Prop And Casualty Exam Questions And Verified Answers @ 2024

Prop And Casualty Exam Questions And Verified Answers @ 2024 A couple bought tickets to a college hockey tournament. At the game, a stray puck f lies into the stands and hits the wife in the face, breaking her nose. Which legal defense may bar her from recovering damages for the injury she received at the hockey game? - Answer An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the insured's famil y, and they explained that the insured was recovering from a surgery and might have been under the influence of medication at the time of application. Which of the following is true? - Answer Workers compensation laws provide all of the following types of benefits EXCEP T - Answer Compensatory benefits. What fundamental principle in property insurance holds that when there is an unbroken connection between an occurrence and damage that grows out of the occurrence, then the resultant damage is all a part of the occurrence? - Answer Proximate cause Which of the following is the closest term to an authorized insurer? - Answer Admitted The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks? - Answer The difference in the actual cash v alue as a pair and as a single A building insured with commercial property insurance has been vacant 90 days. Which of the following is NOT true? - Answer Payment for unnamed perils is reduced by 25%. Which of the following statements regarding FAIR plans would most likely be true? - Answer Workers compensation statutes require employers to meet capital reserves requirements sufficient to pay any claims that might arise. Employers can meet such obligations through all of the following EXCEPT - Answer Second injury funds programs. A person applying for a manager or exclusive general agent license must meet all of the following criteria EXCEPT - Answer Which of the following statements is NOT true regarding a personal umbrella liab ility policy? - Answer It provides errors and omissions coverage for an agency. Which of the following statements would be an example of a product liability claim? - Answer What is not a consideration when paying an inland marine claim? - Answer According to the Fair Credit Reporting Act, all of the following would be co nsidered negative information about a consumer EXCEPT - Answer Under Crime Coverage Form I - Lessees of Safe Deposit Boxes, securities are only covered in the event of - Answer Theft In accordance with American Institute Hull Clauses, a pro rata return of premium will be given for all the following reasons EXCEPT - Answer If the policy is ca ncelled by the insured. Which of the following would be considered an insured under a business auto coverage form? - Answer Anyone while using, with permission, a covered auto owned by the named insured In order to be covered by the U.S. Longshore and Harbor Workers Compensation Act, a worker must meet the requirements of the - Answer Situs and status test. A grave marker was damaged by vandals. It would cost $3,000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? - Answer $3,000 Which of the following is an example of apparent authority of an agent appointed by an insurer? - Answer The agent accepts a premium payment after the end of the grace period. A trucking company owns a large fleet of trucks that transport oil across state l ines. According to the financial responsibility requirements set by the Motor Carrier Act of 1980, what is the minimum amount of insurance the company must carry on vehicles that transport oil? - Answer $1 million If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? - Answer 5 Days Under the dwelling policy, if an insurer chooses to repair or replace damage d or lost property, it must inform the insured within how many days of receiving proof of los s? - Answer All of the following are found in the declarations section of a policy E XCEPT the - Answer The amount an insurer will pay under Coverage D (Loss of Use) depends on - Answer The amount of coverage on the dwelling. The broad theft coverage endorsement on the dwelling form specifies all of the f ollowing limitations EXCEPT - Answer . In liability insurance policies, supplementary payments are made - Answer In addit ion to the limit of liability. Producers are responsible to collect and disperse premiums, and return premiums or other funds. Which insurance term is associated with this? - Answer Fiduciary capa city A deli owner has a businessowners liability policy. When a customer slipped an d hurt herself at the deli, the liability policy paid for medical expenses. The customer, however, is now suing the business owner because she claims there was no caution sign warning her that the floor was wet. What is the insurer obligated to do? - Ans wer . Under the additional living expenses coverage, if a civil authority prohi bits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to - Answer 2 weeks Which of the following is NOT a goal of risk retention? - Answer To minimize the insured's level of liability in the event of loss Which of the following terms refers to other insurance that is written on the same risk, but not on the same coverage basis? - Answer Nonconcurrency The businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? - Answer 1 year 34. When the Commissioner suspects that a person is violating an insurance law or other regulation, what can be issued that would order the person to stop committing the act of violation? 1. Limitation of Authority Order 2. Suspension of Power Order 3. Cease and Desist Order 4. Stop Action Order - Answer An uninsured motor vehicle includes all of the following EXCEPT (Choose from the following options) 1. A vehicle being used for public livery. 2. The accident was a hit- and-run. 3. The insurance company denies coverage. 4. The vehicle has no liability bond or insurance in force. - Answer A vehicle being used for public livery. How soon after the due date should the insurer pay the agent appointment fee s? (Choose from the following options) 1. Immediately 2. Within 10 days 3. Within 30 days 4. Within 60 days - Answer Within 30 days What method of premium computation relates an employer's losses, payroll, and premiums to the rating bureau's classifications of operations? (Choose from the following options) 1. Workers classification factor 2. Merit rating plan 3. Arbitration plan