1
PROPERTY
PROPERTY AND CASUALTY INSURANCE
EXAM QUESTIONS AND ANSWERS
UPDATED (2024/2025) (VERIFIED
ANSWERS)
According to the common policy conditions for a commercial package
policy, if the insured dies, the policy rights and duties - ANS ✓Automatically
transfer to a legal representative
Valuable papers and records form provides coverage for the reconstruction
of all of the following types of records EXCEPT - ANS ✓Pre-packaged software
(deeds, historical records, and blueprints are all covered)
A businessowners policy is - ANS ✓A self-contained pre-package policy
In a commercial package policy, who may cancel the policy in writing and
make changes to the policy with the consent of the insurer? - ANS ✓First
named insured
Under a dwelling policy, which of the following clauses applies if an insured
has lost one of two matching silver candlesticks? - ANS ✓Pair or set
(if only one item of a set has been lost, the insurer is not obligated to pay the total
value of the set)
Which of the following would be covered under the Film Coverage Form? -
ANS ✓None are covered
(deterioration of a film
PROPERTY AND CASUALTY
, 2
PROPERTY
exposure of a negative film to light
electrical erasure of a tape)
The regular National Flood Insurance Program would insure an eligible
single-family dwelling for up to - ANS ✓$250,000
Under the commercial property coverage program, the basic causes of loss
form insures against loss caused by - ANS ✓Sprinkler leakage
Which situation would NOT be covered by the basic Causes of Loss form
under a commercial property policy? - ANS ✓The surf side club waterfront
restaurant is damaged when flood waters rise and seep into the restaurant
An endorsement added to a businessowners policy that provides coverage
for direct damage caused by utility service disruption stemming from a
covered peril is called - ANS ✓Utility Services - direct damage
Which of the following covers a carrier for liability for loss to cargo while it
is being transported in a truck? - ANS ✓Motor truck cargo policy - truckers
form
A house insured under a dwelling policy has been vacant for 70 consecutive
days. Which of the following statements is true? - ANS ✓Loss by vandalism
and malicious mischief is excluded
An insured condominium unit owner wants to purchase fire and extended
coverage for personal property and liability coverage for himself and his
family members. He should purchase - ANS ✓HO-6
PROPERTY AND CASUALTY
, 3
PROPERTY
On a DP-3 Dwelling Property Special Form policy, the coverage provided for
personal property is - ANS ✓The same as provided on the DP-2 broad form
A business using its own trucks to move its own cargo would insure the
cargo using - ANS ✓Motor truck cargo - owners form
Which of the following homeowners forms is designed for individuals that
own and reside in a condominium? - ANS ✓HO-6
How long is the waiting period after the application has been accepted
before flood coverage goes into effect? - ANS ✓30 days
If the insured owns a watch valued at $10,000, full coverage can be
provided on a homeowners policy by purchasing the - ANS ✓Scheduled
personal property endorsement
Which of the following would NOT be covered by medical payments to
others in Section II of your HO policy? - ANS ✓You cut your leg while whacking
weeds in your backyard with your neighbour’s weed whacker
Uncle Billy's Burger Bar was forced to close for 10 days in August when the
power company's transformer was destroyed by lightning, and Uncle Billy
was without electricity. Which of the following endorsements could be
added to Billy's businessowners policy that would provide protection
against loss of income from such events? - ANS ✓Utility services - time
element endorsement
Which of the following would NOT be considered a flood? - ANS ✓Sewer
backup
PROPERTY AND CASUALTY
, 4
PROPERTY
According to the appraisal condition of a homeowners policy, what
procedure may be followed if the insurer and insured do not agree as to the
size of a loss? - ANS ✓Each side selects its own appraiser, and the appraisers
select an umpire to settle any differences between the appraisers
A BOP (businessowners policy) is most similar to - ANS ✓Homeowners
=because both require that the policy provide property insurance and liability
insurance in a single policy
A covered watercraft was damaged in an accident. The actual cash value of
the damaged property was assessed at $10,000. The cost of repairs for the
watercraft was assessed at $5,000. The insured's watercraft policy is
written with a $25,000 limit. How much will the insurer pay for coverage to
damage to the watercraft? - ANS ✓$5,000
\Under the HO-4 and HO-6 homeowners policy forms, property is insured
against - ANS ✓Broad form perils
(they provide the same level of coverage as Coverage C in the HO-2 and HO-3)
Which policy condition in HO policies states that insurance applies
separately to each insured? - ANS ✓Severability of insurance
(this means that the insurance applies separately to each insured. This condition
does not increase the insurer's liability for any one occurrence)
Which inland marine form would provide the best protection for a dry
cleaning company against loss or damage to their customer's property
while in the care, custody, and control of the dry cleaners? - ANS ✓Bailee's
customer policy
(does not cover property of the insured, but does cover their customer's property
while in the care of the insured)
PROPERTY AND CASUALTY
