Arkansas P&C Exam Questions and Answers 100% Solved

For repairs after a loss. -For coverage for bodily injury and property damage of others. -For replacement parts. -For inspections and examinations. - ANSWER-For inspections and examinations. #3. The party to a surety or fidelity bond who promises to fulfill the obligation is the a) Principal. b) Custodian. c) Surety. d) Obligee. - ANSWER-Principal #4. An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a) Adhesion b) Consideration c) Good faith d) Representation - ANSWER-Consideration #10. A commercial property special form covers property in transit up to a) Full replacement cost. b) $5,000. c) ACV. d) $500. - ANSWER-$5,000. #12. Directors and officers liability insurance defends actions against a corporation or its officers and directors alleging wrongful acts. With regard to the coverage provided, wrongful acts include any of the following EXCEPT a) Breach of duty. b) Embezzlement. c) Misstatements. d) Neglect. - ANSWER-Embezzlement