PSI Practice Questions Property Casualty
A bank customer's identity was compromised and the thieves made numerous purchases from a
retailer by signing the customer's checks. When the bank refused to make payment for the
goods, the retailer brought suit against the bank. Which coverage indemnified the bank for
liability in the suit? - ANS-forgery and alteration
A Commercial Umbrella policy may cover losses that are exceeded by the primary policy when
the losses exceed:
A. Co-insurance
B. Self-insured retention
C. Pro rata liability
D. Contribution by equal shares - ANS-B. Self-insured retention
A DP-2 policy covers all of the following EXCEPT - ANS-damage to awnings from weight of
snow.
A shoplifter steals several items from a store that is open for business. This is an example of:
A. Burglary
B. Robbery
C. Theft
D. Mysterious disappearance - ANS-C. Theft
A woman slips on icy steps and breaks her leg. Which of the following is the peril in this
situation? - ANS-the fall
All of the following activities would warrant the imposition of absolute liability EXCEPT -
ANS-risky transportation.
All of the following are examples of direct loss EXCEPT - ANS-after a car crash you have to rent
a replacement vehicle.
All of the following are exclusions are found under the personal auto policy Part A liability
coverage, EXCEPT - ANS-bodily Injury to an insured's nonresident family member or relative.
All of the following are responsibilities of the insured listed in the loss provisions for most
property insurance contracts EXCEPT - ANS-to determining adequate indemnification.
All of the following are the most commonly used personal inland marine forms EXCEPT -
ANS-builder's floater form.
, All of the following specify limits of insurance for the commercial general liability EXCEPT -
ANS-legal defense.
All of the following would be considered an insured person under Part A of a personal
automobile policy EXCEPT - ANS-other persons or organizations for their liability from an
accident involving an auto or trailer used by the insured but owned by that person or
organization.
An insured operates a auto repair shop and has a garage coverage form with garagekeepers
insurance when an employee on a test drive with a customer's car is involved in a crash. How
will the customer's car be covered by the insured's policy? - ANS-The customer's car is covered
for any physical damage while in the custody of the insured.
BOP policy conditions do not include which of the following:
A. Policy cancellations
B. Subrogation
C. Dishonest or criminal acts of the insured or his employees
D. Concealment - ANS-C. Dishonest or criminal acts of the insured or his employees
For the commercial general liability coverages of bodily injury, property damage and medical
payments, which of the following limits of insurance apply if the aggregate limit is NOT met? -
ANS-per occurrence
Homeowner Form HO-2 provides coverage for loss of appliances, carpeting, and other
household furnishings for a maximum of how much?
1. $3,500
2. $3,000
3. $2,500
4. $500 - ANS-3. $2,500
In Auto insurance, insurable interest MUST exist at which of the following times:
A. At the time a quote is requested.
B. At each renewal date
C. At the time of loss
D. Whenever an insurance company requests proof of its existence - ANS-C. At the time of loss
In crime insurance, an employee who is responsible for the care of insured property outside the
premises is referred to as:
A. Custodian
B. Messenger
C. Watch person
D. Guard - ANS-B. Messenger
A bank customer's identity was compromised and the thieves made numerous purchases from a
retailer by signing the customer's checks. When the bank refused to make payment for the
goods, the retailer brought suit against the bank. Which coverage indemnified the bank for
liability in the suit? - ANS-forgery and alteration
A Commercial Umbrella policy may cover losses that are exceeded by the primary policy when
the losses exceed:
A. Co-insurance
B. Self-insured retention
C. Pro rata liability
D. Contribution by equal shares - ANS-B. Self-insured retention
A DP-2 policy covers all of the following EXCEPT - ANS-damage to awnings from weight of
snow.
A shoplifter steals several items from a store that is open for business. This is an example of:
A. Burglary
B. Robbery
C. Theft
D. Mysterious disappearance - ANS-C. Theft
A woman slips on icy steps and breaks her leg. Which of the following is the peril in this
situation? - ANS-the fall
All of the following activities would warrant the imposition of absolute liability EXCEPT -
ANS-risky transportation.
All of the following are examples of direct loss EXCEPT - ANS-after a car crash you have to rent
a replacement vehicle.
All of the following are exclusions are found under the personal auto policy Part A liability
coverage, EXCEPT - ANS-bodily Injury to an insured's nonresident family member or relative.
All of the following are responsibilities of the insured listed in the loss provisions for most
property insurance contracts EXCEPT - ANS-to determining adequate indemnification.
All of the following are the most commonly used personal inland marine forms EXCEPT -
ANS-builder's floater form.
, All of the following specify limits of insurance for the commercial general liability EXCEPT -
ANS-legal defense.
All of the following would be considered an insured person under Part A of a personal
automobile policy EXCEPT - ANS-other persons or organizations for their liability from an
accident involving an auto or trailer used by the insured but owned by that person or
organization.
An insured operates a auto repair shop and has a garage coverage form with garagekeepers
insurance when an employee on a test drive with a customer's car is involved in a crash. How
will the customer's car be covered by the insured's policy? - ANS-The customer's car is covered
for any physical damage while in the custody of the insured.
BOP policy conditions do not include which of the following:
A. Policy cancellations
B. Subrogation
C. Dishonest or criminal acts of the insured or his employees
D. Concealment - ANS-C. Dishonest or criminal acts of the insured or his employees
For the commercial general liability coverages of bodily injury, property damage and medical
payments, which of the following limits of insurance apply if the aggregate limit is NOT met? -
ANS-per occurrence
Homeowner Form HO-2 provides coverage for loss of appliances, carpeting, and other
household furnishings for a maximum of how much?
1. $3,500
2. $3,000
3. $2,500
4. $500 - ANS-3. $2,500
In Auto insurance, insurable interest MUST exist at which of the following times:
A. At the time a quote is requested.
B. At each renewal date
C. At the time of loss
D. Whenever an insurance company requests proof of its existence - ANS-C. At the time of loss
In crime insurance, an employee who is responsible for the care of insured property outside the
premises is referred to as:
A. Custodian
B. Messenger
C. Watch person
D. Guard - ANS-B. Messenger
