Property and casualty insurance Exam 2026-2027
Questions and Answers Graded A+
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of
the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
All of the following are found in the declarations section of a policy EXCEPT the
Exclusions.
The cost of restoring farm records is an additional coverage offered under a farm
policy. How much will the policy pay to restore the records?
Up to $2,000
All of the following could be considered rebates if offered to an insured in the sale
of insurance EXCEPT
Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage
form under an inland marine policy?
a) Computer hardware that is specifically scheduled.
,b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards
and discs
The party to a surety or fidelity bond who promises to fulfill the obligation is the
Principal
The transfer of money from inside a banking premises to a person other than a
messenger outside those premises or to a place outside those premises is covered
under which commercial crime coverage?
Computer fraud
Which of the following would NOT be covered under the liability section of a
personal auto policy?
Bodily injury is caused by the insured's negligence while driving a three-wheel all-
terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her
residence or business address, he/she must notify the Department of Insurance and
any company for which the producer holds an appointment within
30 days.
,What will happen if a house covered by a standard mortgage clause is a total loss?
The insurer pays the mortgagee according to the mortgagee's interest in the
property.
What is the civil penalty for violating a cease and desist order of the
Commissioner?
$10,000
Which of the following are the authorities that an agent can hold?
Express and implied
Which of the following terms refers to such disabilities the loss of a limb, hearing ,
or eye sight?
Permanent partial disability
Who is NOT considered an employee in an commercial general liability (CGL)
policy?
Temporary worker
The major portion of the premium of an equipment breakdown policy pays?
For inspections and examinations
, An insured owns a building valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how , much should he insure the
property for?
80% of the property's replacement cost or more
The Business Pursuits endorsement under Section II of a homeowners policy will
cover all of the following EXCEPT
Business liability.
If a property is covered by Company A for $20,000 and Company B covers the
same property for $40,000, how much will Company A pay on a $24,000 loss?
$8,000
The risk management technique that is used to prevent a specific loss by not
exposing oneself to that activity is called
Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of
a claim will be paid by
The insurer.
Questions and Answers Graded A+
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of
the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
All of the following are found in the declarations section of a policy EXCEPT the
Exclusions.
The cost of restoring farm records is an additional coverage offered under a farm
policy. How much will the policy pay to restore the records?
Up to $2,000
All of the following could be considered rebates if offered to an insured in the sale
of insurance EXCEPT
Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage
form under an inland marine policy?
a) Computer hardware that is specifically scheduled.
,b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards
and discs
The party to a surety or fidelity bond who promises to fulfill the obligation is the
Principal
The transfer of money from inside a banking premises to a person other than a
messenger outside those premises or to a place outside those premises is covered
under which commercial crime coverage?
Computer fraud
Which of the following would NOT be covered under the liability section of a
personal auto policy?
Bodily injury is caused by the insured's negligence while driving a three-wheel all-
terrain vehicle.
When a producer holding a certificate or a broker's license has a change in his/her
residence or business address, he/she must notify the Department of Insurance and
any company for which the producer holds an appointment within
30 days.
,What will happen if a house covered by a standard mortgage clause is a total loss?
The insurer pays the mortgagee according to the mortgagee's interest in the
property.
What is the civil penalty for violating a cease and desist order of the
Commissioner?
$10,000
Which of the following are the authorities that an agent can hold?
Express and implied
Which of the following terms refers to such disabilities the loss of a limb, hearing ,
or eye sight?
Permanent partial disability
Who is NOT considered an employee in an commercial general liability (CGL)
policy?
Temporary worker
The major portion of the premium of an equipment breakdown policy pays?
For inspections and examinations
, An insured owns a building valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how , much should he insure the
property for?
80% of the property's replacement cost or more
The Business Pursuits endorsement under Section II of a homeowners policy will
cover all of the following EXCEPT
Business liability.
If a property is covered by Company A for $20,000 and Company B covers the
same property for $40,000, how much will Company A pay on a $24,000 loss?
$8,000
The risk management technique that is used to prevent a specific loss by not
exposing oneself to that activity is called
Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of
a claim will be paid by
The insurer.
