? - ANS-There is no coverage
8. According to the BOP definitions, which of the following does NOT mean valuable
papers and records? - ANS-Securities
9. According to the loss payment condition in HO policies, losses must be paid within how
many days of the insurer receiving proof of loss? - ANS-6o days
10. All else being equal, which of the following will NOT be considered unfair discrimination
by insurers? - ANS-discriminating in policy benefits based on the insurer's habits and
lifestyle
11. All of the following actions by a producer may be grounds for license revocation or
non-renewal EXCEPT - ANS-participating in controlled business
12. All of the following are major coverages included in the homeowners policy except -
ANS-loss of income
13. All of the following coverages are included in the businessowners form without
requesting coverage extensions except - ANS-newly acquired property
14. An additional loss that results from a direct loss of property is called an - ANS-indirect
loss
15. An agent offers his client free tickets to a sporting event in exchange for the purchase of
an insurance policy. The agent is guilty of - ANS-rebating
16. An insurance agent sold an insurance policy to his spouse. What type of transaction is
this? - ANS-controlled business
17. An insurance policy that covers all risks of loss that are not specifically excluded is an -
ANS-open peril policy
18. An insured building has had no residents for 10 years and it is empty of personal
belongings. From an insurance standpoint, the building is - ANS-vacant
19. An insured has purchased a used car. When does collision coverage for this car begin? -
ANS-immediately
20. An insured is injured while driving his own car. Which personal auto coverage will pay for
the loss? - ANS-Part B-Medical Payments
1.
2. A bond is written for a set limit, and the surety will be liable only for this amount. This
limit is known as the - ANS-penalty
3. A businessowners policy is - ANS-a self-contained prepackaged policy
4. A liability policy has spilt limits of 25/50/30. Which of the following indicates the
maximum amount payable for damage to a person's property? - ANS-$30,000
5. A policy that provides coverage for an injury or damage only if it is first reported during
the policy period is called - ANS-claims-made form
6. A runaway shopping cart injures a customer in a supermarket's parking lot. Coverage for
this claim would be provided under - ANS-premises and operations
7. A specific coverage part is listed on the commercial package policy declarations page,
but there is no premium shown. What does that mean? - ANS-There is no coverage
8. According to the BOP definitions, which of the following does NOT mean valuable
papers and records? - ANS-Securities
9. According to the loss payment condition in HO policies, losses must be paid within how
many days of the insurer receiving proof of loss? - ANS-6o days
10. All else being equal, which of the following will NOT be considered unfair discrimination
by insurers? - ANS-discriminating in policy benefits based on the insurer's habits and
lifestyle
11. All of the following actions by a producer may be grounds for license revocation or
non-renewal EXCEPT - ANS-participating in controlled business
12. All of the following are major coverages included in the homeowners policy except -
ANS-loss of income
13. All of the following coverages are included in the businessowners form without
requesting coverage extensions except - ANS-newly acquired property
14. An additional loss that results from a direct loss of property is called an - ANS-indirect
loss
15. An agent offers his client free tickets to a sporting event in exchange for the purchase of
an insurance policy. The agent is guilty of - ANS-rebating
16. An insurance agent sold an insurance policy to his spouse. What type of transaction is
this? - ANS-controlled business
17. An insurance policy that covers all risks of loss that are not specifically excluded is an -
ANS-open peril policy
18. An insured building has had no residents for 10 years and it is empty of personal
belongings. From an insurance standpoint, the building is - ANS-vacant
19. An insured has purchased a used car. When does collision coverage for this car begin? -
ANS-immediately
20. An insured is injured while driving his own car. Which personal auto coverage will pay for
the loss? - ANS-Part B-Medical Payments
