AD Banker Property & Casualty Practice Test
Exam Questions & Answers
Warranty - CORRECT ANSWER-An applicant makes a statement on the
insurance application which becomes part of the contract that she has an alarm
system which qualifies her for a premium discount. This statement is considered
a ________.
Consideration - CORRECT ANSWER-In an insurance contract, the value that
each party gives the other is called the _____________.
Admitted - CORRECT ANSWER-An insurer that is authorized to do business in a
particular state is said to be ________.
Insuring Agreement - CORRECT ANSWER-Which part of a property insurance
policy describes the perils?
A Proof of Loss - CORRECT ANSWER-The formal statement that verifies details
so the insurer can determine liability is called _ _____ __ ____.
Only on-premises coverage is available - CORRECT ANSWER-All of the
following are true regarding the Broad Theft Endorsement on a Dwelling policy,
except:
A. It applies only to owner occupied structures
B. It may be added to any of the Dwelling forms
C. It also includes vandalism resulting from theft
D. Only on-premises coverage is available
Bodily injury caused by an insured's activities while picnicking at a city park -
CORRECT ANSWER-Section II of a Homeowner's policy may cover which of the
following incidents?
A. Bodily injury caused by an insured's activities while picnicking at a city park
B. An insured's guest damages the stair railing during a visit
,C. The insured hits and injures a swimmer while enjoying a ride in an owned
inboard motorboat
D. The homeowner's family dog bites their 2 year old son
Loss of Income of an injured person - CORRECT ANSWER-Medical payments
under Section II of the Homeowners Policy would cover all of the following,
except:
A. Prosthetic devices
B. Medical and surgical expenses
C. Loss of Income of an injured Person
D. Dental expenses
$1,500 for loss by theft - CORRECT ANSWER-Under the unendorsed
Homeowners Policy, jewelry is covered up to what amount?
Section II losses are subject to a standard $250 deductible - CORRECT
ANSWER-In respect to Section II of a Homeowners Policy, all of the following are
true, except:
A. Individual and family cemetery plots qualify as an insured location
B. Bodily injury or property damage arising from a vehicle used to assist the
handicapped, such as a wheelchair, is covered
C. Damage to Property of Others pays up to $1,000 per occurrence
D. Section II losses are subject to a standard $250 deductible
$1,250 - CORRECT ANSWER-An insured has a homeowners broad form with a
$200,000 limit on the dwelling and the standard deductible. If the insured's
$2,500 boat and trailer are stolen from his driveway, what is the most the insured
will collect from the policy?
Property of the insured - CORRECT ANSWER-All of the following are covered
under Section II of the Homeowners Policy, except:
A. Medical expenses for an accident arising out of the premises or non-business
activities of an insured
B. The insured's liability for bodily injury to others
,C. Property of the insured
D. The insured's liability for damages to property of others
Bodily Injury to a guest caused by the insured's pet dog - CORRECT
ANSWER-Coverage E of a Homeowners Policy would cover which of the
following?
A. The transmission of a communicable disease by an insured
B. Bodily Injury arising out of the sale of a controlled substance
C. Bodily Injury to a guest caused by the insured's pet dog
D. Bodily Injury to an insured
It extends Section II coverages to the insured's home day care business -
CORRECT ANSWER-Which of the following is true concerning the Home Day
Care Coverage Endorsement to the Homeowners Policy?
A. It covers injury to an employee, as well as attendees, arising out of day care
operations
B. It provides Commercial General Liability coverage for the day care operation
C. It extends Section II coverages to the insured's home day care business
D. It covers injury to attendees while loading or unloading them from draft or
saddle animals
Property of the insured - CORRECT ANSWER-Which of the following are
covered under section II of the Homeowners Policy, except:
A. Medical expenses for an accident arising out of the premises or non-business
activities of an insured
B. The insured's liability for bodily injury to others
C. Property of the insured
D. The insured's liability for damages to property of others
Bodily Injury to a guest caused by the insured's pet dog - CORRECT
ANSWER-Coverage E of a Homeowners Policy would cover which of the
following?
A. The transmission of a communicable disease by an insured
, B. Bodily Injury arising out of the sale of a controlled substance
C. Bodily Injury to a guest caused by the insured's pet dog
D. Bodily Injury to an insured
It extends Section II coverages to the insured's home day care business -
CORRECT ANSWER-Which of the following is true concerning the Home Day
Care Coverage Endorsement to the Homeowners Policy?
A. It covers injury to an employee, as well as attendees, arising out of day care
operations
B. It provides Commercial General Liability coverage for the day care operation
C. It extends Section II coverages to the insured's home day care business
D. It covers injury to attendees while loading or unloading them from draft or
saddle animals
It is similar in design to a Homeowners Policy and similar in coverage to the
Personal Auto Policy - CORRECT ANSWER-Which of the following is true
regarding the Boatowners Policy?
A. Losses are settled on a replacement cost basis
B. It provides named perils coverage for the boat and motor
C. It is similar in design to a Homeowners Policy and similar in coverage to the
Personal Auto Policy
D. It does not include liability coverage
Multi-peril crop insurance is reinsurance by the federal government by FCIC -
CORRECT ANSWER-Which of the following statements regarding Multi-Peril
Crop Insurance is correct:
A. Multi-peril crop insurance protects against the perils of lightning, wind, and
pollution
B. Multi-peril crop insurance is reinsured by the federal government by FCIC
C. Multi-peril crop insurance is not reinsured by the federal government, but
through CHIAA
D. Insects and plant disease are excluded from coverage
Exam Questions & Answers
Warranty - CORRECT ANSWER-An applicant makes a statement on the
insurance application which becomes part of the contract that she has an alarm
system which qualifies her for a premium discount. This statement is considered
a ________.
