Louisiana Insurance Exam 106 Property & Casualty | Questions with 100% Correct
Answers | Updated &Verified | 2024-2025 | 100% Score
Person in an auto with which the insured has collided. - ✔✔ALL of the following might be protected by
the Medical Payments Section of an Auto Policy, EXCEPT:
Select one:
a. The named insured, family members and passengers in the car.
b. Any persons entering or exiting from the car.
c. Relatives in a non-owned auto driven by the insured.
d. Person in an auto with which the insured has collided.
Prediction of individual losses based upon past experience. - ✔✔The Law of Large Numbers allows for
ALL of the following, EXCEPT:
Select one:
a. Calculation of rates to compensate for losses.
b. Prediction of individual losses based upon past experience.
c. A decreased degree of error in predicting losses of large groups.
d. Prediction of group loss based upon past experience.
The claims made form covers an accident that is reported and recorded during the policy period
regardless of when the accident happened. - ✔✔All of the following are true about the Occurrence and
Claims Made Commercial General Liability Forms, EXCEPT:
Select one:
a. They both cover an accident that happens during the policy period if a claim is received and recorded
during the policy period.
b. The occurrence form covers an accident that happens during the policy period regardless of when a
claim is made and received.
c. The claims made form covers an accident that is reported and recorded during the policy period
regardless of when the accident happened.
d. The major difference between the two forms is the "trigger coverage".
,Payment under the policy reduces amounts of insurance available to pay additional claims in policy year.
- ✔✔When a General Liability Policy is written Aggregate Limits, it means:
Select one:
a. Payment under the policy does not reduce the amount of insurance available to pay addition claims in
the policy year.
b. Limit for bodily injury and property damage are combined.
c. Payment under the policy reduces amounts of insurance available to pay additional claims in policy
year.
d. Supplementary payments are optional and require extra premium.
Bodily injury coverage for the insured and for occupants of the insured auto. - ✔✔In MOST states, the
Uninsured Motorist (BI) Coverage in an Auto Policy covers which of the following:
Select one:
a. Bodily injury coverage for the insured only
b. Bodily injury coverage for occupants in the other auto only.
c. Bodily injury coverage for the insured, for occupants of the insured auto and for occupants in the
other auto.
d. Bodily injury coverage for the insured and for occupants of the insured auto.
Contractual liability - ✔✔Workers' Compensation covers all of the following EXCEPT:
Select one:
a. Employee rehabilitation benefits
b. Employer liability
c. Contractual liability
d. Investigation and defense costs
They are the same as Peak Season Endorsements to a policy. - ✔✔ALL of the following are TRUE of
Monthly Reporting Type Policies, EXCEPT:
Select one:
a. The insured is required to report 100% of the value of the property insured.
b. They are the same as Peak Season Endorsements to a policy.
, c. They help prevent over-insuring and under-insuring.
d. A penalty to the insured can result for under-reporting or late reporting.
80% of Coverage A - ✔✔An insured's dwelling purchased two years ago for $58,000 has a replacement
value of $60,000. In order to qualify for replacement cost coverage in the event of loss, for what amount
of insurance MUST the Homeowners Policy be written?
Select one:
a. 100% of Coverage A.
b. 80% of Coverage A plus 10% of Coverage B.
c. 80% of Coverage c.
d. 80% of Coverage A
Companies that are owned or controlled by the insured. - ✔✔Loss of Income - Dependent Locations can
be purchased by an insured for ALL of the following risks, EXCEPT:
Select one:
a. Companies that are supplying goods to be insured.
b. Companies that are owned or controlled by the insured.
c. Companies which attract business to the insured.
d. Companies that receive goods of the insured.
The insured is legally liable for. - ✔✔Under a General Liability Policy the duty of the insurer is to pay for
damages that:
Select one:
a. The insured is legally liable for.
b. Any third party who has suffered bodily injury caused by the insured.
c. Has been caused by the insured regardless of negligence.
d. To the second party who has suffered bodily injury.
