PNC Test UPDATED Exam Questions and
CORRECT Answers
$50,000 - CORRECT ANSWER - If an HO-3 policy has a coverage limit of $100,000 on
the dwelling, how much coverage would automatically apply to cover the insured's personal
property under coverage C?
Only if there was material misrepresentations - CORRECT ANSWER - When would the
misrepresentations in an application be a basis for voiding an insurance policy?`
Comparative negligence - CORRECT ANSWER - Which of the following is a defense
against negligence?
Veterinarians - CORRECT ANSWER - An errors and omissions policy could be issued to
cover the following occupations, EXCEPT?
Medical Expenses - CORRECT ANSWER - Which of the following would be considered
special damages?
Vicarious Liability - CORRECT ANSWER - A restaurant has employees use company
vehicles to make deliveries. If a driver has an at-fault accident which causes injuries, the
employer may be responsible because of?
Personal Shipments - CORRECT ANSWER - Which of the following is NOT included in
the nationwide marine defense?
Reporting Form - CORRECT ANSWER - Which of the following property policy forms
should be used when it is difficult to provide the insurance company with an accurate statement
of values because of the fluctuations in inventory from month to month?
, This additional coverage provides an additional amount of insurance for the increased cost of
repair due to zoning laws - CORRECT ANSWER - What is the purpose of the ordinance
or law coverage?
Obligates insurers that use a third party source to acquire credit information to inform applicants
who have been denied coverage of the identity of that source - CORRECT ANSWER -
The fair credit reporting act states?
Coverage that will permit the insured to continue in business without interruption following a
property damage loss. - CORRECT ANSWER - The extra expense coverage form
provides?
Farm Dwellings - CORRECT ANSWER - Dwellings policies may be used to insure all of
the following EXCEPT?
Comprehensive Coverage - CORRECT ANSWER - Physical damage coverage under the
business auto coverage form includes collision, comprehensive coverage, and specified causes of
loss. If a covered auto accidently collides with a deer, this will be covered under?
Bodily injury/Property damage - CORRECT ANSWER - Which of the following auto
coverages insures only the policyholder's legal liability?
Personal property owned, used, or controlled by the condo unit owner. - CORRECT
ANSWER - Condominium association coverage forms insure all of the following against
direct physical loss or damage EXCEPT?
It includes property and liability coverages, similar to a commercial package policy. -
CORRECT ANSWER - Which is a characteristic of the businessowners policy?
The first named insured - CORRECT ANSWER - Under the commercial package policy,
the person whose name is listed first in the declarations and is assigned certain responsibilities
and obligations is?
CORRECT Answers
$50,000 - CORRECT ANSWER - If an HO-3 policy has a coverage limit of $100,000 on
the dwelling, how much coverage would automatically apply to cover the insured's personal
property under coverage C?
Only if there was material misrepresentations - CORRECT ANSWER - When would the
misrepresentations in an application be a basis for voiding an insurance policy?`
Comparative negligence - CORRECT ANSWER - Which of the following is a defense
against negligence?
Veterinarians - CORRECT ANSWER - An errors and omissions policy could be issued to
cover the following occupations, EXCEPT?
Medical Expenses - CORRECT ANSWER - Which of the following would be considered
special damages?
Vicarious Liability - CORRECT ANSWER - A restaurant has employees use company
vehicles to make deliveries. If a driver has an at-fault accident which causes injuries, the
employer may be responsible because of?
Personal Shipments - CORRECT ANSWER - Which of the following is NOT included in
the nationwide marine defense?
Reporting Form - CORRECT ANSWER - Which of the following property policy forms
should be used when it is difficult to provide the insurance company with an accurate statement
of values because of the fluctuations in inventory from month to month?
, This additional coverage provides an additional amount of insurance for the increased cost of
repair due to zoning laws - CORRECT ANSWER - What is the purpose of the ordinance
or law coverage?
Obligates insurers that use a third party source to acquire credit information to inform applicants
who have been denied coverage of the identity of that source - CORRECT ANSWER -
The fair credit reporting act states?
Coverage that will permit the insured to continue in business without interruption following a
property damage loss. - CORRECT ANSWER - The extra expense coverage form
provides?
Farm Dwellings - CORRECT ANSWER - Dwellings policies may be used to insure all of
the following EXCEPT?
Comprehensive Coverage - CORRECT ANSWER - Physical damage coverage under the
business auto coverage form includes collision, comprehensive coverage, and specified causes of
loss. If a covered auto accidently collides with a deer, this will be covered under?
Bodily injury/Property damage - CORRECT ANSWER - Which of the following auto
coverages insures only the policyholder's legal liability?
Personal property owned, used, or controlled by the condo unit owner. - CORRECT
ANSWER - Condominium association coverage forms insure all of the following against
direct physical loss or damage EXCEPT?
It includes property and liability coverages, similar to a commercial package policy. -
CORRECT ANSWER - Which is a characteristic of the businessowners policy?
The first named insured - CORRECT ANSWER - Under the commercial package policy,
the person whose name is listed first in the declarations and is assigned certain responsibilities
and obligations is?
