Property and Casualty mid -term
multiple choice
Homeowners' policies provide liability coverage for which of the following?
a. bodily injury only
b. property damage only
c. bodily injury and personal liability
d. property damage and bodily injury
d. Property damage and bodily injury
The declarations' section of an insurance policy provides which of the following?
a. The conditions exclusions
b. The insured's statement about the condition of the property
c. Specifications for the payment of a loss
d. The insured's name and address and the time duration of the policy.
d. The insured's name and address and the time duration of the policy.
Extra Expense insurance covers which of the following?
a. The additional cost of taking safety measures before a loss
b. The additional cost of continuing a business after a loss.
,c. The extra money needed to cover a firm's loss of earnings.
d. The extra money needed to cover landlord's loss of rental income.
b. The additional cost of continuing a business after a loss.
One purpose of a deductible is to:
a. prevent under insurance
b. eliminate small claims
c. prevent catastrophic claims
d. allow the insured to ignore physical hazards.
b. eliminate small claims
Which of the following statements is true about additional coverage?
a. They are automatically included only if medical payments coverage is purchased
b. They are included for a minimum premium
c. They are included at no extra cost
d. They are optional on the party of the insured
c. They are included at no extra cost
,An insured's Dwelling Property Broad Form (DP-2) provides $40,000 coverage on her dwelling and
$25,000 coverage on its contents. The policy has a $250 Deductible. If vandals at $500, the maximum
amount she will receive is which of the following?
a.$0
b.$250
c.$400
d.$500
b.$250
Which of the following best describes the concept of risk?
a. result of loss
b. amount of loss
c. uncertainty of loss
d. cause of loss
c. uncertainty of loss
An insurance policy's Appraisal clause is used to determine the:
a. person who is liable for damages
b. amount of liability
c. existing coverage
d. facts so the case can be heard in court
, b. amount of liability
A Scheduled personal property Endorsement is usually issued on which of the following bases?
a. Open peril (All- Risk)
b. Blanket
c. Replacement cost
d. Valued
a. Open peril (All-Risk)
Ten years ago an insured purchased a building for $50,000 that would cost $100,000 to rebuild today. If
the physical value of the building has depreciated $2,000 each year, the building's present actual cash
value is:
a.$100,000
b.$80,000
c.$50,000
d.$30,000
b. $80,000
A Building and Personal Property Coverage Form automatically provides for which of the following
extensions of coverage?
a. Outdoor Signs
multiple choice
Homeowners' policies provide liability coverage for which of the following?
a. bodily injury only
b. property damage only
c. bodily injury and personal liability
d. property damage and bodily injury
d. Property damage and bodily injury
The declarations' section of an insurance policy provides which of the following?
a. The conditions exclusions
b. The insured's statement about the condition of the property
c. Specifications for the payment of a loss
d. The insured's name and address and the time duration of the policy.
d. The insured's name and address and the time duration of the policy.
Extra Expense insurance covers which of the following?
a. The additional cost of taking safety measures before a loss
b. The additional cost of continuing a business after a loss.
,c. The extra money needed to cover a firm's loss of earnings.
d. The extra money needed to cover landlord's loss of rental income.
b. The additional cost of continuing a business after a loss.
One purpose of a deductible is to:
a. prevent under insurance
b. eliminate small claims
c. prevent catastrophic claims
d. allow the insured to ignore physical hazards.
b. eliminate small claims
Which of the following statements is true about additional coverage?
a. They are automatically included only if medical payments coverage is purchased
b. They are included for a minimum premium
c. They are included at no extra cost
d. They are optional on the party of the insured
c. They are included at no extra cost
,An insured's Dwelling Property Broad Form (DP-2) provides $40,000 coverage on her dwelling and
$25,000 coverage on its contents. The policy has a $250 Deductible. If vandals at $500, the maximum
amount she will receive is which of the following?
a.$0
b.$250
c.$400
d.$500
b.$250
Which of the following best describes the concept of risk?
a. result of loss
b. amount of loss
c. uncertainty of loss
d. cause of loss
c. uncertainty of loss
An insurance policy's Appraisal clause is used to determine the:
a. person who is liable for damages
b. amount of liability
c. existing coverage
d. facts so the case can be heard in court
, b. amount of liability
A Scheduled personal property Endorsement is usually issued on which of the following bases?
a. Open peril (All- Risk)
b. Blanket
c. Replacement cost
d. Valued
a. Open peril (All-Risk)
Ten years ago an insured purchased a building for $50,000 that would cost $100,000 to rebuild today. If
the physical value of the building has depreciated $2,000 each year, the building's present actual cash
value is:
a.$100,000
b.$80,000
c.$50,000
d.$30,000
b. $80,000
A Building and Personal Property Coverage Form automatically provides for which of the following
extensions of coverage?
a. Outdoor Signs
