Property and Casualty Exam 324 Questions with Verified
Answers
Transfer of rights and duties under the policy - CORRECT ANSWER Which common
policy condition prohibits the insured from changing the rights or duties as
defined under the policy to any other person or entity without the written
consent of the insurance company?
Declarations - CORRECT ANSWER Which of the following is a mandatory part of an
insurance policy that varies with each individual policy?
Vicarious liability - CORRECT ANSWER Liability imposed on one party as a result of
the actions of another person is known as
Professional Liability - CORRECT ANSWER Under the coverage of which of the
following liability policies may an insured require the insurer to defend a claim?
The applicant's marital status - CORRECT ANSWER Which of the following would
NOT be considered a source of insurability information by an insurer?
Self-insured retention - CORRECT ANSWER In a personal umbrella policy, the
amount paid by the insured for certain losses not covered under the primary
coverage is called
The SIR - CORRECT ANSWER What is the deductible of a personal liability umbrella
policy called?
Equipment dealers coverage form - CORRECT ANSWER Individuals in the business
of selling construction equipment and mobile equipment should insure with a/an
There is no coverage - CORRECT ANSWER A specific coverage part is listed on the
commercial package policy declarations page, but there is no premium shown.
What does that mean?
,Stated Amount - CORRECT ANSWER A property insurance policy that is not
subject to any coinsurance requirements but has a set amount of insurance
scheduled for the property would use what loss valuation method?
Declarations - CORRECT ANSWER The part of a property policy that shows the
amount of insurance, premium, and policy term is the
Costs the insured incurred in hiring an attorney - CORRECT ANSWER All of the
following are supplemental payments found in liability policies EXCEPT
Volcanic Eruption - CORRECT ANSWER Besides the peril of earthquake, which
other peril is covered by the earthquake cause of loss form under a commercial
property policy?
Exclusions - CORRECT ANSWER The section of an insurance policy that details
what perils are not insured against and what persons are not insured is known as
the
The SIR - CORRECT ANSWER What is the deductible of a commercial liability
umbrella policy called?
Consideration - CORRECT ANSWER When an insured makes truthful statements
on the application for insurance and pays the required premium, it is known as
which of the following?
Blanket Position - CORRECT ANSWER Which of the following forms provides the
broadest coverage under an employee theft coverage form?
Directors and officers liability - CORRECT ANSWER Which of the following special
liability coverage will provide protection to managers of a corporation for claims
arising from a wrongful act committed by the manager while in an official
capacity?
Subrogation - CORRECT ANSWER The policy provision found in property insurance
policies that prevents the insured from collecting twice for the same loss is called
,$5,000 - CORRECT ANSWER A premium discount is the term that describes when
an insured owes a total standard premium greater than
Nothing - CORRECT ANSWER A home is insured under an HO-2 policy. The
homeowner decides to replace the roof on the house. He wasn't able to complete
the roof in one day and left a portion of it unfinished overnight. A heavy rainstorm
caused $20,000 of damage to the interior of the house and some furniture. In this
situation, the policy will pay
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds - CORRECT
ANSWER Supplementary payments on a CGL provide all of the following EXCEPT
The injury or damage must occur within 90 days after the insured's work is
completed - CORRECT ANSWER All of the following conditions must exist for
injury or damage to be included in the products and completed operations hazard
of a commercial general liability policy EXCEPT
Anyone while using, with permission, a covered auto owned by the named
insured - CORRECT ANSWER Which of the following would be considered an
insured under a business auto coverage form?
$500 - CORRECT ANSWER If an insured covered under a Mobile Homeowners
Policy moves the mobile home to protect it from a covered peril, the policy will
pay up to
Insured's business premises - CORRECT ANSWER Which of the following would be
covered under the Garage Liability Coverage Form?
Loss by vandalism and malicious mischief is excluded - CORRECT ANSWER A house
insured under a dwelling policy has been vacant for 70 consecutive days. Which of
the following statements is true?
Stated amount - CORRECT ANSWER When the amount of insurance written in a
property policy is not subject to any coinsurance provision and that amount is
paid in the event of a covered loss, the coverage is said to be written as
, Vicarious liability - CORRECT ANSWER When a parent is required to pay for
damages caused by his or her children, this is an example of
Symbol 5 - CORRECT ANSWER Which of the following symbols is available to an
insured with vehicles subject to no-fault coverage?
Insurance Premium Paid - CORRECT ANSWER All of the following are factors in the
determination of actual cash value EXCEPT
The Fair Credit Reporting Act - CORRECT ANSWER Which of the following protects
consumers against the circulation of inaccurate or obsolete personal or financial
information?
The insured's camera if it is stolen while the insured is on vacation - CORRECT
ANSWER Personal property coverage under a homeowners policy would cover
Contractors equipment floater - CORRECT ANSWER An individual's construction
company leaves mobile equipment and construction machinery on the job site
until the project is completed. What could this individual use to insure it?
When the other party is legally liable but has no insurance - CORRECT ANSWER
When would uninsured motorist coverage apply?
Insured - CORRECT ANSWER Who is responsible for filling out a notice of claim
form?
They are automatically provided with replacement cost coverage - CORRECT
ANSWER Which of the following is true regarding single dwellings that are insured
to at least 80% of the replacement value?
Events or conditions that increase the chances of an insured loss occurring are
referred to as - CORRECT ANSWER Hazards
Special and general - CORRECT ANSWER What are the two types of compensatory
damages?
Answers
Transfer of rights and duties under the policy - CORRECT ANSWER Which common
policy condition prohibits the insured from changing the rights or duties as
defined under the policy to any other person or entity without the written
consent of the insurance company?
Declarations - CORRECT ANSWER Which of the following is a mandatory part of an
insurance policy that varies with each individual policy?
Vicarious liability - CORRECT ANSWER Liability imposed on one party as a result of
the actions of another person is known as
Professional Liability - CORRECT ANSWER Under the coverage of which of the
following liability policies may an insured require the insurer to defend a claim?
The applicant's marital status - CORRECT ANSWER Which of the following would
NOT be considered a source of insurability information by an insurer?
Self-insured retention - CORRECT ANSWER In a personal umbrella policy, the
amount paid by the insured for certain losses not covered under the primary
coverage is called
The SIR - CORRECT ANSWER What is the deductible of a personal liability umbrella
policy called?
Equipment dealers coverage form - CORRECT ANSWER Individuals in the business
of selling construction equipment and mobile equipment should insure with a/an
There is no coverage - CORRECT ANSWER A specific coverage part is listed on the
commercial package policy declarations page, but there is no premium shown.
What does that mean?
,Stated Amount - CORRECT ANSWER A property insurance policy that is not
subject to any coinsurance requirements but has a set amount of insurance
scheduled for the property would use what loss valuation method?
Declarations - CORRECT ANSWER The part of a property policy that shows the
amount of insurance, premium, and policy term is the
Costs the insured incurred in hiring an attorney - CORRECT ANSWER All of the
following are supplemental payments found in liability policies EXCEPT
Volcanic Eruption - CORRECT ANSWER Besides the peril of earthquake, which
other peril is covered by the earthquake cause of loss form under a commercial
property policy?
Exclusions - CORRECT ANSWER The section of an insurance policy that details
what perils are not insured against and what persons are not insured is known as
the
The SIR - CORRECT ANSWER What is the deductible of a commercial liability
umbrella policy called?
Consideration - CORRECT ANSWER When an insured makes truthful statements
on the application for insurance and pays the required premium, it is known as
which of the following?
Blanket Position - CORRECT ANSWER Which of the following forms provides the
broadest coverage under an employee theft coverage form?
Directors and officers liability - CORRECT ANSWER Which of the following special
liability coverage will provide protection to managers of a corporation for claims
arising from a wrongful act committed by the manager while in an official
capacity?
Subrogation - CORRECT ANSWER The policy provision found in property insurance
policies that prevents the insured from collecting twice for the same loss is called
,$5,000 - CORRECT ANSWER A premium discount is the term that describes when
an insured owes a total standard premium greater than
Nothing - CORRECT ANSWER A home is insured under an HO-2 policy. The
homeowner decides to replace the roof on the house. He wasn't able to complete
the roof in one day and left a portion of it unfinished overnight. A heavy rainstorm
caused $20,000 of damage to the interior of the house and some furniture. In this
situation, the policy will pay
Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds - CORRECT
ANSWER Supplementary payments on a CGL provide all of the following EXCEPT
The injury or damage must occur within 90 days after the insured's work is
completed - CORRECT ANSWER All of the following conditions must exist for
injury or damage to be included in the products and completed operations hazard
of a commercial general liability policy EXCEPT
Anyone while using, with permission, a covered auto owned by the named
insured - CORRECT ANSWER Which of the following would be considered an
insured under a business auto coverage form?
$500 - CORRECT ANSWER If an insured covered under a Mobile Homeowners
Policy moves the mobile home to protect it from a covered peril, the policy will
pay up to
Insured's business premises - CORRECT ANSWER Which of the following would be
covered under the Garage Liability Coverage Form?
Loss by vandalism and malicious mischief is excluded - CORRECT ANSWER A house
insured under a dwelling policy has been vacant for 70 consecutive days. Which of
the following statements is true?
Stated amount - CORRECT ANSWER When the amount of insurance written in a
property policy is not subject to any coinsurance provision and that amount is
paid in the event of a covered loss, the coverage is said to be written as
, Vicarious liability - CORRECT ANSWER When a parent is required to pay for
damages caused by his or her children, this is an example of
Symbol 5 - CORRECT ANSWER Which of the following symbols is available to an
insured with vehicles subject to no-fault coverage?
Insurance Premium Paid - CORRECT ANSWER All of the following are factors in the
determination of actual cash value EXCEPT
The Fair Credit Reporting Act - CORRECT ANSWER Which of the following protects
consumers against the circulation of inaccurate or obsolete personal or financial
information?
The insured's camera if it is stolen while the insured is on vacation - CORRECT
ANSWER Personal property coverage under a homeowners policy would cover
Contractors equipment floater - CORRECT ANSWER An individual's construction
company leaves mobile equipment and construction machinery on the job site
until the project is completed. What could this individual use to insure it?
When the other party is legally liable but has no insurance - CORRECT ANSWER
When would uninsured motorist coverage apply?
Insured - CORRECT ANSWER Who is responsible for filling out a notice of claim
form?
They are automatically provided with replacement cost coverage - CORRECT
ANSWER Which of the following is true regarding single dwellings that are insured
to at least 80% of the replacement value?
Events or conditions that increase the chances of an insured loss occurring are
referred to as - CORRECT ANSWER Hazards
Special and general - CORRECT ANSWER What are the two types of compensatory
damages?
