PNC Test UPDATED ACTUAL Exam
Questions and CORRECT Answers
Which of the following policies will help an auto dealership cover most of its liability
exposures?
a)A garage liability coverage
b)A motor carrier coverage form
c)A commercial general liability policy with a crime endorsement
d)A businessowners policy - CORRECT ANSWER -A
Insurance is the transfer of
a)Peril.
b)Risk.
c)Loss.
d)Hazard. - CORRECT ANSWER -B
The policy conditions define
a)How parties to the contract must act following a loss.
b)The basic underwriting information.
c)The excluded perils.
d)The amount of coverage. - CORRECT ANSWER -A
Insurance is a contract by which one seeks to protect another from
a)Uncertainty.
b)Hazards.
c)Loss.
d)Exposure. - CORRECT ANSWER -C
,An insured is applying for a casualty insurance policy. One of the conditions of the policy allows
the insurance company to inspect the insured's books at the end of the policy term to make sure
sufficient premium has been collected for the exposure she plans to insure. Which condition is
part of the insured's policy?
a)Contract Bond
b)Errors and Omissions insurance
c)Deposit premium audit
d)Excess liability coverage - CORRECT ANSWER -C
Which of the following coverages would provide protection for the liability of an auto repair
garage to owners of vehicles destroyed in the garage by fire?a)Product liability
b)Motor carrier
c)General liability premises and operations
d)Garagekeepers - CORRECT ANSWER -D
According to the businessowners policy (BOP) definitions, which of the following does NOT
mean valuable papers and records?
a)Inscribed deeds
b)Securities
c)Manuscripts
d)Drawings and maps - CORRECT ANSWER -B
A Certificate of Insurance is a written document that
a)Allows the insurer to inspect the insured's books.
b)Shows the types and amounts of insurance issued to the insured.
c)Obligates the insurer to the person to whom the insurance was issued.
d)Names the insured's beneficiary. - CORRECT ANSWER -B
Which of the following would qualify as a competent party in an insurance contract?
a)The applicant is under the influence of a mind-impairing medication at the time of application.
, b)The applicant has a prior felony conviction.
c)The applicant is intoxicated at the time of application.
d)The applicant is a 12-year-old student. - CORRECT ANSWER -B
An insured works outside the home. The insured's sister lives with him and cares for his four
children. When the insured's home is severely damaged by fire, the family moves into an
apartment while repairs are being made. The largest apartment available in the area has two
bedrooms, so the insured's sister has to stay at a motel. How much will the HO-3 form pay for
these additional living expense?
a)Nothing
b)All of the expense up to the Coverage D limit
c)The cost of renting an apartment, but not the cost of the motel room
d)The cost of renting an apartment, and 50% of the cost of the motel - CORRECT
ANSWER -B
The crime of forced entry into the premises of another by a person or persons with felonious
intent is defined as a
a)Breaking and entering.
b)Theft.
c)Robbery.
d)Burglary. - CORRECT ANSWER -D
An insured is driving her car through a residential area when she loses control and crashes into a
neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's
liability policy has a limit of $500,000. This amount applies to the total of damages for any
bodily injury and property damage resulting from one accident. Which type of limit of liability
does the insured have?
a)Aggregate
b)Per occurrence
c)Combined single
d)Split - CORRECT ANSWER -C
Questions and CORRECT Answers
Which of the following policies will help an auto dealership cover most of its liability
exposures?
a)A garage liability coverage
b)A motor carrier coverage form
c)A commercial general liability policy with a crime endorsement
d)A businessowners policy - CORRECT ANSWER -A
Insurance is the transfer of
a)Peril.
b)Risk.
c)Loss.
d)Hazard. - CORRECT ANSWER -B
The policy conditions define
a)How parties to the contract must act following a loss.
b)The basic underwriting information.
c)The excluded perils.
d)The amount of coverage. - CORRECT ANSWER -A
Insurance is a contract by which one seeks to protect another from
a)Uncertainty.
b)Hazards.
c)Loss.
d)Exposure. - CORRECT ANSWER -C
,An insured is applying for a casualty insurance policy. One of the conditions of the policy allows
the insurance company to inspect the insured's books at the end of the policy term to make sure
sufficient premium has been collected for the exposure she plans to insure. Which condition is
part of the insured's policy?
a)Contract Bond
b)Errors and Omissions insurance
c)Deposit premium audit
d)Excess liability coverage - CORRECT ANSWER -C
Which of the following coverages would provide protection for the liability of an auto repair
garage to owners of vehicles destroyed in the garage by fire?a)Product liability
b)Motor carrier
c)General liability premises and operations
d)Garagekeepers - CORRECT ANSWER -D
According to the businessowners policy (BOP) definitions, which of the following does NOT
mean valuable papers and records?
a)Inscribed deeds
b)Securities
c)Manuscripts
d)Drawings and maps - CORRECT ANSWER -B
A Certificate of Insurance is a written document that
a)Allows the insurer to inspect the insured's books.
b)Shows the types and amounts of insurance issued to the insured.
c)Obligates the insurer to the person to whom the insurance was issued.
d)Names the insured's beneficiary. - CORRECT ANSWER -B
Which of the following would qualify as a competent party in an insurance contract?
a)The applicant is under the influence of a mind-impairing medication at the time of application.
, b)The applicant has a prior felony conviction.
c)The applicant is intoxicated at the time of application.
d)The applicant is a 12-year-old student. - CORRECT ANSWER -B
An insured works outside the home. The insured's sister lives with him and cares for his four
children. When the insured's home is severely damaged by fire, the family moves into an
apartment while repairs are being made. The largest apartment available in the area has two
bedrooms, so the insured's sister has to stay at a motel. How much will the HO-3 form pay for
these additional living expense?
a)Nothing
b)All of the expense up to the Coverage D limit
c)The cost of renting an apartment, but not the cost of the motel room
d)The cost of renting an apartment, and 50% of the cost of the motel - CORRECT
ANSWER -B
The crime of forced entry into the premises of another by a person or persons with felonious
intent is defined as a
a)Breaking and entering.
b)Theft.
c)Robbery.
d)Burglary. - CORRECT ANSWER -D
An insured is driving her car through a residential area when she loses control and crashes into a
neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's
liability policy has a limit of $500,000. This amount applies to the total of damages for any
bodily injury and property damage resulting from one accident. Which type of limit of liability
does the insured have?
a)Aggregate
b)Per occurrence
c)Combined single
d)Split - CORRECT ANSWER -C
