Louisiana Property & Casualty Insurance Course Exam | Questions with 100% Correct
Answers | Updated &Verified | 2024-2025 | 100% Score
Which One Of The Following Is NOT A Possible Defense Against Negligence?
A. Statue Of Limitations
B. Doctrine Of Reasonable Expectation
C. Intervening Cause
D. Comparative Negligence - ✔✔Doctrine Of Reasonable Expectation
What Is A Hazard? - ✔✔An Increase In The Possibility That A Loss Might Occur.
The Purpose Of Insurance Is To____________ - ✔✔Transfer Risk From A Person, Business Or
Organization To An Insurance Company.
The Type Of Insurance Company In Which The Policyholder Is Considered An Owner, With The Right To
Vote And Share Profits, Is A________ - ✔✔Mutual Company
The Renewal Fee For A Louisiana Producer License Is________ - ✔✔$50
The Federal Law That Says The Federal Government Can Only Regulate Insurance Companies To The
Extent They Are Not Regulated By The State Law Is________ - ✔✔McCarran-Ferguson Act
An Insurance Policy Is Prepared By The Insurance Company, With Little Or No Input From The Insured.
This Means That An Insurance Policy Is A/An________ - ✔✔Adhesion Contract
An Individual Who Owns And Lives In A Condominium Can Obtain Broad Coverage For Personal Property
In The Condo Under Which Homeowners Form? - ✔✔HO-6
,What Rating Method Involves Modifying The Premium Based On The Insured's Loss Experience Over A
Specific Period Of Time? - ✔✔Experience Rating
Which One Of The Following Types Of Benefits Is Generally Not Provided By A State's Workers
Compensation Law? - ✔✔Pain & Suffering
Which Of The Following Describes An Insurance Company Doing Business In A State Other Than The One
Where It Is Incorporated? - ✔✔Foreign
What Type Of Insurance Policy Insures Against All Risk Of Loss That Are Not Specifically Excluded By The
Policy? - ✔✔Open Peril Policy
Which Of The Following Describes Actual Cash Value? - ✔✔Replacement Cost-Depreciation
An Insured Purchased New Furniture For $6,000. At The Time Of A Fire Loss, It Had Depreciated $2,000.
The Same Furniture Will Cost $7,000 To Replace. What Is The Actual Cash Value Of The Destroyed
Furniture?
A. $4,000
B. $8,000
C. $6,000
D. $5,000 - ✔✔$5,000
The Primary Purpose Of The Business Income Coverage Forms Is To Reimburse The Insured For
__________. - ✔✔Loss Of Income Resulting From Property Damage At The Insured's Property
The Homeowners Form That Provides Open Peril Coverage On The Dwelling And Broad Coverage On
Personal Property Is The_______
A. HO-3
B. HO-4
, C HO-2
D. HO-6 - ✔✔HO-3
Which Of The Following Losses To Covered Equipment Would Be Covered Under The Equipment
Breakdown Protection Coverage Form? - ✔✔Damage From An Explosion Caused By The Centrifugal
Force Of Moving Parts
According To The Cancellation Condition In The Common Policy Conditions Form, If The Insurance
Company Is Cancelling A Commercial Package Policy For Nonpayment Of Premium, The Insured Must Be
Given At Least How Many Days Notice Of Cancellation?
A. 30
B. 60
C. 14
D. 10 - ✔✔10
Which Of The Following Coverages IS Included In The Homeowners Policy But Is NOT Included In An
Unendorsed Dwelling Policy? - ✔✔Liability
Open Peril Coverage For Both The Dwelling And Personal Property Is Provided By The _________
A. HO-2
B. HO-3
C. HO-5
D. HO-4 - ✔✔HO-5
The Insureds Home Is Covered By A DP-3. Two Years Ago, The Insured Bought The Home For $58,000.
Today, Its Replacement Value Is $60,000. How Much Coverage A Does The Insured Need To Qualify For
Replacement Cost Coverage?
