Pearson VUE: Casualty Insurance Practice Exam with Answers
An insured may cancel a Personal Auto
Policy by taking which of the following
actions?
A. Paying the insurance company any
past due premiums
C
B. Waiting until the policy expiration date
C. Giving written notice to the insurance
company
D. Informing the producer by telephone
In insurance, which of the following terms
refers to continuous or repeated expo-
sure to conditions that may result in bod-
ily injury or damage neither expected nor
intended?
B A. An accident
B. An occurrence
C. An event
D. A condition
Which of the following vehicles is consid-
ered a temporary substitute auto under a
Personal Auto policy?
A. A neighbor's pickup truck borrowed by
an insured to run an errand
D
B. An auto purchased by an insured to
replace a previously owned vehicle
C. An auto rented by an insured when the
insured is on vacation
,Pearson VUE: Casualty Insurance Practice Exam with Answers
D. An auto rented by an insured when the
insured's car is in a garage for repairs
An insurance binder is best described as:
A. a large bound volume of rules, rates,
and forms
B. a rate manual supplied by one of the
D rating organizations
C. a temporary agreement to pay a claim
pending final settlement
D. temporary short-term evidence of cov-
erage
Anything that increases the chance of
loss is known as a(n):
A. risk
B
B. hazard
C. direct loss
D. indirect loss
The Fair Credit Reporting Act requires
the:
A. insurance company to review the ap-
plicant's credit history prior to underwrit-
ing a policy
D
B. insurance producer to summarize a
policy for the insured
C. insurance producer to review the ap-
plicant's credit history prior to issuing a
, Pearson VUE: Casualty Insurance Practice Exam with Answers
policy
D. insurance company to inform the ap-
plicant a credit report may be obtained
The limits of liability are found in which
of the following sections of a casualty
policy?
A. Conditions
C
B. Insuring Agreement
C. Declarations
D. Definitions
A policyholder would expect to find which
of the following information in the Insur-
ing Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to
B
pay on the behalf of the insured
C. Exclusions regarding certain uses of
the auto
D. The obligations of the insured in the
event of a loss
Products Liability coverage would insure
damages that arise from which of the
following situations?
D A. A manufacturer is required to recall a
defective product.
B. A contractor installs inferior-grade sid-
ing on a building.
An insured may cancel a Personal Auto
Policy by taking which of the following
actions?
A. Paying the insurance company any
past due premiums
C
B. Waiting until the policy expiration date
C. Giving written notice to the insurance
company
D. Informing the producer by telephone
In insurance, which of the following terms
refers to continuous or repeated expo-
sure to conditions that may result in bod-
ily injury or damage neither expected nor
intended?
B A. An accident
B. An occurrence
C. An event
D. A condition
Which of the following vehicles is consid-
ered a temporary substitute auto under a
Personal Auto policy?
A. A neighbor's pickup truck borrowed by
an insured to run an errand
D
B. An auto purchased by an insured to
replace a previously owned vehicle
C. An auto rented by an insured when the
insured is on vacation
,Pearson VUE: Casualty Insurance Practice Exam with Answers
D. An auto rented by an insured when the
insured's car is in a garage for repairs
An insurance binder is best described as:
A. a large bound volume of rules, rates,
and forms
B. a rate manual supplied by one of the
D rating organizations
C. a temporary agreement to pay a claim
pending final settlement
D. temporary short-term evidence of cov-
erage
Anything that increases the chance of
loss is known as a(n):
A. risk
B
B. hazard
C. direct loss
D. indirect loss
The Fair Credit Reporting Act requires
the:
A. insurance company to review the ap-
plicant's credit history prior to underwrit-
ing a policy
D
B. insurance producer to summarize a
policy for the insured
C. insurance producer to review the ap-
plicant's credit history prior to issuing a
, Pearson VUE: Casualty Insurance Practice Exam with Answers
policy
D. insurance company to inform the ap-
plicant a credit report may be obtained
The limits of liability are found in which
of the following sections of a casualty
policy?
A. Conditions
C
B. Insuring Agreement
C. Declarations
D. Definitions
A policyholder would expect to find which
of the following information in the Insur-
ing Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to
B
pay on the behalf of the insured
C. Exclusions regarding certain uses of
the auto
D. The obligations of the insured in the
event of a loss
Products Liability coverage would insure
damages that arise from which of the
following situations?
D A. A manufacturer is required to recall a
defective product.
B. A contractor installs inferior-grade sid-
ing on a building.
