Property and Casualty Questions
______ is a type of a tort defined as the failure to act in a reasonable and prudent manner and
usually is reprimanded by a monetary penalty.
A. Legal duty
B. Proximate cause
C. Occurrence
D. Negligence - ANS-D
______ is covered as business personal property under the Businessowners policy.
A. Outdoor furniture
B. Built in bookcases installed by a tenant which cannot be removed upon termination of the
lease
C. Permanently installed machinery
D. Carpeting - ANS-B
_______ is not common policy condition on a commercial property policy?
A. Inspection and surveys
B. Transfer of Rights and Duties
C. Liberalization
D. Premiums - ANS-D
________ is an unintended and unforeseen event from which loss results.
A. Risk
B. Proximate cause
C. Occurrence
D. Accident - ANS-D
________ is covered under the Basic Cause of Loss Form under the Commercial Property
Coverage Part.
A. Weight of ice, snow, sleet
B. Falling Objects
C. Water Damage Caused by Accidental Discharge of Water
D. Sprinkler Leakage - ANS-D
__________ describes coverage that applies only to loss by the perils stated in a policy.
A. Special Form
B. Open peril
C. All risk
D. Named peril - ANS-D
___________ in the Workers' Compensation Policy includes States that are listed in the
Information Page.
A. The General Section
B. Part Three - Other States Insurance
C. The All-States Endorsement
D. Part Six - Conditions - ANS-B
,___________ is a type of a tort defined as the failure to act in a reasonable and prudent manner
and usually is reprimanded by a monetary penalty.
A. Proximate cause
B. Legal duty
C. Negligence
D. Occurrence - ANS-C
___________ is not a common policy condition on a commercial property policy?
A. Liberalization
B. Inspection and surveys
C. Premiums
D. Transfer of Rights and Duties - ANS-C
___________ is not covered by the Commercial General Liability Coverage B - Personal and
Advertising Injury.
A. Malicious prosecution
B. Breach of contract
C. Slander
D. Infringement of copyright - ANS-B
A building valued at $200,000 is insured for $150,000; and coverage is written with an 80%
coinsurance requirement and a $1,000 deductible. The building is totally destroyed and the
debris removal expenses amount to $10,000. How much will the Building and Personal Property
Coverage Form pay?
A. $159,000
B. $199,000
C. $160,000
D. $200,000 - ANS-A
A burglar enters into a business through an unlocked skylight of a business insured with a
businessowners policy. The burglar steals items and leaves the same way. How much with the
Businessowners policy pay for the loss?
A. Nothing
B. The full replacement cost minus deductible
C. The actual cash value
D. The full replacement cost - ANS-A
A Burglary Policy includes?
A. The taking of property from inside the premises by a person who has entered through an
unlocked window
B. The mysterious disappearance of property
C. The taking of property from inside the premises by a person who hid inside a storeroom
during the day and broke a window to get out at night
D. The taking of property from inside the premises by a person who has caused or threatened
bodily harm - ANS-C
A business burns down and loses its business records, what coverage should they have for this
lass?
A. Accounts receivable coverage form
B. Commercial general liability
,C. Electronic data process coverage
D. Valuable papers and records floater - ANS-A
A business has a leak at their plant for a year causing damage to the local water supply. This is
considered?
A. Occurrence
B. Loss Prevention
C. Protection
D. Accident - ANS-A
A business puts a new furnace in a home for a homeowner. 2 weeks later the furnace causes a
fire. Where is this covered in the commercial general liability policy?
A. Contingent liability exposure
B. Completed operations exposure
C. Operations exposure
D. Product exposure - ANS-B
A Certificate of Authority is issued to an insurer for which of the following reasons?
A. Recognizes the insurer for excellent claim handling
B. The insurer has passed a market conduct exam by the Department
C. The insurer is approved to transact insurance business
D. A Certificate is given for each specific kind of insurance conducted by the insurer - ANS-C
A Christmas bulb with yellow dye in it burst when being put on the tree. The yellow dye
damages the carpet. Where in a HO-3 homeowners policy would these damages be paid from?
A. Coverage C
B. Coverage A
C. Coverage D
D. Coverage B - ANS-B
A client is hurt when he fell entering an insured's business. Where is this covered in the CGL
policy?
A. Named insured
B. Premises
C. Operations
D. Property damage - ANS-B
A commercial liability policy with $300,000 aggregate coverage has losses of $15,000 liability
for bodily injury, $6,000 liability for personal injury and $4,800 lawyers' fees and court costs.
How much did the commercial general liability policy pay?
A. $15,000
B. $10,800
C. $21,000
D. $25,800 - ANS-D
A customer hurts another customer by dropping a product on his foot in your store. Where is
that covered in the Commercial General Liability policy?
A. Contingent liability exposure
B. Medical Payments
C. Product exposure
D. Completed operations exposure - ANS-B
, A DP 2 policy provides coverage B protection as.
A. 10% of coverage A
B. 30% of coverage A
C. 50% of coverage A
D. 20% of coverage A - ANS-A
A fire at a business results in the insured being unable to conduct business as usual. He loses
sales revenue and is unable to pay his employees. This loss of income would be which of
these?
A. Direct loss
B. Indirect loss
C. Arbitration
D. Negligence - ANS-B
A grocery store manager accidently loses control of a shopping cart, it hits a customer in the leg
causing injury. This is covered where in the CGL policy?
A. Premises liability
B. Product liability
C. Contingent liability
D. Complete operations liability - ANS-A
A homeowners policy HO-3 provides?
A. Open perils coverage on the dwelling and Broad Form Coverage on the personal property
B. Open perils coverage on both the dwelling and personal property
C. Replacement Cost Coverage on both the dwelling and personal property
D. Named Broad Form Perils Coverage on both the dwelling and personal property - ANS-A
A hot water heater bursts flooding a house and destroying a $12,000 fur. How would this be
paid in a HO-3 homeowners policy?
A. Paid in full, minus the deductible
B. The umbrella policy would pay
C. Not paid it is a flood
D. Paid but limited to $1500 for furs - ANS-A
A manufacturer is held liable if a product caused an injury whether the product was or was not
defective. This describes what type of liability?
A. Strict
B. Contingent
C. Direct
D. Absolute - ANS-A
A Mobile Home Insurance Policy is similar to?
A. A Travel Trailer Policy
B. A Homeowners Policy
C. A Tenants Policy
D. AN Auto policy - ANS-B
A newspaper concerned about being able to continue to provide papers while locations is being
repaired due to a covered loss should buy?
A. Loss relocation expense
B. Relocation expense
______ is a type of a tort defined as the failure to act in a reasonable and prudent manner and
usually is reprimanded by a monetary penalty.
A. Legal duty
B. Proximate cause
C. Occurrence
D. Negligence - ANS-D
______ is covered as business personal property under the Businessowners policy.
A. Outdoor furniture
B. Built in bookcases installed by a tenant which cannot be removed upon termination of the
lease
C. Permanently installed machinery
D. Carpeting - ANS-B
_______ is not common policy condition on a commercial property policy?
A. Inspection and surveys
B. Transfer of Rights and Duties
C. Liberalization
D. Premiums - ANS-D
________ is an unintended and unforeseen event from which loss results.
A. Risk
B. Proximate cause
C. Occurrence
D. Accident - ANS-D
________ is covered under the Basic Cause of Loss Form under the Commercial Property
Coverage Part.
A. Weight of ice, snow, sleet
B. Falling Objects
C. Water Damage Caused by Accidental Discharge of Water
D. Sprinkler Leakage - ANS-D
__________ describes coverage that applies only to loss by the perils stated in a policy.
A. Special Form
B. Open peril
C. All risk
D. Named peril - ANS-D
___________ in the Workers' Compensation Policy includes States that are listed in the
Information Page.
A. The General Section
B. Part Three - Other States Insurance
C. The All-States Endorsement
D. Part Six - Conditions - ANS-B
,___________ is a type of a tort defined as the failure to act in a reasonable and prudent manner
and usually is reprimanded by a monetary penalty.
A. Proximate cause
B. Legal duty
C. Negligence
D. Occurrence - ANS-C
___________ is not a common policy condition on a commercial property policy?
A. Liberalization
B. Inspection and surveys
C. Premiums
D. Transfer of Rights and Duties - ANS-C
___________ is not covered by the Commercial General Liability Coverage B - Personal and
Advertising Injury.
A. Malicious prosecution
B. Breach of contract
C. Slander
D. Infringement of copyright - ANS-B
A building valued at $200,000 is insured for $150,000; and coverage is written with an 80%
coinsurance requirement and a $1,000 deductible. The building is totally destroyed and the
debris removal expenses amount to $10,000. How much will the Building and Personal Property
Coverage Form pay?
A. $159,000
B. $199,000
C. $160,000
D. $200,000 - ANS-A
A burglar enters into a business through an unlocked skylight of a business insured with a
businessowners policy. The burglar steals items and leaves the same way. How much with the
Businessowners policy pay for the loss?
A. Nothing
B. The full replacement cost minus deductible
C. The actual cash value
D. The full replacement cost - ANS-A
A Burglary Policy includes?
A. The taking of property from inside the premises by a person who has entered through an
unlocked window
B. The mysterious disappearance of property
C. The taking of property from inside the premises by a person who hid inside a storeroom
during the day and broke a window to get out at night
D. The taking of property from inside the premises by a person who has caused or threatened
bodily harm - ANS-C
A business burns down and loses its business records, what coverage should they have for this
lass?
A. Accounts receivable coverage form
B. Commercial general liability
,C. Electronic data process coverage
D. Valuable papers and records floater - ANS-A
A business has a leak at their plant for a year causing damage to the local water supply. This is
considered?
A. Occurrence
B. Loss Prevention
C. Protection
D. Accident - ANS-A
A business puts a new furnace in a home for a homeowner. 2 weeks later the furnace causes a
fire. Where is this covered in the commercial general liability policy?
A. Contingent liability exposure
B. Completed operations exposure
C. Operations exposure
D. Product exposure - ANS-B
A Certificate of Authority is issued to an insurer for which of the following reasons?
A. Recognizes the insurer for excellent claim handling
B. The insurer has passed a market conduct exam by the Department
C. The insurer is approved to transact insurance business
D. A Certificate is given for each specific kind of insurance conducted by the insurer - ANS-C
A Christmas bulb with yellow dye in it burst when being put on the tree. The yellow dye
damages the carpet. Where in a HO-3 homeowners policy would these damages be paid from?
A. Coverage C
B. Coverage A
C. Coverage D
D. Coverage B - ANS-B
A client is hurt when he fell entering an insured's business. Where is this covered in the CGL
policy?
A. Named insured
B. Premises
C. Operations
D. Property damage - ANS-B
A commercial liability policy with $300,000 aggregate coverage has losses of $15,000 liability
for bodily injury, $6,000 liability for personal injury and $4,800 lawyers' fees and court costs.
How much did the commercial general liability policy pay?
A. $15,000
B. $10,800
C. $21,000
D. $25,800 - ANS-D
A customer hurts another customer by dropping a product on his foot in your store. Where is
that covered in the Commercial General Liability policy?
A. Contingent liability exposure
B. Medical Payments
C. Product exposure
D. Completed operations exposure - ANS-B
, A DP 2 policy provides coverage B protection as.
A. 10% of coverage A
B. 30% of coverage A
C. 50% of coverage A
D. 20% of coverage A - ANS-A
A fire at a business results in the insured being unable to conduct business as usual. He loses
sales revenue and is unable to pay his employees. This loss of income would be which of
these?
A. Direct loss
B. Indirect loss
C. Arbitration
D. Negligence - ANS-B
A grocery store manager accidently loses control of a shopping cart, it hits a customer in the leg
causing injury. This is covered where in the CGL policy?
A. Premises liability
B. Product liability
C. Contingent liability
D. Complete operations liability - ANS-A
A homeowners policy HO-3 provides?
A. Open perils coverage on the dwelling and Broad Form Coverage on the personal property
B. Open perils coverage on both the dwelling and personal property
C. Replacement Cost Coverage on both the dwelling and personal property
D. Named Broad Form Perils Coverage on both the dwelling and personal property - ANS-A
A hot water heater bursts flooding a house and destroying a $12,000 fur. How would this be
paid in a HO-3 homeowners policy?
A. Paid in full, minus the deductible
B. The umbrella policy would pay
C. Not paid it is a flood
D. Paid but limited to $1500 for furs - ANS-A
A manufacturer is held liable if a product caused an injury whether the product was or was not
defective. This describes what type of liability?
A. Strict
B. Contingent
C. Direct
D. Absolute - ANS-A
A Mobile Home Insurance Policy is similar to?
A. A Travel Trailer Policy
B. A Homeowners Policy
C. A Tenants Policy
D. AN Auto policy - ANS-B
A newspaper concerned about being able to continue to provide papers while locations is being
repaired due to a covered loss should buy?
A. Loss relocation expense
B. Relocation expense
