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Property and Casualty Questions with
Answers (100% Correct Answers)
A startup used car dealership buys cars at auto auctions in 30 states. It wants to
be certain that damage coverage is provided when the cars are driven or
transported from the auctions to the dealership. In regard to the business auto
physical damage coverage, which is true? Answer: Coverage is provided at
additional premium.
Under the conditions of a Film Coverage Form, how long must the insured
maintain records of each production? Answer: 3 years after the policy expires
When an insured makes truthful statements on the application for insurance
and pays the required premium, it is known as which of the following? Answer:
Consideration
If an insured covered under a Mobile Homeowners Policy moves the mobile
home to protect it from a covered peril, the policy will pay up to Answer: $500.
Replacement cost is defined as Answer: Full replacement of property at its
current cost, new and without reduction for depreciation.
In forming an insurance contract, when does acceptance usually occur?
Answer: When an insurer's underwriter approves coverage
Under the personal auto policy, liability for bodily injury resulting from the
insured's use of a non-owned automobile is Answer: Provided by the insured's
policy on an excess basis.
An insurance contract must contain all of the following to be considered legally
binding EXCEPT Answer: Beneficiary's consent.
Under which of the following conditions can broad theft coverage be added to
a dwelling policy? Answer: If the insured is owner-occupant of the dwelling
, 2
Rental Reimbursement is only available if the policy includes which coverage?
Answer: Other Than Collision Coverage
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged
by hail and must be replaced. The new roof will cost $6,000 at today's prices. If
the roof has been depreciating at $200 per year and the insured's policy is
written on the actual cash value(ACV), how much will the policy pay toward
the insured's new roof? Answer: $5,000.
If a person is using an auto with the belief that he is entitled to do so,
subrogation rights under a personal auto policy would apply to all coverages
EXCEPT Answer: Physical damage.
All of the following statements concerning coinsurance are true EXCEPT
Answer: The coinsurance formula will also be applied to total losses.
The dwelling insured on HO-2, HO-3, or HO-5 forms is covered for
replacement, provided that it is insured for at least what percentage of
replacement cost on the date of loss? Answer: 80%
Employee fidelity may be written in all the following ways EXCEPT Answer:
Location schedule.
In addition to the common policy conditions, all of the following conditions
apply to liability coverage EXCEPT Answer: Employers liability.
How does the mobilehome endorsement affect the other coverage of law or
ordinance in a homeowners policy? Answer: It removes the coverage
The regular National Flood Insurance Program would insure an eligible single-
family dwelling for up to Answer: $250,000.
All of the following types of property are covered by a standard builders risk
form EXCEPT Answer: Tools 50 feet away from the building.
Johanna purchased a National Flood Insurance policy 10 days after her
community entered an emergency program. When would her coverage be
Property and Casualty Questions with
Answers (100% Correct Answers)
A startup used car dealership buys cars at auto auctions in 30 states. It wants to
be certain that damage coverage is provided when the cars are driven or
transported from the auctions to the dealership. In regard to the business auto
physical damage coverage, which is true? Answer: Coverage is provided at
additional premium.
Under the conditions of a Film Coverage Form, how long must the insured
maintain records of each production? Answer: 3 years after the policy expires
When an insured makes truthful statements on the application for insurance
and pays the required premium, it is known as which of the following? Answer:
Consideration
If an insured covered under a Mobile Homeowners Policy moves the mobile
home to protect it from a covered peril, the policy will pay up to Answer: $500.
Replacement cost is defined as Answer: Full replacement of property at its
current cost, new and without reduction for depreciation.
In forming an insurance contract, when does acceptance usually occur?
Answer: When an insurer's underwriter approves coverage
Under the personal auto policy, liability for bodily injury resulting from the
insured's use of a non-owned automobile is Answer: Provided by the insured's
policy on an excess basis.
An insurance contract must contain all of the following to be considered legally
binding EXCEPT Answer: Beneficiary's consent.
Under which of the following conditions can broad theft coverage be added to
a dwelling policy? Answer: If the insured is owner-occupant of the dwelling
, 2
Rental Reimbursement is only available if the policy includes which coverage?
Answer: Other Than Collision Coverage
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged
by hail and must be replaced. The new roof will cost $6,000 at today's prices. If
the roof has been depreciating at $200 per year and the insured's policy is
written on the actual cash value(ACV), how much will the policy pay toward
the insured's new roof? Answer: $5,000.
If a person is using an auto with the belief that he is entitled to do so,
subrogation rights under a personal auto policy would apply to all coverages
EXCEPT Answer: Physical damage.
All of the following statements concerning coinsurance are true EXCEPT
Answer: The coinsurance formula will also be applied to total losses.
The dwelling insured on HO-2, HO-3, or HO-5 forms is covered for
replacement, provided that it is insured for at least what percentage of
replacement cost on the date of loss? Answer: 80%
Employee fidelity may be written in all the following ways EXCEPT Answer:
Location schedule.
In addition to the common policy conditions, all of the following conditions
apply to liability coverage EXCEPT Answer: Employers liability.
How does the mobilehome endorsement affect the other coverage of law or
ordinance in a homeowners policy? Answer: It removes the coverage
The regular National Flood Insurance Program would insure an eligible single-
family dwelling for up to Answer: $250,000.
All of the following types of property are covered by a standard builders risk
form EXCEPT Answer: Tools 50 feet away from the building.
Johanna purchased a National Flood Insurance policy 10 days after her
community entered an emergency program. When would her coverage be
