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PEARSON VUE: CASUALTY INSURANCE PRACTICE
EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS
An insured may cancel a Personal Auto Policy by taking which of
the following actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone - ANSWER C
In insurance, which of the following terms refers to continuous
or repeated exposure to conditions that may result in bodily
injury or damage neither expected nor intended?
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A. An accident
B. An occurrence
C. An event
D. A condition - ANSWER B
Which of the following vehicles is considered a temporary
substitute auto under a Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an
errand
B. An auto purchased by an insured to replace a previously
owned vehicle
C. An auto rented by an insured when the insured is on vacation
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D. An auto rented by an insured when the insured's car is in a
garage for repairs - ANSWER D
An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final
settlement
D. temporary short-term evidence of coverage - ANSWER D
Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
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C. direct loss
D. indirect loss - ANSWER B
The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history
prior to underwriting a policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history
prior to issuing a policy
D. insurance company to inform the applicant a credit report
may be obtained - ANSWER D
The limits of liability are found in which of the following
sections of a casualty policy?
PEARSON VUE: CASUALTY INSURANCE PRACTICE
EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS
An insured may cancel a Personal Auto Policy by taking which of
the following actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone - ANSWER C
In insurance, which of the following terms refers to continuous
or repeated exposure to conditions that may result in bodily
injury or damage neither expected nor intended?
,2|Page
A. An accident
B. An occurrence
C. An event
D. A condition - ANSWER B
Which of the following vehicles is considered a temporary
substitute auto under a Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an
errand
B. An auto purchased by an insured to replace a previously
owned vehicle
C. An auto rented by an insured when the insured is on vacation
,3|Page
D. An auto rented by an insured when the insured's car is in a
garage for repairs - ANSWER D
An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final
settlement
D. temporary short-term evidence of coverage - ANSWER D
Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
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C. direct loss
D. indirect loss - ANSWER B
The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history
prior to underwriting a policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history
prior to issuing a policy
D. insurance company to inform the applicant a credit report
may be obtained - ANSWER D
The limits of liability are found in which of the following
sections of a casualty policy?
