PROPERTY AND CASUALTY MISSED
PRACTICE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
If a producer is suspected of acting in violation of the insurance authority would preside
over a legal hearing regarding the matter?
A. The NAIC
B. The commissioner
C. the Governor
D. The county court - Answer-B ( the commissioner is in. charge of hearings regarding
matters of insurance code violations.)
Which of the following is eligible for a business-owners policy form?
A. a mercantile risk with gross sales over $4million
B. a 6-story building with less than 100,000 sq/ft
C. an 8 story building
D. a convenience. store with gas pumps with 60% of gross sales from the gasoline
sales - Answer-B (minimum eligibility, 6-stories high; 25,000 sq/ft; 100,000 sq/ft office
buildings; and. 3 million in gross sales)
All of the following are true of coverage-B Other structures EXCEPT?
A. this coverage. is not applicable on the HO-4 form.
B. the amount of coverage provided by coverage B is an amount equal to 10% of
Coverage A
C. Land where other structures are located is not covered
D. it must be added by endorsement to homeowners policy - Answer-D (Coverage B
covers 10% of amount in coverage A, this amount can only be increased by
endorsements)
Coverage F (medical payments) under homeowners policy would cover?
A. a residence employee who is injured on the job
B. a tenant who is injured while on the premises.
C. a family member who is injured while residing in the insured premises
D. the insured for injuries sustained while working at home. - Answer-A ( residence
employees are covered by the policy if not covered by workers comp)
of the following, which is NOT defined in the personal auto policy as an uninsured motor
vehicle?
A. a vehicle covered by a bodily injury liability policy
B. a vehicle covered by a bodily injury policy, but the coverage limit is less than
minimum required by the financial responsibility law.
C. a vehicle owned by a government entity
,D. a vehicle in which the driver or owner is unknown - Answer-C (vehicles owned by the
government are specifically excluded as uninsured.)
Which of the following covers a carrier for liability for a loss to cargo while it is being
transported in a truck?
A. Motor truck cargo policy- owners form
B. trip transit policy
C. truckers coverage form
D. motor truck cargo policy- truckers form - Answer-D (the motor trucker is liability
insurance and the owners form is property coverage)
Which endorsement under the commercial auto policy provides the insured's employees
additional protection while using a vehicle not owned, hired or borrowed for the
insured's business?
A. deductible liability
B hired autos
C. employees as insureds
D. drive other car - Answer-C
a producer who fails to segregate premium monies from his own personal funds is guilty
of?
A. commingling
B. larceny
C. embezzlement
D. theft - Answer-A ( they are commingling there applicants funds with their own)
residential structures, including individual condominium units, and their contents. are
insured by what part. of the National Flood insurance program?
A. Dwelling policy form
B. Basic coverage form
C. Residential condominium Building. association policy (RCBAP)
D. General Property policy form - Answer-A (dwelling policy forms are used to insure
residential structures and there belongings; includes condos)
A commercial policy has been in direct effect for less than 60 days and is not a renewal
policy. If the insurer decides to cancel the policy for any reason other than nonpayment
of premium, how much notice must it give the first named insured?
A. 10 days.
B. 30days
C. 60 days
D. 90 days - Answer-C ( Unless there is a nonpayment of premium which only requires
a 10 day notice, a 60 day notice is required)
The insured's mother-in-law falls and breaks their leg falling down on the front steps of
the insured's premises. The insured's homeowners medical payment coverage will pay
what?
, A. Pay only the mother-in-law has no health insurance of their own
B. share equally in the cost with the mother-in-law's health insurance
C. apply to injuries of any guests or visitors
D. pay as excess over the mother-in-law's insurance - Answer-C
a property insurance policy that is not subject to any coinsurance requirements but has
a set amount of insurance scheduled for the property would use what loss valuation
method?
A. actual cash value
B. replacement cost
C. reproduction cost
D. stated amount - Answer-D ( stated amount is an amount of insurance scheduled in a
property policy which is not subject to any coinsurance requirements in the event of a
covered loss)
the transfer of money inside a banking premises to a person other than a messenger
outside those premises or to a place outside those premises is covered under which
commercial crime coverage?
A. Money orders and counterfeit paper currency
B. other crime coverage
C. outside premises
D. computer fraud - Answer-D
Which of the following statements is true concerning underinsured motorist coverage
under a personal auto policy?
A. it will pay up to the limits of insurance for any loss which involves an uninsured driver
B. limits must equal the bodily injury limits of the policy
C. limits may differ from the limits of uninsured motorist coverage
D. coverage applies only to the extent that the underinsured motorist limits exceed the
bodily injury limits carried by the operator of the other vehicle - Answer-D (uninsured
motorist coverage will act in excess coverage over the at fault drivers bodily injury
coverage)
a policyholder has an equipment breakdown policy with a $200,000 limit. if a boiler
causes $100,000 of damage to the boiler itself, $50,000 to the insured's building, and
$30,000 of expediting expenses, how much will the insured collect under the policy?
A. $175,000
B. $180,000
C. $200,000
D. $100,000 - Answer-A (the limit breakdown policy applies to all personal property,
except a limit of $25,000 on expediting expense)
If an insured covered under mobile homeowners policy moves the mobile home to
protect it from a covered peril, the policy will pay up to?
