Washington State Insurance Property & Casualty
Exam Study Questions and Complete Answers|
Verified 100% Correct| Newest 2025
Who is the principal in a principal agent relationship? - ✔✔The insurer is the principal
in a ..
Under HO policy, coverage for removal of a fallen tree may apply if - ✔✔Tree blocks:
access to driveway, handicap ramp, or tree damages a covered structure. But NOT if the
tree is blocking access to the front steps.
Adverse Selection - ✔✔A high-risk person benefits more from insurance, so is more
likely to purchase it.
Manual Rates - ✔✔Insurance rates according to a company Rate Manual that vary
from company to company. Also known as "Standard Rates". Most rates must be filed
with the state Insurance Commissioner, but the insurance companies actually set their
own rates in the competitive marketplace.
Contract - Good Faith - ✔✔All parties DO NOT rely on the contract to provide for an
equal transfer of values between the parties
utility services - time element endorsement - ✔✔an endorsement that covers loss of
business income or extra expense at the insured premises caused by the interruption of
utility services to or from the insured premises
MCS-90 Endorsement - ✔✔Used to certify that a motor carrier meets the federal
minimum liability coverages
, General damages - ✔✔Are intangible
Utility Services - Direct Damage Endorsement - ✔✔Covers damage to covered
property caused by interruption of utilities, such as water, communication, or power to
the insured premises - perishable goods spoil due to no power
Commercial ordinance or law endorsement cover extra expense? - ✔✔No, will not
cover extra expenses insured to operate at a new location
Compensatory Damages - ✔✔money intended to restore a plaintiff to the position he
was in before the injury
If a tree falls, a covered peril includes - ✔✔Wind, hail, or weight of ice, snow, or sleet
Joint Ownership Coverage - ✔✔optional endorsement added to PAP when two
unmarried individuals own a car
Reasonable Expectations - ✔✔A concept which states that the insured is entitled to
coverage under a policy that a sensible and prudent person would expect it to provide.
Reinforces the rule that ambiguities in insurance contracts should be interpreted in
favor of the policyholder.
Spoilage Endorsement - ✔✔Covers damage to perishable stock caused by breakdown
or contamination and power outages (on and off premises). NOT if the refrigerator is
left open though
What is used to develop rates? - ✔✔Business expenses, loss costs, and profits. NOT
loss reserves
Exam Study Questions and Complete Answers|
Verified 100% Correct| Newest 2025
Who is the principal in a principal agent relationship? - ✔✔The insurer is the principal
in a ..
Under HO policy, coverage for removal of a fallen tree may apply if - ✔✔Tree blocks:
access to driveway, handicap ramp, or tree damages a covered structure. But NOT if the
tree is blocking access to the front steps.
Adverse Selection - ✔✔A high-risk person benefits more from insurance, so is more
likely to purchase it.
Manual Rates - ✔✔Insurance rates according to a company Rate Manual that vary
from company to company. Also known as "Standard Rates". Most rates must be filed
with the state Insurance Commissioner, but the insurance companies actually set their
own rates in the competitive marketplace.
Contract - Good Faith - ✔✔All parties DO NOT rely on the contract to provide for an
equal transfer of values between the parties
utility services - time element endorsement - ✔✔an endorsement that covers loss of
business income or extra expense at the insured premises caused by the interruption of
utility services to or from the insured premises
MCS-90 Endorsement - ✔✔Used to certify that a motor carrier meets the federal
minimum liability coverages
, General damages - ✔✔Are intangible
Utility Services - Direct Damage Endorsement - ✔✔Covers damage to covered
property caused by interruption of utilities, such as water, communication, or power to
the insured premises - perishable goods spoil due to no power
Commercial ordinance or law endorsement cover extra expense? - ✔✔No, will not
cover extra expenses insured to operate at a new location
Compensatory Damages - ✔✔money intended to restore a plaintiff to the position he
was in before the injury
If a tree falls, a covered peril includes - ✔✔Wind, hail, or weight of ice, snow, or sleet
Joint Ownership Coverage - ✔✔optional endorsement added to PAP when two
unmarried individuals own a car
Reasonable Expectations - ✔✔A concept which states that the insured is entitled to
coverage under a policy that a sensible and prudent person would expect it to provide.
Reinforces the rule that ambiguities in insurance contracts should be interpreted in
favor of the policyholder.
Spoilage Endorsement - ✔✔Covers damage to perishable stock caused by breakdown
or contamination and power outages (on and off premises). NOT if the refrigerator is
left open though
What is used to develop rates? - ✔✔Business expenses, loss costs, and profits. NOT
loss reserves
