Property and Casualty Exam- Louisiana
Questions and Answers Latest Version
Already Passed
What is the primary purpose of property insurance?
✔✔To protect against loss or damage to physical property
What does liability insurance cover?
✔✔Legal responsibility for injuries or damages to others
What is an "endorsement" in a property and casualty policy?
✔✔An added amendment that changes or adds coverage
What is the deductible in a homeowners policy?
✔✔The amount the policyholder pays out of pocket before insurance pays
What is the function of the Louisiana Insurance Guaranty Association?
✔✔To protect policyholders if an insurer becomes insolvent
1
,What is replacement cost coverage?
✔✔Coverage that pays to replace property without deduction for depreciation
What does ACV stand for in property insurance?
✔✔Actual Cash Value
What is the difference between ACV and replacement cost?
✔✔ACV subtracts depreciation; replacement cost does not
What does a standard homeowners policy NOT cover?
✔✔Flood damage
Who sets insurance rates in Louisiana?
✔✔The Louisiana Department of Insurance approves filed rates from insurers
What is the purpose of an insurance binder?
✔✔To provide temporary proof of insurance coverage
2
,What is a peril?
✔✔A cause of loss, such as fire or theft
What is a hazard in insurance terms?
✔✔A condition that increases the chance of a loss
What is the purpose of subrogation?
✔✔Allows the insurer to recover payments from a liable third party
When must an insurer acknowledge receipt of a claim in Louisiana?
✔✔Within 15 days
What does bodily injury liability cover?
✔✔Injuries to other people for which you are legally responsible
What is the minimum liability coverage required by Louisiana auto law?
✔✔15/30/25
3
, What is comprehensive auto coverage?
✔✔Coverage for damage to your car not caused by a collision
What is collision coverage in auto insurance?
✔✔Coverage for your vehicle’s damage when you hit another object
What is the standard waiting period for flood insurance to become effective?
✔✔30 days
What type of policy covers damage caused by hail or windstorm?
✔✔Homeowners or dwelling fire policy
What is an exclusion in a property policy?
✔✔A specific loss that is not covered
What is a premium?
✔✔The amount paid for insurance coverage
4
Questions and Answers Latest Version
Already Passed
What is the primary purpose of property insurance?
✔✔To protect against loss or damage to physical property
What does liability insurance cover?
✔✔Legal responsibility for injuries or damages to others
What is an "endorsement" in a property and casualty policy?
✔✔An added amendment that changes or adds coverage
What is the deductible in a homeowners policy?
✔✔The amount the policyholder pays out of pocket before insurance pays
What is the function of the Louisiana Insurance Guaranty Association?
✔✔To protect policyholders if an insurer becomes insolvent
1
,What is replacement cost coverage?
✔✔Coverage that pays to replace property without deduction for depreciation
What does ACV stand for in property insurance?
✔✔Actual Cash Value
What is the difference between ACV and replacement cost?
✔✔ACV subtracts depreciation; replacement cost does not
What does a standard homeowners policy NOT cover?
✔✔Flood damage
Who sets insurance rates in Louisiana?
✔✔The Louisiana Department of Insurance approves filed rates from insurers
What is the purpose of an insurance binder?
✔✔To provide temporary proof of insurance coverage
2
,What is a peril?
✔✔A cause of loss, such as fire or theft
What is a hazard in insurance terms?
✔✔A condition that increases the chance of a loss
What is the purpose of subrogation?
✔✔Allows the insurer to recover payments from a liable third party
When must an insurer acknowledge receipt of a claim in Louisiana?
✔✔Within 15 days
What does bodily injury liability cover?
✔✔Injuries to other people for which you are legally responsible
What is the minimum liability coverage required by Louisiana auto law?
✔✔15/30/25
3
, What is comprehensive auto coverage?
✔✔Coverage for damage to your car not caused by a collision
What is collision coverage in auto insurance?
✔✔Coverage for your vehicle’s damage when you hit another object
What is the standard waiting period for flood insurance to become effective?
✔✔30 days
What type of policy covers damage caused by hail or windstorm?
✔✔Homeowners or dwelling fire policy
What is an exclusion in a property policy?
✔✔A specific loss that is not covered
What is a premium?
✔✔The amount paid for insurance coverage
4
