Ky Property and Casualty Exam
Notes|114 Q’s and A’s
Which of the following is not one of the standard elements of a property
insurance contract?
Declarations page
Conditions
Limits of liability
Insurable interest - -Limits of liability.
Standard elements of property insurance include declarations page,
conditions, and insurable interest
- Lee company is being sued by a customer for an accident The customer
believes Lee to be liable for. Lee believes the suit to be baseless, and is
confident in the court will throw out the suit. Will Lee's CGL policy pay to
defend Lee Company against the suit?
Yes, as long as the company takes charge of hiring an attorney.
No, the CGL policy does not cover the defensive suits, believe to be baseless
Yes, the insurer has a duty to defend the insured without any act on the part
of the insured
No, the CGL policy does not protect the insured against any lawsuits brought
about as a result of an accident - -Yes, the insurer has a duty to defend the
insured without any act on the part of the insured.
The policy states the company has the right and duty to defend the insured
against any suit seeking damages
- A person who has custody of coverage property away from the insured
premises. Best describes
Custodian
Messenger
Employee
,Officer - -Messenger.
A Messenger is a person who has custody of coverage property away from
the insured premises
- Which of the following is a condition specific to a building and business
personal property form?
Duties in the event of loss
Inventory or stock
Coinsurance
Vacancy - -Inventory or stock
- Which of the following statements about broker licensing requirements is
true?
A broker must surrender his surplus lines license, when it is time to renew, if
the broker loses his property and casualty license during the term of the
license
Brokers must maintain a surety bond in favor of the state of Kentucky, in the
penal sum of $100,000
If the commissioner revokes the license of a surplus lines broker, the
individual must wait five years before seeking reinstatement
Brokers must carry a $1,000,000/ $2 million per occurrence policy - -Brokers
must carry a 1 million 2 million per occurrence policy
The broker must maintain level of insurance stated. The required surety
bond is $50,000. A licensee must surrender a surplus lines license
immediately if the underlying authority is canceled, and he or she must wait
one year to reapply if license is revoked.
- Mariana is a social worker. While doing a home visit of a foster child, she
placed, she falls down the stairs and breaks her leg. What her injury be
covered under Worker's Compensation?
No, because the injury occurred off the premises of Mariana's workplace
No, because social workers are in excluded occupation, and are never
covered under Worker's Compensation
,Yes, because social workers are an occupation that has mandatory workers
compensation Coverage
Yes, because the injury occurred during the scope of Mariano's regular
employment. - -Yes. Because the injury occurred during the scope of
Mariano's regular employment.
Employees, who are injured, disabled, die, or contract an illness only arising
out of and occurring in the course of employment have a right to hold their
employer liable for economic or financial damages under state Worker's
Compensation laws
- Company M has equipment breakdown insurance. It's steam boiler is
getting older, and is becoming corroded. Which of the following is true?
It's policy will pay to replace the steam boiler with a new boiler that is the
same make and model as the old one
It's policy will not pay to replace the model, but it will pay for the resulting
loss if a breakdown occurs due to the corrosion
It's policy will pay the actual cash value of the steam boiler in today's dollars
It's policy will pay to replace the steam boiler with a new boiler of equivalent
value as the old one. - -Is policy will not pay to replace the model, but it will
pay for the result in loss of a breakdown occurs due to the corrosion
- Holly is involved in a workplace accidents in which she suffers a broken
arm. What level of disability would this be?
Temporary total
Permanent partial
Temporary partial
Permanent total - -Temporary partial
Temporary partial disability is a condition, lasting a short period of time until
the worker returns
- Why is running a home daycare out of their home and it's just earn
$50,000 in her first year of business. Under an HO policy why is daycare is
defined as?
, Named peril
Not a business
A business
Open peril - -Not a business
- Jerry has had his car at his mechanics garage for repairs. While there, a
trespasser vandalizes his car and causes extensive damage. Who's insurance
will pay for the damages?
Jerry's insurance
Neither insurance would pay, since a trespasser caused the damage
Both insurance would pay, they would split the cost
The garage's insurance - -The garage's insurance
- Margo owns a stationary store that is heavily damaged when the Hancock
building is destroyed in a terrorist attack to downtown Chicago their results
in $40 billion in damages. She is dismayed to discover that her business
insurance policy does not cover damage by terror attacks. Does she have
any recourse to help pay for the damages?
No, because she is bound by her insurance contract
Yes, she can request than a monoline endorsement be added to her policy
Yes, as per the terrorism risk insurance program, Margo's insurance, and the
federal government will share in helping to pay for the damage to her store.
No, the terrorism risk insurance program will only cover the Hancock
building, not her store - -Yes. As per the terrorism risk insurance program,
Margo's insurance, and the federal government will share and helping to pay
for the damage to her store.
The act provides a temporary program that, in the event of a major terrorist
attack, allows the insurance industry in the federal government to share
losses, according to a specific formula
- Which of the following claims would be covered by the Kentucky insurance
guaranty fund?
