AD BANKER P&C COMP TEST QUESTIONS
Which of the following perils would be covered under a Dwelling policy?
A Water discharged by a plumbing failure
B Overflow of water from a sump pump
C Water accumulating below the surface of the ground
D Water leakage in a driveway - Answers - A Water discharged by a plumbing failure
Which of the following is false regarding Temporary Partial Disability benefits?
A The injured employee is able to do some work
B The injured employee's wages, while disabled, are less than before the injury
C The injured employee will never return to his/her previous employment
D Benefits are calculated as a percentage of the difference in the wages - Answers - C
The injured employee will never return to his/her previous employment
An insured who needs coverage for medical instruments while they are on and off
premises could obtain it by purchasing the:
A Scheduled Personal Property Endorsement
B Professional Liability Insurance
C Errors and Omissions Insurance
D Physicians and Surgeons Equipment coverage form - Answers - D Physicians and
Surgeons Equipment coverage form
Which of the following is a coverage extension that is available in the Building and
Personal Property coverage form?
A Legal liability coverage form
B Property off-premises
C Earthquake form
D Time element coverage - Answers - B Property off-premises
Which of the following crime forms requires the use of a Retroactive Date?
A Loss Sustained Form
B Occurrence Form
C Discovery Form
D Claims-made form - Answers - C Discovery Form
Which of the following scenarios would be covered under Personal Injury coverage?
A A storeowner falsely detains a young child believing the child egged the store
B A customer at a grocery store is injured when a canned food display falls
C An insured deeply cuts her hand opening a package with a box-cutter
,D An employee trips walking down the stairs at the office - Answers - A A storeowner
falsely detains a young child believing the child egged the store
A hardware store is insured under a Business Income coverage form with the Special
Causes of Loss form. Which of the following losses would be covered?
A Income lost when the store closes for a week while damage from a burst water pipe is
repaired
B All of the answers listed
C Income lost due to unemployment
D Income lost while the store owner goes on vacation for two weeks - Answers - A
Income lost when the store closes for a week while damage from a burst water pipe is
repaired
Which of the following best describes a liability policy that is written on a primary basis?
A It provides only basic coverage
B It pays only after other insurance covering the same loss is exhausted
C It shares the loss with other policies covering the same loss
D It is the policy that pays first with respect to other policies - Answers - D It is the policy
that pays first with respect to other policies
Which Personal Inland Marine form provides open peril coverage on a blanket basis for
most kinds of property found in a typical home?
A Personal Articles floater
B Personal Property floater
C Personal Effects floater
D Personal Jewelry floater - Answers - B Personal Property floater
When an applicant intentionally fails to make a material fact known, it is known as:
A Bad faith
B Misrepresentation
C Concealment
D Deception - Answers - C Concealment
A fire sprinkler system installed in a factory is considered which of the following
methods of managing risk?
A Avoidance
B Transfer
C Reduction
D Retention - Answers - C Reduction
Under a Businessowners Policy medical expenses coverage:
A Provides coverage without regard to negligence
B Pays sums for which the insured is legally liable
,C Prohibits further action for recovery after acceptance of payment
D Is written in place of bodily injury - Answers - A Provides coverage without regard to
negligence
Reasonable medical expenses incurred and reported within how many years following
an accident are covered under Medical Payments coverage of the CGL?
A5
B1
C3
D 2 - Answers - B 1
Which part of the policy would you find the insurance company's promise to pay?
A Insuring Agreement
B Exclusions
C Conditions
D Declarations - Answers - A Insuring Agreement
The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto
Policy states that:
A The limit of liability is equal to the limit of liability of Coverage A
B The limit of liability is reduced by an amount equal to losses paid during the policy
term
C The limit of liability is reduced by an amount equal to losses paid on the covered auto
D The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the
amount necessary to repair or replace the vehicle with another of like kind and quality -
Answers - D The limit of liability is the lesser of the actual cash value (ACV) of the
vehicle or the amount necessary to repair or replace the vehicle with another of like kind
and quality
To whom must the insured assign recovery rights after being paid by the insurance
company for a collision loss caused by another party?
