PROPERTY AND CASUALTY EXAM
QUESTIONS WITH CORRECT ANSWERS
Directors’ and officers’ liability - Answer-Which of the following special liability coverage
will provide protection to managers of a corporation for claims arising from a wrongful
act committed by the manager while in an official capacity?
Subrogation - Answer-The policy provision found in property insurance policies that
prevents the insured from collecting twice for the same loss is called
$5,000 - Answer-A premium discount is the term that describes when an insured owes a
total standard premium greater than
Nothing - Answer-A home is insured under an HO-2 policy. The homeowner decides to
replace the roof on the house. He wasn't able to complete the roof in one day and left a
portion of it unfinished overnight. A heavy rainstorm caused $20,000 of damage to the
interior of the house and some furniture. In this situation, the policy will pay
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds - Answer-
Supplementary payments on a CGL provide all of the following EXCEPT
The injury or damage must occur within 90 days after the insured's work is completed -
Answer-All of the following conditions must exist for injury or damage to be included in
the products and completed operations hazard of a commercial general liability policy
EXCEPT
Anyone while using, with permission, a covered auto owned by the named insured -
Answer-Which of the following would be considered an insured under a business auto
coverage form?
$500 - Answer-If an insured covered under a Mobile Homeowners Policy moves the
mobile home to protect it from a covered peril, the policy will pay up to
Insured's business premises - Answer-Which of the following would be covered under
the Garage Liability Coverage Form?
Loss by vandalism and malicious mischief is excluded - Answer-A house insured under
a dwelling policy has been vacant for 70 consecutive days. Which of the following
statements is true?
Stated amount - Answer-When the amount of insurance written in a property policy is
not subject to any coinsurance provision and that amount is paid in the event of a
covered loss, the coverage is said to be written as
,Vicarious liability - Answer-When a parent is required to pay for damages caused by his
or her children, this is an example of
Symbol 5 - Answer-Which of the following symbols is available to an insured with
vehicles subject to no-fault coverage?
Insurance Premium Paid - Answer-All of the following are factors in the determination of
actual cash value EXCEPT
The Fair Credit Reporting Act - Answer-Which of the following protects consumers
against the circulation of inaccurate or obsolete personal or financial information?
The insured's camera if it is stolen while the insured is on vacation - Answer-Personal
property coverage under a homeowners policy would cover
Contractors equipment floater - Answer-An individual's construction company leaves
mobile equipment and construction machinery on the job site until the project is
completed. What could this individual use to insure it?
When the other party is legally liable but has no insurance - Answer-When would
uninsured motorist coverage apply?
Insured - Answer-Who is responsible for filling out a notice of claim form?
They are automatically provided with replacement cost coverage - Answer-Which of the
following is true regarding single dwellings that are insured to at least 80% of the
replacement value?
Events or conditions that increase the chances of an insured loss occurring are referred
to as - Answer-Hazards
Special and general - Answer-What are the two types of compensatory damages?
Damage to the insured's property caused by utility service disruption - Answer-Which of
the following is NOT covered under the Utility Services - Time Element endorsement?
In addition to the limit of liability - Answer-In liability insurance policies, supplementary
payments are made
Watercraft - Answer-Both the broad theft and limited theft endorsements on the dwelling
program exclude all of the following types of property EXCEPT
A written document showing the types and amounts of insurance that have been issued
to the insured - Answer-What is a Certificate of Insurance?
, Commercial blanket position - Answer-Which employee fidelity bond pays no more than
its limit of liability for each separate occurrence no matter that several separately
identifiable employees were involved in a single loss?
Surety bonds guarantee specific duties or obligations will be fulfilled; insurance pays for
losses - Answer-How are surety bonds different from insurance?
Subrogation - Answer-The transfer of an insured's right to seek damages from a
negligent party to the insurer is found in which of the following clauses?
The carrier - Answer-When a regular bill of lading is issued, who will be responsible for
the invoice cost of any damaged property?
Indirect loss - Answer-An additional loss that results from a direct loss of property is
called a/an
Encourage the insured to insured to insure the property closer to its full value - Answer-
What is the purpose of the coinsurance clause found in property insurance policies?
Penalty - Answer-A bond is written for a set limit, and the surety will be liable only for
this amount of the limit. This limit is known as the
Open peril coverage on the dwelling and broad form coverage on personal property -
Answer-The HO-3 homeowners policy provides
If it is intentional and material - Answer-When would a misrepresentation on the
insurance application be considered fraud?
Professional liability insurance - Answer-Which of the following liability policies is usually
written on a "claims-made" form?
The damage occurred when the concrete fell - Answer-A parking garage owner
completed major renovations to a parking garage just prior to selling it to another
company. Three months later, overhead concrete fell onto cars in the second floor level.
Under the garage coverage policy conditions, which of the following is true?
It provides errors and omissions coverage for an agency - Answer-Which of the
following statements is NOT true regarding a personal umbrella liability policy?
The insured is injured while exiting a friend's mobile home - Answer-The medical
payments coverage in a personal auto policy will pay reasonable medical expenses for
all of the following EXCEPT
Cancellation by a previous insurer - Answer-Which of the following is NOT an
acceptable reason for an insurer to cancel a personal property insurance policy that has
been in effect for more than 60 days?
