P&C Comprehensive Exam questions
well answered
Which of the following is defined as the failure to act in a reasonable and prudent manner? -
correct answer ✔✔Negligence
Under the Worker's Compensation policy, physical therapy benefits are a type of: - correct
answer ✔✔Rehabilitation Benefit
The loss of property when the cause of loss is not known is considered: - correct answer
✔✔Mysterious Disappearance
Which type of risk involves the possibility of loss or gain? - correct answer ✔✔Speculative
S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the
policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver -
$70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle -
$20,000? - correct answer ✔✔$120,000
Which statement concerning the Dwelling Special Form (DP-3) is true? - correct answer ✔✔The
dwelling and other structures are provided open perils coverage on a replacement cost basis
Which term describes the situation that occurs when two policies covering the same property
contain different policy periods? - correct answer ✔✔Nonconcurrency
Which statement is true regarding inspections and surveys under the BOP? - correct answer
✔✔The insurer has the right, but is not obligated to make inspections and surveys at any time
,Under the dwelling policy, household and personal property, including property in transit
between the insured's old and new residences, are covered under: - correct answer
✔✔Coverage C
Employees NOT exempted from Workers' Compensation is: - correct answer ✔✔Part-Time
Employees
Which statement is correct regarding the Supplemental Extended Reporting Period? - correct
answer ✔✔The premium is a one time charge and fully earned at issuance
While driving in another state with higher coverage requirements, which of the following
sections of the PAP automatically provides the required coverage? - correct answer ✔✔Out of
State Coverage
The shifting of risk of loss to another party is known as which of the following? - correct answer
✔✔Risk Transfer
Which of the following perils is not covered under the Extended Coverage Endorsement to the
DP-1? - correct answer ✔✔Weight of ice, snow or sleet
Choose the claim that is not covered under the Dwelling Broad Form (DP-2) - correct answer
✔✔Theft of personal property at the insured premises
The predictability of loss improves when the number of similar units increase because of which
principle? - correct answer ✔✔The law of large numbers
Medical payments under Section II of the Homeowners Policy would covet all of the following,
except: - correct answer ✔✔Loss of Income of an Injured Person
, An insured has a homeowners broad form with a $200,000 limit on the dwelling and the
standard deductible, if the insured's $2500 boat and trailer are stolen from his driveway, what is
the most the insured will collect from the policy? - correct answer ✔✔$1250
Which of the following involves vicarious liability? - correct answer ✔✔Employer and Employee
Which type of liability limit applies to Medical Payments coverage? - correct answer ✔✔Per
person
Inland marine insurance is not typically used to insure which type of property? - correct answer
✔✔Autos
All of the following types of property may be covered by a Personal Articles Floater, except: -
correct answer ✔✔Buildings
Which is true of Coverage C of the Dwelling Policy? - correct answer ✔✔Coverage C provides
coverage for the personal property of a guest
Policyholder S has a HO-5 Policy with a $250,000 Coverage A Limit. After a strong wind blows a
mailbox into S's front picture window, causing $2,500 damage, S immediately buys $250 of
wood and plastic sheeting to cover the damaged window and prevent further damage. How
much will S's policy pay? - correct answer ✔✔$2,750
(2,500 + 250)
Which of the following workers would be covered by the Jones Act? - correct answer ✔✔A
sailor injured by the negligence of others
Which of the following is true regarding the boat owners policy? - correct answer ✔✔It is
similar in design to a Homeowners Policy and similar in coverage to the Personal Auto Policy
well answered
Which of the following is defined as the failure to act in a reasonable and prudent manner? -
correct answer ✔✔Negligence
Under the Worker's Compensation policy, physical therapy benefits are a type of: - correct
answer ✔✔Rehabilitation Benefit
The loss of property when the cause of loss is not known is considered: - correct answer
✔✔Mysterious Disappearance
Which type of risk involves the possibility of loss or gain? - correct answer ✔✔Speculative
S carries a Personal Auto Policy with Liability limits of 50/100/25. What is the maximum the
policy will pay if S struck another vehicle causing injury to the occupants as follows: Driver -
$70,000; Passenger 1-$30,000; Passenger 2-$50,000 and property damage to the other vehicle -
$20,000? - correct answer ✔✔$120,000
Which statement concerning the Dwelling Special Form (DP-3) is true? - correct answer ✔✔The
dwelling and other structures are provided open perils coverage on a replacement cost basis
Which term describes the situation that occurs when two policies covering the same property
contain different policy periods? - correct answer ✔✔Nonconcurrency
Which statement is true regarding inspections and surveys under the BOP? - correct answer
✔✔The insurer has the right, but is not obligated to make inspections and surveys at any time
,Under the dwelling policy, household and personal property, including property in transit
between the insured's old and new residences, are covered under: - correct answer
✔✔Coverage C
Employees NOT exempted from Workers' Compensation is: - correct answer ✔✔Part-Time
Employees
Which statement is correct regarding the Supplemental Extended Reporting Period? - correct
answer ✔✔The premium is a one time charge and fully earned at issuance
While driving in another state with higher coverage requirements, which of the following
sections of the PAP automatically provides the required coverage? - correct answer ✔✔Out of
State Coverage
The shifting of risk of loss to another party is known as which of the following? - correct answer
✔✔Risk Transfer
Which of the following perils is not covered under the Extended Coverage Endorsement to the
DP-1? - correct answer ✔✔Weight of ice, snow or sleet
Choose the claim that is not covered under the Dwelling Broad Form (DP-2) - correct answer
✔✔Theft of personal property at the insured premises
The predictability of loss improves when the number of similar units increase because of which
principle? - correct answer ✔✔The law of large numbers
Medical payments under Section II of the Homeowners Policy would covet all of the following,
except: - correct answer ✔✔Loss of Income of an Injured Person
, An insured has a homeowners broad form with a $200,000 limit on the dwelling and the
standard deductible, if the insured's $2500 boat and trailer are stolen from his driveway, what is
the most the insured will collect from the policy? - correct answer ✔✔$1250
Which of the following involves vicarious liability? - correct answer ✔✔Employer and Employee
Which type of liability limit applies to Medical Payments coverage? - correct answer ✔✔Per
person
Inland marine insurance is not typically used to insure which type of property? - correct answer
✔✔Autos
All of the following types of property may be covered by a Personal Articles Floater, except: -
correct answer ✔✔Buildings
Which is true of Coverage C of the Dwelling Policy? - correct answer ✔✔Coverage C provides
coverage for the personal property of a guest
Policyholder S has a HO-5 Policy with a $250,000 Coverage A Limit. After a strong wind blows a
mailbox into S's front picture window, causing $2,500 damage, S immediately buys $250 of
wood and plastic sheeting to cover the damaged window and prevent further damage. How
much will S's policy pay? - correct answer ✔✔$2,750
(2,500 + 250)
Which of the following workers would be covered by the Jones Act? - correct answer ✔✔A
sailor injured by the negligence of others
Which of the following is true regarding the boat owners policy? - correct answer ✔✔It is
similar in design to a Homeowners Policy and similar in coverage to the Personal Auto Policy
