Property and Casualty Insurance - Final
Exam (graded A+ already passed)2023
An unlicensed employee of an insurance agency may perform all of the following
EXCEPT: - correct answer A) Accept a claim form
B) Type correspondence for a direct mail campaign
C) Deposit properly endorsed checks into the agency's bank account
•• D) Advise an insured of coverage issues
A producer must notify the insurance division of an address change within: - correct
answer A) 10 days
B) 20 days
C) 25 days
•• D) 30 days
A Temporary License may be issued to approved individuals for a period of: - correct
answer A) Twelve Months
B) Nine Months
•• C) 90 days with extensions up to 180 days
D) 30 days
Contribution by Equal Shares: - correct answer A) Is applicable in Workers
Compensation
B) Is excess over primary coverage
C) Prorates coverage between all policies equally
•• D) Is a form of proportional coverage in which losses are paid equally by all policies
until one policy is exhausted, whereby the other policy pays alone
Which of the following is NOT a requirement necessary to qualify as a producer in
Iowas? - correct answer A) Pass the exam required by statute
B) Be a resident of the state of Iowa
C) Be of good character and company
•• D) Complete a 36-hour licensing course
All of the following are true of the Iowa's Continuing Education Regulation EXCEPT: -
correct answer A) A continuing education term is three years
B) New producers must complete 36 credits every continuing education term
•• C) Continuing education is automatically waived for producers that are attorneys
D) Producers must have 3 credits in ethics every CE term
All of the following applicants may be denied a producer's license EXCEPT: - correct
answer •• A) An attorney
B) An individual that provides incomplete information on a license application
C) An applicant whose letter of clearance is dated 120 days prior
,D) A nonresident not licensed in their state of domicile
Personal liability coverage under the Dwelling Policy is: - correct answer A)
Automatically provided under the policy
•• B) Only provided by endorsement
C) Broader and more comprehensive than homeowner personal liability
D) Limited to 10% of Coverage A
All of the following would be considered a hazard EXCEPT: - correct answer A) Trash
and debris in the basement of a home
B) Broken steps and hand railings
C) Overloaded electrical wiring
•• D) Properly stored paint and related solvents
All of the following would be considered a Unfair Claims Practice EXCEPT: - correct
answer A) Failure to acknowledge written or oral communications
B) Failure to deny or affirm coverage
•• C) Dealing with the insured or claimant in good faith
D) Refusing to pay covered claims
A producer license is: - correct answer A) Automatically renewed
B) Renewed for one-year periods subject to the completion of CE
C) Renewed for two-year periods subject to the completion of CE
•• D) Renewed for three-year periods subject to the completion of CE
In a Personal Umbrella Policy, the amount paid by the insured for certain losses not
covered under the primary coverage is called: - correct answer A) The deductible
B) The security insured retention
•• C) The self-insured retention
D) The sole insurable retention
To form a contract, a competent part: - correct answer A) Must be 16 years old
•• B) Must have legal capacity
C) Is anyone age 18 or older regardless of their personal history
D) Is anyone 21 or older, even if that person is intoxicated
In 2010, a homeowner insured his home for its purchase price of $100,000 and added
the inflation guard endorsement. Under the Homeowner Policy, what amount should the
homeowner be carrying today to be property insured? - correct answer A) The $100,000
plus the inflation guard coverage amount
B) The $100,000 plus the inflation guard, but minus depreciation coverage
C) Its fair market value
•• D) The current cost to replace with like kind and quality at today's rebuilding costs
Which of the following reduces small nuisance claims and helps keep premiums down?
- correct answer •• A) Deductible
, B) Indemnity
C) Coinsurance
D) Salvage
A fire severely damages a tenant occupied duplex insured under a Dwelling Policy.