PROPERTY
PROPERTY AND CASUALTY INSURANCE
EXAM QUESTIONS AND ANSWERS
UPDATED (2024/2025) (VERIFIED
ANSWERS)
According to the common policy conditions for a commercial package
policy, if the insured dies, the policy rights and duties - ANS ✓Automatically
transfer to a legal representative
Valuable papers and records form provides coverage for the reconstruction
of all of the following types of records EXCEPT - ANS ✓Pre-packaged software
(deeds, historical records, and blueprints are all covered)
A businessowners policy is - ANS ✓A self-contained pre-package policy
In a commercial package policy, who may cancel the policy in writing and
make changes to the policy with the consent of the insurer? - ANS ✓First
named insured
Under a dwelling policy, which of the following clauses applies if an insured
has lost one of two matching silver candlesticks? - ANS ✓Pair or set
(if only one item of a set has been lost, the insurer is not obligated to pay the total
value of the set)
Which of the following would be covered under the Film Coverage Form? -
ANS ✓None are covered
(deterioration of a film
PROPERTY AND CASUALTY
, 2
PROPERTY
exposure of a negative film to light
electrical erasure of a tape)
The regular National Flood Insurance Program would insure an eligible
single-family dwelling for up to - ANS ✓$250,000
Under the commercial property coverage program, the basic causes of loss
form insures against loss caused by - ANS ✓Sprinkler leakage
Which situation would NOT be covered by the basic Causes of Loss form
under a commercial property policy? - ANS ✓The surf side club waterfront
restaurant is damaged when flood waters rise and seep into the restaurant
An endorsement added to a businessowners policy that provides coverage
for direct damage caused by utility service disruption stemming from a
covered peril is called - ANS ✓Utility Services - direct damage
Which of the following covers a carrier for liability for loss to cargo while it
is being transported in a truck? - ANS ✓Motor truck cargo policy - truckers
form
A house insured under a dwelling policy has been vacant for 70 consecutive
days. Which of the following statements is true? - ANS ✓Loss by vandalism
and malicious mischief is excluded
An insured condominium unit owner wants to purchase fire and extended
coverage for personal property and liability coverage for himself and his
family members. He should purchase - ANS ✓HO-6
PROPERTY AND CASUALTY
, 3
PROPERTY
On a DP-3 Dwelling Property Special Form policy, the coverage provided for
personal property is - ANS ✓The same as provided on the DP-2 broad form
A business using its own trucks to move its own cargo would insure the
cargo using - ANS ✓Motor truck cargo - owners form
Which of the following homeowners forms is designed for individuals that
own and reside in a condominium? - ANS ✓HO-6
How long is the waiting period after the application has been accepted
before flood coverage goes into effect? - ANS ✓30 days
If the insured owns a watch valued at $10,000, full coverage can be
provided on a homeowners policy by purchasing the - ANS ✓Scheduled
personal property endorsement
Which of the following would NOT be covered by medical payments to
others in Section II of your HO policy? - ANS ✓You cut your leg while whacking
weeds in your backyard with your neighbour’s weed whacker
Uncle Billy's Burger Bar was forced to close for 10 days in August when the
power company's transformer was destroyed by lightning, and Uncle Billy
was without electricity. Which of the following endorsements could be
added to Billy's businessowners policy that would provide protection
against loss of income from such events? - ANS ✓Utility services - time
element endorsement
Which of the following would NOT be considered a flood? - ANS ✓Sewer
backup
PROPERTY AND CASUALTY
, 4
PROPERTY
According to the appraisal condition of a homeowners policy, what
procedure may be followed if the insurer and insured do not agree as to the
size of a loss? - ANS ✓Each side selects its own appraiser, and the appraisers
select an umpire to settle any differences between the appraisers
A BOP (businessowners policy) is most similar to - ANS ✓Homeowners
=because both require that the policy provide property insurance and liability
insurance in a single policy
A covered watercraft was damaged in an accident. The actual cash value of
the damaged property was assessed at $10,000. The cost of repairs for the
watercraft was assessed at $5,000. The insured's watercraft policy is
written with a $25,000 limit. How much will the insurer pay for coverage to
damage to the watercraft? - ANS ✓$5,000
\Under the HO-4 and HO-6 homeowners policy forms, property is insured
against - ANS ✓Broad form perils
(they provide the same level of coverage as Coverage C in the HO-2 and HO-3)
Which policy condition in HO policies states that insurance applies
separately to each insured? - ANS ✓Severability of insurance
(this means that the insurance applies separately to each insured. This condition
does not increase the insurer's liability for any one occurrence)
Which inland marine form would provide the best protection for a dry
cleaning company against loss or damage to their customer's property
while in the care, custody, and control of the dry cleaners? - ANS ✓Bailee's
customer policy
(does not cover property of the insured, but does cover their customer's property
while in the care of the insured)
PROPERTY AND CASUALTY