A. $60,000
Answers | Updated &Verified | 2024-2025 | 100% Score
Which One Of The Following Is NOT A Possible Defense Against Negligence?
A. Statue Of Limitations
B. Doctrine Of Reasonable Expectation
C. Intervening Cause
D. Comparative Negligence - ✔✔Doctrine Of Reasonable Expectation
What Is A Hazard? - ✔✔An Increase In The Possibility That A Loss Might Occur.
The Purpose Of Insurance Is To____________ - ✔✔Transfer Risk From A Person, Business Or
Organization To An Insurance Company.
The Type Of Insurance Company In Which The Policyholder Is Considered An Owner, With The Right To
Vote And Share Profits, Is A________ - ✔✔Mutual Company
The Renewal Fee For A Louisiana Producer License Is________ - ✔✔$50
The Federal Law That Says The Federal Government Can Only Regulate Insurance Companies To The
Extent They Are Not Regulated By The State Law Is________ - ✔✔McCarran-Ferguson Act
An Insurance Policy Is Prepared By The Insurance Company, With Little Or No Input From The Insured.
This Means That An Insurance Policy Is A/An________ - ✔✔Adhesion Contract
An Individual Who Owns And Lives In A Condominium Can Obtain Broad Coverage For Personal Property
In The Condo Under Which Homeowners Form? - ✔✔HO-6
,What Rating Method Involves Modifying The Premium Based On The Insured's Loss Experience Over A
Specific Period Of Time? - ✔✔Experience Rating
Which One Of The Following Types Of Benefits Is Generally Not Provided By A State's Workers
Compensation Law? - ✔✔Pain & Suffering
Which Of The Following Describes An Insurance Company Doing Business In A State Other Than The One
Where It Is Incorporated? - ✔✔Foreign
What Type Of Insurance Policy Insures Against All Risk Of Loss That Are Not Specifically Excluded By The
Policy? - ✔✔Open Peril Policy
Which Of The Following Describes Actual Cash Value? - ✔✔Replacement Cost-Depreciation
An Insured Purchased New Furniture For $6,000. At The Time Of A Fire Loss, It Had Depreciated $2,000.
The Same Furniture Will Cost $7,000 To Replace. What Is The Actual Cash Value Of The Destroyed
Furniture?
A. $4,000
B. $8,000
C. $6,000
D. $5,000 - ✔✔$5,000
The Primary Purpose Of The Business Income Coverage Forms Is To Reimburse The Insured For
__________. - ✔✔Loss Of Income Resulting From Property Damage At The Insured's Property
The Homeowners Form That Provides Open Peril Coverage On The Dwelling And Broad Coverage On
Personal Property Is The_______
A. HO-3
B. HO-4
, C HO-2
D. HO-6 - ✔✔HO-3
Which Of The Following Losses To Covered Equipment Would Be Covered Under The Equipment
Breakdown Protection Coverage Form? - ✔✔Damage From An Explosion Caused By The Centrifugal
Force Of Moving Parts
According To The Cancellation Condition In The Common Policy Conditions Form, If The Insurance
Company Is Cancelling A Commercial Package Policy For Nonpayment Of Premium, The Insured Must Be
Given At Least How Many Days Notice Of Cancellation?
A. 30
B. 60
C. 14
D. 10 - ✔✔10
Which Of The Following Coverages IS Included In The Homeowners Policy But Is NOT Included In An
Unendorsed Dwelling Policy? - ✔✔Liability
Open Peril Coverage For Both The Dwelling And Personal Property Is Provided By The _________
A. HO-2
B. HO-3
C. HO-5
D. HO-4 - ✔✔HO-5
The Insureds Home Is Covered By A DP-3. Two Years Ago, The Insured Bought The Home For $58,000.
Today, Its Replacement Value Is $60,000. How Much Coverage A Does The Insured Need To Qualify For
Replacement Cost Coverage?
A. $60,000