A The insured must assign rights to the negligent party's insurer to pay the insured's
company for the damage
B The insured does not have to assign her rights to anyone as she has been paid for
the loss
C The insured must assign the rights to the insurance company to recover from the
negligent party or insurer
D The insured must assign rights to the negligent party to pay the insurance company -
Answers - C The insured must assign the rights to the insurance company to recover
from the negligent party or insurer
Which statement is false regarding the Farm Property Coverage Form?
A Losses from nuclear damage are covered
B Exclusions include earth movement and intentional loss
, C Coverage D provides coverage for loss of use
D Coverage F includes unscheduled farm personal property - Answers - A Losses from
nuclear damage are covered
Which of the following wind mitigation designations require documentation of
engineering design and installation of a continuous load path?
A Gold
B Platinum
C Bronze
D Silver - Answers - A Gold
Under a Mobile Home policy, if the mobile home is insured under Coverage A for
$70,000, how much coverage would ordinarily apply to personal property under
Coverage C?
A $30,000
B $42,000
C $28,000
D $35,000 - Answers - C $28,000
An insured who has coverage under the NFIP with a $500 deductible for the dwelling
and contents sustains flood damage to both their home and personal property. What is
the maximum the insured will have to pay for damages assuming the loss is under the
policy limits?
A $500
B $1,000
C $1,500
D Nothing - Answers - B $1,000
Which Commercial Property coverage form covers damage to the property of others in
the insured's care, custody, or control for which the insured is legally liable?
A Business Income coverage
B Time Element coverage
C Legal Liability coverage form
D Cause of Loss broad form - Answers - C Legal Liability coverage form
The following are legal grounds for cancellation of Automobile Insurance in Alabama,
except:
A Vehicle has been involved in an accident in the last 12 months
B Driver suffers from epilepsy or is addicted to drugs and/or alcohol
C Nonpayment of premium
D Vehicle is deemed to be unsafe - Answers - A Vehicle has been involved in an
accident in the last 12 months
Which of the following perils would be covered under a Dwelling policy?
A Water discharged by a plumbing failure
B Overflow of water from a sump pump
C Water accumulating below the surface of the ground
D Water leakage in a driveway - Answers - A Water discharged by a plumbing failure
Which of the following is false regarding Temporary Partial Disability benefits?
A The injured employee is able to do some work
B The injured employee's wages, while disabled, are less than before the injury
C The injured employee will never return to his/her previous employment
D Benefits are calculated as a percentage of the difference in the wages - Answers - C
The injured employee will never return to his/her previous employment
An insured who needs coverage for medical instruments while they are on and off
premises could obtain it by purchasing the:
A Scheduled Personal Property Endorsement
B Professional Liability Insurance
C Errors and Omissions Insurance
D Physicians and Surgeons Equipment coverage form - Answers - D Physicians and
Surgeons Equipment coverage form
Which of the following is a coverage extension that is available in the Building and
Personal Property coverage form?
A Legal liability coverage form
B Property off-premises
C Earthquake form
D Time element coverage - Answers - B Property off-premises
Which of the following crime forms requires the use of a Retroactive Date?
A Loss Sustained Form
B Occurrence Form
C Discovery Form
D Claims-made form - Answers - C Discovery Form
Which of the following scenarios would be covered under Personal Injury coverage?
A A storeowner falsely detains a young child believing the child egged the store
B A customer at a grocery store is injured when a canned food display falls
C An insured deeply cuts her hand opening a package with a box-cutter
,D An employee trips walking down the stairs at the office - Answers - A A storeowner
falsely detains a young child believing the child egged the store
A hardware store is insured under a Business Income coverage form with the Special
Causes of Loss form. Which of the following losses would be covered?
A Income lost when the store closes for a week while damage from a burst water pipe is
repaired
B All of the answers listed
C Income lost due to unemployment
D Income lost while the store owner goes on vacation for two weeks - Answers - A
Income lost when the store closes for a week while damage from a burst water pipe is
repaired
Which of the following best describes a liability policy that is written on a primary basis?
