Property and Casualty Exam- Louisiana/
250 Q&A/ Already Graded A+.
How long is a waiting period upon purchase of flood coverage through NFIP? -
Answer: 30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from - Answer: Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of -
Answer: $250.
Rates that are established based on the similarities of the risk with other risks are
known as - Answer: Manual rates.
Page 1 of 38
,The personal injury liability endorsement to an HO policy applies to all the
following EXCEPT - Answer: A third party breaks a leg when the insured knocks
him down.
The process an insurer uses to evaluate applications and determine if a policy
should be issued and on what terms, conditions, and rates is known as - Answer:
Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the
TRIA to the year - Answer: 2020
According to the Fair Credit Reporting Act, all of the following would be
considered negative information about a consumer EXCEPT - Answer: Disputes
regarding consumer report information
Replacement cost coverage is provided in both the broad and special form
dwelling policies when - Answer: At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income
that occurs when a business must suspend operations because of a direct loss.
Which of the following terms best describes the nature of this type of coverage? -
Answer: Time element
Page 2 of 38
,Under which type of coverage does the insurer agree to pay for bodily injury or
property damage liability which the insured has agreed to assume under a written
contractual agreement? - Answer: Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy
period? - Answer: Discovery form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of
the information contained in his or her report, the reporting agency must -
Answer: Respond to the consumer's complaint.
Workers compensation benefits are provided for an employee injury or death that
arises out of the course of normal employment in all of the following situations
EXCEPT - Answer: On his evening stroll, an employee of an advertising company is
injured while watching a competitor's billboard sign being removed from an
advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an
insurance contract does this describe? - Answer: Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - Answer: The
vehicle has no liability bond or insurance in force.
Page 3 of 38
, Which of the following are the authorities that an agent can hold? - Answer:
Express and implied
All of the following are supplemental payments found in liability policies EXCEPT -
Answer: Costs the insured incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss? - Answer: Coverage E
A producer who fails to segregate premium monies from his own personal funds is
guilty of - Answer: Commingling
What is the name for the type of property damage coverage that protects the
insured or the covered auto in an accident with someone who does not have
coverage? - Answer: Uninsured motorist
If a farm building or structure is vacant or unoccupied, which is true? - Answer: If
for 120 consecutive days, the limits applicable to the building and its contents are
reduced by 50%.
Workers compensation laws provide all of the following types of benefits EXCEPT -
Answer: Compensatory benefits.
Page 4 of 38
250 Q&A/ Already Graded A+.
How long is a waiting period upon purchase of flood coverage through NFIP? -
Answer: 30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from - Answer: Annual assessments paid by member insurers.
Uninsured Motorist property damage coverage is subject to a deductible of -
Answer: $250.
Rates that are established based on the similarities of the risk with other risks are
known as - Answer: Manual rates.
Page 1 of 38
,The personal injury liability endorsement to an HO policy applies to all the
following EXCEPT - Answer: A third party breaks a leg when the insured knocks
him down.
The process an insurer uses to evaluate applications and determine if a policy
should be issued and on what terms, conditions, and rates is known as - Answer:
Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the
TRIA to the year - Answer: 2020
According to the Fair Credit Reporting Act, all of the following would be
considered negative information about a consumer EXCEPT - Answer: Disputes
regarding consumer report information
Replacement cost coverage is provided in both the broad and special form
dwelling policies when - Answer: At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income
that occurs when a business must suspend operations because of a direct loss.
Which of the following terms best describes the nature of this type of coverage? -
Answer: Time element
Page 2 of 38
,Under which type of coverage does the insurer agree to pay for bodily injury or
property damage liability which the insured has agreed to assume under a written
contractual agreement? - Answer: Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy
period? - Answer: Discovery form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of
the information contained in his or her report, the reporting agency must -
Answer: Respond to the consumer's complaint.
Workers compensation benefits are provided for an employee injury or death that
arises out of the course of normal employment in all of the following situations
EXCEPT - Answer: On his evening stroll, an employee of an advertising company is
injured while watching a competitor's billboard sign being removed from an
advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an
insurance contract does this describe? - Answer: Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - Answer: The
vehicle has no liability bond or insurance in force.
Page 3 of 38
, Which of the following are the authorities that an agent can hold? - Answer:
Express and implied
All of the following are supplemental payments found in liability policies EXCEPT -
Answer: Costs the insured incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional living
expenses incurred by an owner-occupant in the event a covered peril makes the
premises uninhabitable due to a covered loss? - Answer: Coverage E
A producer who fails to segregate premium monies from his own personal funds is
guilty of - Answer: Commingling
What is the name for the type of property damage coverage that protects the
insured or the covered auto in an accident with someone who does not have
coverage? - Answer: Uninsured motorist
If a farm building or structure is vacant or unoccupied, which is true? - Answer: If
for 120 consecutive days, the limits applicable to the building and its contents are
reduced by 50%.
Workers compensation laws provide all of the following types of benefits EXCEPT -
Answer: Compensatory benefits.
Page 4 of 38
