PROPERTY & CASUALTY CERTIFIED QUALITY EXAM ARIZONA
ADJUSTER SIMULATOR - SERIES 13-36 GUARANTEED PASS
When an insurer cancels a dwelling policy for non-payment of
premium, it must give the insured advance notice of at least:
10 days.
20 days.
30 days.
60 days.
The correct answer is: 10 days. .
This is standard in the insurance industry except where state
variations apply by statute. For example New York is 15 days.
Coverage for goods in transit is usually provided by which of
the following types of insurance?
Inland Marine.
Casualty.
Surety.
Automobile.
Inland Marine is correct.
There are various types of transit coverage provided by inland
marine insurance. None of the other forms mentioned would
Provide physical damage to cargo.
,Though multiple parties may be involved in a lawsuit, the
opposing sides are referred to as:
Insured and claimant.
Complainant and defendant.
Plaintiff and defendant.
Counsel and co-counsel.
The correct answer is: Plaintiff and defendant.
The entity bringing the lawsuit is the plaintiff. The entity
defending against the lawsuit is the defendant.
The insured has a barn on his premises. The dwelling is
insured for $200,000 under a DP-2 dwelling policy. How much
coverage applies to the barn?
$20,000.
$10,000.
Nothing.
$5,000.
The correct answer is: Nothing.
Farm property is not eligible under the dwelling policy. The
barn is farm property and cannot be covered, however the
Dwelling can be insured under a DP-2 form.
Which of the following perils is covered for earth movement
under the DP-2 dwelling form?
Earthquake.
,Subsidence.
Landslide.
None of the responses are correct.
The correct answer is: None of the responses are correct.
The dwelling forms exclude virtually all forms of earth
movement. Earthquake coverage can be added by
endorsement.
Which of the following "home businesses" are not eligible for
the attachment of the Home Business Coverage
Endorsement to a Homeowner Policy?
A Corporation.
An Accountant's Office.
A Craft School.
An acceptable business that generates less than $250,000 in
receipts.
The correct answer is: A Corporation.
The form may not be used to cover the exposures of
corporations.
In commercial automobile insurance, medical payments limits
apply:
Per year.
Per accident, per year.
Per person, per accident.
, Per person, per year.
The correct answer is: Per person, per accident. .
Commercial auto medical payment coverage, if added to the
policy, provides coverage on the basis of per person/per
accident.
Even when extended coverage perils are added to a DP-1, not
all of these perils are as broad as they are under the DP-2.
The extended coverage perils which are more broad under the
DP-2 are:
The correct answer is: Explosion, smoke and vehicles.
Three extended coverage perils granted in the DP-2 are more
broad than they are in the DP-1. They are explosion, smoke,
and vehicles.
The Dye family hosts a party. When the guests arrive, they
place their coats in the bedroom. Two days later, Mr. Dye
Discovers that his ring is missing from the dresser. This loss
is referred to as a:
Burglary.
Mysterious disappearance.
Robbery.
Theft.
The correct answer is: Mysterious disappearance. .
This is an example of a mysterious disappearance which can
be a presumption of theft. Property is missing from a known
ADJUSTER SIMULATOR - SERIES 13-36 GUARANTEED PASS
When an insurer cancels a dwelling policy for non-payment of
premium, it must give the insured advance notice of at least:
10 days.
20 days.
30 days.
60 days.
The correct answer is: 10 days. .
This is standard in the insurance industry except where state
variations apply by statute. For example New York is 15 days.
Coverage for goods in transit is usually provided by which of
the following types of insurance?
Inland Marine.
Casualty.
Surety.
Automobile.
Inland Marine is correct.
There are various types of transit coverage provided by inland
marine insurance. None of the other forms mentioned would
Provide physical damage to cargo.
,Though multiple parties may be involved in a lawsuit, the
opposing sides are referred to as:
Insured and claimant.
Complainant and defendant.
Plaintiff and defendant.
Counsel and co-counsel.
The correct answer is: Plaintiff and defendant.
The entity bringing the lawsuit is the plaintiff. The entity
defending against the lawsuit is the defendant.
The insured has a barn on his premises. The dwelling is
insured for $200,000 under a DP-2 dwelling policy. How much
coverage applies to the barn?
$20,000.
$10,000.
Nothing.
$5,000.
The correct answer is: Nothing.
Farm property is not eligible under the dwelling policy. The
barn is farm property and cannot be covered, however the
Dwelling can be insured under a DP-2 form.
Which of the following perils is covered for earth movement
under the DP-2 dwelling form?
Earthquake.
,Subsidence.
Landslide.
None of the responses are correct.
The correct answer is: None of the responses are correct.
The dwelling forms exclude virtually all forms of earth
movement. Earthquake coverage can be added by
endorsement.
Which of the following "home businesses" are not eligible for
the attachment of the Home Business Coverage
Endorsement to a Homeowner Policy?
A Corporation.
An Accountant's Office.
A Craft School.
An acceptable business that generates less than $250,000 in
receipts.
The correct answer is: A Corporation.
The form may not be used to cover the exposures of
corporations.
In commercial automobile insurance, medical payments limits
apply:
Per year.
Per accident, per year.
Per person, per accident.
, Per person, per year.
The correct answer is: Per person, per accident. .
Commercial auto medical payment coverage, if added to the
policy, provides coverage on the basis of per person/per
accident.
Even when extended coverage perils are added to a DP-1, not
all of these perils are as broad as they are under the DP-2.
The extended coverage perils which are more broad under the
DP-2 are:
The correct answer is: Explosion, smoke and vehicles.
Three extended coverage perils granted in the DP-2 are more
broad than they are in the DP-1. They are explosion, smoke,
and vehicles.
The Dye family hosts a party. When the guests arrive, they
place their coats in the bedroom. Two days later, Mr. Dye
Discovers that his ring is missing from the dresser. This loss
is referred to as a:
Burglary.
Mysterious disappearance.
Robbery.
Theft.
The correct answer is: Mysterious disappearance. .
This is an example of a mysterious disappearance which can
be a presumption of theft. Property is missing from a known
