Property and Casualty Practice Exam Questions With Complete Solutions

If an insurance producer negligently fails to renew an insured's policy and a claim occurs, the wrongful action by the producer should be covered by which of the following: A. IT WOULD BE COVERED UNDER THE PRODUCER'S LICENSE BOND B. IT WOULD BE COVERED UNDER THE PRODUCER'S ERRORS AND OMISSIONS LIABILITY POLICY C. IT WOULD BE COVERED UNDER THE PRODUCER'S PERFORMANCE BOND D. IT WOULD BE COVERED UNDER THE PRODUCER'S COMMERCIAL GENERAL LIABILITY POLICY. correct answer: B. IT WOULD BE COVERED UNDER THE PRODUCER'S ERRORS AND OMISSIONS LIABILITY POLICY Which of these is a surety bond? A. COVERS SOME EMPLOYEES FOR THEFT B. COVERS ALL EXISTING EMPLOYEES C. GUARANTEE OF PERFORMANCE D. PAYS FOR WRONGFUL TERMINATION OF EMPLOYMENT correct answer: C. GUARANTEE OF PERFORMANCE Which of these would a Surety Bond be used for? A. EMPLOYEES STEALING FROM THEIR EMPLOYER B. THE BUILDING WILL BE COMPLETED ON TIME C. COMPANY CAR CAUSING BODILY INJURY AND PROPERTY DAMAGE D. A PERSON INJURED ON THE INSURED'S PROPERTY correct answer: B. THE BUILDING WILL BE COMPLETED ON TIME Errors and omissions insurance will NOT pay for which of the following claims? A. ARCHITECT ERRS WHEN DESIGNING A BLUEPRINT FOR A CLIENT'S HOME B. CPA IMPROPERLY COMPLETES A CLIENT'S TAX RETURN C. ATTORNEY INADVERTENTLY BREAKS A CLIENT'S LEG D. INSURANCE AGENT FAILS TO RENEW A CLIENT'S INSURANCE POLICY correct answer: C. ATTORNEY