After the fire the tenants are forced to move. In this case: - correct answer A) The
Dwelling Policy will pay nothing
B) The Dwelling Policy will pay the tenant's extra expenses
•• C) The Dwelling Policy will pay the owner's loss of rental value
D) The Dwelling Policy will pay the tenant's moving allowance
The Notice of Aftermarket Crash Parts must be given to the insured no later than at: -
correct answer A) Application of insurance
B) Approval of insurance
•• C) Delivery of policy
D) Time of repair
The Principle of Indemnity is used extensively in the property casualty field to: - correct
answer A) Indemnity an insured in excess of their loss
B) Reduced lawsuits
•• C) Restore or reimburse one to the extent of their loss
D) Promote arbitration
Which of the following is CORRECT of Collision coverage under the Personal Auto
Policy? - correct answer •• A) It is the upset of a covered auto or its impact with another
vehicle or object
B) Examples of collision include missiles or falling objects
C) Examples of collision include fire, theft or larceny
D) Examples of collision include explosion, earthquake or windstorm
Insurance is a method which: - correct answer A) Reduces risk
B) Retains risk
C) Avoids risk
•• D) Transfers risk
A known right that is voluntarily relinquished by an insurer is: - correct answer A)
Estoppel
•• B) Waiver
C) Subrogation
D) Appraisal
Which of the following activities would require an individual to be licensed as a
producer? - correct answer A) Giving a homeowner brochure to prospect
•• B) signing an insurance application
C) Depositing a check into the insurer's premium account
D) Arranging or making meeting appointments for licensed proudcer
Exam (graded A+ already passed)2023
An unlicensed employee of an insurance agency may perform all of the following
EXCEPT: - correct answer A) Accept a claim form
B) Type correspondence for a direct mail campaign
C) Deposit properly endorsed checks into the agency's bank account
•• D) Advise an insured of coverage issues
A producer must notify the insurance division of an address change within: - correct
answer A) 10 days
B) 20 days
C) 25 days
•• D) 30 days
A Temporary License may be issued to approved individuals for a period of: - correct
answer A) Twelve Months
B) Nine Months
•• C) 90 days with extensions up to 180 days
D) 30 days
Contribution by Equal Shares: - correct answer A) Is applicable in Workers
Compensation
B) Is excess over primary coverage
C) Prorates coverage between all policies equally
•• D) Is a form of proportional coverage in which losses are paid equally by all policies
until one policy is exhausted, whereby the other policy pays alone
Which of the following is NOT a requirement necessary to qualify as a producer in
Iowas? - correct answer A) Pass the exam required by statute
B) Be a resident of the state of Iowa
C) Be of good character and company
•• D) Complete a 36-hour licensing course
All of the following are true of the Iowa's Continuing Education Regulation EXCEPT: -
correct answer A) A continuing education term is three years
B) New producers must complete 36 credits every continuing education term
•• C) Continuing education is automatically waived for producers that are attorneys
D) Producers must have 3 credits in ethics every CE term
All of the following applicants may be denied a producer's license EXCEPT: - correct
answer •• A) An attorney
B) An individual that provides incomplete information on a license application
C) An applicant whose letter of clearance is dated 120 days prior
,D) A nonresident not licensed in their state of domicile
Personal liability coverage under the Dwelling Policy is: - correct answer A)
Automatically provided under the policy
•• B) Only provided by endorsement
C) Broader and more comprehensive than homeowner personal liability
D) Limited to 10% of Coverage A
All of the following would be considered a hazard EXCEPT: - correct answer A) Trash
and debris in the basement of a home
B) Broken steps and hand railings
C) Overloaded electrical wiring
•• D) Properly stored paint and related solvents
All of the following would be considered a Unfair Claims Practice EXCEPT: - correct
answer A) Failure to acknowledge written or oral communications
B) Failure to deny or affirm coverage
•• C) Dealing with the insured or claimant in good faith
D) Refusing to pay covered claims
A producer license is: - correct answer A) Automatically renewed
B) Renewed for one-year periods subject to the completion of CE
C) Renewed for two-year periods subject to the completion of CE
•• D) Renewed for three-year periods subject to the completion of CE
In a Personal Umbrella Policy, the amount paid by the insured for certain losses not
covered under the primary coverage is called: - correct answer A) The deductible
B) The security insured retention
•• C) The self-insured retention
D) The sole insurable retention
To form a contract, a competent part: - correct answer A) Must be 16 years old
•• B) Must have legal capacity
C) Is anyone age 18 or older regardless of their personal history
D) Is anyone 21 or older, even if that person is intoxicated
In 2010, a homeowner insured his home for its purchase price of $100,000 and added
the inflation guard endorsement. Under the Homeowner Policy, what amount should the
homeowner be carrying today to be property insured? - correct answer A) The $100,000
plus the inflation guard coverage amount
B) The $100,000 plus the inflation guard, but minus depreciation coverage
C) Its fair market value
•• D) The current cost to replace with like kind and quality at today's rebuilding costs
Which of the following reduces small nuisance claims and helps keep premiums down?
- correct answer •• A) Deductible
, B) Indemnity
C) Coinsurance
D) Salvage
A fire severely damages a tenant occupied duplex insured under a Dwelling Policy.
After the fire the tenants are forced to move. In this case: - correct answer A) The
Dwelling Policy will pay nothing
B) The Dwelling Policy will pay the tenant's extra expenses
•• C) The Dwelling Policy will pay the owner's loss of rental value
D) The Dwelling Policy will pay the tenant's moving allowance
The Notice of Aftermarket Crash Parts must be given to the insured no later than at: -
correct answer A) Application of insurance
B) Approval of insurance
•• C) Delivery of policy
D) Time of repair
The Principle of Indemnity is used extensively in the property casualty field to: - correct
answer A) Indemnity an insured in excess of their loss
B) Reduced lawsuits
•• C) Restore or reimburse one to the extent of their loss
D) Promote arbitration
Which of the following is CORRECT of Collision coverage under the Personal Auto
Policy? - correct answer •• A) It is the upset of a covered auto or its impact with another
vehicle or object
B) Examples of collision include missiles or falling objects
C) Examples of collision include fire, theft or larceny
D) Examples of collision include explosion, earthquake or windstorm
Insurance is a method which: - correct answer A) Reduces risk
B) Retains risk
C) Avoids risk
•• D) Transfers risk
A known right that is voluntarily relinquished by an insurer is: - correct answer A)
Estoppel
•• B) Waiver
C) Subrogation
D) Appraisal
Which of the following activities would require an individual to be licensed as a
producer? - correct answer A) Giving a homeowner brochure to prospect
•• B) signing an insurance application
C) Depositing a check into the insurer's premium account
D) Arranging or making meeting appointments for licensed proudcer
