Property and Casualty Insurance Final Exam 100%
Verified Questions & Answers
Q: |Latest 2025
Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C limit of insurance for a
covered loss to improvements, alterations, and additions made at the insured's expense to that part of the described
location occupied by the named insured?
Answer:
10%
Q: Which of the following residents in the insured's dwelling is eligible to receive medical payments under Section II of a
Homeowners Policy?
Answer:
A residence employee
Q: Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored? -
A helium tank used for the insured's business
All the following injuries are covered under a Workers' Compensation policy, except:
Answer:
An employee whose injury results from intoxication
Q: In which section of the BOP would coverage for equipment breakdown be found?
Answer:
Optional coverages
Q: All of the following statements regarding property insurance terminology are true, except:
Answer:
Proximate cause is a secondary cause of loss
Q: Which of the following is true about the National Flood Insurance Program?
Answer:
Property removed to protect it from flood is covered for 45 days at other locations
Q: What is the term for the first event in the unbroken chain of events, that resulted in a loss?
Answer:
The Proximate Cause
Q: The maximum liability assumed by the Property and Casualty Insurance Guaranty Association with regard to an
individual insured is no more than:
Answer:
,The amount of each claim, up to $300,000 per claim
Q: Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part to
the Commercial Package Policy?
Answer:
Premium audit determines what the earned premium will be at the end of the policy period
Q: All of the following are true about liability, except:
Answer:
Liability policies pay costs incurred by an insured to sue negligent third parties
Q: A property purchased 10 years ago for $100,000 has a replacement value today of $200,000. It has depreciated 3%
each year. What is today's actual cash value?
Answer:
$140,000
Q: Ocean marine hull insurance covers a vessel for:
Answer:
Physical damage
Q: Which of the following vehicles would be excluded under the Personal Auto Policy?
Answer:
A motorcycle
Q: The Building and Personal Property Coverage Form does not cover which of the following?
Answer:
Liability
Q: Which of the following coverage forms covers the cost of replacing or reproducing documents that are important for
the continuation of business such as books, files, and maps?
Answer:
Valuable Papers and Records Coverage Form
Q: Under Coverage C of the Special Dwelling Form, all of the following are included, except:
Answer:
Pets belonging to the insured
Q: Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage?
Answer:
Claims history
, Q: All of the following are excluded under the BOP, except:
Answer:
Increased cost of construction
Q: Under a Building and Personal Property Coverage Form, up to what percent of a partial loss would be available for
debris removal?
Answer:
25%
Q: Which statement is true of the Equipment Breakdown Protection Coverage Form?
Answer:
It may be written as a coverage part of the Commercial Package Policy
Q: Which of the following is not covered under the Building and Personal Property Coverage Form?
Answer:
Liability
Q: What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail storm? -
0%
The following statements regarding hazards are all correct, except:
Answer:
A moral hazard arises from an attitude of indifference to loss
Q: When an applicant intentionally fails to make a material fact known, it is known as:
Answer:
Concealment
Q: The shifting of risk of loss to another party is known as which of the following?
Answer:
Risk transfer
Q: An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The
policy will pay:
Answer:
Zero
Q: Proximate cause refers to:
Answer:
An unbroken chain of events leading to a loss, that were initiated in a negligent act of wrongdoing
Q: The standard policy structure for insurance policies includes all of the following sections, except:
Verified Questions & Answers
Q: |Latest 2025
Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C limit of insurance for a
covered loss to improvements, alterations, and additions made at the insured's expense to that part of the described
location occupied by the named insured?
Answer:
10%
Q: Which of the following residents in the insured's dwelling is eligible to receive medical payments under Section II of a
Homeowners Policy?
Answer:
A residence employee
Q: Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored? -
A helium tank used for the insured's business
All the following injuries are covered under a Workers' Compensation policy, except:
Answer:
An employee whose injury results from intoxication
Q: In which section of the BOP would coverage for equipment breakdown be found?
Answer:
Optional coverages
Q: All of the following statements regarding property insurance terminology are true, except:
Answer:
Proximate cause is a secondary cause of loss
Q: Which of the following is true about the National Flood Insurance Program?
Answer:
Property removed to protect it from flood is covered for 45 days at other locations
Q: What is the term for the first event in the unbroken chain of events, that resulted in a loss?
Answer:
The Proximate Cause
Q: The maximum liability assumed by the Property and Casualty Insurance Guaranty Association with regard to an
individual insured is no more than:
Answer:
,The amount of each claim, up to $300,000 per claim
Q: Which of the following is true concerning the Premium Audit condition of the Commercial General Coverage Part to
the Commercial Package Policy?
Answer:
Premium audit determines what the earned premium will be at the end of the policy period
Q: All of the following are true about liability, except:
Answer:
Liability policies pay costs incurred by an insured to sue negligent third parties
Q: A property purchased 10 years ago for $100,000 has a replacement value today of $200,000. It has depreciated 3%
each year. What is today's actual cash value?
Answer:
$140,000
Q: Ocean marine hull insurance covers a vessel for:
Answer:
Physical damage
Q: Which of the following vehicles would be excluded under the Personal Auto Policy?
Answer:
A motorcycle
Q: The Building and Personal Property Coverage Form does not cover which of the following?
Answer:
Liability
Q: Which of the following coverage forms covers the cost of replacing or reproducing documents that are important for
the continuation of business such as books, files, and maps?
Answer:
Valuable Papers and Records Coverage Form
Q: Under Coverage C of the Special Dwelling Form, all of the following are included, except:
Answer:
Pets belonging to the insured
Q: Which of the following is not a valid reason to cancel a personal auto policy after the first 60 days of coverage?
Answer:
Claims history
, Q: All of the following are excluded under the BOP, except:
Answer:
Increased cost of construction
Q: Under a Building and Personal Property Coverage Form, up to what percent of a partial loss would be available for
debris removal?
Answer:
25%
Q: Which statement is true of the Equipment Breakdown Protection Coverage Form?
Answer:
It may be written as a coverage part of the Commercial Package Policy
Q: Which of the following is not covered under the Building and Personal Property Coverage Form?
Answer:
Liability
Q: What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail storm? -
0%
The following statements regarding hazards are all correct, except:
Answer:
A moral hazard arises from an attitude of indifference to loss
Q: When an applicant intentionally fails to make a material fact known, it is known as:
Answer:
Concealment
Q: The shifting of risk of loss to another party is known as which of the following?
Answer:
Risk transfer
Q: An insured with a $500,000 HO-5 policy incurs $1,500 in damages due to a flood destroying the wood flooring. The
policy will pay:
Answer:
Zero
Q: Proximate cause refers to:
Answer:
An unbroken chain of events leading to a loss, that were initiated in a negligent act of wrongdoing
Q: The standard policy structure for insurance policies includes all of the following sections, except:
