Insurance Property and Casualty Exam Update 2024 -2025 | Proper ty and Casualty Insurance Exam Update Latest 2024 -2025 Questions and Correct Answers Rated A+ All of the following are perils covered under the broad form dwelling policy EXCEPT - ANSWER -Theft An additional loss that results from a direct loss of property is called a/an - ANSWER -
Indirect loss. The at -fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is - ANSWER -Considered underinsured. In an auto policy, the medical payments coverage is simi lar to - ANSWER -Accident insurance, because it pays medical expenses regardless of fault. A beauty parlor burns to the ground. What type of loss is this to the owner? - ANSWER -
Direct The ABC Corporation has $100,000 of coverage on its building through in surance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs, how much will each insurer pay? - ANSWER -Company A will pay $16,000; Company B will pay $8,000 The insured has violated the contract without the knowledge of the mortgage holder. After a loss - ANSWER -The insured cannot collect but the mortgage holder will still be paid. The section of an insurance policy that details what perils are not i nsured against and what persons are not insured is known as the - ANSWER -Exclusions. An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? - ANSWER -Illegal under any circumstances To insure coin collections, stamp collections, and other items that would be difficult to appraise after a loss, it is best to insure with - ANSWER -Stated amount insurance. Legal liability is when a person is considered liable for damages according to - ANSWER -The law Which of the following is NOT true of National Flood Insurance? - ANSWER -Insurance provided by the flood program also is available in standard property policies. Which of the following policies does NOT contain an automatic reinstatement provision? - ANSWER -General liability written with an aggregate limit Which of the following is NOT covered by the condominium unit owners endorsement? - ANSWER -Furniture in the building The pro rata liability clause is designed to protect the principle of - ANSWER -Indemnity. Under a policy, the condition that determines how the amount of damaged or lost property will be determined is known as - ANSWER -Loss valuation. All of the following are essential parts of the insurance contract EXCEPT - ANSWER -
Provisions. All of the following are conditions commonly found in the insurance policy EXCEPT - ANSWER -Insuring agreement Which of the following is an example of an agent's fiduciary responsibilities? - ANSWER -Forwarding premiums to the insurer Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? - ANSWER -Liability coverage The homeowners policy covers collapse caused by all of the following EXCEPT - ANSWER -Foundation cracks. Greg owns several buildings, each at a different location and insured on a separate policy. What type of coverage does Greg have? - ANSWER -Specific All of the following ar e supplemental payments included in the liability section of a personal auto policy EXCEPT - ANSWER -Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident. The part of the insurance contract that de scribes the covered perils, and the nature of coverage of the contractual agreement between the insurer and the insured is called the - ANSWER -Insuring agreement. What is the purpose of the coinsurance clause found in property insurance policies? - ANSWER -Encourage insurance to value Which method of loss valuation is contrary to the basic concept of indemnity? - ANSWER -Replacement cost Sara owns a fire insurance policy on her house. If her home is totally destroyed in a fire, how much will the insurer be liable for? - ANSWER -The actual cash value of the property at the time of loss An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? - ANSWER -Material misrepresentation Which of the following statements regarding coverage for the flood and earthquake perils is true? - ANSWER -Both are excluded perils in all property policies. Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages? - ANSWER -Special Insurance is the transfer of - ANSWER -Risk. Which of the following statements is NOT true regarding a personal umbrella liability policy? - ANSWER -It provides errors and omissions coverage for an agency The secretary of the treasury estimates that a recent terrorist attack caused losses of more than $100 billion. According to the 2007 reauthorization of the Terrorism Risk Insurance Program, how many days' notice must the secretary provide to Congress? - ANSWER -15 In the event an insurer cancels an automobile insurance policy for a reason other than nonpayment of premium, what must be included in the notice? - ANSWER -Notification that the named insured may be eligible for coverage through the Assigned Risk Plan What is a Certificate of Insurance? - ANSWER -A written document showing the ty pes and amounts of insurance that have been issued to the insured How many credit hours of excess continuing education are producers allowed to carry over to the next renewal cycle? - ANSWER -12 hours Because an insurance policy is a legal contract, it mu st conform to the state laws governing contracts which require all of the following elements EXCEPT - ANSWER -
Conditions. With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto? - ANSWER -A vehicle t hat is titled to another person, but is being used with permission by an insured
