Page 1 of 35
NE NEBRASKA PROPERTY AND CASUALTY TEST
COMPLETE 250 QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR
In a participation plan, the insured may be eligible for which of the following?a)Lower
premiums
b)Guaranteed dividends
c)A partial premium refund
d)An increase in insurance over time
c)A partial premium refund
All of the following statements concerning coinsurance are true EXCEPT
a)The coinsurance formula will also be applied to total losses.
b)It is used to help adequacy and equity in rates.
c)The insured agrees to maintain insurance equal to some specified percentage of the value
of the property.
d)If the insurance carried is less than required, the insurance may not cover the whole loss.
a)The coinsurance formula will also be applied to total losses.
Which of the following is used in the formula for calculating the actual cash value of a
property?
a)Fair market value
b)Agreed value
c)Replacement cost
d)Stated value
c)Replacement cost
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Which of the following provides insurance coverage for sickness, bodily injury, or accidental
death and may include benefits for disability income?
a)Life
b)Medical and Accident
c)Accidental Death and Dismemberment
d)Accident and Health or Sickness
d)Accident and Health or Sickness
Which of the following is an example of a producer being involved in an unfair trade practice
of rebating?
a)Telling a client that his first premium will be waived if he purchases the insurance policy
today
b)Inducing the insured to drop a policy in favor of another one when it is not in the insured's
best interest
c)Charging a client a higher premium for the same policy as another client in the same
insuring class
d)Making deceptive statements about a competitor
a)Telling a client that his first premium will be waived if he purchases the insurance policy
today
Under the business auto coverage form, mobile equipment is covered for liability insurance
a)When being carried or towed by a covered auto.
b)On an excess basis.
c)When listed on the declarations.
d)When coverage is written as Symbol 1.
a)When being carried or towed by a covered auto.
In a dwelling policy, which of the following other structures would be covered?
a)Used by the insured to house a manufacturing operation
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,Page 3 of 35
b)Rented to a neighbor for use as a private garage
c)Used as part of a farming operation
d)Used by the insured in which to operate a retail business
b)Rented to a neighbor for use as a private garage
Under which of the following circumstances would an insurer be allowed to cancel a dwelling
policy midterm?
a)The insured reached the limit on the number of claims.
b)The insured knowingly misstated the age of the property on the policy application.
c)The insured's claims have exceeded the amount of coverage.
d)The insured wants to make increases to coverage.
b)The insured knowingly misstated the age of the property on the policy application.
All of the following are considered pollutants, as defined under Section I - Property of the
Businessowners policy, EXCEPT
a)Fire.
b)Soot.
c)Fumes.
d)Vapor.
a)Fire.
In addition to the common policy conditions, all of the following conditions apply to liability
coverage EXCEPT
a)Employers liability.
b)Separation of insured.
c)Legal action against insurer.
d)Bankruptcy.
a)Employers liability.
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Which of the following is NOT considered a misrepresentation as it pertains to unfair trade
practices?
a)Stating that the insurance policy is a share of stock
b)Exaggerating the benefits provided in the policy
c)Stating that the competitors will arbitrarily increase their premiums each year
d)Making comparisons between different policies
d)Making comparisons between different policies
#5. Which of the following perils is covered under both the basic form and broad form
dwelling policies?
a)Weight of ice, snow, or sleet
b)Freezing of plumbing, heating, or air conditioning systems
c)Internal explosion
d)Falling objects
c)Internal explosion
#13. A premium discount is the term that describes when an insured owes a total standard
premium greater than
a)$10,000.
b)$15,000.
c)$1,000.
d)$5,000.
d)$5,000.
It is considered to be an unfair claims settlement practice if an insurer fails to provide the
insured forms necessary to present claims within
a)15 working days of receipt.
b)15 calendar days of receipt.
4
NE NEBRASKA PROPERTY AND CASUALTY TEST
COMPLETE 250 QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR
In a participation plan, the insured may be eligible for which of the following?a)Lower
premiums
b)Guaranteed dividends
c)A partial premium refund
d)An increase in insurance over time
c)A partial premium refund
All of the following statements concerning coinsurance are true EXCEPT
a)The coinsurance formula will also be applied to total losses.
b)It is used to help adequacy and equity in rates.
c)The insured agrees to maintain insurance equal to some specified percentage of the value
of the property.
d)If the insurance carried is less than required, the insurance may not cover the whole loss.
a)The coinsurance formula will also be applied to total losses.
Which of the following is used in the formula for calculating the actual cash value of a
property?
a)Fair market value
b)Agreed value
c)Replacement cost
d)Stated value
c)Replacement cost
1
,Page 2 of 35
Which of the following provides insurance coverage for sickness, bodily injury, or accidental
death and may include benefits for disability income?
a)Life
b)Medical and Accident
c)Accidental Death and Dismemberment
d)Accident and Health or Sickness
d)Accident and Health or Sickness
Which of the following is an example of a producer being involved in an unfair trade practice
of rebating?
a)Telling a client that his first premium will be waived if he purchases the insurance policy
today
b)Inducing the insured to drop a policy in favor of another one when it is not in the insured's
best interest
c)Charging a client a higher premium for the same policy as another client in the same
insuring class
d)Making deceptive statements about a competitor
a)Telling a client that his first premium will be waived if he purchases the insurance policy
today
Under the business auto coverage form, mobile equipment is covered for liability insurance
a)When being carried or towed by a covered auto.
b)On an excess basis.
c)When listed on the declarations.
d)When coverage is written as Symbol 1.
a)When being carried or towed by a covered auto.
In a dwelling policy, which of the following other structures would be covered?
a)Used by the insured to house a manufacturing operation
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,Page 3 of 35
b)Rented to a neighbor for use as a private garage
c)Used as part of a farming operation
d)Used by the insured in which to operate a retail business
b)Rented to a neighbor for use as a private garage
Under which of the following circumstances would an insurer be allowed to cancel a dwelling
policy midterm?
a)The insured reached the limit on the number of claims.
b)The insured knowingly misstated the age of the property on the policy application.
c)The insured's claims have exceeded the amount of coverage.
d)The insured wants to make increases to coverage.
b)The insured knowingly misstated the age of the property on the policy application.
All of the following are considered pollutants, as defined under Section I - Property of the
Businessowners policy, EXCEPT
a)Fire.
b)Soot.
c)Fumes.
d)Vapor.
a)Fire.
In addition to the common policy conditions, all of the following conditions apply to liability
coverage EXCEPT
a)Employers liability.
b)Separation of insured.
c)Legal action against insurer.
d)Bankruptcy.
a)Employers liability.
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, Page 4 of 35
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade
practices?
a)Stating that the insurance policy is a share of stock
b)Exaggerating the benefits provided in the policy
c)Stating that the competitors will arbitrarily increase their premiums each year
d)Making comparisons between different policies
d)Making comparisons between different policies
#5. Which of the following perils is covered under both the basic form and broad form
dwelling policies?
a)Weight of ice, snow, or sleet
b)Freezing of plumbing, heating, or air conditioning systems
c)Internal explosion
d)Falling objects
c)Internal explosion
#13. A premium discount is the term that describes when an insured owes a total standard
premium greater than
a)$10,000.
b)$15,000.
c)$1,000.
d)$5,000.
d)$5,000.
It is considered to be an unfair claims settlement practice if an insurer fails to provide the
insured forms necessary to present claims within
a)15 working days of receipt.
b)15 calendar days of receipt.
4