QUESTIONS WITH CORRECT ANSWERS
Directors’ and officers’ liability - Answer-Which of the following special liability coverage
will provide protection to managers of a corporation for claims arising from a wrongful
act committed by the manager while in an official capacity?
Subrogation - Answer-The policy provision found in property insurance policies that
prevents the insured from collecting twice for the same loss is called
$5,000 - Answer-A premium discount is the term that describes when an insured owes a
total standard premium greater than
Nothing - Answer-A home is insured under an HO-2 policy. The homeowner decides to
replace the roof on the house. He wasn't able to complete the roof in one day and left a
portion of it unfinished overnight. A heavy rainstorm caused $20,000 of damage to the
interior of the house and some furniture. In this situation, the policy will pay
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds - Answer-
Supplementary payments on a CGL provide all of the following EXCEPT
The injury or damage must occur within 90 days after the insured's work is completed -
Answer-All of the following conditions must exist for injury or damage to be included in
the products and completed operations hazard of a commercial general liability policy
EXCEPT
Anyone while using, with permission, a covered auto owned by the named insured -
Answer-Which of the following would be considered an insured under a business auto
coverage form?
$500 - Answer-If an insured covered under a Mobile Homeowners Policy moves the
mobile home to protect it from a covered peril, the policy will pay up to
Insured's business premises - Answer-Which of the following would be covered under
the Garage Liability Coverage Form?
Loss by vandalism and malicious mischief is excluded - Answer-A house insured under
a dwelling policy has been vacant for 70 consecutive days. Which of the following
statements is true?
Stated amount - Answer-When the amount of insurance written in a property policy is
not subject to any coinsurance provision and that amount is paid in the event of a
covered loss, the coverage is said to be written as
,Vicarious liability - Answer-When a parent is required to pay for damages caused by his
or her children, this is an example of
Symbol 5 - Answer-Which of the following symbols is available to an insured with
vehicles subject to no-fault coverage?
Insurance Premium Paid - Answer-All of the following are factors in the determination of
actual cash value EXCEPT
The Fair Credit Reporting Act - Answer-Which of the following protects consumers
against the circulation of inaccurate or obsolete personal or financial information?
The insured's camera if it is stolen while the insured is on vacation - Answer-Personal
property coverage under a homeowners policy would cover
Contractors equipment floater - Answer-An individual's construction company leaves
mobile equipment and construction machinery on the job site until the project is
completed. What could this individual use to insure it?
When the other party is legally liable but has no insurance - Answer-When would
uninsured motorist coverage apply?
Insured - Answer-Who is responsible for filling out a notice of claim form?
They are automatically provided with replacement cost coverage - Answer-Which of the
following is true regarding single dwellings that are insured to at least 80% of the
replacement value?
Events or conditions that increase the chances of an insured loss occurring are referred
to as - Answer-Hazards
Special and general - Answer-What are the two types of compensatory damages?
Damage to the insured's property caused by utility service disruption - Answer-Which of
the following is NOT covered under the Utility Services - Time Element endorsement?
In addition to the limit of liability - Answer-In liability insurance policies, supplementary
payments are made
Watercraft - Answer-Both the broad theft and limited theft endorsements on the dwelling
program exclude all of the following types of property EXCEPT
A written document showing the types and amounts of insurance that have been issued
to the insured - Answer-What is a Certificate of Insurance?
, Commercial blanket position - Answer-Which employee fidelity bond pays no more than
its limit of liability for each separate occurrence no matter that several separately
identifiable employees were involved in a single loss?
Surety bonds guarantee specific duties or obligations will be fulfilled; insurance pays for
losses - Answer-How are surety bonds different from insurance?
Subrogation - Answer-The transfer of an insured's right to seek damages from a
negligent party to the insurer is found in which of the following clauses?
The carrier - Answer-When a regular bill of lading is issued, who will be responsible for
the invoice cost of any damaged property?
Indirect loss - Answer-An additional loss that results from a direct loss of property is
called a/an
Encourage the insured to insured to insure the property closer to its full value - Answer-
What is the purpose of the coinsurance clause found in property insurance policies?
Penalty - Answer-A bond is written for a set limit, and the surety will be liable only for
this amount of the limit. This limit is known as the
Open peril coverage on the dwelling and broad form coverage on personal property -
Answer-The HO-3 homeowners policy provides
If it is intentional and material - Answer-When would a misrepresentation on the
insurance application be considered fraud?
Professional liability insurance - Answer-Which of the following liability policies is usually
written on a "claims-made" form?
The damage occurred when the concrete fell - Answer-A parking garage owner
completed major renovations to a parking garage just prior to selling it to another
company. Three months later, overhead concrete fell onto cars in the second floor level.
Under the garage coverage policy conditions, which of the following is true?
It provides errors and omissions coverage for an agency - Answer-Which of the
following statements is NOT true regarding a personal umbrella liability policy?
The insured is injured while exiting a friend's mobile home - Answer-The medical
payments coverage in a personal auto policy will pay reasonable medical expenses for
all of the following EXCEPT
Cancellation by a previous insurer - Answer-Which of the following is NOT an
acceptable reason for an insurer to cancel a personal property insurance policy that has
been in effect for more than 60 days?
