SOUTH CAROLINA PROPERTY AND CASUALTY MAIN
EXAM STUDY GUIDE QUESTIONS AND ANSWERS
SURE A+
✔✔A tornado that destroys property would be an example of which of the following? -
✔✔A peril
✔✔What method of premium computation relates an employer's losses, payroll, and
premiums to the rating bureau's classifications of operations? - ✔✔Experience
modification factor
✔✔If a person is using an auto with the belief that he is entitled to do so, subrogation
rights under a personal auto policy would apply to all coverages EXCEPT: - ✔✔Physical
damage
✔✔With regards to a home owners policy, which coverage provides for indirect or
consequential losses? - ✔✔Coverage D
✔✔All of the following are true regarding physical damage coverage EXCEPT: - ✔✔The
limit of liability is the greater of the actual cash value of the vehicle at the time of loss or
the amount necessary to repair or replace the vehicle is
, ✔✔How much coverage can be available for watercraft damage in the home owners
policy? - ✔✔Up to $1,500
✔✔Which of the following dwelling policy forms primarily insurers a structure on an
actual cash value basis? - ✔✔DP-1
✔✔Additional coverages in the liability section of a home owners policy cover all of the
following EXCEPT: - ✔✔Damage to a third party property for which the insured is legally
liable
✔✔All of the following statements concerning coinsurance are true EXCEPT: - ✔✔The
coinsurance formula will also be applied to total losses
✔✔Two losses take place. One is caused by a covered peril, the other by an excluded
peril. How will a property policy react to these losses? - ✔✔Only the covered loss will be
paid
✔✔The policy conditions define ____________. - ✔✔How parties to the contract must
act following a loss
✔✔An installation floater is used to insure ____________. - ✔✔Appliances intended to
become a permanent part of the building
✔✔Which of the following is a statutory defense? - ✔✔Comparative negligence
✔✔An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did not
receive a check from the insurer. From what type of insured purchase the policy? -
✔✔Mutual
✔✔Home owners policies provide coverage for _____________. - ✔✔Business
property while on the residence premises
✔✔Under a business owners policy, the inspections and surveys condition specifies all
of the following EXCEPT: - ✔✔The insurer does not have the right to inspect the
insured's property and operations
✔✔Losses caused by vandalism and malicious mischief are excluded under a home
owners policy if the dwelling had been vacant for more than ____. - ✔✔60 days
✔✔The crime of forced entry into the premises of another by a person or persons with
felonious intent is defined as a ___________. - ✔✔Burglary
EXAM STUDY GUIDE QUESTIONS AND ANSWERS
SURE A+
✔✔A tornado that destroys property would be an example of which of the following? -
✔✔A peril
✔✔What method of premium computation relates an employer's losses, payroll, and
premiums to the rating bureau's classifications of operations? - ✔✔Experience
modification factor
✔✔If a person is using an auto with the belief that he is entitled to do so, subrogation
rights under a personal auto policy would apply to all coverages EXCEPT: - ✔✔Physical
damage
✔✔With regards to a home owners policy, which coverage provides for indirect or
consequential losses? - ✔✔Coverage D
✔✔All of the following are true regarding physical damage coverage EXCEPT: - ✔✔The
limit of liability is the greater of the actual cash value of the vehicle at the time of loss or
the amount necessary to repair or replace the vehicle is
, ✔✔How much coverage can be available for watercraft damage in the home owners
policy? - ✔✔Up to $1,500
✔✔Which of the following dwelling policy forms primarily insurers a structure on an
actual cash value basis? - ✔✔DP-1
✔✔Additional coverages in the liability section of a home owners policy cover all of the
following EXCEPT: - ✔✔Damage to a third party property for which the insured is legally
liable
✔✔All of the following statements concerning coinsurance are true EXCEPT: - ✔✔The
coinsurance formula will also be applied to total losses
✔✔Two losses take place. One is caused by a covered peril, the other by an excluded
peril. How will a property policy react to these losses? - ✔✔Only the covered loss will be
paid
✔✔The policy conditions define ____________. - ✔✔How parties to the contract must
act following a loss
✔✔An installation floater is used to insure ____________. - ✔✔Appliances intended to
become a permanent part of the building
✔✔Which of the following is a statutory defense? - ✔✔Comparative negligence
✔✔An insured purchased an insurance policy 5 years ago. Last year, she received a
dividend check from the insurance company that was not taxable. This year, she did not
receive a check from the insurer. From what type of insured purchase the policy? -
✔✔Mutual
✔✔Home owners policies provide coverage for _____________. - ✔✔Business
property while on the residence premises
✔✔Under a business owners policy, the inspections and surveys condition specifies all
of the following EXCEPT: - ✔✔The insurer does not have the right to inspect the
insured's property and operations
✔✔Losses caused by vandalism and malicious mischief are excluded under a home
owners policy if the dwelling had been vacant for more than ____. - ✔✔60 days
✔✔The crime of forced entry into the premises of another by a person or persons with
felonious intent is defined as a ___________. - ✔✔Burglary
