Property and Casualty Exam Louisiana Insurance Agent Test Review Questions and Answers Correct 100%

All of the following situations would be covered under a professional liability policy - ANSWER-An accountant's error that inflated a bid and caused a client to lose a major account., Negligence of an architect who designed an unsafe building., Failure of a doctor to render the quality of care that is customary in the medical field, .EXCEPT The failure of an attorney to properly defend a client due to his personal dislike of the client Under a professional liability policy - ANSWER-Intentional breach of duty would not be covered An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form dwelling policy. How much of this loss will the policy cover? - ANSWER-$0 Damage that results from domestic animals - ANSWER-is excluded under the special form dwelling policy What is the basic limit for costs incurred at the place a vehicle is disabled provided by the towing and labor costs endorsement? - ANSWER-$25 The towing and labor costs endorsement - ANSWER-provides a basic limit of $25 for towing and labor costs incurred at the place a vehicle is disabled. Higher limits are available for an additional premium Which of the following is NOT consideration on the part of an insured? - ANSWER-Promise to submit timely claims The binding force in any contract is - ANSWER-consideration Consideration on the part of the insured is - ANSWER-the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is - ANSWER-the promise to pay in the event of loss