Page 1 of 189
LOUISIANA PROPERTY & CASUALTY TEST EXAM -
PSI & EXAM FY WELL DISCUSSED QUESTIONS AND
WELL DETAILED CORRECT ANSWERS RECENT
UPDATE 2024-2025.PASS CONSTANT.
QUESTION: Fidelity Bonds - ANSWER-aka Honesty Bonds- cover employer from direct loss due to
fraudulent & dishonest acts of employees
Individual Bond- bond single employee
None Schedule Bond- bond several employees
Position Schedule Bond- bond single position
Blanket Bond- covers all employees
QUESTION: Commercial Basic Form --causes of loss - ANSWER-Covered- Fire, lightning, windstorm,
smoke, aircraft, riot, sprinkler leak sinkhole, volcanic action
excludes- ordnance of law, earth quake, government action, nuclear hazard, utility services, war, fungus,
rot
additional coverage available for fungus rot and bacteria $15,000
, Page 2 of 189
QUESTION: Commercial Broad Form-- causes of loss - ANSWER-covers all basic +3
falling objects, weight of ice, snow, and sleet, water damage by accidental discharge
Same exclusions as basin+1
additional coverage available for collapse
Surety Bond - ANSWER-aka performance bonds.
contract bond- guarantee that contractors perform according to contract
court bond- required by court to enforce certain behavior
license & permit bond- required by municipalities as a condition for granting a license to engage in
activity
QUESTION: Commercial Special Form--causes of loss - ANSWER-provides coverage for risk of direct
physical loss unless excluded (OPEN PERIL)
exclusions- damage to steam boiler, interior by rain, none of inventory, nor for fragile articles
limits
$2500-furs
$2500 jewelry
$2500 Patterns
, Page 3 of 189
$250 Stamps
QUESTION: Commercial Building & Personal Property Coverage - ANSWER-Covers: building and
business personal property
excludes: Debt, animals, autos, canoes
limits: $2500 per sign, $25% or $10000 debris removal, $1000 Fire Dept.,$10000 Pollution clean up,
$10000 or more cost of Construction, $2500 Electronic Data
Deductible: $500
insurance is required to coinsure 80% of replacement value
QUESTION: Commercial Builders Risk Coverage Form - ANSWER-covers: Foundation, Machinery,
building materials,
excludes: land, trees, antenna, signs not attached to building
no liability coverage
written on a completed value basis (must submit reports)
coinsurance % appears on Dec. Page
causes of loss is same as Building & Personal Prop Coverage
QUESTION: Commercial Condominium Association Coverage Form - ANSWER-includes the building &
fixtures that are part of the building
if unit owner has insurance covering the same property the associations insurance will be primary
, Page 4 of 189
QUESTION: Condominium Commercial Unit - ANSWER-Owners Coverage Form
only covers business personal property of unit owner
(fixtures, improvements, appliances)
is excess insurance if duplicate insurance exists
QUESTION: Time Element Coverage Form - ANSWER-aka business income form - provides insurance for
two types of INDIRECT LOSSS: loss of income and extra expense
income- net income before taxes + payroll
extra expenses- expenses incurred that would not have had if there were no loss
coinsurance applies unless Agreed Value Coverage
Coverage is subject to causes of loss form attached to policy
QUESTION: Legal Liability Coverage Form - ANSWER-ensures the insured's legal liability for loss of
damage to real or personal property owned by others but in insured's care
written for tenant
LOUISIANA PROPERTY & CASUALTY TEST EXAM -
PSI & EXAM FY WELL DISCUSSED QUESTIONS AND
WELL DETAILED CORRECT ANSWERS RECENT
UPDATE 2024-2025.PASS CONSTANT.
QUESTION: Fidelity Bonds - ANSWER-aka Honesty Bonds- cover employer from direct loss due to
fraudulent & dishonest acts of employees
Individual Bond- bond single employee
None Schedule Bond- bond several employees
Position Schedule Bond- bond single position
Blanket Bond- covers all employees
QUESTION: Commercial Basic Form --causes of loss - ANSWER-Covered- Fire, lightning, windstorm,
smoke, aircraft, riot, sprinkler leak sinkhole, volcanic action
excludes- ordnance of law, earth quake, government action, nuclear hazard, utility services, war, fungus,
rot
additional coverage available for fungus rot and bacteria $15,000
, Page 2 of 189
QUESTION: Commercial Broad Form-- causes of loss - ANSWER-covers all basic +3
falling objects, weight of ice, snow, and sleet, water damage by accidental discharge
Same exclusions as basin+1
additional coverage available for collapse
Surety Bond - ANSWER-aka performance bonds.
contract bond- guarantee that contractors perform according to contract
court bond- required by court to enforce certain behavior
license & permit bond- required by municipalities as a condition for granting a license to engage in
activity
QUESTION: Commercial Special Form--causes of loss - ANSWER-provides coverage for risk of direct
physical loss unless excluded (OPEN PERIL)
exclusions- damage to steam boiler, interior by rain, none of inventory, nor for fragile articles
limits
$2500-furs
$2500 jewelry
$2500 Patterns
, Page 3 of 189
$250 Stamps
QUESTION: Commercial Building & Personal Property Coverage - ANSWER-Covers: building and
business personal property
excludes: Debt, animals, autos, canoes
limits: $2500 per sign, $25% or $10000 debris removal, $1000 Fire Dept.,$10000 Pollution clean up,
$10000 or more cost of Construction, $2500 Electronic Data
Deductible: $500
insurance is required to coinsure 80% of replacement value
QUESTION: Commercial Builders Risk Coverage Form - ANSWER-covers: Foundation, Machinery,
building materials,
excludes: land, trees, antenna, signs not attached to building
no liability coverage
written on a completed value basis (must submit reports)
coinsurance % appears on Dec. Page
causes of loss is same as Building & Personal Prop Coverage
QUESTION: Commercial Condominium Association Coverage Form - ANSWER-includes the building &
fixtures that are part of the building
if unit owner has insurance covering the same property the associations insurance will be primary
, Page 4 of 189
QUESTION: Condominium Commercial Unit - ANSWER-Owners Coverage Form
only covers business personal property of unit owner
(fixtures, improvements, appliances)
is excess insurance if duplicate insurance exists
QUESTION: Time Element Coverage Form - ANSWER-aka business income form - provides insurance for
two types of INDIRECT LOSSS: loss of income and extra expense
income- net income before taxes + payroll
extra expenses- expenses incurred that would not have had if there were no loss
coinsurance applies unless Agreed Value Coverage
Coverage is subject to causes of loss form attached to policy
QUESTION: Legal Liability Coverage Form - ANSWER-ensures the insured's legal liability for loss of
damage to real or personal property owned by others but in insured's care
written for tenant
