CT License Practice Exam 2 Questions
& Answers For A+ Score!!!
The function in the adjusting process by which an adjuster records his or her activities,
findings, and thoughts on disposition of a claim is know as what? CORRECT
ANSWERS Documentation and Reporting
A "direct writing" insurance company sells its policies through:
A. Employees of the company
B. Licensed insurance brokers
C. Independent insurance agents
D. Exclusive or Captive agents CORRECT ANSWERS A. Employees of the company
The insured purchased a large tarp from Home Depot to prevent further water damage
to his home after shingles were blown off the roof during a storm. Which section of the
policy would pay for reasonable repairs to protect the property from further damage?
CORRECT ANSWERS Additional coverages
Identify the endorsement to a BOP policy, which warrants that any fire alarm, burglar
alarm or sprinkler system in place is fully functional and is in working order. CORRECT
ANSWERS Protective Safeguards
Which of the following is considered to be a "direct" loss:
A. Fire damage to a house
B. Additional living expense
C. Food spoilage due to power outage
C. Loss of rental income after a property is flooded CORRECT ANSWERS A. Fire
damage to a house
Coverage E - Personal Liability of the Homeowners program protects an insured from
all of the following EXCEPT:
A. Premises liability
B. Personal activities away from the premises
C. Negligent acts of residence employees
D. Sexual molestation and mental abuse CORRECT ANSWERS D. Sexual molestation
and mental abuse
Identify the endorsement used to properly cover volunteer workers. CORRECT
ANSWERS Sole Proprietors, Partners, Officers, and Others Coverage endorsement
The limit of insurance for business personal property is automatically increased to offset
seasonal variations in business. The standard amount of the increase is ____.
CORRECT ANSWERS 25%
,The maximum time period for which a binder can be written in Connecticut is what?
CORRECT ANSWERS 60 days
Pete, an employee of XYZ Moving Company suffered a work-related injury while in the
course and scope of employment. To ensure a full recovery, Pete's doctor has
recommended that he stay off work for an extended period of time. Upon discussing his
workers compensation benefits with the adjuster, Pete is told that there is a waiting
period that he must endure prior to receiving benefits. Accordingly, what type of workers
compensation "benefits" is the adjuster referring to?
A. Disability income
B. Medical
C. Survivors benefits
D. Rehabilitation CORRECT ANSWERS A. Disability income
All of the following type of businesses would NOT be eligible for a BOP policy EXCEPT:
A. Bowling alleys
B. Banks
C. Auto dealerships
D. Convenience stores CORRECT ANSWERS D. Convenience stores
Identify the Specialty Liability Policy that covers businesses against claims by
employees alleging that their legal rights as an employee have been violated.
CORRECT ANSWERS Employment Practices Liability insurance
Contractors seeking insurance coverage under a BOP must meet all of the following
eligibility requirements EXCEPT:
A. Their annual payroll is less than $300,000
B. Their annual sales are less than $3M
C. Their subcontracted work is less than 10% of their sales
D. They have less than 10 full time employees CORRECT ANSWERS D. They have
less than 10 full time employees
The voluntary relinquishment or "giving up" of a known right is known as ______.
