Property and Casualty Insurance Licensing Exam Questions and Answers Latest 2024 (GRADED)

Property and Casualty Insurance Licensing Exam Questions and Answers Latest 2024 (GRADED) To prevent recovery beyond the amount of the insured's actual loss, the policy will contain: - correct answer An Other Insurance Clause Collision coverage of an auto policy covers: a) road damage to the tires b) upset of the vehicle c) frozen engine block d) falling objects - correct answer B) upset of the vehicle The maximum amount of payable for all losses resulting from one event is known as the: a) occurrence limit b) aggregate limit - correct answer a) occurrence limit Which of the following is a cause of loss form? a) declarations form b) proof of loss form c) garage keepers' form d) basic form - correct answer d) Basic form The minimum flood deductible is: a) $100 b) $250 c) $500 d) $1000 - correct answer c) $500 The insured intentionally did not inform the insurer that the insured owned only 35% of the property. The insurer can void the policy for: a) conditional coverage b) misrepresentation c) error d) concealment - correct answer d) concealment Which of the following is NOT a defense against negligence? a) contributory negligence b) statues of limitations c) presumption of negligence d) assumption of risk - correct answer c) presumption of negligence The presumed authority necessary to carry out the producer's routine tasks is known as: a) expressed authority b) implied authority - correct answer b) implied authority Which of the following statements regarding the Towing and Labor endorsement is false? a) it will pay to the limit stated in the endorsement each time a covered vehicle is disabled b) there is no coverage for roadside labor costs c) there is no deductible d) none of the above - correct answer b) there is no coverage for roadside labor costs A licensee may violate federal law and be subject to a fine and prison for doing which of the following? a) selling insurance w/ a nonresident license b) sending threatening letters to the state insurance regulator c) fraudulently telling an insured a claim isn't covered on the policy d) murdering an applicant - correct answer b) sending threatening letters to the state insurance regulator Which of the following is not an insured location for liability coverage under the homeowners policy? a) a restaurant party room the insured has rented for a business meeting b) the insured's cemetery plot c) a restaurant party room the insured has rented for a birthday party d) vacant land owned by the insured - correct answer a) a restaurant party room the insured has rented for a business meeting Special covers each of the following EXCEPT: a) theft b) mysterious disappearance c) Acts of God d) floods and earthquakes - correct answer d) floods and earthquakes Sam has underinsured motorist coverage with limits of $100/$300. Sam is injured by Quincy who has limits of $50/$100. Sam's injuries are valued at $125,000. Sam's underinsured motorist coverage will pay; a) $25,000 b) $50,000 c) $75,000 d) $125,000 - correct answer b) $50,000 The contract agreement may be referred as the: a) legal interest test b) good faith c) meeting of the minds d) promise of indemnification - correct answer c) meeting of the minds Which of the following boats owned by the insured would require the HO watercraft endorsement for liability coverage? a) a boat with 25 horsepower outboard engine b) a sailboat with 25 ft. in length c) a boat with a 15 horsepower inboard motor d) none of the above - correct answer c) a boat with a 15 horsepower inboard motor Authority expressed orally by the insurer to the agent is: a)apparent authority b) no authority c) implied authority d) express authority - correct answer d) express authority Contracts require each of the following except: a) consideration b) notarization c) implied authority d) express authority - correct answer b) notarization Contracts require each of the following except: a) consideration b) notarization c) legal purpose d) competent parties - correct answer b) notarization A broad form policy covers: a) sewer backup b) inherent vice c) earthquake d) volcano - correct answer d) volcano Which section of the policy specifies which stores are owned by an insured are covered a) insuring agreements b) conditions c) exclusions d)declaration - correct answer d) declaration Mike gets a grizzly bear to keep as a pet at his home. This results in a type of liability known as: a) strict liability b) professional liability c) absolute liability d) vicarious liability - correct answer c) absolute liability Insurable losses will be listed in what section? a) declarations b) exclusions c) conditions d) insuring agreements - correct answer d) insuring agreements Which is true regarding insurance companies? a) stock companies are managed by the policy owners b) mutual are owned by the policy holders, have the management members chosen by the policy holders, and pay dividends to the policy holders c) stock companies and mutual both pay dividends to the policy holders d) stock companies are owned by the policy holders but mutual are owned by the stock holders - correct answer b) mutuals are owned by the policy holders, have the management members chosen by the policy holders, and pay dividends to the policy holders