XCEL SOLUTIONS PROPERTY &
CASUALTY EXAM QUESTIONS WITH
CORRECT ANSWERS
Which of the following is not true regarding the definition of personal injury in a
business owners policy? - ANSWER-The endorsement covers false arrest if it is
intentional
Inland Marine forms which have been preapproved for sale by a department of
insurance are referred to as: - ANSWER-Filed Forms
Which of the following homeowners forms will cover structures on an open peril
basis but will not cover personal property on a named perils basis? - ANSWER-HO-3
Collision coverage under Garagekeepers form will not cover: - ANSWER-Burning of
the auto during transport
All of the following statements are correct regarding Insurable interest EXCEPT: -
ANSWER-The insured must have a speculative risk in the property
Under a Homeowners policy, which of the following losses would be covered under
Section II? - ANSWER-An insured's 6 year old daughter drivers her motorized toy
car into the neighbor's flower bed and causes some damage
Homeowners coverage that provides for loss when the insured dwelling is not
habitable due to a covered loss is found in: - ANSWER-Coverage D
AZ law requires an authorized insurer to issue motor vehicle insurance identification
cards. Which statement is false regarding required proof of insurance? - ANSWER-
An insurance binder cannot satisfy the proof of insurance requirement
Which of the following Garage coverages provides liability coverage to an insured
garage owner/operator for the owner's liability arising out of the damage to the auto's
of the customer of the business? - ANSWER-Section III, Garagekeepers
M owned a factory warehouse that suffered a total loss due to a fire. The insurer
discovers that they can scrap some of the metal beams left from the structure to
recoup some of their loss paid to the insured. Which method of valuation would allow
this to occur? - ANSWER-Salvage Value
License and permit bonds: - ANSWER-Are required by many municipalities before a
contractor can work in an area
Which of the following losses are excluded under Coverage E? - ANSWER-Damage
to property under the care, custody or control of the insured
, H has just closed on his new home and wants to have his possessions covered on a
replacement cost basis. When H calls her agent, the agent explains she must pay
extra for an endorsement for such coverage. H's agent must add which of the
following endorsements? - ANSWER-HO 04 90
Actual Cash Value (ACV) takes usage of property into consideration when an insurer
pays a claim so that the insured becomes whole again after a loss. To restore an
insured in this manner is known as: - ANSWER-Indemnity
Which of the following statements regarding the mortgage clause is CORRECT? -
ANSWER-It gives the morgagee separate rights under the policy
A negligent act that, defined under civil law, is an action recoverable for injuries
inflicted upon an innocent party is known as a(n): - ANSWER-Tort
"Your product" is defined under a BOP as: - ANSWER-Containers that house an
insured's real property
According to contents policy limits under the NFIP, the limit for small business losses
due to a flood under the regular program is: - ANSWER-$500,000
Under a Business Auto Policy, the categories of covered autos are found in which
part of the contract? - ANSWER-Declarations
The actual cash value (ACV) of a set of dishes is $1,000 before several parts of the
set are broken, leave a value of only $400. How much will the homeowners policy
pay under the Loss to a Pair or Set clause? - ANSWER-$600
Protection and indemnity insurance protects against which of the following losses? -
ANSWER-While trying to save damaged cargo, a ship's crew gets repeatedly hit with
waves which causes the crew to become ill
The statements which follow concerning the Claims Made Coverage Trigger are true,
EXCEPT: - ANSWER-The claim can take place anywhere in the world and is not
limited to any specific geographic area
According to section I & II of a homeowners policy, for liberalization to take effect,
the insurer must broaden coverage within ____ days in order for a policy holder to
receive the upgraded benefit of the change. - ANSWER-60 Days
Assume a CGL has an Aggregate limit of $1,000,000 and a per occurrence limit of
$500,000. Three separate accidents during the policy period are brought and each
award is for $500,000. How much will the policy pay for the third or final award? -
ANSWER-$0
D has a single family home located at a permanent residency. The type of coverage
that D has is considered to be: - ANSWER-Specific
Which of the following is true regarding contractors equipment floaters? - ANSWER-
Portable heavy machinery is covered as it is being transported
