PROPERTY AND CASUALTY EXAM-
LOUISIANA EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
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 - Answer-Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA
to the year - Answer-2020
According to the Fair Credit Reporting Act, all of the following would be considered
negative information about a consumer EXCEPT - Answer-Disputes regarding
consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling
policies when - Answer-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? - Answer-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? - Answer-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? - Answer-
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 - Answer-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 -
Answer-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? - Answer-Aleatory
,An uninsured motor vehicle includes all of the following EXCEPT - Answer-The vehicle
has no liability bond or insurance in force.
Which of the following are the authorities that an agent can hold? - Answer-Express and
implied
All of the following are supplemental payments found in liability policies EXCEPT -
Answer-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? - Answer-Coverage E
A producer who fails to segregate premium monies from his own personal funds is guilty
of - Answer-Commingling
What is the name for the type of property damage coverage that protects the insured or
the covered auto in an accident with someone who does not have coverage? - Answer-
Uninsured motorist
If a farm building or structure is vacant or unoccupied, which is true? - Answer-If for 120
consecutive days, the limits applicable to the building and its contents are reduced by
50%.
Workers compensation laws provide all of the following types of benefits EXCEPT -
Answer-Compensatory benefits.
Which of the following liability exposures is most likely for a small specialty clothing
retail boutique? - Answer-Premises liability exposure
When are the limits for uninsured motorist coverage set? - Answer-When the coverage
is purchased
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - Answer-Warranty
Residential structures, including individual condominium units, and their contents are
insured by what part of the National Flood Insurance Program? - Answer-Dwelling
policy form
Under the business auto coverage form, mobile equipment is covered for liability
insurance - Answer-When being carried or towed by a covered auto.
, Which professional liability form provides form coverage for liability arising out of
malpractice, error, or mistakes made in rendering professional services? - Answer-
Physicians, surgeons and dentists malpractice
Which of the following would NOT be covered by medical payments to others in Section
II of your HO policy? - Answer-You are walking your neighbor's dog and it bites
someone.
The requirement that agents not commingle insurance monies with their own funds is
known as - Answer-Fiduciary responsibility.
Property insurance which provides $100,000 coverage for a building and $50,000
coverage for personal property at a single location is called - Answer-Specific coverage.
Because an insured owns a lot of expensive jewelry, her insurance agent has advised
her to purchase a scheduled personal property endorsement. If the insured adds this
endorsement to her homeowners policy, which of the following statements would be
correct? - Answer-Coverage C limits will no longer apply to the jewelry insured by the
endorsement.
An insurer may cancel or nonrenew a Homeowners policy based on any of the
following, EXCEPT - Answer-Fraud on the part of an insured
Under Commercial Crime Coverage Form K - Liability for Guests' Property - Safe
Deposit Box, which covered is included? - Answer-Loss resulting from the insured's
release of any other negligent party from their legal liability
A temporary license may be issued without examination to all of the following, EXCEPT
- Answer-The spouse of a retired producer.
To comply with requirements for insurance for public liability under the Motor Carrier Act
of 1980, which endorsement is added to motor carrier coverage form? - Answer-MCS-
90
If an insurance company cancels a producer's appointment, the - Answer-Commissioner
must be notified within 30 days.
In property and casualty insurance, what is the term for the amount of a loss that the
insured must cover out of pocket, and the insurer will only pay for the additional amount
of the loss above this limit? - Answer-Deductible
The cost of restoring farm records is an additional coverage offered under a farm policy.
How much will the policy pay to restore the records? - Answer-Up to $2,000
After a storm dumps several inches of snow, an insured spends several hours clearing
his sidewalk and driveway. Later that night it begins to sleet. Before the insured can
LOUISIANA EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
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 - Answer-Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the TRIA
to the year - Answer-2020
According to the Fair Credit Reporting Act, all of the following would be considered
negative information about a consumer EXCEPT - Answer-Disputes regarding
consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling
policies when - Answer-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? - Answer-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? - Answer-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? - Answer-
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 - Answer-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 -
Answer-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? - Answer-Aleatory
,An uninsured motor vehicle includes all of the following EXCEPT - Answer-The vehicle
has no liability bond or insurance in force.
Which of the following are the authorities that an agent can hold? - Answer-Express and
implied
All of the following are supplemental payments found in liability policies EXCEPT -
Answer-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? - Answer-Coverage E
A producer who fails to segregate premium monies from his own personal funds is guilty
of - Answer-Commingling
What is the name for the type of property damage coverage that protects the insured or
the covered auto in an accident with someone who does not have coverage? - Answer-
Uninsured motorist
If a farm building or structure is vacant or unoccupied, which is true? - Answer-If for 120
consecutive days, the limits applicable to the building and its contents are reduced by
50%.
Workers compensation laws provide all of the following types of benefits EXCEPT -
Answer-Compensatory benefits.
Which of the following liability exposures is most likely for a small specialty clothing
retail boutique? - Answer-Premises liability exposure
When are the limits for uninsured motorist coverage set? - Answer-When the coverage
is purchased
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - Answer-Warranty
Residential structures, including individual condominium units, and their contents are
insured by what part of the National Flood Insurance Program? - Answer-Dwelling
policy form
Under the business auto coverage form, mobile equipment is covered for liability
insurance - Answer-When being carried or towed by a covered auto.
, Which professional liability form provides form coverage for liability arising out of
malpractice, error, or mistakes made in rendering professional services? - Answer-
Physicians, surgeons and dentists malpractice
Which of the following would NOT be covered by medical payments to others in Section
II of your HO policy? - Answer-You are walking your neighbor's dog and it bites
someone.
The requirement that agents not commingle insurance monies with their own funds is
known as - Answer-Fiduciary responsibility.
Property insurance which provides $100,000 coverage for a building and $50,000
coverage for personal property at a single location is called - Answer-Specific coverage.
Because an insured owns a lot of expensive jewelry, her insurance agent has advised
her to purchase a scheduled personal property endorsement. If the insured adds this
endorsement to her homeowners policy, which of the following statements would be
correct? - Answer-Coverage C limits will no longer apply to the jewelry insured by the
endorsement.
An insurer may cancel or nonrenew a Homeowners policy based on any of the
following, EXCEPT - Answer-Fraud on the part of an insured
Under Commercial Crime Coverage Form K - Liability for Guests' Property - Safe
Deposit Box, which covered is included? - Answer-Loss resulting from the insured's
release of any other negligent party from their legal liability
A temporary license may be issued without examination to all of the following, EXCEPT
- Answer-The spouse of a retired producer.
To comply with requirements for insurance for public liability under the Motor Carrier Act
of 1980, which endorsement is added to motor carrier coverage form? - Answer-MCS-
90
If an insurance company cancels a producer's appointment, the - Answer-Commissioner
must be notified within 30 days.
In property and casualty insurance, what is the term for the amount of a loss that the
insured must cover out of pocket, and the insurer will only pay for the additional amount
of the loss above this limit? - Answer-Deductible
The cost of restoring farm records is an additional coverage offered under a farm policy.
How much will the policy pay to restore the records? - Answer-Up to $2,000
After a storm dumps several inches of snow, an insured spends several hours clearing
his sidewalk and driveway. Later that night it begins to sleet. Before the insured can
