Louisiana Property and Casualty TEST 500 Questions and Verified Solutions Latest Update This Year

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Louisiana Property and Casualty TEST 500
Questions and Verified Solutions Latest
Update This Year



QUESTION: How long is a waiting period upon purchase of flood coverage through NFIP? -

ANSWER-30 days




QUESTION: Funding for the operation and administration of the Louisiana Insurance Guaranty

Association comes from - ANSWER-Annual assessments paid by member insurers.




QUESTION: Uninsured Motorist property damage coverage is subject to a deductible of -

ANSWER-$250.




QUESTION: Rates that are established based on the similarities of the risk with other risks are

known as - ANSWER-Manual rates.




QUESTION: The personal injury liability endorsement to an HO policy applies to all the following

EXCEPT - ANSWER-A third party breaks a leg when the insured knocks him down.


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QUESTION: The process an insurer uses to evaluate applications and determine if a policy

should be issued and on what terms, conditions, and rates is known as - ANSWER-Underwriting.




QUESTION: Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the

TRIA to the year - ANSWER-2020




QUESTION: According to the Fair Credit Reporting Act, all of the following would be considered

negative information about a consumer EXCEPT - ANSWER-Disputes regarding consumer report

information




QUESTION: Replacement cost coverage is provided in both the broad and special form dwelling

policies when - ANSWER-At least 80% of the replacement cost




QUESTION: Should 2 or more insurers issue a combined Standard Fire Policy insuring a single

risk, in the event of a loss, the insured must notify - ANSWER-Any of the insurers providing

coverage.




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QUESTION: The policy conditions define - ANSWER-How parties to the contract must act

following a loss.




QUESTION: Because an insurance policy is a legal contract, it must conform to the state laws

governing contracts which require all of the following elements EXCEPT - ANSWER-Conditions.




QUESTION: The value placed on property insured under a fire insurance policy is used to

determine the policy's - ANSWER-Premium.




QUESTION: Shipbuilders and repairers are covered by the - ANSWER-U.S. Longshore and Harbor

Workers Compensation Act.




QUESTION: Which of the following terms refers to a person's ability to do some work or the

need to do alternative work? - ANSWER-Temporary partial disability




QUESTION: Insurer examinations must occur no less frequently than every - ANSWER-5 years.




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QUESTION: If a commercial policy, in effect for less than 60 days, is to be canceled for

nonpayment of premium, how much prior notice must the insurer give to the first named

insured? - ANSWER-10 days




QUESTION: The Residential Condominium Building Association Policy (RCBAP) is used for

residential condominium building associations to cover the entire building under one policy.

Which of the following statements about RCBAP is true? - ANSWER-It does not protect the

individual owner from loss to personal property owned exclusively by the unit owner.




QUESTION: What is surplus lines insurance? - ANSWER-Insurance placed with an unauthorized

insurer




QUESTION: The business income coverage form covers consequential loss of business income

that occurs when a business must suspend operations because of a direct loss. Which of the

following terms best describes the nature of this type of coverage? - ANSWER-Time element




QUESTION: Under which type of coverage does the insurer agree to pay for bodily injury or

property damage liability which the insured has agreed to assume under a written contractual

agreement? - ANSWER-Contractural liability policy


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