VA P&C Practice Exam Questions and Answers Already Graded A

VA P&C Practice Exam Questions and Answers Already Graded A Which of the following represents pure risk? A. Purchase of stock in a new company B. An investment in real estate C. Purchase of a lottery ticket D. Chance of fire in a dwelling D. Chance of fire in a dwelling WHICH OF THE FOLLOWING IS A PERIL? A. ATTITUDE TOWARDS SAFETY B. FIRE C. DEDUCTIBLE D. AN EXCLUSION B. FIRE Direct loss refers to: A. Fire damage to a dwellings roof B. Cost of increased living expenses due to a fire C. Reduction in the value of in the insured's 401k D. Exclusions A. Fire damage to a dwellings roof When property is unique in value, which of the following may be used to develop premium? A. Actual Cash Value B. Replacement Cost C. Stated Value D. Salvage Value C. Stated Value There is a condition in most property policies that may exclude coverage for certain perils depending on the occupancy of the building at the time of loss. If the insured moved to a new dwelling 60 days before the loss, which of the following conditions might apply? A. Unoccupancy B. Vacancy C. Use limitation D. Protection warranty B. Vacancy There is a condition in most property policies that may exclude coverage for certain perils depending on the occupancy of the building at the time of loss. If the insured has a vandalism claim while they are on vacation, which of the following conditions might apply? A. Unoccupancy B. Vacancy C. Use limitation D. Protection warranty A. Unoccupancy When an individual or business causes harm to another, the injured party will expect their damages to be covered by the person causing the injury. If the individual or business causing harm will be held responsible for the damages regardless of negligence, we say they are: A. Negligent B. Absolutely liable C. Vicariously liable D. Not liable B. Absolutely liable When an insured is held liable for a product they manufactured that caused injury an negligence does not need to be proven, what type of liability is this? A. Negligence B. Vicarious liability C. Not liable D. Strict liability D. Strict liability In a commercial insurance policy, the person with the responsibility of administering the policy, making payments, etc. is the: A. Named insured B. Additional insured C. First named insured D. Lienholder C. First named insured All of the following are duties of the insured as detailed in the Conditions of the policy EXCEPT: A. Make premium payments on time B. Notify insurer of incidents that may lead to a claim C. Cooperate with the insurer D. Assist in selecting an insurance adjuster D. Assist in selecting an insurance adjuster Which of the following is true regarding the insurer's rights to claim settlement? A. The insured must agree to all aspects of the settlement. B. The insurer may not settle a claim unless there is a court order. C. The insurer may settle a liability claim without the insured's permission. D. The insured retains complete rights of claim settlement. C. The insurer may settle a liability claim without the insured's permission. Which of the following statements concerning a proof of loss is NOT true? A. It is the duty of the insured to submit a proof of loss. B. The insurer provides the insured with the proof of loss at the appropriate time C. A proof of loss details the circumstances of the loss D. A proof of loss may be oral D. A proof of loss may be oral A notice of claim to an insurer must include all of the following EXCEPT: A. Insured's name B. Insured's address C. Name of insured's attorney D. Description of how the loss occurred C. Name of insured's attorney John has two homeowner's policies in force. Policy A covers the home for $200,000 and Policy B covers the home for $100,000. The total insurance in force is $300,000. John has a fire that does $45,000 damage to the home. How much will Policy A pay? A. $45,000 B. $0 C. $15,000 D. $30,000 D. $30,000 Select the item that is considered a consumer report: A. Driving record B. Application for insurance C. The agent's knowledge of the applicant