P&C LICENSE EXAM ACTUAL PRACTICE TEST QUESTIONS WITH ACCURATE
SOLUTIONS- GRADED A+
Who would be able to collect survivor and death benefits from WC in the event the covered
injury resulting in the death of an employee?
Spouse of Employee
Which type of crime best describes someone who waits until store personnel are
preoccupied and pockets merchandise while no one is looking and leaves without
detection
Robbery
Not a common exclusion in a liability policy
damage caused by acts of civil disobedience and riots
The party who agrees to be responsible for loss in the case of a fidelity bond?
The Surety
An insured has transportation expenses coverage under part D of the personal auto policy
when involved in a collision. Coverage provides which of the following?
Rental Reimbursement until claim is settled by insurance
,An insured operates an auto repair shop and has a garage coverage form with
garagekeepers insurance when an employee on a test drive with a customer's car is
involved in a crash. How will the customer's car be covered by the insured's policy?
The customer's car is covered for any physical damage while in custody of the insured
For the purpose of worker's compensation insurance who would not be subject to worker's
compensation laws, either as an employer or an employee?
A Crew member of an ocean going vessel
Is bodily injury to an insured's nonresident family member or relative an exclusion found
under the personal auto policy Part A liability coverage?
No
Does An auto not titled to an insured but available for regular use of named insured or
family member describe a non owned auto under the commercial auto policy symbol 9?
No
What best describes the CGL's general aggregate limit as it applies to the coverage parts of
the CGL?
Coverage A, B, and C apply in sum and are the most that will be paid subject to the general
aggregate limit
,Does Worker's Compensation benefits for loss of wages include replacement of a portion
of lost wages?
Yes
An extended reporting period attached to a general liability policy provides coverage in
which of the following ways?
It provides coverage for claims made outside the policy term
The insured loans a defective ladder to a neighbor that results in an injury. Is this an
example of vicarious liability?
No
A woman slips on icy steps and breaks her leg. What is the peril in this situation?
the fall
The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by
providing what?
Subsidies, loss sharing or excess coverage
T/F - The policy conditions as well as state laws permit the insurance company to cancel or
rescind a policy when representations exist.
False
, T/F - The policy conditions as well as state laws permit the insurance company to cancel or
rescind a policy when fraud exists.
True
Which policy condition applies when an insurer covers property losses at cash value rather
than an amount that exceeds the repair or replacement value?
Loss Settlement Condition
T/F Lost Wages are considered compensatory special damages when an insured is found
legally liable for the loss of another
True
T/F Mental Anguish is considered compensatory special damages when an insured is found
legally liable for the loss of another
False
T/F - The employer while insured is driving a company car is considered an insured under
Part A Liability Coverage of the personal auto policy
False
T/F - Others to the extent that they share liability with the insured are considered an insured
under Part A Liability Coverage of the personal auto policy
SOLUTIONS- GRADED A+
Who would be able to collect survivor and death benefits from WC in the event the covered
injury resulting in the death of an employee?
Spouse of Employee
Which type of crime best describes someone who waits until store personnel are
preoccupied and pockets merchandise while no one is looking and leaves without
detection
Robbery
Not a common exclusion in a liability policy
damage caused by acts of civil disobedience and riots
The party who agrees to be responsible for loss in the case of a fidelity bond?
The Surety
An insured has transportation expenses coverage under part D of the personal auto policy
when involved in a collision. Coverage provides which of the following?
Rental Reimbursement until claim is settled by insurance
,An insured operates an auto repair shop and has a garage coverage form with
garagekeepers insurance when an employee on a test drive with a customer's car is
involved in a crash. How will the customer's car be covered by the insured's policy?
The customer's car is covered for any physical damage while in custody of the insured
For the purpose of worker's compensation insurance who would not be subject to worker's
compensation laws, either as an employer or an employee?
A Crew member of an ocean going vessel
Is bodily injury to an insured's nonresident family member or relative an exclusion found
under the personal auto policy Part A liability coverage?
No
Does An auto not titled to an insured but available for regular use of named insured or
family member describe a non owned auto under the commercial auto policy symbol 9?
No
What best describes the CGL's general aggregate limit as it applies to the coverage parts of
the CGL?
Coverage A, B, and C apply in sum and are the most that will be paid subject to the general
aggregate limit
,Does Worker's Compensation benefits for loss of wages include replacement of a portion
of lost wages?
Yes
An extended reporting period attached to a general liability policy provides coverage in
which of the following ways?
It provides coverage for claims made outside the policy term
The insured loans a defective ladder to a neighbor that results in an injury. Is this an
example of vicarious liability?
No
A woman slips on icy steps and breaks her leg. What is the peril in this situation?
the fall
The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar by
providing what?
Subsidies, loss sharing or excess coverage
T/F - The policy conditions as well as state laws permit the insurance company to cancel or
rescind a policy when representations exist.
False
, T/F - The policy conditions as well as state laws permit the insurance company to cancel or
rescind a policy when fraud exists.
True
Which policy condition applies when an insurer covers property losses at cash value rather
than an amount that exceeds the repair or replacement value?
Loss Settlement Condition
T/F Lost Wages are considered compensatory special damages when an insured is found
legally liable for the loss of another
True
T/F Mental Anguish is considered compensatory special damages when an insured is found
legally liable for the loss of another
False
T/F - The employer while insured is driving a company car is considered an insured under
Part A Liability Coverage of the personal auto policy
False
T/F - Others to the extent that they share liability with the insured are considered an insured
under Part A Liability Coverage of the personal auto policy
