VA P&C PRACTICE EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS WELL VERIFIED
.GRADED A+
Direct loss refers to:
A. Fire damage to a dwellings roof
B. Cost of increased living expenses due to a fire
C. Reduction in the value of in the insured's 401k
D. Exclusions - ANSWER -A. Fire damage to a dwellings roof
When property is unique in value, which of the following may be used
to develop premium?
A. Actual Cash Value
B. Replacement Cost
,C. Stated Value
D. Salvage Value - ANSWER -C. Stated Value
There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building
at the time of loss. If the insured moved to a new dwelling 60 days
before the loss, which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty - ANSWER -B. Vacancy
There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building
at the time of loss. If the insured has a vandalism claim while they are
on vacation, which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty - ANSWER -A. Unoccupancy
When an individual or business causes harm to another, the injured
party will expect their damages to be covered by the person causing the
,injury. If the individual or business causing harm will be held
responsible for the damages regardless of negligence, we say they are:
A. Negligent
B. Absolutely liable
C. Vicariously liable
D. Not liable - ANSWER -B. Absolutely liable
When an insured is held liable for a product they manufactured that
caused injury an negligence does not need to be proven, what type of
liability is this?
A. Negligence
B. Vicarious liability
C. Not liable
D. Strict liability - ANSWER -D. Strict liability
In a commercial insurance policy, the person with the responsibility of
administering the policy, making payments, etc. is the:
A. Named insured
B. Additional insured
C. First named insured
D. Lienholder - ANSWER -C. First named insured
, All of the following are duties of the insured as detailed in the
Conditions of the policy EXCEPT:
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster - ANSWER -D. Assist in
selecting an insurance adjuster
Which of the following is true regarding the insurer's rights to claim
settlement?
A. The insured must agree to all aspects of the settlement.
B. The insurer may not settle a claim unless there is a court order.
C. The insurer may settle a liability claim without the insured's
permission.
D. The insured retains complete rights of claim settlement. - ANSWER -
C. The insurer may settle a liability claim without the insured's
permission.
Which of the following statements concerning a proof of loss is NOT
true?
A. It is the duty of the insured to submit a proof of loss.
B. The insurer provides the insured with the proof of loss at the
appropriate time
CORRECT DETAILED ANSWERS WELL VERIFIED
.GRADED A+
Direct loss refers to:
A. Fire damage to a dwellings roof
B. Cost of increased living expenses due to a fire
C. Reduction in the value of in the insured's 401k
D. Exclusions - ANSWER -A. Fire damage to a dwellings roof
When property is unique in value, which of the following may be used
to develop premium?
A. Actual Cash Value
B. Replacement Cost
,C. Stated Value
D. Salvage Value - ANSWER -C. Stated Value
There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building
at the time of loss. If the insured moved to a new dwelling 60 days
before the loss, which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty - ANSWER -B. Vacancy
There is a condition in most property policies that may exclude
coverage for certain perils depending on the occupancy of the building
at the time of loss. If the insured has a vandalism claim while they are
on vacation, which of the following conditions might apply?
A. Unoccupancy
B. Vacancy
C. Use limitation
D. Protection warranty - ANSWER -A. Unoccupancy
When an individual or business causes harm to another, the injured
party will expect their damages to be covered by the person causing the
,injury. If the individual or business causing harm will be held
responsible for the damages regardless of negligence, we say they are:
A. Negligent
B. Absolutely liable
C. Vicariously liable
D. Not liable - ANSWER -B. Absolutely liable
When an insured is held liable for a product they manufactured that
caused injury an negligence does not need to be proven, what type of
liability is this?
A. Negligence
B. Vicarious liability
C. Not liable
D. Strict liability - ANSWER -D. Strict liability
In a commercial insurance policy, the person with the responsibility of
administering the policy, making payments, etc. is the:
A. Named insured
B. Additional insured
C. First named insured
D. Lienholder - ANSWER -C. First named insured
, All of the following are duties of the insured as detailed in the
Conditions of the policy EXCEPT:
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster - ANSWER -D. Assist in
selecting an insurance adjuster
Which of the following is true regarding the insurer's rights to claim
settlement?
A. The insured must agree to all aspects of the settlement.
B. The insurer may not settle a claim unless there is a court order.
C. The insurer may settle a liability claim without the insured's
permission.
D. The insured retains complete rights of claim settlement. - ANSWER -
C. The insurer may settle a liability claim without the insured's
permission.
Which of the following statements concerning a proof of loss is NOT
true?
A. It is the duty of the insured to submit a proof of loss.
B. The insurer provides the insured with the proof of loss at the
appropriate time
