LOUISIANA PROPERTY AND CASUALTY
PRACTICE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
damage from an explosion caused by the centrifugal force of moving parts - Answer-
which of the following losses to covered equipment would be covered under the
equipment breakdown protection coverage form?
10 - Answer- according to the cancellation condition in the Common Policy-Conditions
form, if the insurance company is cancelling a Commercial Package policy for
nonpayment of premium, the insured must be given at least how many days’ notices of
cancellation?
liability - Answer- which of the following coverages IS included in the Homeowners
Policy but is NOT included in an unendorsed Dwelling policy?
HO-5 - Answer- open peril coverage for both the dwelling and personal property is
provided by the...
$48000 - Answer- the insured's home is covered by a DP-3. Two years ago, the insured
brought the home for $58000. Today, it's replacement value is $60000. How much
coverage A does the insured need to qualify for replacement cost coverage ?
$50000 - Answer- if an HO-3 policy has a coverage limit of $100000 on the dwelling,
how much coverage would automatically apply to cover the insured's personal property
under Coverage C?
Indemnification - Answer- which of the following insurance principles permits a policy
holder to be reimbursed for losses experienced?
risk - Answer- uncertainty concerning financial loss best describes the concept of...
direct loss to the auto caused by collision with another object - Answer- collision
insurance covers which of the following?
falling objects - Answer- all of the following perils are covered by a basic property
insurance policy EXCEPT...
Subrogation - Answer- by entering into an insurance contract, a policy holder transfers
the right of legal action against a responsible third party to the insurer. this process is
known as...
hazard - Answer- a condition creating or increasing the chance for loss i known as a...
PRACTICE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
damage from an explosion caused by the centrifugal force of moving parts - Answer-
which of the following losses to covered equipment would be covered under the
equipment breakdown protection coverage form?
10 - Answer- according to the cancellation condition in the Common Policy-Conditions
form, if the insurance company is cancelling a Commercial Package policy for
nonpayment of premium, the insured must be given at least how many days’ notices of
cancellation?
liability - Answer- which of the following coverages IS included in the Homeowners
Policy but is NOT included in an unendorsed Dwelling policy?
HO-5 - Answer- open peril coverage for both the dwelling and personal property is
provided by the...
$48000 - Answer- the insured's home is covered by a DP-3. Two years ago, the insured
brought the home for $58000. Today, it's replacement value is $60000. How much
coverage A does the insured need to qualify for replacement cost coverage ?
$50000 - Answer- if an HO-3 policy has a coverage limit of $100000 on the dwelling,
how much coverage would automatically apply to cover the insured's personal property
under Coverage C?
Indemnification - Answer- which of the following insurance principles permits a policy
holder to be reimbursed for losses experienced?
risk - Answer- uncertainty concerning financial loss best describes the concept of...
direct loss to the auto caused by collision with another object - Answer- collision
insurance covers which of the following?
falling objects - Answer- all of the following perils are covered by a basic property
insurance policy EXCEPT...
Subrogation - Answer- by entering into an insurance contract, a policy holder transfers
the right of legal action against a responsible third party to the insurer. this process is
known as...
hazard - Answer- a condition creating or increasing the chance for loss i known as a...
