XCEL SOLUTIONS PROPERTY & CASUALTY
EXAM WITH 150 QUESTIONS AND
VERIFIED ANSWERS
QUESTION: A licensee whose name or address changes must notify the Dept of Insurance
within _____ days: - ANSWER-30 Days
QUESTION: Assumption of risk: - ANSWER-States that a party will not collect damages
because they should have known what they were doing was risky
QUESTION: Under a DP-2 Broad form, which of the following is not a Broad peril? -
ANSWER-Vandalism
QUESTION: Which of the following incidents would not be excluded under a DP-3 policy? -
ANSWER-Burglary of a property that was vacant for 30 consecutive days
QUESTION: Which of the following are losses excluded under Coverage F? - ANSWER-An
individual who is eligible to receive disability insurance
,QUESTION: Which of the following will not provide a premium discount from standard market
workers comp insurance? - ANSWER-Assigned Risk Plan
QUESTION: The face amount of a Surety bond is called the: - ANSWER-Penalty
QUESTION: M has opened up his business, Tractors & Semis Sales, LLC. His stock will be
covered while it is being transported, if he: - ANSWER-Adds the equipment dealers floater
QUESTION: All of the following are correct about the Commercial Endorsement regarding
Spoilage EXCEPT: - ANSWER-Coverage extends to stock off premises
QUESTION: What is a certificate of authority? - ANSWER-The license required for an insurer
to conduct business in the state.
QUESTION: An earned premium resulting from the cancellation of a policy is calculated on: -
ANSWER-On a pro rata basis, based on the previous year's rate
QUESTION: M owns a parking garage & has coverage that states: "We will cover losses
regardless if you are legally liable for the loss." This no-fault ideology will be found under: -
ANSWER-Excess Direct Coverage
, QUESTION: An insurance company writing business in a state other than the one in which it is
domiciled is called: - ANSWER-a Foreign
QUESTION: Y is running a home daycare out of their home & has just earned $50,000 in her
first year of business. Under an HO policy, Y's daycare is defined as: - ANSWER-Not a business
QUESTION: Underwriting guards against - ANSWER-Adverse Selection
QUESTION: A licensed producer who lives in another state & transacts insurance in AZ is
called: - ANSWER-A Non-Resident Producer
QUESTION: Any of the following may be an unfair claims settlement practice EXCEPT: -
ANSWER-Refusing to pay persons bringing false or fraudulent claims
QUESTION: What is the best description of an applicant to the AZ auto insurance plan? -
ANSWER-An applicant in good-faith entitled to coverage but unable to obtain coverage through
ordinary methods
EXAM WITH 150 QUESTIONS AND
VERIFIED ANSWERS
QUESTION: A licensee whose name or address changes must notify the Dept of Insurance
within _____ days: - ANSWER-30 Days
QUESTION: Assumption of risk: - ANSWER-States that a party will not collect damages
because they should have known what they were doing was risky
QUESTION: Under a DP-2 Broad form, which of the following is not a Broad peril? -
ANSWER-Vandalism
QUESTION: Which of the following incidents would not be excluded under a DP-3 policy? -
ANSWER-Burglary of a property that was vacant for 30 consecutive days
QUESTION: Which of the following are losses excluded under Coverage F? - ANSWER-An
individual who is eligible to receive disability insurance
,QUESTION: Which of the following will not provide a premium discount from standard market
workers comp insurance? - ANSWER-Assigned Risk Plan
QUESTION: The face amount of a Surety bond is called the: - ANSWER-Penalty
QUESTION: M has opened up his business, Tractors & Semis Sales, LLC. His stock will be
covered while it is being transported, if he: - ANSWER-Adds the equipment dealers floater
QUESTION: All of the following are correct about the Commercial Endorsement regarding
Spoilage EXCEPT: - ANSWER-Coverage extends to stock off premises
QUESTION: What is a certificate of authority? - ANSWER-The license required for an insurer
to conduct business in the state.
QUESTION: An earned premium resulting from the cancellation of a policy is calculated on: -
ANSWER-On a pro rata basis, based on the previous year's rate
QUESTION: M owns a parking garage & has coverage that states: "We will cover losses
regardless if you are legally liable for the loss." This no-fault ideology will be found under: -
ANSWER-Excess Direct Coverage
, QUESTION: An insurance company writing business in a state other than the one in which it is
domiciled is called: - ANSWER-a Foreign
QUESTION: Y is running a home daycare out of their home & has just earned $50,000 in her
first year of business. Under an HO policy, Y's daycare is defined as: - ANSWER-Not a business
QUESTION: Underwriting guards against - ANSWER-Adverse Selection
QUESTION: A licensed producer who lives in another state & transacts insurance in AZ is
called: - ANSWER-A Non-Resident Producer
QUESTION: Any of the following may be an unfair claims settlement practice EXCEPT: -
ANSWER-Refusing to pay persons bringing false or fraudulent claims
QUESTION: What is the best description of an applicant to the AZ auto insurance plan? -
ANSWER-An applicant in good-faith entitled to coverage but unable to obtain coverage through
ordinary methods
