ILLINOIS PROPERTY AND CASUALTY
EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS!!!
An insured person’s business is damaged by fire and must temporarily shut down
for repairs, resulting in lost income. What type of loss is this? – Answer ✔✔
Consequential loss, also known as an indirect loss
When the amount of insurance listed in a property policy is not affected by a
coinsurance clause and that amount is payable after a covered loss, the policy is
written on what basis? – Answer ✔✔
Stated amount basis
Under which condition can broad theft coverage be added to a dwelling policy? –
Answer ✔✔
When the insured is both the owner and occupant of the dwelling
When other insurance is written on the same basis as a Commercial Property
policy, what is the insurer obligated to cover? -ANSWER ✔✔A share of the loss
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
Which of the following statements regarding coverage for the flood and earthquake
perils is true? -ANSWER ✔✔Both flood and earthquake are excluded perils in all
property policies.
, Individuals in the business of selling construction equipment and mobile
equipment should insure with a/an -ANSWER ✔✔Equipment Dealers Coverage
Form:
Who would participate in a Write Your Own (WYO) flood insurance program? -
ANSWER ✔✔Private insurers that wish to write and service National Flood
Insurance policies on a no risk-bearing basis
Under the examinations of books and records condition, the insurance company
has the right to examine and audit the insured's books and records related to the
policy -ANSWER ✔✔During the policy period and for up to 3 years after the
termination of the policy.
Coverage under a Floor Plan Merchandise form is written on a reporting form basis
that requires the insured to file reports with the insurer. What is the time desk for
those reports? -ANSWER ✔✔Within 30 days after the end of the month
All of the following statements describe the concept of strict liability EXCEPT -
ANSWER ✔✔It is imposed on defendants in hazardous activities
The inspections and surveys condition in a business owners policy -ANSWER
✔✔Allows the insurer the right to inspect the insureds premises
How does the mobile home endorsement affect the other coverage of law or
ordinance in a homeowners policy? -ANSWER ✔✔It removes the coverage
The Earthquake and Volcanic Eruption Endorsement added to Commercial
Property policies consider all earthquake shocks as one earthquake if they occur
within what time period -ANSWER ✔✔168 hours
EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS!!!
An insured person’s business is damaged by fire and must temporarily shut down
for repairs, resulting in lost income. What type of loss is this? – Answer ✔✔
Consequential loss, also known as an indirect loss
When the amount of insurance listed in a property policy is not affected by a
coinsurance clause and that amount is payable after a covered loss, the policy is
written on what basis? – Answer ✔✔
Stated amount basis
Under which condition can broad theft coverage be added to a dwelling policy? –
Answer ✔✔
When the insured is both the owner and occupant of the dwelling
When other insurance is written on the same basis as a Commercial Property
policy, what is the insurer obligated to cover? -ANSWER ✔✔A share of the loss
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
Which of the following statements regarding coverage for the flood and earthquake
perils is true? -ANSWER ✔✔Both flood and earthquake are excluded perils in all
property policies.
, Individuals in the business of selling construction equipment and mobile
equipment should insure with a/an -ANSWER ✔✔Equipment Dealers Coverage
Form:
Who would participate in a Write Your Own (WYO) flood insurance program? -
ANSWER ✔✔Private insurers that wish to write and service National Flood
Insurance policies on a no risk-bearing basis
Under the examinations of books and records condition, the insurance company
has the right to examine and audit the insured's books and records related to the
policy -ANSWER ✔✔During the policy period and for up to 3 years after the
termination of the policy.
Coverage under a Floor Plan Merchandise form is written on a reporting form basis
that requires the insured to file reports with the insurer. What is the time desk for
those reports? -ANSWER ✔✔Within 30 days after the end of the month
All of the following statements describe the concept of strict liability EXCEPT -
ANSWER ✔✔It is imposed on defendants in hazardous activities
The inspections and surveys condition in a business owners policy -ANSWER
✔✔Allows the insurer the right to inspect the insureds premises
How does the mobile home endorsement affect the other coverage of law or
ordinance in a homeowners policy? -ANSWER ✔✔It removes the coverage
The Earthquake and Volcanic Eruption Endorsement added to Commercial
Property policies consider all earthquake shocks as one earthquake if they occur
within what time period -ANSWER ✔✔168 hours
