XCEL Exam P&C with all Correct & 100% Verified Answers
|Actual Complete Update |Already Graded A+
Which of the following will not provide a premium discount from standard market Workers
Compensation insurance? ✔Correct Answer-assigned risk plan
During the application process, a statement made by an applicant that becomes part of the
contract is considered to be a(n) ✔Correct Answer-warranty
All of the following statements regarding MedPay under a BOP is true, except: ✔Correct
Answer-medical payments will pay covered losses within 18 months of an accident
In a hull insurance policy, if premium is later than 30 days past due, the insurer must give
______ days notice ✔Correct Answer-10
An insurance contract may be voided if a misrepresentation found on the application is
determined to be ✔Correct Answer-material
The Insurance Guaranty Fund protects an insured in the event of ✔Correct Answer-the
insurer's insolvency - financially incapacitated insurers
When a producer is appointed, the ________ is considered the principal ✔Correct Answer-
insurer - after a producer is appointed, the insurance company is considered the principal
J's winter holiday decoration business has extreme fluctuations in his inventory throughout the
calendar year. Which of the following endorsements would you recommend J adds to his
coverage? ✔Correct Answer-Peak Season Limit of Insurance w/ Value Reporting Form
Under ERISA law: ✔Correct Answer-A bond for a minimum of 10% of the amount being
managed must be purchased by whoever handles funds under an employee pension plan
At what level of net worth will an insured have only limited or no coverage from the OIGA?
✔Correct Answer-50,000,000 - with this kind of net worth, insureds may have limited coverage
or no coverage at all
Replacement cost: ✔Correct Answer-provides benefits that are the exact amount of money to
replace destroyed property at the time the LOSS OCCURED
Liability arising of the premises, operations, products and exposure to independent contractors
in regard to a business that services or sells auto would be covered under which form?
✔Correct Answer-Garage Operations - Other than Covered Autos
, A coverage trigger: ✔Correct Answer-the event that makes a CGL policy respond to a claim
All of the following statements about Workers compensation are correct, EXCEPT ✔Correct
Answer-In all states common law defenses may be used to defeat a Workers Compensation
claim brought by an employee - under compulsory vs. elective language, common law defenses
may not be used to defeat WC claims brought by employees.
Which of the following losses would HO 04 42 endorsement cover? ✔Correct Answer-an
insured's home office - insured are afforded coverage at named locations such as home offices
or private dance schools
Which of the following losses is an example of the assured suffering an average loss?
✔Correct Answer-H's ship mast is damaged during a lightning storm and must be repaired
What is the best expression of the premium determination process for Workers Compensation
(X means multiply by)? ✔Correct Answer-Risk factor of job classification X $100 payroll =
premium
Which statement regarding stacked or unstacked insurance is false? ✔Correct Answer-
Unstacked insurance increases uninsured/underinsured motorist coverage
Utility Services Direct Damage (BP 04 56) Endorsement is utilized for business that are more
susceptible to loss when utility services are interrupted because of the exclusion in the BOP
caused by loss from utility service and power interruption that originates away from the
premises of the insured but does not cover: ✔Correct Answer-electronic data
Under Part Six, Conditions of a WC policy, a long-term policy is defined as longer than
✔Correct Answer-1 year and 16 days
B owns a small building that houses her retail business. After 11 years, the roof is starting to
deteriorate due to time. Under B's business owner policy: ✔Correct Answer-B will not have
coverage
B has a businessowners policy on his small fast food restaurant and also owns the building the
restaurant is in. B is about 13 months behind on the building's property taxes and B's insurer is
going to cancel his policy. Which of the following statements regarding B's cancellation notice is
correct? ✔Correct Answer-B will be given 5 days notice of cancellation
According to the Death condition of a HOP, if the insured dies, who becomes an insured with
respects to the deceased property and premises? ✔Correct Answer-Legal representative
M is a mechanic who works for Broken Axle auto repair shop. One Tuesday, M is driving around
a customer's repaired car and accidentally smashes it against the wall of the garage door on the
