PROPERTY AND CASUALTY EXAMINATION EOC
ANSWERS AND QUESTIONS SET A+
✔✔Which policy consists of the declarations and conditions, endorsements, and other
attachments applicable to a single line of insurance? - ✔✔Monoline
(contains only one coverage part)
✔✔All of the following are perils covered under the broad form dwelling policy EXCEPT
- ✔✔Theft
(lightning, collapse, and fire are covered)
✔✔Dwelling policy Coverage C - Personal Property will cover all of the following
EXCEPT - ✔✔Animals and birds
(hobby aircraft, computer software, and canoes are covered)
✔✔A specific coverage part is listed on the commercial package policy declarations
page, but there is no premium shown. What does that mean? - ✔✔There is no coverage
(no premium=no coverage)
✔✔The HO-3 homeowners policy provides - ✔✔Open peril coverage on the dwelling
and broad form coverage on personal property
(Applies to property insured under Coverages A and B only)
✔✔Under the provisions of the business income coverage form, all of the following are
true EXCEPT - ✔✔The insured is reimbursed for the loss from the date of loss to the
date of restoration or policy expiration date, whichever comes first.
(business income will pay beyond the expiration date of a policy. It will pay until the
business is restored or the limits of coverage are exhausted)
✔✔Which of the following dwelling policy forms primarily insures a structure on an
actual cash value basis? - ✔✔DP-1
(DP-2 and DP-3 insure the structure on a replacement cost basis)
,✔✔Which of the following is an example of a protective safeguard in a businessowners
policy? - ✔✔Automatic sprinkler system
✔✔The major portion of the premium for an equipment breakdown policy pays - ✔✔For
inspections and examinations
✔✔In a dwelling policy, which of the following other structures would be covered? -
✔✔Rented to a neighbor for use as a private garage
✔✔Which common policy condition prohibits the insured from changing the rights or
duties as defined under the policy to any other person or entity without the written
consent of the insurance company? - ✔✔Transfer of rights and duties under the policy
✔✔The common policy condition is a modular part combined with other parts to create
the contract. The common policy condition section contains provisions that are
applicable to all lines of coverage that may be included in the policy. Which of the
following provisions would be found in the common policy conditions section of the
policy? - ✔✔The first named insured may cancel the policy at any time by giving written
notice to the insurer
✔✔Equipment breakdown coverage is written with a single limit of insurance per
accident. What is the sublimit for hazardous substance cleanup or repair or replacement
of contaminated property? - ✔✔$25,000
✔✔Within the first 60 days of coverage under a dwelling policy, how much notice is
required for the cancellation of a policy? - ✔✔10 days
✔✔Under the additional living expenses coverage, if a civil authority prohibits the
insured from using the dwelling because of direct damage to a neighboring location
from a peril covered in the insured's policy, loss would be covered for up to - ✔✔2
weeks
✔✔A commercial package policy (CPP) allows the insured to select the coverage
needed and customize the policy to meet the needs of the insured's business. In a CPP,
the business owner may select from all of the following types of coverage EXCEPT -
✔✔Workers compensation coverage
(boiler and machinery coverage, general liability coverage, and crime coverage are all
covered)
✔✔A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler
explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's
building, and $30,000 of expediting expenses, how much will the insured collect under
the policy? - ✔✔$175,000
, (the limit of the equipment breakdown policy applies to property of the insured, property
of others, and expediting expenses in any combination as long as expediting expense
does not exceed $25,000)
✔✔A business income coverage form would cover all of the following situations
EXCEPT - ✔✔A union strike of construction workers causes the repair of the insured's
building to be delayed for a period of time
✔✔What is the maximum amount an insurer will pay under the equipment dealers
pollution cleanup and removal extension of an inland marine policy? - ✔✔$10,000 for all
expenses incurred during a 12 month period
✔✔The standard property deductible per occurrence on a CPP is - ✔✔$500
(higher or lower deductibles may apply, but commercial property policies generally
come with a $500 deductible)
✔✔Within how many years of a loss may an insured bring a lawsuit against an insurer,
according to the dwelling policy? - ✔✔2 years
✔✔Which of the following is defined as a covered cause of loss in businessowners
property coverage? - ✔✔Leakage from fire-extinguishing equipment
✔✔The Physicians and Surgeons Equipment Floater in NOT intended for which of the
following? - ✔✔Medical supplies located in a hospital
(this coverage protects individuals in the medical or dental profession for loss to
valuable medical and dental equipment, materials and supplies, including office
equipment and furniture and similar property of others. Coverage is not intended for
hospitals, schools, or other institutions)
✔✔Which of the following claims does NOT fall under the scope of liability coverage of
Section II of a homeowners policy? - ✔✔The named insured is borrowing a friend's
jacket which is later damaged
✔✔The War, Military Act, and Terrorism Exclusion will only apply to an incident of
terrorism in which the total of insured damage to all types of property in the United
States, its territories and possessions, Puerto Rico and Canada exceeds what amount?
