Property and Casualty Insurance Exam Louisiana Insurance Agent Test Questions with Correct Answers 2023

Property and Casualty Insurance Exam Louisiana Insurance Agent Test Questions with Correct Answers 2023. A home day care coverage endorsement may be attached to the homeowners policy to cover the liability exposure associated with the a home day care business the insured operates out of his house Subrogation rights under a personal auto policy do NOT apply to all Physical damage In a PAP Subrogation rights do not apply to physical damage coverage if the damage is caused by a person using the auto with a reasonable belief that they were entitled to do so What is the purpose of increased value and excess liability (IVEL) clauses? to provide extra coverage for the same losses covered by an underlining policy Increased value and excess liability (IVEL) clauses provide excess coverage for the same losses covered by an underlining policy they are written to go with An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile? Collision Collision is defined as the upset or impact of a covered vehicle with another vehicle or object When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written Stated Amount In stated amount coverage the value of the insured property is determined at the time the policy is written. In the event of a loss, that amount is paid without regard to any coinsurance provision. However, if the loss is less than total, the insurer has salvage rights with the insured having first right of refusal of the salvage.) An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act? Fraud According to Title 18, Sections 1033 & 1034 of the US Code, any oral or written statements by any person engaged in the business of insurance that are false or any omissions of material fact are considered unlawful insurance fraud. This includes statements made on an application for insurance, renewal of a policy, claims for payment or benefits, premiums paid, and financial condition of an insurer According to the Motor Carrier Act of 1980 the minimum requirements are $750,000 for the transportation of non-hazardous property; $1 million for the transportation of oil, and certain categories of hazardous waste or material; and $5 million for the transportation of other specifically defined hazardous waste and materials, explosives, gas, or radioactive material The personal injury liability endorsement to an HO policy applies to all the following Invasion of privacy, False arrest, Slander If a third party breaks a leg when the insured knocks him down, the broken leg is covered by personal liability coverage, NOT a personal injury liability endorsement to an HO If the Louisiana Citizens Property Insurance Corporation denies an application, the applicant may appeal to the Louisiana Insurance Rating Commission. Even though an insured maintains a valid driver's license and has paid the premium when due, an insurer may modify the deductible of an auto policy after payment of a third physical damage claim in 5 years After payment of the third physical damage claim in 5 years an insurer may modify the deductible on physical damage coverage in an auto policy Liability imposed on one party as a result of the actions of another person (i.e., parent/child, employer/employee) is known as Vicarious Liability When the child makes the parent liable; the contractor makes the principal liable; the employee makes the employer liable it is termed Vicarious Liability When the condominium association coverage form and the condominium commercial unit-owners form both cover the same loss, The association coverage form will be considered primary and pay the loss. The association form is always considered primary and will pay the entire loss Which of the following property coverages would provide protection to contents damaged by fire? Coverage C - Personal Property provides coverage for the contents of an insured dwelling All of the following are additional liability coverages automatically provided in a homeowners policy Claims expenses, Damage to the property of others, Loss assessment coverage In a homeowners policy Personal injury protection may be added by endorsement All of the following are optional coverages that may be attached to an HO-3 policy Home day care coverage, Earthquake coverage, Personal property replacement cost The HO-3 provides replacement cost coverage for losses to the dwelling without endorsement or optional coverage being added Who pays all reasonable expenses if sue and labor is required to lessen a loss? The insurer In event of a loss or misfortune, the master and crew is required to sue and labor to prevent further loss and keep the loss as small as possible. The insurer will pay reasonable expenses in doing so. If the master and crew do not sue and labor to prevent further loss, the insurer could refuse to pay the claim Which of the following kinds of vehicles are exempt from complying with the Louisiana Motor Vehicle Safety Responsibility Law? Leased mobile rig haulers, Motor vehicles used as agricultural or forest vehicles not on a highway, Vehicles used primarily for exhibits, parades or shows When an employee benefit plan pays the premium for a fiduciary liability policy, what provision must be included in that policy? Subrogation In an employee benefit plan if the premiums are paid from the fund the policy must allow for subrogation against the individual trustees involved in any loss According to the standard workers compensation and employer liability policy form, a state should be listed in Part Three - other states' insurance of the workers compensation and employers liability policy when the insured expects to extend operations to that state By naming a state in Part Three of a workers compensation and employer liability (WC&EL) policy, an employer provides that company operations may be conducted in that state If the underwriters direct a vessel to proceed to a particular port for repair, who pays the expenses, including wages and maintenance, of doing so? The insurer If the underwriters direct the vessel to proceed to a particular port for repair the insurer will pay the expenses of doing so, including wages and maintenance for the master, officers, and crew All of the following are excluded in the equipment breakdown basic policy Ordinance or law coverage, Business interruption, Loss of power, lights, heat, steam, or refrigeration. Explosion of Steam Boilers is not covered by Equipment breakdown coverage Equipment breakdown coverage covers the sudden and accidental breakdown of the vessel. Business interruption may be added by endorsement All of the following are supplemental payments included in the liability section of a personal auto policy Up to $200 a day for loss of earnings due to attendance at hearings or trials. Premiums on appeal bonds in any suit the insurer defends. Up to $250 for bail bonds required because of a covered accident. A PAP does NOT cover the cost to secure the release of a vehicle from an impoundment lot following a covered accident. A personal auto policy does not pay the cost of a release of a vehicle impounded by a law enforcement agency Under the business auto coverage form, mobile equipment is covered for liability insurance when being carried or towed by a covered auto Under the business auto coverage form Liability coverage is automatically provided on mobile equipment while being carried or towed by a vehicle insured as a covered auto. (There is a business auto endorsement that will provide auto coverages to mobile equipment upon payment of additional premiums.) Which one of the following covers a carrier for liability for loss to cargo while it is being transported in a truck? Motor truck cargo policy - truckers form In a motor truck cargo policy the motor trucker cargo truckers is liability insurance and the owners form is property coverage Which of the following is defined as a covered "cause of loss"? leakage from fireextinguishing equipment Smoke from agricultural smudging, pollution, and rain are specifically excluded from coverage To comply with the Motor Carrier Act of 1980, which endorsement is added to motor carrier coverage form? MCS-90 Motor Carrier Act of 1980t, MCS-90 endorsement modifies the business auto coverage form, truckers coverage form, or motor carrier coverage form to provide the protection required by the act If an insurer decides to nonrenew a commercial policy, how much prior notice must be given to the first named insured? 60 days If an insurer decides to nonrenew a commercial policy it must send written notification of its intent to the first named insured at least 60 days before the expiration date of the policy Which of the following is NOT true concerning the fair rental value coverage provided in a dwelling policy? loss or expense caused by the cancellation of a lease is covered. The fair rental value coverage provided in a dwelling policy pays for the loss of rentals you would have collected less any expenses that would not have continued. Coverage continues until repairs are completed. The period of time to repair or replace is not limited by the expiration date of the policy. In the fair rental coverage provided in the dwellilng policy The cause for the property not being livable must be a covered peril Under the dwelling policy, Coverage C - Personal Property is Limited to covering a servant's property while at the insured location. In a dwelling policy Coverage C is limited to covering property owned by a guest or servant while the property is at the insured location. Under a homeowners policy, Coverage C personal property the property would be covered the same while on or off the premises The medical payments coverage in a personal auto policy will pay reasonable medical expenses for all of the following a friend is injured while driving the insured's vehicle with permission, the insured is injured by a motor vehicle while crossing the street, the insured's infant daughter sustains injuries when the car she is occupying accidentally rolls down a hill