CORRECT ANSWERS Waiver
Under Part II - Employers Liability Insurance of the Workers Compensation policy, the
minimum limits typically include:
A. $100,000 per accident/occupational disease, $500,00 aggregate limit
B. $250,000 per accident/occupational disease, with a $500,000 aggregate limit
C. $500,000 per accident/occupation disease, with a $1M aggregate limit
D. $250,000 per accident/occupation disease with no aggregate CORRECT ANSWERS
A. $100,000 per accident/occupational disease, $500,00 aggregate limit
Unique to the Lawyers Professional Liability Policy, legal fees resulting from the defense
of an insured:
A. Have a set limit of $50,000 per occurrence
, B. Are covered with a self-insured retention limit of $10,000
C. Are included in the policy limits
D. All of the above apply CORRECT ANSWERS C. Are included in the policy limits
At the end of the policy period the WC insurance carrier will audit the insured's books to
determine the actual exposure. If the actual exposure was higher than what was
originally estimated, the insurer will send a bill to collect the difference in premium
owed. If the actual exposure was lower, they will return a portion of the premium to
insured. Accordingly, the premium that is paid at the beginning of the policy period is
referred to as the _________ premium. CORRECT ANSWERS Deposit
The process by which an adjuster considers all of the evidence gathered and estimates
how much the claim will cost to resolve. CORRECT ANSWERS Evaluation
Similar to the BAP, the Garage Policy contains numeric symbols identifying the types of
autos covered. All of the following are true regarding Garage symbols EXCEPT:
A. Garage symbols are numbered in the twenty and thirty series, beginning with #21 -
Any Auto
B. There are two (2) more Garage symbols than BAP symbols
C. Symbol #30 designates the existence of Garagekeepers' Coverage
D. Symbol #32 designates Mobile Equipment subject to compulsory auto financial
responsibility requirements CORRECT ANSWERS D. Symbol #32 designates Mobile
Equipment subject to compulsory auto financial responsibility requirements
A company's legal responsibility for the acts of its employees is known as what?
CORRECT ANSWERS Vicarious liability
All of the following are true regarding the BOP eligibility of Convenience Stores selling
gasoline EXCEPT:
A. The total annual gross sales of gasoline are less than 75% of gross sales for all
operations
B. Do not operate any type of auto service or repairs
C. Do not sell any type of auto related equipment or accessories
D. Must have a minimum of 3000sq in total floor area CORRECT ANSWERS C. Do not
sell any type of auto related equipment or accessories
Which of the following is NOT a defense to a claim of negligence?
A. Assumption of the risk
B. Speculation
C. No negligence
D. Comparative negligence CORRECT ANSWERS B. Speculation
With whom does the responsibility for prosecution of licensees who break insurance
laws lie? CORRECT ANSWERS The CT Attorney General
& Answers For A+ Score!!!
The function in the adjusting process by which an adjuster records his or her activities,
findings, and thoughts on disposition of a claim is know as what? CORRECT
ANSWERS Documentation and Reporting
A "direct writing" insurance company sells its policies through:
A. Employees of the company
B. Licensed insurance brokers
C. Independent insurance agents
D. Exclusive or Captive agents CORRECT ANSWERS A. Employees of the company
The insured purchased a large tarp from Home Depot to prevent further water damage
to his home after shingles were blown off the roof during a storm. Which section of the
policy would pay for reasonable repairs to protect the property from further damage?
CORRECT ANSWERS Additional coverages
Identify the endorsement to a BOP policy, which warrants that any fire alarm, burglar
alarm or sprinkler system in place is fully functional and is in working order. CORRECT
ANSWERS Protective Safeguards
Which of the following is considered to be a "direct" loss:
A. Fire damage to a house
B. Additional living expense
C. Food spoilage due to power outage
C. Loss of rental income after a property is flooded CORRECT ANSWERS A. Fire
damage to a house
Coverage E - Personal Liability of the Homeowners program protects an insured from
all of the following EXCEPT:
A. Premises liability
B. Personal activities away from the premises
C. Negligent acts of residence employees
D. Sexual molestation and mental abuse CORRECT ANSWERS D. Sexual molestation
and mental abuse
Identify the endorsement used to properly cover volunteer workers. CORRECT
ANSWERS Sole Proprietors, Partners, Officers, and Others Coverage endorsement
The limit of insurance for business personal property is automatically increased to offset
seasonal variations in business. The standard amount of the increase is ____.
CORRECT ANSWERS 25%
,The maximum time period for which a binder can be written in Connecticut is what?
