Property and Casualty Insurance
Mastery Exam A with solved questions
An insured rents a car while on vacation in Canada and causes an accident. Is there
coverage under his personal auto policy? - answersThe loss is covered under an
unendorsed personal auto policy.
Under the workers' compensation laws, which of the following would NOT be covered? -
answersHeart-related illness resulting from hereditary causes
An insurance policy covers fire, will not cover nuclear contamination, and loss must be
reported as soon as possible. In this order, where are these facts found in the policy? -
answersInsuring agreement, exclusions, and conditions
Which of the following principles holds that a person should not profit by collecting on
insurance? - answersPrinciple of indemnity
Which of the following is NOT a benefit of workers' compensation insurance? -
answersPain and suffering
The building and personal property form covers all the following EXCEPT -
answershighway billboards
The personal auto policy's comprehensive physical damage coverage covers all of the
following EXC - answersfreezing
Who is responsible for controlling the content, form, and distribution of insurance policy
advertisements? - answersThe insurer
An automobile policy may be canceled for any of the following reasons EXCEPT -
answersbeing involved in a hit-and-run accident for which the insured was not at fault
The Terrorism Risk Insurance Act provides federal compensation for insured losses
resulting from acts of terrorism. All of the following would qualify as acts of terrorism
EXCEPT - answersacts causing property damage and loss of life in foreign countries
Which of the following is NOT a commercial general liability exposure? - answersOwned
investment portfolio
, Open peril coverage for both the dwelling and personal property is provided by the -
answersHO-5
All of the following would be covered property by the CPP building and personal
property form EXCEPT - answersbailee property
An agent license is renewed by paying the applicable renewal fee and completing -
answerscontinuing education
In an insurance transaction, who does a licensed agent legally represent? -
answersInsurer
The listing of the perils covered under a policy is found in - answersthe insuring
agreement
If a loss paid by a workers' compensation policy was caused by a negligent third party,
the insurer retains the right to - answerssubrogate
The term unoccupied means - answersthe insured has gone on vacation
States give an insurer permission to transact insurance with a certificate of -
answersauthority
Which of the following situations would most likely be covered by a commercial general
liability (CGL) policy? - answersA surfboard falls off a shelf and injures a shopper.
Which of the following is inland marine insurance? - answersCommercial property
floaters
Which of the following could be scheduled under a miscellaneous type vehicles
endorsement to the personal auto policy? - answersMotorcycle
Commingling refers to - answersimproperly mixing personal funds with insurer or
insured's funds
A commercial general liability "occurrence" policy provides coverage for a claim that
occurred - answersduring the policy period
Which of the following losses would NOT be paid under the liability coverage of the
homeowners policy? - answersThe named insured's son damages the family's garage
with his car.
Which of the following policy provisions allows the insured to immediately benefit from
any changes to coverage made during the policy period that would broaden coverage? -
answersLiberalization.
Mastery Exam A with solved questions
An insured rents a car while on vacation in Canada and causes an accident. Is there
coverage under his personal auto policy? - answersThe loss is covered under an
unendorsed personal auto policy.
Under the workers' compensation laws, which of the following would NOT be covered? -
answersHeart-related illness resulting from hereditary causes
An insurance policy covers fire, will not cover nuclear contamination, and loss must be
reported as soon as possible. In this order, where are these facts found in the policy? -
answersInsuring agreement, exclusions, and conditions
Which of the following principles holds that a person should not profit by collecting on
insurance? - answersPrinciple of indemnity
Which of the following is NOT a benefit of workers' compensation insurance? -
answersPain and suffering
The building and personal property form covers all the following EXCEPT -
answershighway billboards
The personal auto policy's comprehensive physical damage coverage covers all of the
following EXC - answersfreezing
Who is responsible for controlling the content, form, and distribution of insurance policy
advertisements? - answersThe insurer
An automobile policy may be canceled for any of the following reasons EXCEPT -
answersbeing involved in a hit-and-run accident for which the insured was not at fault
The Terrorism Risk Insurance Act provides federal compensation for insured losses
resulting from acts of terrorism. All of the following would qualify as acts of terrorism
EXCEPT - answersacts causing property damage and loss of life in foreign countries
Which of the following is NOT a commercial general liability exposure? - answersOwned
investment portfolio
, Open peril coverage for both the dwelling and personal property is provided by the -
answersHO-5
All of the following would be covered property by the CPP building and personal
property form EXCEPT - answersbailee property
An agent license is renewed by paying the applicable renewal fee and completing -
answerscontinuing education
In an insurance transaction, who does a licensed agent legally represent? -
answersInsurer
The listing of the perils covered under a policy is found in - answersthe insuring
agreement
If a loss paid by a workers' compensation policy was caused by a negligent third party,
the insurer retains the right to - answerssubrogate
The term unoccupied means - answersthe insured has gone on vacation
States give an insurer permission to transact insurance with a certificate of -
answersauthority
Which of the following situations would most likely be covered by a commercial general
liability (CGL) policy? - answersA surfboard falls off a shelf and injures a shopper.
Which of the following is inland marine insurance? - answersCommercial property
floaters
Which of the following could be scheduled under a miscellaneous type vehicles
endorsement to the personal auto policy? - answersMotorcycle
Commingling refers to - answersimproperly mixing personal funds with insurer or
insured's funds
A commercial general liability "occurrence" policy provides coverage for a claim that
occurred - answersduring the policy period
Which of the following losses would NOT be paid under the liability coverage of the
homeowners policy? - answersThe named insured's son damages the family's garage
with his car.
Which of the following policy provisions allows the insured to immediately benefit from
any changes to coverage made during the policy period that would broaden coverage? -
answersLiberalization.
