PROPERTY AND CASUALTY
INSURANCE EXAM QUESTIONS AND
ANSWERS PART ONE QUESTIONS AND
ANSWERS|WITH COMPLETE
SOLUTIONS|GUARANTEED SUCCESS!!!
Which of the following are the authorities that an agent can hold?
✔✔ Express and implied
Which of the following terms refers to such disabilities as the loss of a limb,
hearing, or eyesight?
✔✔ Permanent partial disability
Who is NOT considered an employee in a commercial general liability (CGL)
policy?
✔✔ Temporary worker
The major portion of the premium of an equipment breakdown policy pays?
✔✔ For inspections and examinations
An insured owns a building valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how much should he insure the
property for?
✔✔ 80% of the property's replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy
of the information contained in his or her report, the reporting agency must:
✔✔ Respond to the consumer's complaint
,All of the following are found in the declarations section of a policy EXCEPT:
✔✔ Exclusions
The cost of restoring farm records is an additional coverage offered under a
farm policy. How much will the policy pay to restore the records?
✔✔ Up to $2,000
All of the following could be considered rebates if offered to an insured in the
sale of insurance EXCEPT:
✔✔ Dividends from a mutual insurer
Which of the following may be covered by electronic data processing coverage
form under an inland marine policy?
✔✔
a) Computer hardware that is specifically scheduled
b) Extra expense the insured incurs to continue the business following a loss
c) Data processing media, including magnetic tapes or paper tapes, punch cards
and discs
The party to a surety or fidelity bond who promises to fulfill the obligation is
the:
✔✔ Principal
The transfer of money from inside a banking premises to a person other than
a messenger outside those premises or to a place outside those premises is
covered under which commercial crime coverage?
✔✔ Computer fraud
,Which of the following would NOT be covered under the liability section of a
personal auto policy? - ANSWER✔✔Bodily injury is caused by the insured's
negligence while driving a three-wheel all-terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her
residence or business address, he/she must notify the Department of Insurance and
any company for which the producer holds an appointment within -
ANSWER✔✔30 days.
What will happen if a house covered by a standard mortgage clause is a total loss?
- ANSWER✔✔The insurer pays the mortgagee according to the mortgagee's
interest in the property.
What is the civil penalty for violating a cease and desist order of the
Commissioner? - ANSWER✔✔$10,000
The Business Pursuits endorsement under Section II of a homeowners policy will
cover all of the following EXCEPT - ANSWER✔✔Business liability.
If a property is covered by Company A for $20,000 and Company B covers the
same property for $40,000, how much will Company A pay on a $24,000 loss? -
ANSWER✔✔$8,000
The risk management technique that is used to prevent a specific loss by not
exposing oneself to that activity is called - ANSWER✔✔Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of
a claim will be paid by - ANSWER✔✔The insurer.
, Which of the following entities must approve all continuing education courses in
this state? - ANSWER✔✔The Commissioner
An applicant knowingly fails to communicate information that would help an
underwriter make a sound decision regarding coverage. This is an example of -
ANSWER✔✔Concealment
A common exclusion found under physical damage to your auto includes -
ANSWER✔✔Mechanical breakdown.
Which of the following is true regarding a risk retention group? - ANSWER✔✔It
is a liability insurance company owned by its members.
Which of the following best describes a misrepresentation? - ANSWER✔✔Issuing
sales material with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? -
ANSWER✔✔Completed value form
An insured has a liability policy that sets the amount for all claims that arise from a
single incident at $50,000. Which type of limit of liability does this insured's policy
have? - ANSWER✔✔Per occurrence
Which of the following is an example of a protective safeguard in a
businessowners policy? - ANSWER✔✔Automatic sprinkler system
INSURANCE EXAM QUESTIONS AND
ANSWERS PART ONE QUESTIONS AND
ANSWERS|WITH COMPLETE
SOLUTIONS|GUARANTEED SUCCESS!!!
Which of the following are the authorities that an agent can hold?
✔✔ Express and implied
Which of the following terms refers to such disabilities as the loss of a limb,
hearing, or eyesight?
✔✔ Permanent partial disability
Who is NOT considered an employee in a commercial general liability (CGL)
policy?
✔✔ Temporary worker
The major portion of the premium of an equipment breakdown policy pays?
✔✔ For inspections and examinations
An insured owns a building valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how much should he insure the
property for?
✔✔ 80% of the property's replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy
of the information contained in his or her report, the reporting agency must:
✔✔ Respond to the consumer's complaint
,All of the following are found in the declarations section of a policy EXCEPT:
✔✔ Exclusions
The cost of restoring farm records is an additional coverage offered under a
farm policy. How much will the policy pay to restore the records?
✔✔ Up to $2,000
All of the following could be considered rebates if offered to an insured in the
sale of insurance EXCEPT:
✔✔ Dividends from a mutual insurer
Which of the following may be covered by electronic data processing coverage
form under an inland marine policy?
✔✔
a) Computer hardware that is specifically scheduled
b) Extra expense the insured incurs to continue the business following a loss
c) Data processing media, including magnetic tapes or paper tapes, punch cards
and discs
The party to a surety or fidelity bond who promises to fulfill the obligation is
the:
✔✔ Principal
The transfer of money from inside a banking premises to a person other than
a messenger outside those premises or to a place outside those premises is
covered under which commercial crime coverage?
✔✔ Computer fraud
,Which of the following would NOT be covered under the liability section of a
personal auto policy? - ANSWER✔✔Bodily injury is caused by the insured's
negligence while driving a three-wheel all-terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her
residence or business address, he/she must notify the Department of Insurance and
any company for which the producer holds an appointment within -
ANSWER✔✔30 days.
What will happen if a house covered by a standard mortgage clause is a total loss?
- ANSWER✔✔The insurer pays the mortgagee according to the mortgagee's
interest in the property.
What is the civil penalty for violating a cease and desist order of the
Commissioner? - ANSWER✔✔$10,000
The Business Pursuits endorsement under Section II of a homeowners policy will
cover all of the following EXCEPT - ANSWER✔✔Business liability.
If a property is covered by Company A for $20,000 and Company B covers the
same property for $40,000, how much will Company A pay on a $24,000 loss? -
ANSWER✔✔$8,000
The risk management technique that is used to prevent a specific loss by not
exposing oneself to that activity is called - ANSWER✔✔Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of
a claim will be paid by - ANSWER✔✔The insurer.
, Which of the following entities must approve all continuing education courses in
this state? - ANSWER✔✔The Commissioner
An applicant knowingly fails to communicate information that would help an
underwriter make a sound decision regarding coverage. This is an example of -
ANSWER✔✔Concealment
A common exclusion found under physical damage to your auto includes -
ANSWER✔✔Mechanical breakdown.
Which of the following is true regarding a risk retention group? - ANSWER✔✔It
is a liability insurance company owned by its members.
Which of the following best describes a misrepresentation? - ANSWER✔✔Issuing
sales material with exaggerated statements about policy benefits
A builder's risk form is most often written as which of the following? -
ANSWER✔✔Completed value form
An insured has a liability policy that sets the amount for all claims that arise from a
single incident at $50,000. Which type of limit of liability does this insured's policy
have? - ANSWER✔✔Per occurrence
Which of the following is an example of a protective safeguard in a
businessowners policy? - ANSWER✔✔Automatic sprinkler system