CASUALTY EXAM QUESTIONS WITH
CORRECT ANSWERS
Which of the following is not true regarding the definition of personal injury in a
business owners policy? - ANSWER-The endorsement covers false arrest if it is
intentional
Inland Marine forms which have been preapproved for sale by a department of
insurance are referred to as: - ANSWER-Filed Forms
Which of the following homeowners forms will cover structures on an open peril
basis but will not cover personal property on a named perils basis? - ANSWER-HO-3
Collision coverage under Garagekeepers form will not cover: - ANSWER-Burning of
the auto during transport
All of the following statements are correct regarding Insurable interest EXCEPT: -
ANSWER-The insured must have a speculative risk in the property
Under a Homeowners policy, which of the following losses would be covered under
Section II? - ANSWER-An insured's 6 year old daughter drivers her motorized toy
car into the neighbor's flower bed and causes some damage
Homeowners coverage that provides for loss when the insured dwelling is not
habitable due to a covered loss is found in: - ANSWER-Coverage D
AZ law requires an authorized insurer to issue motor vehicle insurance identification
cards. Which statement is false regarding required proof of insurance? - ANSWER-
An insurance binder cannot satisfy the proof of insurance requirement
Which of the following Garage coverages provides liability coverage to an insured
garage owner/operator for the owner's liability arising out of the damage to the auto's
of the customer of the business? - ANSWER-Section III, Garagekeepers
M owned a factory warehouse that suffered a total loss due to a fire. The insurer
discovers that they can scrap some of the metal beams left from the structure to
recoup some of their loss paid to the insured. Which method of valuation would allow
this to occur? - ANSWER-Salvage Value
License and permit bonds: - ANSWER-Are required by many municipalities before a
contractor can work in an area
Which of the following losses are excluded under Coverage E? - ANSWER-Damage
to property under the care, custody or control of the insured
, H has just closed on his new home and wants to have his possessions covered on a
replacement cost basis. When H calls her agent, the agent explains she must pay
extra for an endorsement for such coverage. H's agent must add which of the
following endorsements? - ANSWER-HO 04 90
Actual Cash Value (ACV) takes usage of property into consideration when an insurer
pays a claim so that the insured becomes whole again after a loss. To restore an
insured in this manner is known as: - ANSWER-Indemnity
Which of the following statements regarding the mortgage clause is CORRECT? -
ANSWER-It gives the morgagee separate rights under the policy
A negligent act that, defined under civil law, is an action recoverable for injuries
inflicted upon an innocent party is known as a(n): - ANSWER-Tort
"Your product" is defined under a BOP as: - ANSWER-Containers that house an
insured's real property
According to contents policy limits under the NFIP, the limit for small business losses
due to a flood under the regular program is: - ANSWER-$500,000
Under a Business Auto Policy, the categories of covered autos are found in which
part of the contract? - ANSWER-Declarations
The actual cash value (ACV) of a set of dishes is $1,000 before several parts of the
set are broken, leave a value of only $400. How much will the homeowners policy
pay under the Loss to a Pair or Set clause? - ANSWER-$600
Protection and indemnity insurance protects against which of the following losses? -
ANSWER-While trying to save damaged cargo, a ship's crew gets repeatedly hit with
waves which causes the crew to become ill
The statements which follow concerning the Claims Made Coverage Trigger are true,
EXCEPT: - ANSWER-The claim can take place anywhere in the world and is not
limited to any specific geographic area
According to section I & II of a homeowners policy, for liberalization to take effect,
the insurer must broaden coverage within ____ days in order for a policy holder to
receive the upgraded benefit of the change. - ANSWER-60 Days
Assume a CGL has an Aggregate limit of $1,000,000 and a per occurrence limit of
$500,000. Three separate accidents during the policy period are brought and each
award is for $500,000. How much will the policy pay for the third or final award? -
ANSWER-$0
D has a single family home located at a permanent residency. The type of coverage
that D has is considered to be: - ANSWER-Specific
Which of the following is true regarding contractors equipment floaters? - ANSWER-
Portable heavy machinery is covered as it is being transported