Attracts customers to the insured's business. - ✔✔In Contingent Business Interruption Insurance, a
Leader Location is one which:
Answers | Updated &Verified | 2024-2025 | 100% Score
Person in an auto with which the insured has collided. - ✔✔ALL of the following might be protected by
the Medical Payments Section of an Auto Policy, EXCEPT:
Select one:
a. The named insured, family members and passengers in the car.
b. Any persons entering or exiting from the car.
c. Relatives in a non-owned auto driven by the insured.
d. Person in an auto with which the insured has collided.
Prediction of individual losses based upon past experience. - ✔✔The Law of Large Numbers allows for
ALL of the following, EXCEPT:
Select one:
a. Calculation of rates to compensate for losses.
b. Prediction of individual losses based upon past experience.
c. A decreased degree of error in predicting losses of large groups.
d. Prediction of group loss based upon past experience.
The claims made form covers an accident that is reported and recorded during the policy period
regardless of when the accident happened. - ✔✔All of the following are true about the Occurrence and
Claims Made Commercial General Liability Forms, EXCEPT:
Select one:
a. They both cover an accident that happens during the policy period if a claim is received and recorded
during the policy period.
b. The occurrence form covers an accident that happens during the policy period regardless of when a
claim is made and received.
c. The claims made form covers an accident that is reported and recorded during the policy period
regardless of when the accident happened.
d. The major difference between the two forms is the "trigger coverage".
,Payment under the policy reduces amounts of insurance available to pay additional claims in policy year.
- ✔✔When a General Liability Policy is written Aggregate Limits, it means:
Select one:
a. Payment under the policy does not reduce the amount of insurance available to pay addition claims in
the policy year.
b. Limit for bodily injury and property damage are combined.
c. Payment under the policy reduces amounts of insurance available to pay additional claims in policy
year.
d. Supplementary payments are optional and require extra premium.
Bodily injury coverage for the insured and for occupants of the insured auto. - ✔✔In MOST states, the
Uninsured Motorist (BI) Coverage in an Auto Policy covers which of the following:
Select one:
a. Bodily injury coverage for the insured only
b. Bodily injury coverage for occupants in the other auto only.
c. Bodily injury coverage for the insured, for occupants of the insured auto and for occupants in the
other auto.
d. Bodily injury coverage for the insured and for occupants of the insured auto.
Contractual liability - ✔✔Workers' Compensation covers all of the following EXCEPT:
Select one:
a. Employee rehabilitation benefits
b. Employer liability
c. Contractual liability
d. Investigation and defense costs
They are the same as Peak Season Endorsements to a policy. - ✔✔ALL of the following are TRUE of
Monthly Reporting Type Policies, EXCEPT:
Select one:
a. The insured is required to report 100% of the value of the property insured.
b. They are the same as Peak Season Endorsements to a policy.
, c. They help prevent over-insuring and under-insuring.
d. A penalty to the insured can result for under-reporting or late reporting.
80% of Coverage A - ✔✔An insured's dwelling purchased two years ago for $58,000 has a replacement
value of $60,000. In order to qualify for replacement cost coverage in the event of loss, for what amount
of insurance MUST the Homeowners Policy be written?
Select one:
a. 100% of Coverage A.
b. 80% of Coverage A plus 10% of Coverage B.
c. 80% of Coverage c.
d. 80% of Coverage A
Companies that are owned or controlled by the insured. - ✔✔Loss of Income - Dependent Locations can
be purchased by an insured for ALL of the following risks, EXCEPT:
Select one:
a. Companies that are supplying goods to be insured.
b. Companies that are owned or controlled by the insured.
c. Companies which attract business to the insured.
d. Companies that receive goods of the insured.
The insured is legally liable for. - ✔✔Under a General Liability Policy the duty of the insurer is to pay for
damages that:
Select one:
a. The insured is legally liable for.
b. Any third party who has suffered bodily injury caused by the insured.
c. Has been caused by the insured regardless of negligence.
d. To the second party who has suffered bodily injury.
Attracts customers to the insured's business. - ✔✔In Contingent Business Interruption Insurance, a
Leader Location is one which:
