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SOUTH CAROLINA PROPERTY & CASUALTY EXAM
COMPLETE 400 QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR
QUESTION: Cindy and Hal own a commercial building. Cindy asks the Insurer to increase the
coverage but Hal objects. What should the Insurer do?
a. Comply with the desire of whichever insured is named first in the policy's declarations
b. Reject the request until both parties agree on the issue
c. Comply with the desire of whichever insured is named last in the policy's declarations
d. Refer the matter to the state insurance commissioner - ANSWER-A
QUESTION: A peril is:
a. Any factor which increases the likelihood of a loss
b. The proximate cause of the loss - ANSWER-B
QUESTION: The Insurer's incurred losses divided by earned premium is the:
a. Loss ratio
b. Efficiency ratio
c. Profit margin
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d. Rate - ANSWER-A
QUESTION: Any condition increasing the chance of loss is a:
a. Risk
b. Hazard - ANSWER-B
QUESTION: The beginning of the policy period is referred to as the:
a. Beginning date
b. Inception date
c. Effective date
d. Expiration date - ANSWER-C
QUESTION: A loose handrail on a staircase is a:
a. Peril
b. Hazard - ANSWER-B
QUESTION: The amount an insured may recover under an airplane policy is restricted by the:
a. Subrogation provision
b. Limit of liability - ANSWER-B
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QUESTION: Under the Other Insurance Clause, if the Insured is covered by two policies, what
will happen if a loss occurs?
a. Each policy will pay a part of the loss
b. Each policy must pay in full - ANSWER-A
QUESTION: The Other Insurance Clause:
a. Upholds the principle of indemnity
b. Prohibits other insurance on the same property
c. Allows more than one person to be insured under the policy
d. Allows coverage for catastrophic losses - ANSWER-A
QUESTION: The named Insured is identified in which section of the policy?
a. Exclusions
b. Insuring Agreements
c. Conditions
d. Declaration - ANSWER-D
QUESTION: Exclusions are designed to do each of the following EXCEPT:
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a. Indemnify the Insured
b. Reduce moral hazards
c. Eliminate catastrophic perils
d. Reduce physical hazards - ANSWER-A
QUESTION: A sworn statement containing information regarding the claim is:
a. Assignment
b. Proof of loss - ANSWER-B
QUESTION: Which section of the policy contains the Insured's right to bring legal action against
the Insurer?
a. Declaration
b. Conditions
c. Exclusions
d. Insuring Agreements - ANSWER-B
QUESTION: Which section of the policy contains the policy limits?
a. Conditions
b. Exclusions
4
SOUTH CAROLINA PROPERTY & CASUALTY EXAM
COMPLETE 400 QUESTIONS AND DETAILED
SOLUTIONS LATEST UPDATE THIS YEAR
QUESTION: Cindy and Hal own a commercial building. Cindy asks the Insurer to increase the
coverage but Hal objects. What should the Insurer do?
a. Comply with the desire of whichever insured is named first in the policy's declarations
b. Reject the request until both parties agree on the issue
c. Comply with the desire of whichever insured is named last in the policy's declarations
d. Refer the matter to the state insurance commissioner - ANSWER-A
QUESTION: A peril is:
a. Any factor which increases the likelihood of a loss
b. The proximate cause of the loss - ANSWER-B
QUESTION: The Insurer's incurred losses divided by earned premium is the:
a. Loss ratio
b. Efficiency ratio
c. Profit margin
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d. Rate - ANSWER-A
QUESTION: Any condition increasing the chance of loss is a:
a. Risk
b. Hazard - ANSWER-B
QUESTION: The beginning of the policy period is referred to as the:
a. Beginning date
b. Inception date
c. Effective date
d. Expiration date - ANSWER-C
QUESTION: A loose handrail on a staircase is a:
a. Peril
b. Hazard - ANSWER-B
QUESTION: The amount an insured may recover under an airplane policy is restricted by the:
a. Subrogation provision
b. Limit of liability - ANSWER-B
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QUESTION: Under the Other Insurance Clause, if the Insured is covered by two policies, what
will happen if a loss occurs?
a. Each policy will pay a part of the loss
b. Each policy must pay in full - ANSWER-A
QUESTION: The Other Insurance Clause:
a. Upholds the principle of indemnity
b. Prohibits other insurance on the same property
c. Allows more than one person to be insured under the policy
d. Allows coverage for catastrophic losses - ANSWER-A
QUESTION: The named Insured is identified in which section of the policy?
a. Exclusions
b. Insuring Agreements
c. Conditions
d. Declaration - ANSWER-D
QUESTION: Exclusions are designed to do each of the following EXCEPT:
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a. Indemnify the Insured
b. Reduce moral hazards
c. Eliminate catastrophic perils
d. Reduce physical hazards - ANSWER-A
QUESTION: A sworn statement containing information regarding the claim is:
a. Assignment
b. Proof of loss - ANSWER-B
QUESTION: Which section of the policy contains the Insured's right to bring legal action against
the Insurer?
a. Declaration
b. Conditions
c. Exclusions
d. Insuring Agreements - ANSWER-B
QUESTION: Which section of the policy contains the policy limits?
a. Conditions
b. Exclusions
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