AD BANKER PROPERTY & CASUALTY PRACTICE TEST
QUESTIONS AND ANSWERS
Warranty - CORRECT ANSWER✅✅✅An applicant makes a statement on the insurance application
which becomes part of the contract that she has an alarm system which qualifies her for a premium
discount. This statement is considered a ________.
Consideration - CORRECT ANSWER✅✅✅In an insurance contract, the value that each party gives the
other is called the _____________.
Admitted - CORRECT ANSWER✅✅✅An insurer that is authorized to do business in a particular state
is said to be ________.
Insuring Agreement - CORRECT ANSWER✅✅✅Which part of a property insurance policy describes
the perils?
A Proof of Loss - CORRECT ANSWER✅✅✅The formal statement that verifies details so the insurer
can determine liability is called _ _____ __ ____.
Only on-premises coverage is available - CORRECT ANSWER✅✅✅All of the following are true
regarding the Broad Theft Endorsement on a Dwelling policy, except:
A. It applies only to owner occupied structures
B. It may be added to any of the Dwelling forms
C. It also includes vandalism resulting from theft
D. Only on-premises coverage is available
Bodily injury caused by an insured's activities while picnicking at a city park - CORRECT
ANSWER✅✅✅Section II of a Homeowner's policy may cover which of the following incidents?
A. Bodily injury caused by an insured's activities while picnicking at a city park
B. An insured's guest damages the stair railing during a visit
, C. The insured hits and injures a swimmer while enjoying a ride in an owned inboard motorboat
D. The homeowner's family dog bites their 2 year old son
Loss of Income of an injured person - CORRECT ANSWER✅✅✅Medical payments under Section II of
the Homeowners Policy would cover all of the following, except:
A. Prosthetic devices
B. Medical and surgical expenses
C. Loss of Income of an injured Person
D. Dental expenses
$1,500 for loss by theft - CORRECT ANSWER✅✅✅Under the unendorsed Homeowners Policy,
jewelry is covered up to what amount?
Section II losses are subject to a standard $250 deductible - CORRECT ANSWER✅✅✅In respect to
Section II of a Homeowners Policy, all of the following are true, except:
A. Individual and family cemetery plots qualify as an insured location
B. Bodily injury or property damage arising from a vehicle used to assist the handicapped, such as a
wheelchair, is covered
C. Damage to Property of Others pays up to $1,000 per occurrence
D. Section II losses are subject to a standard $250 deductible
$1,250 - CORRECT ANSWER✅✅✅An insured has a homeowners broad form with a $200,000 limit on
the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his
driveway, what is the most the insured will collect from the policy?
Property of the insured - CORRECT ANSWER✅✅✅All of the following are covered under Section II of
the Homeowners Policy, except:
A. Medical expenses for an accident arising out of the premises or non-business activities of an insured
QUESTIONS AND ANSWERS
Warranty - CORRECT ANSWER✅✅✅An applicant makes a statement on the insurance application
which becomes part of the contract that she has an alarm system which qualifies her for a premium
discount. This statement is considered a ________.
Consideration - CORRECT ANSWER✅✅✅In an insurance contract, the value that each party gives the
other is called the _____________.
Admitted - CORRECT ANSWER✅✅✅An insurer that is authorized to do business in a particular state
is said to be ________.
Insuring Agreement - CORRECT ANSWER✅✅✅Which part of a property insurance policy describes
the perils?
A Proof of Loss - CORRECT ANSWER✅✅✅The formal statement that verifies details so the insurer
can determine liability is called _ _____ __ ____.
Only on-premises coverage is available - CORRECT ANSWER✅✅✅All of the following are true
regarding the Broad Theft Endorsement on a Dwelling policy, except:
A. It applies only to owner occupied structures
B. It may be added to any of the Dwelling forms
C. It also includes vandalism resulting from theft
D. Only on-premises coverage is available
Bodily injury caused by an insured's activities while picnicking at a city park - CORRECT
ANSWER✅✅✅Section II of a Homeowner's policy may cover which of the following incidents?
A. Bodily injury caused by an insured's activities while picnicking at a city park
B. An insured's guest damages the stair railing during a visit
, C. The insured hits and injures a swimmer while enjoying a ride in an owned inboard motorboat
D. The homeowner's family dog bites their 2 year old son
Loss of Income of an injured person - CORRECT ANSWER✅✅✅Medical payments under Section II of
the Homeowners Policy would cover all of the following, except:
A. Prosthetic devices
B. Medical and surgical expenses
C. Loss of Income of an injured Person
D. Dental expenses
$1,500 for loss by theft - CORRECT ANSWER✅✅✅Under the unendorsed Homeowners Policy,
jewelry is covered up to what amount?
Section II losses are subject to a standard $250 deductible - CORRECT ANSWER✅✅✅In respect to
Section II of a Homeowners Policy, all of the following are true, except:
A. Individual and family cemetery plots qualify as an insured location
B. Bodily injury or property damage arising from a vehicle used to assist the handicapped, such as a
wheelchair, is covered
C. Damage to Property of Others pays up to $1,000 per occurrence
D. Section II losses are subject to a standard $250 deductible
$1,250 - CORRECT ANSWER✅✅✅An insured has a homeowners broad form with a $200,000 limit on
the dwelling and the standard deductible. If the insured's $2,500 boat and trailer are stolen from his
driveway, what is the most the insured will collect from the policy?
Property of the insured - CORRECT ANSWER✅✅✅All of the following are covered under Section II of
the Homeowners Policy, except:
A. Medical expenses for an accident arising out of the premises or non-business activities of an insured