A. 350
B. 500
PRACTICE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
If a producer is suspected of acting in violation of the insurance authority would preside
over a legal hearing regarding the matter?
A. The NAIC
B. The commissioner
C. the Governor
D. The county court - Answer-B ( the commissioner is in. charge of hearings regarding
matters of insurance code violations.)
Which of the following is eligible for a business-owners policy form?
A. a mercantile risk with gross sales over $4million
B. a 6-story building with less than 100,000 sq/ft
C. an 8 story building
D. a convenience. store with gas pumps with 60% of gross sales from the gasoline
sales - Answer-B (minimum eligibility, 6-stories high; 25,000 sq/ft; 100,000 sq/ft office
buildings; and. 3 million in gross sales)
All of the following are true of coverage-B Other structures EXCEPT?
A. this coverage. is not applicable on the HO-4 form.
B. the amount of coverage provided by coverage B is an amount equal to 10% of
Coverage A
C. Land where other structures are located is not covered
D. it must be added by endorsement to homeowners policy - Answer-D (Coverage B
covers 10% of amount in coverage A, this amount can only be increased by
endorsements)
Coverage F (medical payments) under homeowners policy would cover?
A. a residence employee who is injured on the job
B. a tenant who is injured while on the premises.
C. a family member who is injured while residing in the insured premises
D. the insured for injuries sustained while working at home. - Answer-A ( residence
employees are covered by the policy if not covered by workers comp)
of the following, which is NOT defined in the personal auto policy as an uninsured motor
vehicle?
A. a vehicle covered by a bodily injury liability policy
B. a vehicle covered by a bodily injury policy, but the coverage limit is less than
minimum required by the financial responsibility law.
C. a vehicle owned by a government entity
,D. a vehicle in which the driver or owner is unknown - Answer-C (vehicles owned by the
government are specifically excluded as uninsured.)
Which of the following covers a carrier for liability for a loss to cargo while it is being
transported in a truck?
A. Motor truck cargo policy- owners form
B. trip transit policy
C. truckers coverage form
D. motor truck cargo policy- truckers form - Answer-D (the motor trucker is liability
insurance and the owners form is property coverage)
Which endorsement under the commercial auto policy provides the insured's employees
additional protection while using a vehicle not owned, hired or borrowed for the
insured's business?
A. deductible liability
B hired autos
C. employees as insureds
D. drive other car - Answer-C
a producer who fails to segregate premium monies from his own personal funds is guilty
of?
A. commingling
B. larceny
C. embezzlement
D. theft - Answer-A ( they are commingling there applicants funds with their own)
residential structures, including individual condominium units, and their contents. are
insured by what part. of the National Flood insurance program?
A. Dwelling policy form
B. Basic coverage form
C. Residential condominium Building. association policy (RCBAP)
D. General Property policy form - Answer-A (dwelling policy forms are used to insure
residential structures and there belongings; includes condos)
A commercial policy has been in direct effect for less than 60 days and is not a renewal
policy. If the insurer decides to cancel the policy for any reason other than nonpayment
of premium, how much notice must it give the first named insured?
A. 10 days.
B. 30days
C. 60 days
D. 90 days - Answer-C ( Unless there is a nonpayment of premium which only requires
a 10 day notice, a 60 day notice is required)
The insured's mother-in-law falls and breaks their leg falling down on the front steps of
the insured's premises. The insured's homeowners medical payment coverage will pay
what?
, A. Pay only the mother-in-law has no health insurance of their own
B. share equally in the cost with the mother-in-law's health insurance
C. apply to injuries of any guests or visitors
D. pay as excess over the mother-in-law's insurance - Answer-C
a property insurance policy that is not subject to any coinsurance requirements but has
a set amount of insurance scheduled for the property would use what loss valuation
method?
A. actual cash value
B. replacement cost
C. reproduction cost
D. stated amount - Answer-D ( stated amount is an amount of insurance scheduled in a
property policy which is not subject to any coinsurance requirements in the event of a
covered loss)
the transfer of money inside a banking premises to a person other than a messenger
outside those premises or to a place outside those premises is covered under which
commercial crime coverage?
A. Money orders and counterfeit paper currency
B. other crime coverage
C. outside premises
D. computer fraud - Answer-D
Which of the following statements is true concerning underinsured motorist coverage
under a personal auto policy?
A. it will pay up to the limits of insurance for any loss which involves an uninsured driver
B. limits must equal the bodily injury limits of the policy
C. limits may differ from the limits of uninsured motorist coverage
D. coverage applies only to the extent that the underinsured motorist limits exceed the
bodily injury limits carried by the operator of the other vehicle - Answer-D (uninsured
motorist coverage will act in excess coverage over the at fault drivers bodily injury
coverage)
a policyholder has an equipment breakdown policy with a $200,000 limit. if a boiler
causes $100,000 of damage to the boiler itself, $50,000 to the insured's building, and
$30,000 of expediting expenses, how much will the insured collect under the policy?
A. $175,000
B. $180,000
C. $200,000
D. $100,000 - Answer-A (the limit breakdown policy applies to all personal property,
except a limit of $25,000 on expediting expense)
If an insured covered under mobile homeowners policy moves the mobile home to
protect it from a covered peril, the policy will pay up to?
A. 350
B. 500
