PROPERTY CASUALTY EXAM QUESTIONS UPDATED
AND CORRECT ANSWERS UPDATED QUESTIONS AND
CORRECT ANSWERS
Question:
1. All the following are considered an insured under Part A liability coverage, of the personal auto
policy EX-CEPT!
Answer:
Employer while insured is driving a company car.
Question:
2. 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 re-fused to make payment for the goods, the
retailer brought suit against the bank. which coverage indem-nified the bank for liability in the suit?
Answer:
Forgery and alteration
Question:
3. Which of the following best describes the CGL's gener-al aggregate annual limit as it applies to the
coverage parts of the CGL?
Answer:
Coverage A, B and C apply in sum and are the most that will be paid subject to the general aggregate
an-nual limit.
Question:
4. Which type of crime listed below best describes some-one who waits until store personnel are
preoccupied and pockets merchandise while no one is looking and leaves without detection?
Answer:
Theft
Question:
5. The claims-made liability form provides coverage from a date that precedes the policy effective
date. Which of the following defines that date?
Answer:
retroactive date
Question:
6. Which of the following is how defense costs are paid in relation to the limit of insurance under the
personal auto policy for bodily injury and property damage part A-liability coverage?
Answer:
in excess of the limit
Question:
7. A cable company uses employees to install equipment in the customers homes. THe company
purchases a bond from an insurance company to protect itself from potential dishonest acts of the
employees. Which of the following types of bond does the cable company purchase?
, Answer:
fidelity bond
Question:
8. Exclusions common to liability coverage for both the personal auto policy and the business auto
policy in-clude all the following EXCEPT
Answer:
for liability arising while the insured auto is being used in an auto business.
Question:
9. An extended reporting period attached to a general liability policy provides coverage in which of
the fol-lowing ways?
Answer:
It provides coverage for claims made outside the policy term.
Question:
10. Which one of the following persons would be covered for accidental injury on the insured's
premises under Coverage C of the CGL Medical Payments?
Answer:
A volunteer worker
Question:
11. In which of the following situations would worker compensation benefits be covered for an
injured em-ployee?
Answer:
a slip and fall while on the job at work
Question:
12. All of the following are common exclusions in a liability policy EXCEPT
Answer:
damage caused by acts of civil disobedience and ri-ots.
Question:
13. An injured employee covered under workers compen-sation is entitled to reasonably justifiable
expenses for retraining. this benefit falls under which of the following?
Answer:
vocational rehabilitation
Question:
14. For the CGL coverages of bodily injury, property dam-age and medical payments, which of the
following limits of insurance apply if the aggregate limit is NOT met?
Answer:
per occurence
Question:
15. Which of the following would be eligible to collect sur-vivor and death benefits from workers
compensation in the event of the covered injury resulting in the death of an employee?
AND CORRECT ANSWERS UPDATED QUESTIONS AND
CORRECT ANSWERS
Question:
1. All the following are considered an insured under Part A liability coverage, of the personal auto
policy EX-CEPT!
Answer:
Employer while insured is driving a company car.
Question:
2. 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 re-fused to make payment for the goods, the
retailer brought suit against the bank. which coverage indem-nified the bank for liability in the suit?
Answer:
Forgery and alteration
Question:
3. Which of the following best describes the CGL's gener-al aggregate annual limit as it applies to the
coverage parts of the CGL?
Answer:
Coverage A, B and C apply in sum and are the most that will be paid subject to the general aggregate
an-nual limit.
Question:
4. Which type of crime listed below best describes some-one who waits until store personnel are
preoccupied and pockets merchandise while no one is looking and leaves without detection?
Answer:
Theft
Question:
5. The claims-made liability form provides coverage from a date that precedes the policy effective
date. Which of the following defines that date?
Answer:
retroactive date
Question:
6. Which of the following is how defense costs are paid in relation to the limit of insurance under the
personal auto policy for bodily injury and property damage part A-liability coverage?
Answer:
in excess of the limit
Question:
7. A cable company uses employees to install equipment in the customers homes. THe company
purchases a bond from an insurance company to protect itself from potential dishonest acts of the
employees. Which of the following types of bond does the cable company purchase?
, Answer:
fidelity bond
Question:
8. Exclusions common to liability coverage for both the personal auto policy and the business auto
policy in-clude all the following EXCEPT
Answer:
for liability arising while the insured auto is being used in an auto business.
Question:
9. An extended reporting period attached to a general liability policy provides coverage in which of
the fol-lowing ways?
Answer:
It provides coverage for claims made outside the policy term.
Question:
10. Which one of the following persons would be covered for accidental injury on the insured's
premises under Coverage C of the CGL Medical Payments?
Answer:
A volunteer worker
Question:
11. In which of the following situations would worker compensation benefits be covered for an
injured em-ployee?
Answer:
a slip and fall while on the job at work
Question:
12. All of the following are common exclusions in a liability policy EXCEPT
Answer:
damage caused by acts of civil disobedience and ri-ots.
Question:
13. An injured employee covered under workers compen-sation is entitled to reasonably justifiable
expenses for retraining. this benefit falls under which of the following?
Answer:
vocational rehabilitation
Question:
14. For the CGL coverages of bodily injury, property dam-age and medical payments, which of the
following limits of insurance apply if the aggregate limit is NOT met?
Answer:
per occurence
Question:
15. Which of the following would be eligible to collect sur-vivor and death benefits from workers
compensation in the event of the covered injury resulting in the death of an employee?