Pearson VUE: Casualty Insurance Practice
Exam Latest/ Q&A.
A policyholder would expect to find which of the following information in the
Insuring Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to 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 - Answer: B
Products Liability coverage would insure damages that arise from which of the
following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
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,C. A customer receives an electrical shock from a curling iron during an in-store
demonstration.
D. A bicycle rider is injured when a wheel malfunctions. - Answer: D
Which of the following sections of an insurance policy would explain the term
"auto" ?
A. Declarations
B. Definitions
C. Insuring agreement
D. Obligations of the insurance company - Answer: B
A business insured under a Commercial General Liability policy has a General
Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured
party is awarded $100,000. What limits will remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 - Answer: B
In insurance, all of the following losses are examples of pure risk EXCEPT:
A. auto accident
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, B. flood damage to a home
C. decline of stock values on the stock market
D. fire damage to a building - Answer: C
In an application for marine insurance, a yacht owner states that the yacht will
only be sailed on inland waters. If the insured subsequently sails the yacht on the
seas, coverage may be denied because the insured has breached:
A. the Inchmaree clause
B. the policy clause
C. a representation
D. a warranty - Answer: D
An insured is required to take which of the following actions immediately after an
occurence?
A. Request a subrogation statement from the producer
B. Give notice of claim to the insurance company
C. Notify an independent adjuster
D. Obtain a written report from the police department - Answer: B
The act of intentionally withholding from an insurance application a fact that
would affect issuance of the policy is referred to as:
A. concealment
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Exam Latest/ Q&A.
A policyholder would expect to find which of the following information in the
Insuring Agreement section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to 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 - Answer: B
Products Liability coverage would insure damages that arise from which of the
following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
Page 1 of 18
,C. A customer receives an electrical shock from a curling iron during an in-store
demonstration.
D. A bicycle rider is injured when a wheel malfunctions. - Answer: D
Which of the following sections of an insurance policy would explain the term
"auto" ?
A. Declarations
B. Definitions
C. Insuring agreement
D. Obligations of the insurance company - Answer: B
A business insured under a Commercial General Liability policy has a General
Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured
party is awarded $100,000. What limits will remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 - Answer: B
In insurance, all of the following losses are examples of pure risk EXCEPT:
A. auto accident
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, B. flood damage to a home
C. decline of stock values on the stock market
D. fire damage to a building - Answer: C
In an application for marine insurance, a yacht owner states that the yacht will
only be sailed on inland waters. If the insured subsequently sails the yacht on the
seas, coverage may be denied because the insured has breached:
A. the Inchmaree clause
B. the policy clause
C. a representation
D. a warranty - Answer: D
An insured is required to take which of the following actions immediately after an
occurence?
A. Request a subrogation statement from the producer
B. Give notice of claim to the insurance company
C. Notify an independent adjuster
D. Obtain a written report from the police department - Answer: B
The act of intentionally withholding from an insurance application a fact that
would affect issuance of the policy is referred to as:
A. concealment
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