PEARSON VUE: CASUALTY INSURANCE PRACTICE EXAM | LATEST EDITION | COMPLETE
QUESTION SET WITH VERIFIED & COMPREHENSIVE ANSWERS | MOST FREQUENTLY TESTED |
100% ACCURATE SOLUTIONS | GRADED A+
The act of intentionally withholding from an insurance application a fact that would affect issuance of
the policy is referred to as:
A. concealment
B. misrepresentation
C. defamation
D. twisting
A
Which of the following claims may be covered under Bodily Injury Liability coverage?
A. Physical impairment
B. False arrest
C. Libel
D. Suicide
A
Which of the following individuals is likely to have a valid Workers Compensation claim?
A. A retired employee injured while visiting his old workplace
B. An employee who suffers a diabetic coma from failure to take prescribed medicine
C. A sole proprietor injured in an auto accident while driving to a friend's house
D. An employee injured while undergoing job training
D
Which of the following vehicles is considered a temporary substitute auto under a Personal Auto
policy?
A. A neighbor's pickup truck borrowed by an insured to run an errand
B. An auto purchased by an insured to replace a previously owned vehicle
,C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a garage for repairs
D
An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final settlement
D. temporary short-term evidence of coverage
D
Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
C. direct loss
D. indirect loss
B
The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history prior to underwriting a policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history prior to issuing a policy
D. insurance company to inform the applicant a credit report may be obtained
D
The limits of liability are found in which of the following sections of a casualty policy?
A. Conditions
B. Insuring Agreement
, C. Declarations
D. Definitions
C
A policyholder would expect to find which of the following information in the Insuring Agreement
section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss
B
Products Liability coverage would insure damages that arise from which of the following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store demonstration.
D. A bicycle rider is injured when a wheel malfunctions.
D
Which of the following sections of an insurance policy would explain the term "auto" ?
A. Declarations
B. Definitions
C. Insuring agreement
D. Obligations of the insurance company
B
A business insured under a Commercial General Liability policy has a General Aggregate limit of
$1,000,000 and an Occurrence limit of $100,000. An injured party is awarded $100,000. What limits
will remain available to the insured?
QUESTION SET WITH VERIFIED & COMPREHENSIVE ANSWERS | MOST FREQUENTLY TESTED |
100% ACCURATE SOLUTIONS | GRADED A+
The act of intentionally withholding from an insurance application a fact that would affect issuance of
the policy is referred to as:
A. concealment
B. misrepresentation
C. defamation
D. twisting
A
Which of the following claims may be covered under Bodily Injury Liability coverage?
A. Physical impairment
B. False arrest
C. Libel
D. Suicide
A
Which of the following individuals is likely to have a valid Workers Compensation claim?
A. A retired employee injured while visiting his old workplace
B. An employee who suffers a diabetic coma from failure to take prescribed medicine
C. A sole proprietor injured in an auto accident while driving to a friend's house
D. An employee injured while undergoing job training
D
Which of the following vehicles is considered a temporary substitute auto under a Personal Auto
policy?
A. A neighbor's pickup truck borrowed by an insured to run an errand
B. An auto purchased by an insured to replace a previously owned vehicle
,C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a garage for repairs
D
An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final settlement
D. temporary short-term evidence of coverage
D
Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
C. direct loss
D. indirect loss
B
The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history prior to underwriting a policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history prior to issuing a policy
D. insurance company to inform the applicant a credit report may be obtained
D
The limits of liability are found in which of the following sections of a casualty policy?
A. Conditions
B. Insuring Agreement
, C. Declarations
D. Definitions
C
A policyholder would expect to find which of the following information in the Insuring Agreement
section of an auto policy?
A. Bodily Injury limits of liability
B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss
B
Products Liability coverage would insure damages that arise from which of the following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store demonstration.
D. A bicycle rider is injured when a wheel malfunctions.
D
Which of the following sections of an insurance policy would explain the term "auto" ?
A. Declarations
B. Definitions
C. Insuring agreement
D. Obligations of the insurance company
B
A business insured under a Commercial General Liability policy has a General Aggregate limit of
$1,000,000 and an Occurrence limit of $100,000. An injured party is awarded $100,000. What limits
will remain available to the insured?