way out ✔Correct Answer-Section III
|Actual Complete Update |Already Graded A+
Which of the following will not provide a premium discount from standard market Workers
Compensation insurance? ✔Correct Answer-assigned risk plan
During the application process, a statement made by an applicant that becomes part of the
contract is considered to be a(n) ✔Correct Answer-warranty
All of the following statements regarding MedPay under a BOP is true, except: ✔Correct
Answer-medical payments will pay covered losses within 18 months of an accident
In a hull insurance policy, if premium is later than 30 days past due, the insurer must give
______ days notice ✔Correct Answer-10
An insurance contract may be voided if a misrepresentation found on the application is
determined to be ✔Correct Answer-material
The Insurance Guaranty Fund protects an insured in the event of ✔Correct Answer-the
insurer's insolvency - financially incapacitated insurers
When a producer is appointed, the ________ is considered the principal ✔Correct Answer-
insurer - after a producer is appointed, the insurance company is considered the principal
J's winter holiday decoration business has extreme fluctuations in his inventory throughout the
calendar year. Which of the following endorsements would you recommend J adds to his
coverage? ✔Correct Answer-Peak Season Limit of Insurance w/ Value Reporting Form
Under ERISA law: ✔Correct Answer-A bond for a minimum of 10% of the amount being
managed must be purchased by whoever handles funds under an employee pension plan
At what level of net worth will an insured have only limited or no coverage from the OIGA?
✔Correct Answer-50,000,000 - with this kind of net worth, insureds may have limited coverage
or no coverage at all
Replacement cost: ✔Correct Answer-provides benefits that are the exact amount of money to
replace destroyed property at the time the LOSS OCCURED
Liability arising of the premises, operations, products and exposure to independent contractors
in regard to a business that services or sells auto would be covered under which form?
✔Correct Answer-Garage Operations - Other than Covered Autos
, A coverage trigger: ✔Correct Answer-the event that makes a CGL policy respond to a claim
All of the following statements about Workers compensation are correct, EXCEPT ✔Correct
Answer-In all states common law defenses may be used to defeat a Workers Compensation
claim brought by an employee - under compulsory vs. elective language, common law defenses
may not be used to defeat WC claims brought by employees.
Which of the following losses would HO 04 42 endorsement cover? ✔Correct Answer-an
insured's home office - insured are afforded coverage at named locations such as home offices
or private dance schools
Which of the following losses is an example of the assured suffering an average loss?
✔Correct Answer-H's ship mast is damaged during a lightning storm and must be repaired
What is the best expression of the premium determination process for Workers Compensation
(X means multiply by)? ✔Correct Answer-Risk factor of job classification X $100 payroll =
premium
Which statement regarding stacked or unstacked insurance is false? ✔Correct Answer-
Unstacked insurance increases uninsured/underinsured motorist coverage
Utility Services Direct Damage (BP 04 56) Endorsement is utilized for business that are more
susceptible to loss when utility services are interrupted because of the exclusion in the BOP
caused by loss from utility service and power interruption that originates away from the
premises of the insured but does not cover: ✔Correct Answer-electronic data
Under Part Six, Conditions of a WC policy, a long-term policy is defined as longer than
✔Correct Answer-1 year and 16 days
B owns a small building that houses her retail business. After 11 years, the roof is starting to
deteriorate due to time. Under B's business owner policy: ✔Correct Answer-B will not have
coverage
B has a businessowners policy on his small fast food restaurant and also owns the building the
restaurant is in. B is about 13 months behind on the building's property taxes and B's insurer is
going to cancel his policy. Which of the following statements regarding B's cancellation notice is
correct? ✔Correct Answer-B will be given 5 days notice of cancellation
According to the Death condition of a HOP, if the insured dies, who becomes an insured with
respects to the deceased property and premises? ✔Correct Answer-Legal representative
M is a mechanic who works for Broken Axle auto repair shop. One Tuesday, M is driving around
a customer's repaired car and accidentally smashes it against the wall of the garage door on the
way out ✔Correct Answer-Section III
