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/
,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:
2/
, yes, the mortgage clause is a standard provision
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/
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/
,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:
2/
, yes, the mortgage clause is a standard provision
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/