Indirect loss. The at -fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is - ANSWER -Considered underinsured. In an auto policy, the medical payments coverage is simi lar to - ANSWER -Accident insurance, because it pays medical expenses regardless of fault. A beauty parlor burns to the ground. What type of loss is this to the owner? - ANSWER -
Direct The ABC Corporation has $100,000 of coverage on its building through in surance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs, how much will each insurer pay? - ANSWER -Company A will pay $16,000; Company B will pay $8,000 The insured has violated the contract without the knowledge of the mortgage holder. After a loss - ANSWER -The insured cannot collect but the mortgage holder will still be paid. The section of an insurance policy that details what perils are not i nsured against and what persons are not insured is known as the - ANSWER -Exclusions. An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? - ANSWER -Illegal under any circumstances To insure coin collections, stamp collections, and other items that would be difficult to appraise after a loss, it is best to insure with - ANSWER -Stated amount insurance. Legal liability is when a person is considered liable for damages according to - ANSWER -The law Which of the following is NOT true of National Flood Insurance? - ANSWER -Insurance provided by the flood program also is available in standard property policies. Which of the following policies does NOT contain an automatic reinstatement provision? - ANSWER -General liability written with an aggregate limit Which of the following is NOT covered by the condominium unit owners endorsement? - ANSWER -Furniture in the building The pro rata liability clause is designed to protect the principle of - ANSWER -Indemnity. Under a policy, the condition that determines how the amount of damaged or lost property will be determined is known as - ANSWER -Loss valuation. All of the following are essential parts of the insurance contract EXCEPT - ANSWER -
Provisions. All of the following are conditions commonly found in the insurance policy EXCEPT - ANSWER -Insuring agreement Which of the following is an example of an agent's fiduciary responsibilities? - ANSWER -Forwarding premiums to the insurer Which of the following personal auto coverages would pay for the insured's travel expenses and loss of earnings while involved in the settlement process of a covered loss? - ANSWER -Liability coverage The homeowners policy covers collapse caused by all of the following EXCEPT - ANSWER -Foundation cracks. Greg owns several buildings, each at a different location and insured on a separate policy. What type of coverage does Greg have? - ANSWER -Specific All of the following ar e supplemental payments included in the liability section of a personal auto policy EXCEPT - ANSWER -Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident. The part of the insurance contract that de scribes the covered perils, and the nature of coverage of the contractual agreement between the insurer and the insured is called the - ANSWER -Insuring agreement. What is the purpose of the coinsurance clause found in property insurance policies? - ANSWER -Encourage insurance to value Which method of loss valuation is contrary to the basic concept of indemnity? - ANSWER -Replacement cost Sara owns a fire insurance policy on her house. If her home is totally destroyed in a fire, how much will the insurer be liable for? - ANSWER -The actual cash value of the property at the time of loss An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? - ANSWER -Material misrepresentation Which of the following statements regarding coverage for the flood and earthquake perils is true? - ANSWER -Both are excluded perils in all property policies. Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged property are known as what type of compensatory damages? - ANSWER -Special Insurance is the transfer of - ANSWER -Risk. Which of the following statements is NOT true regarding a personal umbrella liability policy? - ANSWER -It provides errors and omissions coverage for an agency The secretary of the treasury estimates that a recent terrorist attack caused losses of more than $100 billion. According to the 2007 reauthorization of the Terrorism Risk Insurance Program, how many days' notice must the secretary provide to Congress? - ANSWER -15 In the event an insurer cancels an automobile insurance policy for a reason other than nonpayment of premium, what must be included in the notice? - ANSWER -Notification that the named insured may be eligible for coverage through the Assigned Risk Plan What is a Certificate of Insurance? - ANSWER -A written document showing the ty pes and amounts of insurance that have been issued to the insured How many credit hours of excess continuing education are producers allowed to carry over to the next renewal cycle? - ANSWER -12 hours Because an insurance policy is a legal contract, it mu st conform to the state laws governing contracts which require all of the following elements EXCEPT - ANSWER -
Conditions. With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto? - ANSWER -A vehicle t hat is titled to another person, but is being used with permission by an insured
