Property and Casualty Exam- Louisiana | Questions with 100% Correct Answers | Updated
&Verified | 2024-2025 | 100% Score
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk, in the event of a
loss, the insured must notify - ✔✔Any of the insurers providing coverage.
The policy conditions define - ✔✔How parties to the contract must act following a loss.
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts
which require all of the following elements EXCEPT - ✔✔Conditions.
The value placed on property insured under a fire insurance policy is used to determine the policy's -
✔✔Premium.
Shipbuilders and repairers are covered by the - ✔✔U.S. Longshore and Harbor Workers Compensation
Act.
Which of the following terms refers to a person's ability to do some work or the need to do alternative
work? - ✔✔Temporary partial disability
Insurer examinations must occur no less frequently than every - ✔✔5 years.
If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment of premium,
how much prior notice must the insurer give to the first named insured? - ✔✔10 days
The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium
building associations to cover the entire building under one policy. Which of the following statements
about RCBAP is true? - ✔✔It does not protect the individual owner from loss to personal property
owned exclusively by the unit owner.
What is surplus lines insurance? - ✔✔Insurance placed with an unauthorized insurer
,How long is a waiting period upon purchase of flood coverage through NFIP? - ✔✔30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty Association comes
from - ✔✔Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of - ✔✔$250.
Rates that are established based on the similarities of the risk with other risks are known as -
✔✔Manual rates.
The personal injury liability endorsement to an HO policy applies to all the following EXCEPT - ✔✔A third
party breaks a leg when the insured knocks him down.
The process an insurer uses to evaluate applications and determine if a policy should be issued and on
what terms, conditions, and rates is known as - ✔✔Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA to the year -
✔✔2020
According to the Fair Credit Reporting Act, all of the following would be considered negative information
about a consumer EXCEPT - ✔✔Disputes regarding consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling policies when -
✔✔At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income that occurs when a
business must suspend operations because of a direct loss. Which of the following terms best describes
the nature of this type of coverage? - ✔✔Time element
, Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability
which the insured has agreed to assume under a written contractual agreement? - ✔✔Contractural
liability policy
Which commercial crime form would provide coverage for a loss that did not necessarily happen during
the policy period but was revealed during the policy period? - ✔✔Discovery form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must - ✔✔Respond to the consumer's complaint.
Workers compensation benefits are provided for an employee injury or death that arises out of the
course of normal employment in all of the following situations EXCEPT - ✔✔On his evening stroll, an
employee of an advertising company is injured while watching a competitor's billboard sign being
removed from an advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to
pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? -
✔✔Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - ✔✔The vehicle has no liability bond or
insurance in force.
Which of the following are the authorities that an agent can hold? - ✔✔Express and implied
All of the following are supplemental payments found in liability policies EXCEPT - ✔✔Costs the insured
incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional living expenses incurred by
an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered
loss? - ✔✔Coverage E
A producer who fails to segregate premium monies from his own personal funds is guilty of -
✔✔Commingling
&Verified | 2024-2025 | 100% Score
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single risk, in the event of a
loss, the insured must notify - ✔✔Any of the insurers providing coverage.
The policy conditions define - ✔✔How parties to the contract must act following a loss.
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts
which require all of the following elements EXCEPT - ✔✔Conditions.
The value placed on property insured under a fire insurance policy is used to determine the policy's -
✔✔Premium.
Shipbuilders and repairers are covered by the - ✔✔U.S. Longshore and Harbor Workers Compensation
Act.
Which of the following terms refers to a person's ability to do some work or the need to do alternative
work? - ✔✔Temporary partial disability
Insurer examinations must occur no less frequently than every - ✔✔5 years.
If a commercial policy, in effect for less than 60 days, is to be canceled for nonpayment of premium,
how much prior notice must the insurer give to the first named insured? - ✔✔10 days
The Residential Condominium Building Association Policy (RCBAP) is used for residential condominium
building associations to cover the entire building under one policy. Which of the following statements
about RCBAP is true? - ✔✔It does not protect the individual owner from loss to personal property
owned exclusively by the unit owner.
What is surplus lines insurance? - ✔✔Insurance placed with an unauthorized insurer
,How long is a waiting period upon purchase of flood coverage through NFIP? - ✔✔30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty Association comes
from - ✔✔Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of - ✔✔$250.
Rates that are established based on the similarities of the risk with other risks are known as -
✔✔Manual rates.
The personal injury liability endorsement to an HO policy applies to all the following EXCEPT - ✔✔A third
party breaks a leg when the insured knocks him down.
The process an insurer uses to evaluate applications and determine if a policy should be issued and on
what terms, conditions, and rates is known as - ✔✔Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA to the year -
✔✔2020
According to the Fair Credit Reporting Act, all of the following would be considered negative information
about a consumer EXCEPT - ✔✔Disputes regarding consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling policies when -
✔✔At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income that occurs when a
business must suspend operations because of a direct loss. Which of the following terms best describes
the nature of this type of coverage? - ✔✔Time element
, Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability
which the insured has agreed to assume under a written contractual agreement? - ✔✔Contractural
liability policy
Which commercial crime form would provide coverage for a loss that did not necessarily happen during
the policy period but was revealed during the policy period? - ✔✔Discovery form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information
contained in his or her report, the reporting agency must - ✔✔Respond to the consumer's complaint.
Workers compensation benefits are provided for an employee injury or death that arises out of the
course of normal employment in all of the following situations EXCEPT - ✔✔On his evening stroll, an
employee of an advertising company is injured while watching a competitor's billboard sign being
removed from an advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to
pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? -
✔✔Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - ✔✔The vehicle has no liability bond or
insurance in force.
Which of the following are the authorities that an agent can hold? - ✔✔Express and implied
All of the following are supplemental payments found in liability policies EXCEPT - ✔✔Costs the insured
incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional living expenses incurred by
an owner-occupant in the event a covered peril makes the premises uninhabitable due to a covered
loss? - ✔✔Coverage E
A producer who fails to segregate premium monies from his own personal funds is guilty of -
✔✔Commingling
