Arkansas Property & Casualty Practice Exam with all
Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Pay the claims covered under the policy. ✔Correct Answer-A primary obligation of an
insurance company is to:
Accumulating Risk ✔Correct Answer-Which of the following is not a reaction to risk?
An increase in the possibility that a loss may occur. ✔Correct Answer-Which of the following
describes a hazard?
Requiring the policyholder to carry insurance to value. ✔Correct Answer-Which of the
following best meets the test of the "Principle of Indemnity"?
Overpayment of a claim ✔Correct Answer-The principle of indemnity is designed to avoid:
Flood ✔Correct Answer-Which of the following losses would not be covered on an "all-risk"
crop insurance policy?
Crime Insurance ✔Correct Answer-The Fair Plan offers what kind of coverage for individuals
and businesses in high hazard areas?
Embezzlement ✔Correct Answer-An agent who collects premiums and converts those
premiums to his own personal use is guilty of:
Deductible ✔Correct Answer-Which of the following terms describes what is subtracted from
a claim payment to the insured?
Parol Evidence rule ✔Correct Answer-Oral discussion prior to the development of a written
contract can not be used to extend the terms of the final document. This because of the:
The agent must be appointed by each company. ✔Correct Answer-To be licensed by more
than one insurance company:
The covered perils ✔Correct Answer-The basic difference between the DP-1 and the DP-3 is:
The client ✔Correct Answer-Which of the following has the unlimited right to cancel an
insurance policy?
, The trigger ✔Correct Answer-The main difference between a claims made liability coverage
and an occurence for liability coverage is:
Endorsement ✔Correct Answer-What is used to change an insurance policy from its original
wording?
A claim by the mortgagee can be denied. ✔Correct Answer-An insured hires someone to burn
his home. The insurance company can prove this fact. All of the following are true except:
Surplus Lines Insurance ✔Correct Answer-A certificate of authority is not required for
transacting:
Retained Limit ✔Correct Answer-An umbrella liability policy has a form of deductible called:
The insured building is vacant for over 60 days. ✔Correct Answer-Coverage against loss by
some perils (vandalism, theft, etc.) under the Building and Personal Property Coverage form is
suspended if:
A retired person. ✔Correct Answer-Which of the following may be competent?
$7,250 ✔Correct Answer-A 15 year old dwelling valued at $100,000 is insured for $60,000 on
an HO-3 with an HO-15 encorsement. A $250 deductible applies. If the insured had a $10,000
loss, how much would he be paid?
Appealed to the Courts ✔Correct Answer-An order of the Commissioner may be:
Professional Liability is used in lieu of General Liability ✔Correct Answer-All of the following
are true about Professional Liability except:
Damages caused by products after their sale. ✔Correct Answer-Which of the following
exposures is covered under the basic Commercial General Liability policy?
On the biennial anniversary of your birthday. ✔Correct Answer-Property and Casualty licenses
must be renewed:
Risk ✔Correct Answer-Which of the following terms is defined as the uncertainty of future
outcome?
Unilateral ✔Correct Answer-Because the exact terms of an insurance policy are not the
subject of negotiation with the companym the contract of insurance is said to be:
The Zone Exam ✔Correct Answer-The kind of examination performed of a foreign insurer for
the benefit of all licensing states is called:
Correct & 100% Verified Answers |Actual Complete
Update |Already Graded A+
Pay the claims covered under the policy. ✔Correct Answer-A primary obligation of an
insurance company is to:
Accumulating Risk ✔Correct Answer-Which of the following is not a reaction to risk?
An increase in the possibility that a loss may occur. ✔Correct Answer-Which of the following
describes a hazard?
Requiring the policyholder to carry insurance to value. ✔Correct Answer-Which of the
following best meets the test of the "Principle of Indemnity"?
Overpayment of a claim ✔Correct Answer-The principle of indemnity is designed to avoid:
Flood ✔Correct Answer-Which of the following losses would not be covered on an "all-risk"
crop insurance policy?
Crime Insurance ✔Correct Answer-The Fair Plan offers what kind of coverage for individuals
and businesses in high hazard areas?
Embezzlement ✔Correct Answer-An agent who collects premiums and converts those
premiums to his own personal use is guilty of:
Deductible ✔Correct Answer-Which of the following terms describes what is subtracted from
a claim payment to the insured?
Parol Evidence rule ✔Correct Answer-Oral discussion prior to the development of a written
contract can not be used to extend the terms of the final document. This because of the:
The agent must be appointed by each company. ✔Correct Answer-To be licensed by more
than one insurance company:
The covered perils ✔Correct Answer-The basic difference between the DP-1 and the DP-3 is:
The client ✔Correct Answer-Which of the following has the unlimited right to cancel an
insurance policy?
, The trigger ✔Correct Answer-The main difference between a claims made liability coverage
and an occurence for liability coverage is:
Endorsement ✔Correct Answer-What is used to change an insurance policy from its original
wording?
A claim by the mortgagee can be denied. ✔Correct Answer-An insured hires someone to burn
his home. The insurance company can prove this fact. All of the following are true except:
Surplus Lines Insurance ✔Correct Answer-A certificate of authority is not required for
transacting:
Retained Limit ✔Correct Answer-An umbrella liability policy has a form of deductible called:
The insured building is vacant for over 60 days. ✔Correct Answer-Coverage against loss by
some perils (vandalism, theft, etc.) under the Building and Personal Property Coverage form is
suspended if:
A retired person. ✔Correct Answer-Which of the following may be competent?
$7,250 ✔Correct Answer-A 15 year old dwelling valued at $100,000 is insured for $60,000 on
an HO-3 with an HO-15 encorsement. A $250 deductible applies. If the insured had a $10,000
loss, how much would he be paid?
Appealed to the Courts ✔Correct Answer-An order of the Commissioner may be:
Professional Liability is used in lieu of General Liability ✔Correct Answer-All of the following
are true about Professional Liability except:
Damages caused by products after their sale. ✔Correct Answer-Which of the following
exposures is covered under the basic Commercial General Liability policy?
On the biennial anniversary of your birthday. ✔Correct Answer-Property and Casualty licenses
must be renewed:
Risk ✔Correct Answer-Which of the following terms is defined as the uncertainty of future
outcome?
Unilateral ✔Correct Answer-Because the exact terms of an insurance policy are not the
subject of negotiation with the companym the contract of insurance is said to be:
The Zone Exam ✔Correct Answer-The kind of examination performed of a foreign insurer for
the benefit of all licensing states is called:
