Louisiana Property & Casualty Exam - PSI &
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Which of the following entities is eligible for a businessowners policy? - ✔✔a) Convenience
stores
Convenience stores are eligible for coverage.
A agent's license may be suspended or revoked for all of the following reasons EXCEPT... -
✔✔b) Sharing commissions with another agent.
The Commissioner has the power to suspend, revoke, or refuse to renew a producer's license
for failure to comply with the Insurance Code or licensing regulations, as well as for fraud and
failure to pay income taxes, among other violations. Sharing commissions is allowed as long as
both agents are properly licensed.
An insured has $5,000 of medical coverage under a personal auto policy at the time of a
covered accident. The insured and 3 passengers are injured. The insured's medical expenses are
$8,000. The first passenger's total $4,000; the second passenger's total $6,500; and the third
passenger's total $1,200. How much will the policy pay under the medical payments coverage?
- ✔✔c) $15,200
The medical payments coverage is provided by a limit of liability per person. In this example,
the limit for the policy is $5,000 per person, so the policy will pay the maximum ($10,000) for
the insured and the second passenger because their medical expenses exceed the limit. All of
the expenses for the first passenger and third passenger would be paid ($5,200). The grand
total paid under medical expenses is $15,200.
Coverage B - Personal and Advertising Injury Liability responds to claims arising from... -
✔✔a) Suits alleging infringement of a copyright.
, Coverage B combines both personal injury and advertising injury into a single insuring
agreement and limit of liability.
What type of policy, which may be added by endorsement or purchased separately, may an
insured purchase in order to provide coverage for other types of contracts? - ✔✔a) A
contractual liability policy
In order to provide coverage for other types of contracts, the insured may purchase a
contractual liability policy, which may be added by endorsement or purchased separately. With
this coverage, the insurer agrees to pay for bodily injury or property damage liability that the
insured has agreed to assume under a written contractual agreement.
A small appliance manufacturer in this state provides products around the globe. A customer in
Switzerland is injured using one of its products. If the appliance manufacturer is found liable for
the damage, why would its commercial general liability policy cover the customer's claim for
bodily injury? - ✔✔b) The appliance was manufactured in the U.S.
Coverage territory means anywhere in the world if injury or damage results from goods or
products manufactured or sold in a coverage territory.
Insureds covered under a Mobile Homeowners Policy move their mobile home to prevent it
from being damaged by a fire. What is the maximum amount the policy will pay for this? -
✔✔b) $500
A Mobile Homeowners Policy will pay up to $500 if the insured moves the mobile home to a
safer area to protect it from loss by a covered peril.
Which provision defines how the policy will respond if there is other valid insurance written on
the same risk? - ✔✔c) Other insurance
ExamFX | Questions with Complete Solutions|
Verified Answers
Which of the following entities is eligible for a businessowners policy? - ✔✔a) Convenience
stores
Convenience stores are eligible for coverage.
A agent's license may be suspended or revoked for all of the following reasons EXCEPT... -
✔✔b) Sharing commissions with another agent.
The Commissioner has the power to suspend, revoke, or refuse to renew a producer's license
for failure to comply with the Insurance Code or licensing regulations, as well as for fraud and
failure to pay income taxes, among other violations. Sharing commissions is allowed as long as
both agents are properly licensed.
An insured has $5,000 of medical coverage under a personal auto policy at the time of a
covered accident. The insured and 3 passengers are injured. The insured's medical expenses are
$8,000. The first passenger's total $4,000; the second passenger's total $6,500; and the third
passenger's total $1,200. How much will the policy pay under the medical payments coverage?
- ✔✔c) $15,200
The medical payments coverage is provided by a limit of liability per person. In this example,
the limit for the policy is $5,000 per person, so the policy will pay the maximum ($10,000) for
the insured and the second passenger because their medical expenses exceed the limit. All of
the expenses for the first passenger and third passenger would be paid ($5,200). The grand
total paid under medical expenses is $15,200.
Coverage B - Personal and Advertising Injury Liability responds to claims arising from... -
✔✔a) Suits alleging infringement of a copyright.
, Coverage B combines both personal injury and advertising injury into a single insuring
agreement and limit of liability.
What type of policy, which may be added by endorsement or purchased separately, may an
insured purchase in order to provide coverage for other types of contracts? - ✔✔a) A
contractual liability policy
In order to provide coverage for other types of contracts, the insured may purchase a
contractual liability policy, which may be added by endorsement or purchased separately. With
this coverage, the insurer agrees to pay for bodily injury or property damage liability that the
insured has agreed to assume under a written contractual agreement.
A small appliance manufacturer in this state provides products around the globe. A customer in
Switzerland is injured using one of its products. If the appliance manufacturer is found liable for
the damage, why would its commercial general liability policy cover the customer's claim for
bodily injury? - ✔✔b) The appliance was manufactured in the U.S.
Coverage territory means anywhere in the world if injury or damage results from goods or
products manufactured or sold in a coverage territory.
Insureds covered under a Mobile Homeowners Policy move their mobile home to prevent it
from being damaged by a fire. What is the maximum amount the policy will pay for this? -
✔✔b) $500
A Mobile Homeowners Policy will pay up to $500 if the insured moves the mobile home to a
safer area to protect it from loss by a covered peril.
Which provision defines how the policy will respond if there is other valid insurance written on
the same risk? - ✔✔c) Other insurance