A It provides only basic coverage
B It pays only after other insurance covering the same loss is exhausted
C It shares the loss with other policies covering the same loss
D It is the policy that pays first with respect to other policies - Answers - D It is the policy
that pays first with respect to other policies
Which Personal Inland Marine form provides open peril coverage on a blanket basis for
most kinds of property found in a typical home?
A Personal Articles floater
B Personal Property floater
C Personal Effects floater
D Personal Jewelry floater - Answers - B Personal Property floater
When an applicant intentionally fails to make a material fact known, it is known as:
A Bad faith
B Misrepresentation
C Concealment
D Deception - Answers - C Concealment
A fire sprinkler system installed in a factory is considered which of the following
methods of managing risk?
A Avoidance
B Transfer
C Reduction
D Retention - Answers - C Reduction
Under a Businessowners Policy medical expenses coverage:
A Provides coverage without regard to negligence
B Pays sums for which the insured is legally liable
,C Prohibits further action for recovery after acceptance of payment
D Is written in place of bodily injury - Answers - A Provides coverage without regard to
negligence
Reasonable medical expenses incurred and reported within how many years following
an accident are covered under Medical Payments coverage of the CGL?
A5
B1
C3
D 2 - Answers - B 1
Which part of the policy would you find the insurance company's promise to pay?
A Insuring Agreement
B Exclusions
C Conditions
D Declarations - Answers - A Insuring Agreement
The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto
Policy states that:
A The limit of liability is equal to the limit of liability of Coverage A
B The limit of liability is reduced by an amount equal to losses paid during the policy
term
C The limit of liability is reduced by an amount equal to losses paid on the covered auto
D The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the
amount necessary to repair or replace the vehicle with another of like kind and quality -
Answers - D The limit of liability is the lesser of the actual cash value (ACV) of the
vehicle or the amount necessary to repair or replace the vehicle with another of like kind
and quality
To whom must the insured assign recovery rights after being paid by the insurance
company for a collision loss caused by another party?
A The insured must assign rights to the negligent party's insurer to pay the insured's
company for the damage
B The insured does not have to assign her rights to anyone as she has been paid for
the loss
C The insured must assign the rights to the insurance company to recover from the
negligent party or insurer
D The insured must assign rights to the negligent party to pay the insurance company -
Answers - C The insured must assign the rights to the insurance company to recover
from the negligent party or insurer
Which statement is false regarding the Farm Property Coverage Form?
A Losses from nuclear damage are covered
B Exclusions include earth movement and intentional loss
, C Coverage D provides coverage for loss of use
D Coverage F includes unscheduled farm personal property - Answers - A Losses from
nuclear damage are covered
Which of the following wind mitigation designations require documentation of
engineering design and installation of a continuous load path?
A Gold
B Platinum
C Bronze
D Silver - Answers - A Gold
Under a Mobile Home policy, if the mobile home is insured under Coverage A for
$70,000, how much coverage would ordinarily apply to personal property under
Coverage C?
A $30,000
B $42,000
C $28,000
D $35,000 - Answers - C $28,000
An insured who has coverage under the NFIP with a $500 deductible for the dwelling
and contents sustains flood damage to both their home and personal property. What is
the maximum the insured will have to pay for damages assuming the loss is under the
policy limits?
A $500
B $1,000
C $1,500
D Nothing - Answers - B $1,000
Which Commercial Property coverage form covers damage to the property of others in
the insured's care, custody, or control for which the insured is legally liable?
A Business Income coverage
B Time Element coverage
C Legal Liability coverage form
D Cause of Loss broad form - Answers - C Legal Liability coverage form
The following are legal grounds for cancellation of Automobile Insurance in Alabama,
except:
A Vehicle has been involved in an accident in the last 12 months
B Driver suffers from epilepsy or is addicted to drugs and/or alcohol
C Nonpayment of premium
D Vehicle is deemed to be unsafe - Answers - A Vehicle has been involved in an
accident in the last 12 months
