P&C EXAM REVIEW (updated) questions
well answered
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion
causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and
$30,000 of expediting expenses, how much will the insured collect under the policy?
A.) $180,000
B.) $200,000
C.) $100,000
D.) $175,000 - correct answer ✔✔D.) $175,000
- The limit of the equipment breakdown policy applies to property of the insured, property of
others, and expediting expenses in any combination as long as expedition expense does not
exceed $25,000.
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster
falls and hurts someone because he did not do the job correctly?
A.) Medical Payments
B.) Products
C.) Professional errors & omissions (E&O)
D.) Completed operations - correct answer ✔✔D.) Completed operations
- The plasterer's completed operations pays because his negligence led to the loss. It does not
pay to redo the job.
,If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be
effected for which of the following reasons?
A.) Change in the insurer's underwriting guidelines that is not approved by the Commissioner
B.) Two or fewer claims against the policy in the preceding 36 months
C.) A change in the risk that substantially increases the hazard insured against
D.) Lack of supporting business with the insurer - correct answer ✔✔C.) A change in the risk
that substantially increases the hazard insured against
- A policy that has been in effect for at least 60 days or is due for renewal may only be cancelled
if there was a changed in the risk that substantially increased the hazard insured against
On its advertisement, a company claims that it has funds in its possession that are, in fact, not
available for the payment of losses or claims. The company is guilty of
A.) Concealment
B.) Unfair claim practice
C.) Rebating
D.) Misrepresentation - correct answer ✔✔D.) Misrepresentation
- issuing or circulating any sales material that is false or misleading would be considered
misrepresentation and is illegal
Coverage A - Bodily injury and Property Damage in the commercial general liability policy will
cover
A.) Damage to the insured's product
B.) Losses due to the insured's negligence
, C.) Liquor Liability
D.) Contractual liability - correct answer ✔✔B.) Losses due to the insured's negligence
- Coverage A provides protection for bodily injury and property damage suffered by third parties
due to the negligence of the insured. The rest are exclusions
CGL Coverage B (personal and advertising injury) will cover
A.) An offense committed by an insured whose business is advertising
B.) Inadvertent injury to others caused in the course of advertising the insured's product
C.) The failure of goods to conform to advertised quality or performance
D.) Oral or written publication of material the insured knows is false - correct answer ✔✔B.)
Inadvertent injury to others caused in the course of advertising the insured's product
- Personal and advertising injury coverage does not apply to professional advertisers or
intentional injury, and does not guarantee the product will perform as advertised
What type of information would be found in a policy's insuring agreement?
A.) Policy limits
B.) Insurer's address
C.) Renewal dates
D.) Location of premises - correct answer ✔✔C.) Renewal dates
- An insuring agreement establishes the obligation of the insurance company to provide the
insurance coverages as stated in the policy. The insuring agreement lists the parties to the
contract , effective and renewal dates, the description of coverage provided, and perils (among
well answered
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion
causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and
$30,000 of expediting expenses, how much will the insured collect under the policy?
A.) $180,000
B.) $200,000
C.) $100,000
D.) $175,000 - correct answer ✔✔D.) $175,000
- The limit of the equipment breakdown policy applies to property of the insured, property of
others, and expediting expenses in any combination as long as expedition expense does not
exceed $25,000.
A plasterer has finished a job. What kind of liability coverage would protect him if the plaster
falls and hurts someone because he did not do the job correctly?
A.) Medical Payments
B.) Products
C.) Professional errors & omissions (E&O)
D.) Completed operations - correct answer ✔✔D.) Completed operations
- The plasterer's completed operations pays because his negligence led to the loss. It does not
pay to redo the job.
,If a policy has been in effect for at least 60 days or is due for renewal, a cancellation may only be
effected for which of the following reasons?
A.) Change in the insurer's underwriting guidelines that is not approved by the Commissioner
B.) Two or fewer claims against the policy in the preceding 36 months
C.) A change in the risk that substantially increases the hazard insured against
D.) Lack of supporting business with the insurer - correct answer ✔✔C.) A change in the risk
that substantially increases the hazard insured against
- A policy that has been in effect for at least 60 days or is due for renewal may only be cancelled
if there was a changed in the risk that substantially increased the hazard insured against
On its advertisement, a company claims that it has funds in its possession that are, in fact, not
available for the payment of losses or claims. The company is guilty of
A.) Concealment
B.) Unfair claim practice
C.) Rebating
D.) Misrepresentation - correct answer ✔✔D.) Misrepresentation
- issuing or circulating any sales material that is false or misleading would be considered
misrepresentation and is illegal
Coverage A - Bodily injury and Property Damage in the commercial general liability policy will
cover
A.) Damage to the insured's product
B.) Losses due to the insured's negligence
, C.) Liquor Liability
D.) Contractual liability - correct answer ✔✔B.) Losses due to the insured's negligence
- Coverage A provides protection for bodily injury and property damage suffered by third parties
due to the negligence of the insured. The rest are exclusions
CGL Coverage B (personal and advertising injury) will cover
A.) An offense committed by an insured whose business is advertising
B.) Inadvertent injury to others caused in the course of advertising the insured's product
C.) The failure of goods to conform to advertised quality or performance
D.) Oral or written publication of material the insured knows is false - correct answer ✔✔B.)
Inadvertent injury to others caused in the course of advertising the insured's product
- Personal and advertising injury coverage does not apply to professional advertisers or
intentional injury, and does not guarantee the product will perform as advertised
What type of information would be found in a policy's insuring agreement?
A.) Policy limits
B.) Insurer's address
C.) Renewal dates
D.) Location of premises - correct answer ✔✔C.) Renewal dates
- An insuring agreement establishes the obligation of the insurance company to provide the
insurance coverages as stated in the policy. The insuring agreement lists the parties to the
contract , effective and renewal dates, the description of coverage provided, and perils (among
