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WASHINGTON STATE PROPERTY AND CASUALTY
INSURANCE EXAM COMPLETE QUESTIONS AND
CORRECT ANSWERS ALREADY GRADED A+
If a building under a BPP has been vacant over 60 days, the BPP will cover? -
(answer)Fire, Wind, Explosion, and Volcano are all covered after 60 days of
vacancy
A CGL provides liability coverage for: - (answer)A person whose reputation is
harmed by the insured's innocent dissemination of information.
Law of Large Numbers - (answer)A principle stating that the larger the number
of similar exposure units considered, the more closely the losses reported will
equal the underlying probability of loss.
Insurable losses will be listed where? - (answer)Insuring agreements
Commercial Liability - (answer)Purchased to cover completed operations/
products liability
Is crime covered under a CPP? - (answer)Yes, crime is covered under a CPP
Insured's Responsibilities are listed where? - (answer)Conditions
Policy coverages will be found where? - (answer)Insuring agreements
Does a broad form policy cover volcano - (answer)Yes
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Strict Liability - (answer)The legal responsibility for damage or injury even if
you are not negligent - a lawnmower manufacturer is liable if a blade flies off
the mower.
Seasonal inventory variable - (answer)25% in addition to the policies limit of
liability. Ex: $200,000 limit of liability, for total loss policy pays $250,000
(200,000x25%)
Is homeowners personal property covered on an ACV or RC basis? -
(answer)It's covered to 50% of A on an ACV basis. ($100,000 limit of liability x
50%) covers up to $50,000
Who is the principal in a principal agent relationship? - (answer)The insurer is
the principal in a ..
Under HO policy, coverage for removal of a fallen tree may apply if -
(answer)Tree blocks: access to driveway, handicap ramp, or tree damages a
covered structure. But NOT if the tree is blocking access to the front steps.
Adverse Selection - (answer)A high-risk person benefits more from insurance,
so is more likely to purchase it.
Manual Rates - (answer)Insurance rates according to a company Rate Manual
that vary from company to company. Also known as "Standard Rates". Most
rates must be filed with the state Insurance Commissioner, but the insurance
companies actually set their own rates in the competitive marketplace.
Contract - Good Faith - (answer)All parties DO NOT rely on the contract to
provide for an equal transfer of values between the parties
WASHINGTON STATE PROPERTY AND CASUALTY
INSURANCE EXAM COMPLETE QUESTIONS AND
CORRECT ANSWERS ALREADY GRADED A+
If a building under a BPP has been vacant over 60 days, the BPP will cover? -
(answer)Fire, Wind, Explosion, and Volcano are all covered after 60 days of
vacancy
A CGL provides liability coverage for: - (answer)A person whose reputation is
harmed by the insured's innocent dissemination of information.
Law of Large Numbers - (answer)A principle stating that the larger the number
of similar exposure units considered, the more closely the losses reported will
equal the underlying probability of loss.
Insurable losses will be listed where? - (answer)Insuring agreements
Commercial Liability - (answer)Purchased to cover completed operations/
products liability
Is crime covered under a CPP? - (answer)Yes, crime is covered under a CPP
Insured's Responsibilities are listed where? - (answer)Conditions
Policy coverages will be found where? - (answer)Insuring agreements
Does a broad form policy cover volcano - (answer)Yes
, 2
Strict Liability - (answer)The legal responsibility for damage or injury even if
you are not negligent - a lawnmower manufacturer is liable if a blade flies off
the mower.
Seasonal inventory variable - (answer)25% in addition to the policies limit of
liability. Ex: $200,000 limit of liability, for total loss policy pays $250,000
(200,000x25%)
Is homeowners personal property covered on an ACV or RC basis? -
(answer)It's covered to 50% of A on an ACV basis. ($100,000 limit of liability x
50%) covers up to $50,000
Who is the principal in a principal agent relationship? - (answer)The insurer is
the principal in a ..
Under HO policy, coverage for removal of a fallen tree may apply if -
(answer)Tree blocks: access to driveway, handicap ramp, or tree damages a
covered structure. But NOT if the tree is blocking access to the front steps.
Adverse Selection - (answer)A high-risk person benefits more from insurance,
so is more likely to purchase it.
Manual Rates - (answer)Insurance rates according to a company Rate Manual
that vary from company to company. Also known as "Standard Rates". Most
rates must be filed with the state Insurance Commissioner, but the insurance
companies actually set their own rates in the competitive marketplace.
Contract - Good Faith - (answer)All parties DO NOT rely on the contract to
provide for an equal transfer of values between the parties
