Ky insurance test - Property &
Casualty Exam Q’s and A’s A+ Scores
Which of the following insurance principles is designed to keep you from
profiting by insuring and then destroying OTHER PEOPLE's property? (Pg. 5)
A) Indemnification
B) Subrogation
C) Co-insurance
D) Insurable Interest - -Insurable interest
- All of the following are types of hazards EXCEPT (Pg. 8)
A) Morale
B) Moral
C) Risk
D) Physical - -Risk
- Insurance Services Office (ISO) - -used to set rates and policy forms of
Property and Casualty Insurance companies
- An applicant who makes an untrue statement on an application for a
homeowners policy would be guilty of:
A) misrepresentation
B) concealment
C) fraud
D) breach of warranty - -misrepresentation
- Which of the following is part of the formula for calculating the ACV of a
building? (Pg. 69)
A) Fair Market Value
B) Stated Value
C) Original Purchase Price
D) Replacement Cost - -Replacement Cost
- ACV= Replacement Cost - Depreciation - -Pg. 69
- Which of the following statements about All Risk coverage is or are TRUE?
(Pg. 65)
I. All Risk policies cover losses from any peril that is not specifically excluded
II. All Risk policies cost more because of the increase in dollar amount
coverages
III. Under an All Risk policy the insurance company has the legal right to
modify its claim settlement practices
A) I only
, B) II only
C) I and II
D) All of the aforementioned - -I only
- All risk coverage = Open peril or special coverage - -An open peril policy
insures against all risks of physical loss, except those specifically excluded in
the policy
- Negligence is the failure to act in a responsible or prudent manner. Which
of the following items is not one of those four elements? (Pg. 83)
A) Duty and breach of duty
B) Damages
C) Subrogation
D) Proximate Cause - -Subrogation
- Four factors required to establish negligence: - -Legal duty owed, Breach
of legal duty owed, Proximate Cause, Damages
- All liability losses are said to be third-party losses. Property losses are said
to be (pg. 87)
A) 2nd party
B)1st party
C) 3rd party
D) 2nd or 3rd party - -1st party
- There are two types of compensatory damages: special and general. Which
of the following is an example of a general damage? (pg. 88)
A) Lost wages
B) Pain and suffering
C) Funeral Expenses
D) The cost to repair or replace damaged property - -Pain and suffering
- A broad form dwelling policy, with E.C. endorsement, would include
coverages for which of the following causes of loss? (pg. 111-117)
I. Windstorm
II. Theft
III. Liability
IV. Removal
A) I only
B) II only
C) I and IV only
D) II and III - -I and IV only
Casualty Exam Q’s and A’s A+ Scores
Which of the following insurance principles is designed to keep you from
profiting by insuring and then destroying OTHER PEOPLE's property? (Pg. 5)
A) Indemnification
B) Subrogation
C) Co-insurance
D) Insurable Interest - -Insurable interest
- All of the following are types of hazards EXCEPT (Pg. 8)
A) Morale
B) Moral
C) Risk
D) Physical - -Risk
- Insurance Services Office (ISO) - -used to set rates and policy forms of
Property and Casualty Insurance companies
- An applicant who makes an untrue statement on an application for a
homeowners policy would be guilty of:
A) misrepresentation
B) concealment
C) fraud
D) breach of warranty - -misrepresentation
- Which of the following is part of the formula for calculating the ACV of a
building? (Pg. 69)
A) Fair Market Value
B) Stated Value
C) Original Purchase Price
D) Replacement Cost - -Replacement Cost
- ACV= Replacement Cost - Depreciation - -Pg. 69
- Which of the following statements about All Risk coverage is or are TRUE?
(Pg. 65)
I. All Risk policies cover losses from any peril that is not specifically excluded
II. All Risk policies cost more because of the increase in dollar amount
coverages
III. Under an All Risk policy the insurance company has the legal right to
modify its claim settlement practices
A) I only
, B) II only
C) I and II
D) All of the aforementioned - -I only
- All risk coverage = Open peril or special coverage - -An open peril policy
insures against all risks of physical loss, except those specifically excluded in
the policy
- Negligence is the failure to act in a responsible or prudent manner. Which
of the following items is not one of those four elements? (Pg. 83)
A) Duty and breach of duty
B) Damages
C) Subrogation
D) Proximate Cause - -Subrogation
- Four factors required to establish negligence: - -Legal duty owed, Breach
of legal duty owed, Proximate Cause, Damages
- All liability losses are said to be third-party losses. Property losses are said
to be (pg. 87)
A) 2nd party
B)1st party
C) 3rd party
D) 2nd or 3rd party - -1st party
- There are two types of compensatory damages: special and general. Which
of the following is an example of a general damage? (pg. 88)
A) Lost wages
B) Pain and suffering
C) Funeral Expenses
D) The cost to repair or replace damaged property - -Pain and suffering
- A broad form dwelling policy, with E.C. endorsement, would include
coverages for which of the following causes of loss? (pg. 111-117)
I. Windstorm
II. Theft
III. Liability
IV. Removal
A) I only
B) II only
C) I and IV only
D) II and III - -I and IV only