Consideration - CORRECT ANSWER-In an insurance contract, the value that
each party gives the other is called the _____________.
Admitted - CORRECT ANSWER-An insurer that is authorized to do business in a
particular state is said to be ________.
Insuring Agreement - CORRECT ANSWER-Which part of a property insurance
policy describes the perils?
A Proof of Loss - CORRECT ANSWER-The formal statement that verifies details
so the insurer can determine liability is called _ _____ __ ____.
Only on-premises coverage is available - CORRECT ANSWER-All of the
following are true regarding the Broad Theft Endorsement on a Dwelling policy,
except:
A. It applies only to owner occupied structures
B. It may be added to any of the Dwelling forms
C. It also includes vandalism resulting from theft
D. Only on-premises coverage is available
Bodily injury caused by an insured's activities while picnicking at a city park -
CORRECT ANSWER-Section II of a Homeowner's policy may cover which of the
following incidents?
A. Bodily injury caused by an insured's activities while picnicking at a city park
B. An insured's guest damages the stair railing during a visit
,C. The insured hits and injures a swimmer while enjoying a ride in an owned
inboard motorboat
D. The homeowner's family dog bites their 2 year old son
Loss of Income of an injured person - CORRECT ANSWER-Medical payments
under Section II of the Homeowners Policy would cover all of the following,
except:
A. Prosthetic devices
B. Medical and surgical expenses
C. Loss of Income of an injured Person
D. Dental expenses
$1,500 for loss by theft - CORRECT ANSWER-Under the unendorsed
Homeowners Policy, jewelry is covered up to what amount?
Section II losses are subject to a standard $250 deductible - CORRECT
ANSWER-In respect to Section II of a Homeowners Policy, all of the following are
true, except:
A. Individual and family cemetery plots qualify as an insured location
B. Bodily injury or property damage arising from a vehicle used to assist the
handicapped, such as a wheelchair, is covered
C. Damage to Property of Others pays up to $1,000 per occurrence
D. Section II losses are subject to a standard $250 deductible
$1,250 - CORRECT ANSWER-An insured has a homeowners broad form with a
$200,000 limit on the dwelling and the standard deductible. If the insured's
$2,500 boat and trailer are stolen from his driveway, what is the most the insured
will collect from the policy?
Property of the insured - CORRECT ANSWER-All of the following are covered
under Section II of the Homeowners Policy, except:
A. Medical expenses for an accident arising out of the premises or non-business
activities of an insured
B. The insured's liability for bodily injury to others
,C. Property of the insured
D. The insured's liability for damages to property of others
Bodily Injury to a guest caused by the insured's pet dog - CORRECT
ANSWER-Coverage E of a Homeowners Policy would cover which of the
following?
A. The transmission of a communicable disease by an insured
B. Bodily Injury arising out of the sale of a controlled substance
C. Bodily Injury to a guest caused by the insured's pet dog
D. Bodily Injury to an insured
It extends Section II coverages to the insured's home day care business -
CORRECT ANSWER-Which of the following is true concerning the Home Day
Care Coverage Endorsement to the Homeowners Policy?
A. It covers injury to an employee, as well as attendees, arising out of day care
operations
B. It provides Commercial General Liability coverage for the day care operation
C. It extends Section II coverages to the insured's home day care business
D. It covers injury to attendees while loading or unloading them from draft or
saddle animals
Property of the insured - CORRECT ANSWER-Which of the following are
covered under section II of the Homeowners Policy, except:
A. Medical expenses for an accident arising out of the premises or non-business
activities of an insured
B. The insured's liability for bodily injury to others
C. Property of the insured
D. The insured's liability for damages to property of others
Bodily Injury to a guest caused by the insured's pet dog - CORRECT
ANSWER-Coverage E of a Homeowners Policy would cover which of the
following?
A. The transmission of a communicable disease by an insured
, B. Bodily Injury arising out of the sale of a controlled substance
C. Bodily Injury to a guest caused by the insured's pet dog
D. Bodily Injury to an insured
It extends Section II coverages to the insured's home day care business -
CORRECT ANSWER-Which of the following is true concerning the Home Day
Care Coverage Endorsement to the Homeowners Policy?
A. It covers injury to an employee, as well as attendees, arising out of day care
operations
B. It provides Commercial General Liability coverage for the day care operation
C. It extends Section II coverages to the insured's home day care business
D. It covers injury to attendees while loading or unloading them from draft or
saddle animals
It is similar in design to a Homeowners Policy and similar in coverage to the
Personal Auto Policy - CORRECT ANSWER-Which of the following is true
regarding the Boatowners Policy?
A. Losses are settled on a replacement cost basis
B. It provides named perils coverage for the boat and motor
C. It is similar in design to a Homeowners Policy and similar in coverage to the
Personal Auto Policy
D. It does not include liability coverage
Multi-peril crop insurance is reinsurance by the federal government by FCIC -
CORRECT ANSWER-Which of the following statements regarding Multi-Peril
Crop Insurance is correct:
A. Multi-peril crop insurance protects against the perils of lightning, wind, and
pollution
B. Multi-peril crop insurance is reinsured by the federal government by FCIC
C. Multi-peril crop insurance is not reinsured by the federal government, but
through CHIAA
D. Insects and plant disease are excluded from coverage
