P&C Exam questions with verified
answers graded A+ passed
Coverage in a Standard Fire Policy starts at - correct answer ✔✔12:01 AM
A Builder's Risk policy provides all of the following
coverages, EXCEPT - correct answer ✔✔theft of a contractor's tools
Which organization exists to pay claims of
policyholders from insolvent insurance companies? - correct answer ✔✔Michigan Property and
Casualty Guaranty
Association
An HO-3 policy provides property coverage
valuation in which way? - correct answer ✔✔?
To maintain a resident producer license, how many
hours of continuing education must be completed
every 2 years? - correct answer ✔✔24
The personal injury endorsement covers all of the
follwing, EXCEPT - correct answer ✔✔?
The authority a producer has based upon a client's
perception of what they can do is - correct answer ✔✔apparent authority
,Which is not found in the Insuring
Agreement? - correct answer ✔✔?
What amount of wage loss coverage is provided in a
Michigan Worker's Compensation policy? - correct answer ✔✔80% of the employees after tax
weekly wage
A person who rents a condominium
would purchase a - correct answer ✔✔HO-4
What are two types of risks? - correct answer ✔✔pure and speculative
The rates for flood insurance is determined by - correct answer ✔✔Federal Emergency
Management Agency (FEMA)
How many hours Ethics continuing education must a producer complete every two (2)
years? - correct answer ✔✔3 hours
When a producer's contract is terminated, what party provides the producer with the
termination notice? - correct answer ✔✔The Insurer
Workers' Compensation insurance premiums are based on what amount of payroll? - correct
answer ✔✔$100
What is the purpose of Underinsured Motorists coverage? - correct answer ✔✔The other driver
does not have enough coverage
,Reason
REMEMBER - Uninsured Motorist is if the at-fault driver has NO coverage.
Reason
Underinsured Motorist is it
the at fault driver HAD coverage, but it wasn't enough
If an insurance policy is cancelled and the insurer returns the unearned
premium without any reduction, this would be referred to as what type of
cancellation? - correct answer ✔✔Pro-Rata
Reason
When an insured cancels a policy before the expiration date, the insurer MAY
provide a prorated refund or impose a surcharge or a penalty for early cancellation, which is
called a
short-rate cancellation
A homeowner stores a gasoline can next to their barbeque grill. This is an example of - correct
answer ✔✔A hazard
, What is the time frame for Medical Payments coverage in a homeowner's policy to pay
a claim? - correct answer ✔✔?
What is the purpose of a deductible? - correct answer ✔✔To reduce the overutilization of
insurance
Reason
A deductible is common on property policies, A deductible is the amount that the insured must
pay
toward the loss before the insurance company begins paying on a daim. The higher the amount
of the
deductible, the lower the insurance premium. The purpose of a deductible is to prevent
overutilization
of insurance, meaning the insurance company doesn't want insureds to turn in small claims.
Which type of watercraft is eligible for a boatowners policy? - correct answer ✔✔A 18-foot
fishing boat
Reason
Boatowner policies are designed for boats that are UNDER 26 feet in length and will cover the
boat,
motor and trailer (but will NOT cover personal items like fishing gear).
answers graded A+ passed
Coverage in a Standard Fire Policy starts at - correct answer ✔✔12:01 AM
A Builder's Risk policy provides all of the following
coverages, EXCEPT - correct answer ✔✔theft of a contractor's tools
Which organization exists to pay claims of
policyholders from insolvent insurance companies? - correct answer ✔✔Michigan Property and
Casualty Guaranty
Association
An HO-3 policy provides property coverage
valuation in which way? - correct answer ✔✔?
To maintain a resident producer license, how many
hours of continuing education must be completed
every 2 years? - correct answer ✔✔24
The personal injury endorsement covers all of the
follwing, EXCEPT - correct answer ✔✔?
The authority a producer has based upon a client's
perception of what they can do is - correct answer ✔✔apparent authority
,Which is not found in the Insuring
Agreement? - correct answer ✔✔?
What amount of wage loss coverage is provided in a
Michigan Worker's Compensation policy? - correct answer ✔✔80% of the employees after tax
weekly wage
A person who rents a condominium
would purchase a - correct answer ✔✔HO-4
What are two types of risks? - correct answer ✔✔pure and speculative
The rates for flood insurance is determined by - correct answer ✔✔Federal Emergency
Management Agency (FEMA)
How many hours Ethics continuing education must a producer complete every two (2)
years? - correct answer ✔✔3 hours
When a producer's contract is terminated, what party provides the producer with the
termination notice? - correct answer ✔✔The Insurer
Workers' Compensation insurance premiums are based on what amount of payroll? - correct
answer ✔✔$100
What is the purpose of Underinsured Motorists coverage? - correct answer ✔✔The other driver
does not have enough coverage
,Reason
REMEMBER - Uninsured Motorist is if the at-fault driver has NO coverage.
Reason
Underinsured Motorist is it
the at fault driver HAD coverage, but it wasn't enough
If an insurance policy is cancelled and the insurer returns the unearned
premium without any reduction, this would be referred to as what type of
cancellation? - correct answer ✔✔Pro-Rata
Reason
When an insured cancels a policy before the expiration date, the insurer MAY
provide a prorated refund or impose a surcharge or a penalty for early cancellation, which is
called a
short-rate cancellation
A homeowner stores a gasoline can next to their barbeque grill. This is an example of - correct
answer ✔✔A hazard
, What is the time frame for Medical Payments coverage in a homeowner's policy to pay
a claim? - correct answer ✔✔?
What is the purpose of a deductible? - correct answer ✔✔To reduce the overutilization of
insurance
Reason
A deductible is common on property policies, A deductible is the amount that the insured must
pay
toward the loss before the insurance company begins paying on a daim. The higher the amount
of the
deductible, the lower the insurance premium. The purpose of a deductible is to prevent
overutilization
of insurance, meaning the insurance company doesn't want insureds to turn in small claims.
Which type of watercraft is eligible for a boatowners policy? - correct answer ✔✔A 18-foot
fishing boat
Reason
Boatowner policies are designed for boats that are UNDER 26 feet in length and will cover the
boat,
motor and trailer (but will NOT cover personal items like fishing gear).