CORRECT ANSWERS 60 days
Pete, an employee of XYZ Moving Company suffered a work-related injury while in the
course and scope of employment. To ensure a full recovery, Pete's doctor has
recommended that he stay off work for an extended period of time. Upon discussing his
workers compensation benefits with the adjuster, Pete is told that there is a waiting
period that he must endure prior to receiving benefits. Accordingly, what type of workers
compensation "benefits" is the adjuster referring to?
A. Disability income
B. Medical
C. Survivors benefits
D. Rehabilitation CORRECT ANSWERS A. Disability income
All of the following type of businesses would NOT be eligible for a BOP policy EXCEPT:
A. Bowling alleys
B. Banks
C. Auto dealerships
D. Convenience stores CORRECT ANSWERS D. Convenience stores
Identify the Specialty Liability Policy that covers businesses against claims by
employees alleging that their legal rights as an employee have been violated.
CORRECT ANSWERS Employment Practices Liability insurance
Contractors seeking insurance coverage under a BOP must meet all of the following
eligibility requirements EXCEPT:
A. Their annual payroll is less than $300,000
B. Their annual sales are less than $3M
C. Their subcontracted work is less than 10% of their sales
D. They have less than 10 full time employees CORRECT ANSWERS D. They have
less than 10 full time employees
The voluntary relinquishment or "giving up" of a known right is known as ______.
CORRECT ANSWERS Waiver
Under Part II - Employers Liability Insurance of the Workers Compensation policy, the
minimum limits typically include:
A. $100,000 per accident/occupational disease, $500,00 aggregate limit
B. $250,000 per accident/occupational disease, with a $500,000 aggregate limit
C. $500,000 per accident/occupation disease, with a $1M aggregate limit
D. $250,000 per accident/occupation disease with no aggregate CORRECT ANSWERS
A. $100,000 per accident/occupational disease, $500,00 aggregate limit
Unique to the Lawyers Professional Liability Policy, legal fees resulting from the defense
of an insured:
A. Have a set limit of $50,000 per occurrence
, B. Are covered with a self-insured retention limit of $10,000
C. Are included in the policy limits
D. All of the above apply CORRECT ANSWERS C. Are included in the policy limits
At the end of the policy period the WC insurance carrier will audit the insured's books to
determine the actual exposure. If the actual exposure was higher than what was
originally estimated, the insurer will send a bill to collect the difference in premium
owed. If the actual exposure was lower, they will return a portion of the premium to
insured. Accordingly, the premium that is paid at the beginning of the policy period is
referred to as the _________ premium. CORRECT ANSWERS Deposit
The process by which an adjuster considers all of the evidence gathered and estimates
how much the claim will cost to resolve. CORRECT ANSWERS Evaluation
Similar to the BAP, the Garage Policy contains numeric symbols identifying the types of
autos covered. All of the following are true regarding Garage symbols EXCEPT:
A. Garage symbols are numbered in the twenty and thirty series, beginning with #21 -
Any Auto
B. There are two (2) more Garage symbols than BAP symbols
C. Symbol #30 designates the existence of Garagekeepers' Coverage
D. Symbol #32 designates Mobile Equipment subject to compulsory auto financial
responsibility requirements CORRECT ANSWERS D. Symbol #32 designates Mobile
Equipment subject to compulsory auto financial responsibility requirements
A company's legal responsibility for the acts of its employees is known as what?
CORRECT ANSWERS Vicarious liability
All of the following are true regarding the BOP eligibility of Convenience Stores selling
gasoline EXCEPT:
A. The total annual gross sales of gasoline are less than 75% of gross sales for all
operations
B. Do not operate any type of auto service or repairs
C. Do not sell any type of auto related equipment or accessories
D. Must have a minimum of 3000sq in total floor area CORRECT ANSWERS C. Do not
sell any type of auto related equipment or accessories
Which of the following is NOT a defense to a claim of negligence?
A. Assumption of the risk
B. Speculation
C. No negligence
D. Comparative negligence CORRECT ANSWERS B. Speculation
With whom does the responsibility for prosecution of licensees who break insurance
laws lie? CORRECT ANSWERS The CT Attorney General