- ✔✔$25,000,000
✔✔According to businessowners policy Section I, which of the following is NOT a
condition to be met for the terms of the policy to apply to mortgageholders? - ✔✔The
mortgageholder must petition the state department of insurance for named status
ANSWERS AND QUESTIONS SET A+
✔✔Which policy consists of the declarations and conditions, endorsements, and other
attachments applicable to a single line of insurance? - ✔✔Monoline
(contains only one coverage part)
✔✔All of the following are perils covered under the broad form dwelling policy EXCEPT
- ✔✔Theft
(lightning, collapse, and fire are covered)
✔✔Dwelling policy Coverage C - Personal Property will cover all of the following
EXCEPT - ✔✔Animals and birds
(hobby aircraft, computer software, and canoes are covered)
✔✔A specific coverage part is listed on the commercial package policy declarations
page, but there is no premium shown. What does that mean? - ✔✔There is no coverage
(no premium=no coverage)
✔✔The HO-3 homeowners policy provides - ✔✔Open peril coverage on the dwelling
and broad form coverage on personal property
(Applies to property insured under Coverages A and B only)
✔✔Under the provisions of the business income coverage form, all of the following are
true EXCEPT - ✔✔The insured is reimbursed for the loss from the date of loss to the
date of restoration or policy expiration date, whichever comes first.
(business income will pay beyond the expiration date of a policy. It will pay until the
business is restored or the limits of coverage are exhausted)
✔✔Which of the following dwelling policy forms primarily insures a structure on an
actual cash value basis? - ✔✔DP-1
(DP-2 and DP-3 insure the structure on a replacement cost basis)
,✔✔Which of the following is an example of a protective safeguard in a businessowners
policy? - ✔✔Automatic sprinkler system
✔✔The major portion of the premium for an equipment breakdown policy pays - ✔✔For
inspections and examinations
✔✔In a dwelling policy, which of the following other structures would be covered? -
✔✔Rented to a neighbor for use as a private garage
✔✔Which common policy condition prohibits the insured from changing the rights or
duties as defined under the policy to any other person or entity without the written
consent of the insurance company? - ✔✔Transfer of rights and duties under the policy
✔✔The common policy condition is a modular part combined with other parts to create
the contract. The common policy condition section contains provisions that are
applicable to all lines of coverage that may be included in the policy. Which of the
following provisions would be found in the common policy conditions section of the
policy? - ✔✔The first named insured may cancel the policy at any time by giving written
notice to the insurer
✔✔Equipment breakdown coverage is written with a single limit of insurance per
accident. What is the sublimit for hazardous substance cleanup or repair or replacement
of contaminated property? - ✔✔$25,000
✔✔Within the first 60 days of coverage under a dwelling policy, how much notice is
required for the cancellation of a policy? - ✔✔10 days
✔✔Under the additional living expenses coverage, if a civil authority prohibits the
insured from using the dwelling because of direct damage to a neighboring location
from a peril covered in the insured's policy, loss would be covered for up to - ✔✔2
weeks
✔✔A commercial package policy (CPP) allows the insured to select the coverage
needed and customize the policy to meet the needs of the insured's business. In a CPP,
the business owner may select from all of the following types of coverage EXCEPT -
✔✔Workers compensation coverage
(boiler and machinery coverage, general liability coverage, and crime coverage are all
covered)
✔✔A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler
explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's
building, and $30,000 of expediting expenses, how much will the insured collect under
the policy? - ✔✔$175,000
, (the limit of the equipment breakdown policy applies to property of the insured, property
of others, and expediting expenses in any combination as long as expediting expense
does not exceed $25,000)
✔✔A business income coverage form would cover all of the following situations
EXCEPT - ✔✔A union strike of construction workers causes the repair of the insured's
building to be delayed for a period of time
✔✔What is the maximum amount an insurer will pay under the equipment dealers
pollution cleanup and removal extension of an inland marine policy? - ✔✔$10,000 for all
expenses incurred during a 12 month period
✔✔The standard property deductible per occurrence on a CPP is - ✔✔$500
(higher or lower deductibles may apply, but commercial property policies generally
come with a $500 deductible)
✔✔Within how many years of a loss may an insured bring a lawsuit against an insurer,
according to the dwelling policy? - ✔✔2 years
✔✔Which of the following is defined as a covered cause of loss in businessowners
property coverage? - ✔✔Leakage from fire-extinguishing equipment
✔✔The Physicians and Surgeons Equipment Floater in NOT intended for which of the
following? - ✔✔Medical supplies located in a hospital
(this coverage protects individuals in the medical or dental profession for loss to
valuable medical and dental equipment, materials and supplies, including office
equipment and furniture and similar property of others. Coverage is not intended for
hospitals, schools, or other institutions)
✔✔Which of the following claims does NOT fall under the scope of liability coverage of
Section II of a homeowners policy? - ✔✔The named insured is borrowing a friend's
jacket which is later damaged
✔✔The War, Military Act, and Terrorism Exclusion will only apply to an incident of
terrorism in which the total of insured damage to all types of property in the United
States, its territories and possessions, Puerto Rico and Canada exceeds what amount?
- ✔✔$25,000,000
✔✔According to businessowners policy Section I, which of the following is NOT a
condition to be met for the terms of the policy to apply to mortgageholders? - ✔✔The
mortgageholder must petition the state department of insurance for named status
