AD Banker Property & Casualty Practice Test
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/. Warranty - 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 - Answer-In an insurance contract, the value that each party gives the
other is called the _____________.
/.Admitted - Answer-An insurer that is authorized to do business in a particular state is
said to be ________.
/.Insuring Agreement - Answer-Which part of a property insurance policy describes the
perils?
/.A Proof of Loss - Answer-The formal statement that verifies details so the insurer can
determine liability is called _ _____ __ ____.
/.Only on-premises coverage is available - 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 - 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 - 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 - Answer-Under the unendorsed Homeowners Policy, jewelry is
covered up to what amount?
/.Section II losses are subject to a standard $250 deductible - 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 - 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 - 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
B. The insured's liability for bodily injury to others
C. Property of the insured
D. The insured's liability for damages to property of others
/.Bodily Injury to a guest caused by the insured's pet dog - Answer-Coverage E of a
Homeowners Policy would cover which of the following?
A. The transmission of a communicable disease by an insured
B. Bodily Injury arising out of the sale of a controlled substance
C. Bodily Injury to a guest caused by the insured's pet dog
D. Bodily Injury to an insured
/.It extends Section II coverages to the insured's home day care business - Answer-
Which of the following is true concerning the Home Day Care Coverage Endorsement to
the Homeowners Policy?
A. It covers injury to an employee, as well as attendees, arising out of day care
operations
B. It provides Commercial General Liability coverage for the day care operation
C. It extends Section II coverages to the insured's home day care business
Questions and Answers Best rated A+ Guaranteed
Success Latest Update
/. Warranty - 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 - Answer-In an insurance contract, the value that each party gives the
other is called the _____________.
/.Admitted - Answer-An insurer that is authorized to do business in a particular state is
said to be ________.
/.Insuring Agreement - Answer-Which part of a property insurance policy describes the
perils?
/.A Proof of Loss - Answer-The formal statement that verifies details so the insurer can
determine liability is called _ _____ __ ____.
/.Only on-premises coverage is available - 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 - 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 - 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 - Answer-Under the unendorsed Homeowners Policy, jewelry is
covered up to what amount?
/.Section II losses are subject to a standard $250 deductible - 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 - 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 - 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
B. The insured's liability for bodily injury to others
C. Property of the insured
D. The insured's liability for damages to property of others
/.Bodily Injury to a guest caused by the insured's pet dog - Answer-Coverage E of a
Homeowners Policy would cover which of the following?
A. The transmission of a communicable disease by an insured
B. Bodily Injury arising out of the sale of a controlled substance
C. Bodily Injury to a guest caused by the insured's pet dog
D. Bodily Injury to an insured
/.It extends Section II coverages to the insured's home day care business - Answer-
Which of the following is true concerning the Home Day Care Coverage Endorsement to
the Homeowners Policy?
A. It covers injury to an employee, as well as attendees, arising out of day care
operations
B. It provides Commercial General Liability coverage for the day care operation
C. It extends Section II coverages to the insured's home day care business