Notes|114 Q’s and A’s
Which of the following is not one of the standard elements of a property
insurance contract?
Declarations page
Conditions
Limits of liability
Insurable interest - -Limits of liability.
Standard elements of property insurance include declarations page,
conditions, and insurable interest
- Lee company is being sued by a customer for an accident The customer
believes Lee to be liable for. Lee believes the suit to be baseless, and is
confident in the court will throw out the suit. Will Lee's CGL policy pay to
defend Lee Company against the suit?
Yes, as long as the company takes charge of hiring an attorney.
No, the CGL policy does not cover the defensive suits, believe to be baseless
Yes, the insurer has a duty to defend the insured without any act on the part
of the insured
No, the CGL policy does not protect the insured against any lawsuits brought
about as a result of an accident - -Yes, the insurer has a duty to defend the
insured without any act on the part of the insured.
The policy states the company has the right and duty to defend the insured
against any suit seeking damages
- A person who has custody of coverage property away from the insured
premises. Best describes
Custodian
Messenger
Employee
,Officer - -Messenger.
A Messenger is a person who has custody of coverage property away from
the insured premises
- Which of the following is a condition specific to a building and business
personal property form?
Duties in the event of loss
Inventory or stock
Coinsurance
Vacancy - -Inventory or stock
- Which of the following statements about broker licensing requirements is
true?
A broker must surrender his surplus lines license, when it is time to renew, if
the broker loses his property and casualty license during the term of the
license
Brokers must maintain a surety bond in favor of the state of Kentucky, in the
penal sum of $100,000
If the commissioner revokes the license of a surplus lines broker, the
individual must wait five years before seeking reinstatement
Brokers must carry a $1,000,000/ $2 million per occurrence policy - -Brokers
must carry a 1 million 2 million per occurrence policy
The broker must maintain level of insurance stated. The required surety
bond is $50,000. A licensee must surrender a surplus lines license
immediately if the underlying authority is canceled, and he or she must wait
one year to reapply if license is revoked.
- Mariana is a social worker. While doing a home visit of a foster child, she
placed, she falls down the stairs and breaks her leg. What her injury be
covered under Worker's Compensation?
No, because the injury occurred off the premises of Mariana's workplace
No, because social workers are in excluded occupation, and are never
covered under Worker's Compensation
,Yes, because social workers are an occupation that has mandatory workers
compensation Coverage
Yes, because the injury occurred during the scope of Mariano's regular
employment. - -Yes. Because the injury occurred during the scope of
Mariano's regular employment.
Employees, who are injured, disabled, die, or contract an illness only arising
out of and occurring in the course of employment have a right to hold their
employer liable for economic or financial damages under state Worker's
Compensation laws
- Company M has equipment breakdown insurance. It's steam boiler is
getting older, and is becoming corroded. Which of the following is true?
It's policy will pay to replace the steam boiler with a new boiler that is the
same make and model as the old one
It's policy will not pay to replace the model, but it will pay for the resulting
loss if a breakdown occurs due to the corrosion
It's policy will pay the actual cash value of the steam boiler in today's dollars
It's policy will pay to replace the steam boiler with a new boiler of equivalent
value as the old one. - -Is policy will not pay to replace the model, but it will
pay for the result in loss of a breakdown occurs due to the corrosion
- Holly is involved in a workplace accidents in which she suffers a broken
arm. What level of disability would this be?
Temporary total
Permanent partial
Temporary partial
Permanent total - -Temporary partial
Temporary partial disability is a condition, lasting a short period of time until
the worker returns
- Why is running a home daycare out of their home and it's just earn
$50,000 in her first year of business. Under an HO policy why is daycare is
defined as?
, Named peril
Not a business
A business
Open peril - -Not a business
- Jerry has had his car at his mechanics garage for repairs. While there, a
trespasser vandalizes his car and causes extensive damage. Who's insurance
will pay for the damages?
Jerry's insurance
Neither insurance would pay, since a trespasser caused the damage
Both insurance would pay, they would split the cost
The garage's insurance - -The garage's insurance
- Margo owns a stationary store that is heavily damaged when the Hancock
building is destroyed in a terrorist attack to downtown Chicago their results
in $40 billion in damages. She is dismayed to discover that her business
insurance policy does not cover damage by terror attacks. Does she have
any recourse to help pay for the damages?
No, because she is bound by her insurance contract
Yes, she can request than a monoline endorsement be added to her policy
Yes, as per the terrorism risk insurance program, Margo's insurance, and the
federal government will share in helping to pay for the damage to her store.
No, the terrorism risk insurance program will only cover the Hancock
building, not her store - -Yes. As per the terrorism risk insurance program,
Margo's insurance, and the federal government will share and helping to pay
for the damage to her store.
The act provides a temporary program that, in the event of a major terrorist
attack, allows the insurance industry in the federal government to share
losses, according to a specific formula
- Which of the following claims would be covered by the Kentucky insurance
guaranty fund?
