20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
Property and Casualty Exam
Questions and Answers| Verified Answers
1. the one basic characteristic of any type of insurance is that the insured
is returned to the same status that existed prior to the loss, but without a
chance for gain or profit: true
2. which of the following coverages does an open peril policy provide?: perils
other than those specifically named as being excluded
3. determine the actual cash value in the following situation: original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount
at time of fire-5,000 current replacement cost 12,000: 7,000
4. liquor liability: need for a dram shot, liquor, or package store
5. inherent vice or defect: iron rusting, milk going sour, rubber breaking down are
all inherent vices
1/7
20231116030748_6555878469d57_property_and_casualty_exam.docx
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, 20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
6. how is hitting an animal on the road covered?: other than collision otc
7. medicare supplement insurance: aka medical gap insurance. must include
core benefits
8. ordinance or law: an endorsement for building code upgrades
9. loss sustained/discovery forms under crime coverage: loss is for later than
the policy period. discovery is for before the policy (loss is later, discovery before)
10. designated brush fire or civil unrest areas: qualifying areas under the fair
plan
11. stop loss provision: used in health insurance to limit the maximum amount
of money the insured would have to pay out of pocket on a health claim in any
particular claim
12. shortages of inventory: under crime insurance the employee dishonesty
endorsement never covers
13. can the mortgagee still collect if the insured burns their house down: yes,
the mortgage clause is a standard provision
2/7
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
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, 20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
14. otc covers: earthquake, flood, hail, theft, hitting an animal, gunshots (no
collision or upset)
15. law of large numbers: the greater the number of insured the more accurately
the prediction
16. where does a driver have coverage?: U.S. Canada and US possessions eg
puerto rico, guam
3/7
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
Property and Casualty Exam
Questions and Answers| Verified Answers
1. the one basic characteristic of any type of insurance is that the insured
is returned to the same status that existed prior to the loss, but without a
chance for gain or profit: true
2. which of the following coverages does an open peril policy provide?: perils
other than those specifically named as being excluded
3. determine the actual cash value in the following situation: original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount
at time of fire-5,000 current replacement cost 12,000: 7,000
4. liquor liability: need for a dram shot, liquor, or package store
5. inherent vice or defect: iron rusting, milk going sour, rubber breaking down are
all inherent vices
1/7
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
, 20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
6. how is hitting an animal on the road covered?: other than collision otc
7. medicare supplement insurance: aka medical gap insurance. must include
core benefits
8. ordinance or law: an endorsement for building code upgrades
9. loss sustained/discovery forms under crime coverage: loss is for later than
the policy period. discovery is for before the policy (loss is later, discovery before)
10. designated brush fire or civil unrest areas: qualifying areas under the fair
plan
11. stop loss provision: used in health insurance to limit the maximum amount
of money the insured would have to pay out of pocket on a health claim in any
particular claim
12. shortages of inventory: under crime insurance the employee dishonesty
endorsement never covers
13. can the mortgagee still collect if the insured burns their house down: yes,
the mortgage clause is a standard provision
2/7
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
, 20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
14. otc covers: earthquake, flood, hail, theft, hitting an animal, gunshots (no
collision or upset)
15. law of large numbers: the greater the number of insured the more accurately
the prediction
16. where does a driver have coverage?: U.S. Canada and US possessions eg
puerto rico, guam
3/7
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
20231116030748_6555878469d57_property_and_casualty_exam.docx
