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PEARSON VUE: CASUALTY
INSURANCE TEST BANK EXAM 2025
BRAND NEW ACTUAL EXAM WITH
ANSWERS.
Which of the following statements best describes a representation
in an insurance application?
A. It is a statement made by the insured that certain conditions
exist at the time of application.
B. It is a promise made by the insured that certain conditions will
continue to exist throughout the policy term.
C. It explains the promises of the insurance company.
D. It is part of the Insuring Agreement. - correct answer-A
If an insured intentionally conceals a material fact about an auto
to be covered by a policy, coverage may be:
A. voided
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B. suspended
C. reduced
D. restricted - correct answer-A
A legal obligation for injuries that are sustained due to failure to
perform a duty is known as:
A. negligence
B. liability
C. physical hazard
D. claims payment - correct answer-B
The attempt to restore an insured to the insured's previous
financial condition before the loss occurred is BEST described as:
A. indemnification
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B. subrogation
C. coinsurance
D. self-insurance - correct answer-A
Which of the following liability coverages may require the
insured's consent before the insurance company settles and pays
a loss?
A. Professional
B. Automobile
C. Products
D. Contractual - correct answer-A
Investment consultants should purchase which of the following
policies to protect themselves from errors and omissions claims?
PEARSON VUE: CASUALTY
INSURANCE TEST BANK EXAM 2025
BRAND NEW ACTUAL EXAM WITH
ANSWERS.
Which of the following statements best describes a representation
in an insurance application?
A. It is a statement made by the insured that certain conditions
exist at the time of application.
B. It is a promise made by the insured that certain conditions will
continue to exist throughout the policy term.
C. It explains the promises of the insurance company.
D. It is part of the Insuring Agreement. - correct answer-A
If an insured intentionally conceals a material fact about an auto
to be covered by a policy, coverage may be:
A. voided
, Page | 2
B. suspended
C. reduced
D. restricted - correct answer-A
A legal obligation for injuries that are sustained due to failure to
perform a duty is known as:
A. negligence
B. liability
C. physical hazard
D. claims payment - correct answer-B
The attempt to restore an insured to the insured's previous
financial condition before the loss occurred is BEST described as:
A. indemnification
, Page | 3
B. subrogation
C. coinsurance
D. self-insurance - correct answer-A
Which of the following liability coverages may require the
insured's consent before the insurance company settles and pays
a loss?
A. Professional
B. Automobile
C. Products
D. Contractual - correct answer-A
Investment consultants should purchase which of the following
policies to protect themselves from errors and omissions claims?
