PNC Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to
the dwelling policy? - CORRECT ANSWER - 2 Years
A tornado that destroys property would be an example of which of the following? - CORRECT
ANSWER - A peril
If an insurer decides to nonrenew a personal auto policy, how many days' notice must be
provided to the insured? - CORRECT ANSWER - 20 days
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which
of the following insurance principles has the insurer violated? - CORRECT ANSWER -
Consideration
If an insurer willfully engages in an unfair trade practice, the Director may issue a cease and
desist order and impose a max fine of - CORRECT ANSWER - $15,000
With respect to auto insurance, the term owned autos includes all of the following EXCEPT -
CORRECT ANSWER - A pickup or van titled to and used in the named insured's business
What documentation grants express authority to an agent? - CORRECT ANSWER -
Agent's contract with the principal
Dwelling coverage includes all of the following EXCEPT - CORRECT ANSWER - Land
on which the dwelling is located
The Broad Form Products Coverage endorsement in commercial auto policies does which of the
following? - CORRECT ANSWER - Removes the defective products exclusion
,The commercial property declarations page contains which of the following information -
CORRECT ANSWER - Description of the property insured
All of the following are exclusions under farm property coverage EXCEPT - CORRECT
ANSWER - Loss of use
In equipment breakdown coverage, all accidents would be considered a single accident if they
occur - CORRECT ANSWER - At a single location at the same time and from the same
cause
Which of the following would NOT be classified as personal property for insurance purposes? -
CORRECT ANSWER - A house
A business uses its own trucks to deliver their own products to the customer. Which commercial
auto coverage form should the business buy to insure the trucks? - CORRECT ANSWER -
Motor carrier coverage
All of the following are excluded in the equipment breakdown basic policy EXCEPT -
CORRECT ANSWER - Explosion of steam boilers
The homeowners policy that covers condominium unit owners is - CORRECT ANSWER -
HO-6
Which authority is NOT stated in an agent's contract but is required for the agent to conduct
business? - CORRECT ANSWER - Implied
The policy conditions define - CORRECT ANSWER - How parties to the contract must
act following a loss
Which workers compensation conditions states that the first named insured will act on behalf of
all insureds under the policy? - CORRECT ANSWER - Sole representative
, The major portion of the premium for an equipment breakdown policy pays - CORRECT
ANSWER - For inspections and examinations
Which situation would NOT be covered by the basic causes of loss form under a commercial
property policy - CORRECT ANSWER - The Surf Side Club Waterfront Restaurant is
damaged when flood waters rise and seep into the restaurant
An insured is a member of the neighborhood association, and has become liable for damage to a
third party. Each member of the association has been assessed a portion of the loss equal to
$2,000. How much will the loss assessment additional coverage of the insureds homeowners
liability policy pay? - CORRECT ANSWER - Up to $1,000
Which of the following best describes the amount of loss assessment coverage included under a
homeowners policy liability coverage section? - CORRECT ANSWER - Up to $1,000 per
occurrence
Which of the following is TRUE regarding business liability and medical payments coverage? -
CORRECT ANSWER - Damage to a third-party property for which is legally liable
Additional coverages in the liability section of a homeowner's policy cover all of the following
EXCEPT - CORRECT ANSWER - Damage to a third-party property for which is the
insured is legally liable
Which of the following other coverages is NOT included in the basic form dwelling policy? -
CORRECT ANSWER - Breakage of glass
Which of the following is true of dwelling policy coverage - CORRECT ANSWER -
Exclusions apply to all three policy forms
What is a risk? - CORRECT ANSWER - Uncertainty of loss
Questions and CORRECT Answers
Within how many years of a loss may an insured bring a lawsuit against an insurer, according to
the dwelling policy? - CORRECT ANSWER - 2 Years
A tornado that destroys property would be an example of which of the following? - CORRECT
ANSWER - A peril
If an insurer decides to nonrenew a personal auto policy, how many days' notice must be
provided to the insured? - CORRECT ANSWER - 20 days
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which
of the following insurance principles has the insurer violated? - CORRECT ANSWER -
Consideration
If an insurer willfully engages in an unfair trade practice, the Director may issue a cease and
desist order and impose a max fine of - CORRECT ANSWER - $15,000
With respect to auto insurance, the term owned autos includes all of the following EXCEPT -
CORRECT ANSWER - A pickup or van titled to and used in the named insured's business
What documentation grants express authority to an agent? - CORRECT ANSWER -
Agent's contract with the principal
Dwelling coverage includes all of the following EXCEPT - CORRECT ANSWER - Land
on which the dwelling is located
The Broad Form Products Coverage endorsement in commercial auto policies does which of the
following? - CORRECT ANSWER - Removes the defective products exclusion
,The commercial property declarations page contains which of the following information -
CORRECT ANSWER - Description of the property insured
All of the following are exclusions under farm property coverage EXCEPT - CORRECT
ANSWER - Loss of use
In equipment breakdown coverage, all accidents would be considered a single accident if they
occur - CORRECT ANSWER - At a single location at the same time and from the same
cause
Which of the following would NOT be classified as personal property for insurance purposes? -
CORRECT ANSWER - A house
A business uses its own trucks to deliver their own products to the customer. Which commercial
auto coverage form should the business buy to insure the trucks? - CORRECT ANSWER -
Motor carrier coverage
All of the following are excluded in the equipment breakdown basic policy EXCEPT -
CORRECT ANSWER - Explosion of steam boilers
The homeowners policy that covers condominium unit owners is - CORRECT ANSWER -
HO-6
Which authority is NOT stated in an agent's contract but is required for the agent to conduct
business? - CORRECT ANSWER - Implied
The policy conditions define - CORRECT ANSWER - How parties to the contract must
act following a loss
Which workers compensation conditions states that the first named insured will act on behalf of
all insureds under the policy? - CORRECT ANSWER - Sole representative
, The major portion of the premium for an equipment breakdown policy pays - CORRECT
ANSWER - For inspections and examinations
Which situation would NOT be covered by the basic causes of loss form under a commercial
property policy - CORRECT ANSWER - The Surf Side Club Waterfront Restaurant is
damaged when flood waters rise and seep into the restaurant
An insured is a member of the neighborhood association, and has become liable for damage to a
third party. Each member of the association has been assessed a portion of the loss equal to
$2,000. How much will the loss assessment additional coverage of the insureds homeowners
liability policy pay? - CORRECT ANSWER - Up to $1,000
Which of the following best describes the amount of loss assessment coverage included under a
homeowners policy liability coverage section? - CORRECT ANSWER - Up to $1,000 per
occurrence
Which of the following is TRUE regarding business liability and medical payments coverage? -
CORRECT ANSWER - Damage to a third-party property for which is legally liable
Additional coverages in the liability section of a homeowner's policy cover all of the following
EXCEPT - CORRECT ANSWER - Damage to a third-party property for which is the
insured is legally liable
Which of the following other coverages is NOT included in the basic form dwelling policy? -
CORRECT ANSWER - Breakage of glass
Which of the following is true of dwelling policy coverage - CORRECT ANSWER -
Exclusions apply to all three policy forms
What is a risk? - CORRECT ANSWER - Uncertainty of loss
