PROPERTY AND CASUALTY CHAPTERS 1-4 |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Extended coverage does NOT cover earthquake
Transfer of rights of recovery against others to the insurer is subrogation
"Acts of God" are best covered by Special form
L insures his garage for $15,000 with Co. A. He insures his 34,500
building for $20,000 with Co. B. The fire coverage is equal to
the replacement cost of the structures. Each policy has a $250
deductible. If both structures are destroyed by a covered
peril, the maximum L will receive is:
Which of the following statements regarding the "Recovered c.) The recovered property may only be returned to the insured if it is recovered within
Property" condition is FALSE? 30 days of the loss
a. If the property is returned to the Insured, the loss payment
will be adjusted
b. The Insured gets to decide whether to have the property
returned or allow the Insurer to keep it
c. The recovered property may only be returned to the
Insured if it is recovered within 30 days of the loss
d. The recovering party must promptly notify the other party
After a loss, an insured must protect the property from further loss
Which section of a Special form policy determines whether a exclusions
peril is covered?
A mortgagee must be given how much notice of cancellation? 10 days
, Water damage to a building resulting from fire fighting efforts a direct loss
is
Salvage is a right of the insurer only
The "other insurance clause" reinforces which insurance indemnity
concept?
Alice had her fishing gear stored in a storage facility. The No Benefit to Bailee
owner of the storage facility was carelessly setting off
fireworks and caused a fire that burned Alice's fishing gear to
ashes. What is the provision that excludes the storage facility
owner from coverage under Alice's policy?
Which is an indirect loss? a.) a business loses money due to a fire
a.) a business losses money due to a fire
b.) a water pipe breaks on the top floor and floods the
basement
If the insured fails to submit a proof of loss, the mortgagee file a proof of loss form
should
During a fire, one wall of a building collapses and damages an a direct loss
adjacent building. This is
A process used to negotiate settlement of a claim is appraisal
After paying an insured, the insurer brings suit against the subrogation
individual causing the loss. This is an example of the exercise
of the right of
To guarantee that depreciation will not be a factor in replacement cost
calculating the amount to be paid at the time of a loss, an
insured should purchase
The burden of proving a loss rests on the insured
The insurer must be notified of the loss immediately
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,Extended coverage does NOT cover earthquake
Transfer of rights of recovery against others to the insurer is subrogation
"Acts of God" are best covered by Special form
L insures his garage for $15,000 with Co. A. He insures his 34,500
building for $20,000 with Co. B. The fire coverage is equal to
the replacement cost of the structures. Each policy has a $250
deductible. If both structures are destroyed by a covered
peril, the maximum L will receive is:
Which of the following statements regarding the "Recovered c.) The recovered property may only be returned to the insured if it is recovered within
Property" condition is FALSE? 30 days of the loss
a. If the property is returned to the Insured, the loss payment
will be adjusted
b. The Insured gets to decide whether to have the property
returned or allow the Insurer to keep it
c. The recovered property may only be returned to the
Insured if it is recovered within 30 days of the loss
d. The recovering party must promptly notify the other party
After a loss, an insured must protect the property from further loss
Which section of a Special form policy determines whether a exclusions
peril is covered?
A mortgagee must be given how much notice of cancellation? 10 days
, Water damage to a building resulting from fire fighting efforts a direct loss
is
Salvage is a right of the insurer only
The "other insurance clause" reinforces which insurance indemnity
concept?
Alice had her fishing gear stored in a storage facility. The No Benefit to Bailee
owner of the storage facility was carelessly setting off
fireworks and caused a fire that burned Alice's fishing gear to
ashes. What is the provision that excludes the storage facility
owner from coverage under Alice's policy?
Which is an indirect loss? a.) a business loses money due to a fire
a.) a business losses money due to a fire
b.) a water pipe breaks on the top floor and floods the
basement
If the insured fails to submit a proof of loss, the mortgagee file a proof of loss form
should
During a fire, one wall of a building collapses and damages an a direct loss
adjacent building. This is
A process used to negotiate settlement of a claim is appraisal
After paying an insured, the insurer brings suit against the subrogation
individual causing the loss. This is an example of the exercise
of the right of
To guarantee that depreciation will not be a factor in replacement cost
calculating the amount to be paid at the time of a loss, an
insured should purchase
The burden of proving a loss rests on the insured
The insurer must be notified of the loss immediately
