Xcel Solutions Property & Casualty Questions
with Correct Answers 2025
An earned premium resulting from the cancellation of a policy is calculated on: - CORRECT
ANSWER -On a pro rata basis, based on the previous year's rate
M owns a parking garage & has coverage that states: "We will cover losses regardless if you are
legally liable for the loss." This no-fault ideology will be found under: - CORRECT ANSWER -
Excess Direct Coverage
An insurance company writing business in a state other than the one in which it is domiciled is
called: - CORRECT ANSWER -a Foreign
Y is running a home daycare out of their home & has just earned $50,000 in her first year of
business. Under an HO policy, Y's daycare is defined as: - CORRECT ANSWER -Not a business
Underwriting guards against - CORRECT ANSWER -Adverse Selection
A licensee whose name or address changes must notify the Dept of Insurance within _____
days: - CORRECT ANSWER -30 Days
Assumption of risk: - CORRECT ANSWER -States that a party will not collect damages because
they should have known what they were doing was risky
Under a DP-2 Broad form, which of the following is not a Broad peril? - CORRECT ANSWER -
Vandalism
Which of the following incidents would not be excluded under a DP-3 policy? - CORRECT
ANSWER -Burglary of a property that was vacant for 30 consecutive days
, Which of the following are losses excluded under Coverage F? - CORRECT ANSWER -An
individual who is eligible to receive disability insurance
Which of the following will not provide a premium discount from standard market workers
comp insurance? - CORRECT ANSWER -Assigned Risk Plan
The face amount of a Surety bond is called the: - CORRECT ANSWER -Penalty
M has opened up his business, Tractors & Semis Sales, LLC. His stock will be covered while it is
being transported, if he: - CORRECT ANSWER -Adds the equipment dealers floater
All of the following are correct about the Commercial Endorsement regarding Spoilage EXCEPT: -
CORRECT ANSWER -Coverage extends to stock off premises
What is a certificate of authority? - CORRECT ANSWER -The license required for an insurer to
conduct business in the state
A licensed producer who lives in another state & transacts insurance in AZ is called: - CORRECT
ANSWER -A Non-Resident Producer
Any of the following may be an unfair claims settlement practice EXCEPT: - CORRECT ANSWER -
Refusing to pay persons bringing false or fraudulent claims
What is the best description of an applicant to the AZ auto insurance plan? - CORRECT ANSWER
-An applicant in good-faith entitled to coverage but unable to obtain coverage through ordinary
methods
with Correct Answers 2025
An earned premium resulting from the cancellation of a policy is calculated on: - CORRECT
ANSWER -On a pro rata basis, based on the previous year's rate
M owns a parking garage & has coverage that states: "We will cover losses regardless if you are
legally liable for the loss." This no-fault ideology will be found under: - CORRECT ANSWER -
Excess Direct Coverage
An insurance company writing business in a state other than the one in which it is domiciled is
called: - CORRECT ANSWER -a Foreign
Y is running a home daycare out of their home & has just earned $50,000 in her first year of
business. Under an HO policy, Y's daycare is defined as: - CORRECT ANSWER -Not a business
Underwriting guards against - CORRECT ANSWER -Adverse Selection
A licensee whose name or address changes must notify the Dept of Insurance within _____
days: - CORRECT ANSWER -30 Days
Assumption of risk: - CORRECT ANSWER -States that a party will not collect damages because
they should have known what they were doing was risky
Under a DP-2 Broad form, which of the following is not a Broad peril? - CORRECT ANSWER -
Vandalism
Which of the following incidents would not be excluded under a DP-3 policy? - CORRECT
ANSWER -Burglary of a property that was vacant for 30 consecutive days
, Which of the following are losses excluded under Coverage F? - CORRECT ANSWER -An
individual who is eligible to receive disability insurance
Which of the following will not provide a premium discount from standard market workers
comp insurance? - CORRECT ANSWER -Assigned Risk Plan
The face amount of a Surety bond is called the: - CORRECT ANSWER -Penalty
M has opened up his business, Tractors & Semis Sales, LLC. His stock will be covered while it is
being transported, if he: - CORRECT ANSWER -Adds the equipment dealers floater
All of the following are correct about the Commercial Endorsement regarding Spoilage EXCEPT: -
CORRECT ANSWER -Coverage extends to stock off premises
What is a certificate of authority? - CORRECT ANSWER -The license required for an insurer to
conduct business in the state
A licensed producer who lives in another state & transacts insurance in AZ is called: - CORRECT
ANSWER -A Non-Resident Producer
Any of the following may be an unfair claims settlement practice EXCEPT: - CORRECT ANSWER -
Refusing to pay persons bringing false or fraudulent claims
What is the best description of an applicant to the AZ auto insurance plan? - CORRECT ANSWER
-An applicant in good-faith entitled to coverage but unable to obtain coverage through ordinary
methods
