PSI Practice Questions Property Casualty

PSI Practice Questions Property Casualty An insured operates a auto repair shop and has a garage coverage form with garagekeepers insurance when an employee on a test drive with a customer's car is involved in a crash. How will the customer's car be covered by the insured's policy? - The customer's car is covered for any physical damage while in the custody of the insured. Liability arising out of any of the following is excluded from the personal and advertising injury liability coverage EXCEPT - unknowingly inflicting injury that violates the rights of another. A bank customer's identity was compromised and the thieves made numerous purchases from a retailer by signing the customer's checks. When the bank refused to make payment for the goods, the retailer brought suit against the bank. Which coverage indemnified the bank for liability in the suit? - forgery and alteration Workers' compensation coverage is rated on the basis of which of the following? - employer's payroll Which of the following is the party who agrees to be responsible for loss in the case of a fidelity bond? - the surety The insured carries underinsured motorists coverage limits of 250/500/250 on his automobile policy and his vehicle is struck by an at fault motorist who insures with the State minimum for liability of 20/40/10. If the insured brings suit for bodily injury damages to himself of $500,000, how much will he recover from at fault driver's policy? - $20k Under the commercial general liability which one of the following is covered under supplementary payments? - cost of bail bonds When the insured's child spills red juice on the carpet of insured's covered automobile, which of the following coverages will apply? - comprehensive Which of the following best describes the commercial general liability?s general aggregate annual limit as it applies to the coverage parts of the CGL? - Coverage A, B, and C apply in sum and are the most that will be paid subject to the general aggregate annual limit. Under liability coverage which of the following will trigger coverage for property damage? - unintended damage to tangible property of others All of the following are exclusions are found under the personal auto policy Part A liability coverage, EXCEPT - bodily Injury to an insured's nonresident family member or relative. All of the following specify limits of insurance for the commercial general liability EXCEPT - legal defense. All of the following activities would warrant the imposition of absolute liability EXCEPT - risky transportation. Which of the following is TRUE when the insured's limits of insurance apply per occurrence? - Coverage is triggered for smoke damage to siding caused by repeated acts by insured's neighbor. Which of the following describes market value? - It is what property could be sold for. Which of the following defines the term peril? - cause of loss The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by providing which of the following? - subsidies, loss sharing or excess coverage All of the following are responsibilities of the insured listed in the loss provisions for most property insurance contracts EXCEPT - to determining adequate indemnification. When an insured disagrees with the valuation of a loss and his appraiser and the insurance company's appraiser disagree, how will the loss be settled? - the amount agreed to by any two of the three Underwriters are permitted to use all of the following when underwriting an application for insurance EXCEPT - disability. Which of the following policy assignment rights occurs when the named insured dies? - The insured's legal representative takes over the policy. The Fair Credit Reporting Act permits consumer reporting agencies to include applicant information about bankruptcies MORE than 10 years old under which of the following circumstances? 1. The applicant has been convicted of a felony or fraud. 2. The applicant is a public or political figure. 3. The applicant is seeking a transaction greater than $150,000. 4. The applicant is employed in the financial industry. - 3. The applicant is seeking a transaction greater than $150,000. Which Homeowner Form covers fixtures, installations, and improvements made or acquired at the insured's expense? 1. HO-6 2. HO-5 3. HO-4 4. HO-2 - 1. HO-6 Which of the following Homeowners form provides the most comprehensive coverage? 1. HO-4 2. HO-5 3. HO-6 4. HO-8 - 2. HO-5 Homeowner Form HO-2 provides coverage for loss of appliances, carpeting, and other household furnishings for a maximum of how much? 1. $3,500 2. $3,000