Property and Casualty Exam Study
Guide Solutions
the one basic characteristic of any type of insurance is that the insured is
returned to the same status that existed prior to the loss, but without a
chance for gain or profit - ANSWER✔✔-true
which of the following coverages does an open peril policy provide? -
ANSWER✔✔-perils other than those specifically named as being excluded
determine the actual cash value in the following situation: original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount
at time of fire-5,000 current replacement cost 12,000 - ANSWER✔✔-7,000
liquor liability - ANSWER✔✔-need for a dram shot, liquor, or package
store
inherent vice or defect - ANSWER✔✔-iron rusting, milk going sour, rubber
breaking down are all inherent vices
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/17
,how is hitting an animal on the road covered? - ANSWER✔✔-other than
collision otc
medicare supplement insurance - ANSWER✔✔-aka medical gap insurance.
must include core benefits
ordinance or law - ANSWER✔✔-an endorsement for building code
upgrades
loss sustained/discovery forms under crime coverage - ANSWER✔✔-loss
is for later than the policy period. discovery is for before the policy (loss is
later, discovery before)
designated brush fire or civil unrest areas - ANSWER✔✔-qualifying areas
under the fair plan
stop loss provision - ANSWER✔✔-used in health insurance to limit the
maximum amount of money the insured would have to pay out of pocket
on a health claim in any particular claim
shortages of inventory - ANSWER✔✔-under crime insurance the employee
dishonesty endorsement never covers
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/17
, can the mortgagee still collect if the insured burns their house down -
ANSWER✔✔-yes, the mortgage clause is a standard provision
otc covers - ANSWER✔✔-earthquake, flood, hail, theft, hitting an animal,
gunshots (no collision or upset)
law of large numbers - ANSWER✔✔-the greater the number of insured the
more accurately the prediction
where does a driver have coverage? - ANSWER✔✔-U.S. Canada and US
possessions eg puerto rico, guam
what is excluded under commercial general liability? - ANSWER✔✔-
pollution-with the exception of fuel spilled during normal operations.
Pollution is normally covered under cpp or builders risk
what is the midi-tail on claims made? - ANSWER✔✔-provides 5 years
coverage for something reported during minitail
speculative risk - ANSWER✔✔-chance for loss or gain
commercial package - ANSWER✔✔-modular policy
Binder - ANSWER✔✔-a temp insuring contract (written or oral)
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/17
Guide Solutions
the one basic characteristic of any type of insurance is that the insured is
returned to the same status that existed prior to the loss, but without a
chance for gain or profit - ANSWER✔✔-true
which of the following coverages does an open peril policy provide? -
ANSWER✔✔-perils other than those specifically named as being excluded
determine the actual cash value in the following situation: original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount
at time of fire-5,000 current replacement cost 12,000 - ANSWER✔✔-7,000
liquor liability - ANSWER✔✔-need for a dram shot, liquor, or package
store
inherent vice or defect - ANSWER✔✔-iron rusting, milk going sour, rubber
breaking down are all inherent vices
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/17
,how is hitting an animal on the road covered? - ANSWER✔✔-other than
collision otc
medicare supplement insurance - ANSWER✔✔-aka medical gap insurance.
must include core benefits
ordinance or law - ANSWER✔✔-an endorsement for building code
upgrades
loss sustained/discovery forms under crime coverage - ANSWER✔✔-loss
is for later than the policy period. discovery is for before the policy (loss is
later, discovery before)
designated brush fire or civil unrest areas - ANSWER✔✔-qualifying areas
under the fair plan
stop loss provision - ANSWER✔✔-used in health insurance to limit the
maximum amount of money the insured would have to pay out of pocket
on a health claim in any particular claim
shortages of inventory - ANSWER✔✔-under crime insurance the employee
dishonesty endorsement never covers
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/17
, can the mortgagee still collect if the insured burns their house down -
ANSWER✔✔-yes, the mortgage clause is a standard provision
otc covers - ANSWER✔✔-earthquake, flood, hail, theft, hitting an animal,
gunshots (no collision or upset)
law of large numbers - ANSWER✔✔-the greater the number of insured the
more accurately the prediction
where does a driver have coverage? - ANSWER✔✔-U.S. Canada and US
possessions eg puerto rico, guam
what is excluded under commercial general liability? - ANSWER✔✔-
pollution-with the exception of fuel spilled during normal operations.
Pollution is normally covered under cpp or builders risk
what is the midi-tail on claims made? - ANSWER✔✔-provides 5 years
coverage for something reported during minitail
speculative risk - ANSWER✔✔-chance for loss or gain
commercial package - ANSWER✔✔-modular policy
Binder - ANSWER✔✔-a temp insuring contract (written or oral)
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/17
