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Casualty Insurance Exam Questions with Detailed
Verified Answers
Employee theft coverage may be written as
Ans: a) Blanket coverage.
b) Name schedule coverage.
c) Position schedule coverage.
d) Any of the above.
Employee theft may be written as any of the above forms.
An insured is applying for a casualty insurance policy. One of the conditions of the
policy allows the insurance company to inspect the insured's books at the end of the
policy term to make sure sufficient premium has been collected for the exposure she
plans to insure. Which condition is part of the insured's policy?
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Ans: *a) Deposit premium audit
b) Excess liability coverage
c) Contract Bond
d) Errors and Omissions insurance
Deposit premium audit is a condition that allows an insurer to inspect the insured's
books at the end of the policy term to make sure sufficient payment has been collected
for the exposure.
Which of the following would be named on the declarations page of a property or
liability policy?
Ans: a) Additional insureds
*b) First named insured
c) Beneficiaries
d) All insureds
First named insured is the individual whose name appears first on the policy's
declaration.
All of the following are true statements regarding the supplementary payments of a
commercial general liability policy EXCEPT
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Ans: a) They pay pre-judgment and post-judgment interest.
b) They pay all reasonable costs incurred by the insured in helping to investigate or
defend a claim.
*c) They pay defense costs even after the aggregate limit has been reached.
d) They pay all expenses incurred by the insurer.
Once the aggregate has been reached, the insurer will not be responsible for paying
further claims; therefore, the insurer no longer pays to defend.
What is the deductible of a personal liability umbrella policy called?
Ans: a) The PIL
b) The CGL
c) The CPP
d) The SIR
The self-insured retention (SIR) is an initial part of a loss the insured pays before the
umbrella pays if no other policy covers the loss.
Which of the following statements is true regarding the commercial general liability
policy's Coverage C - Medical Payments?
© Get it right 2025 Getaway - Stuvia US All rights reserved
Casualty Insurance Exam Questions with Detailed
Verified Answers
Employee theft coverage may be written as
Ans: a) Blanket coverage.
b) Name schedule coverage.
c) Position schedule coverage.
d) Any of the above.
Employee theft may be written as any of the above forms.
An insured is applying for a casualty insurance policy. One of the conditions of the
policy allows the insurance company to inspect the insured's books at the end of the
policy term to make sure sufficient premium has been collected for the exposure she
plans to insure. Which condition is part of the insured's policy?
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Ans: *a) Deposit premium audit
b) Excess liability coverage
c) Contract Bond
d) Errors and Omissions insurance
Deposit premium audit is a condition that allows an insurer to inspect the insured's
books at the end of the policy term to make sure sufficient payment has been collected
for the exposure.
Which of the following would be named on the declarations page of a property or
liability policy?
Ans: a) Additional insureds
*b) First named insured
c) Beneficiaries
d) All insureds
First named insured is the individual whose name appears first on the policy's
declaration.
All of the following are true statements regarding the supplementary payments of a
commercial general liability policy EXCEPT
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Ans: a) They pay pre-judgment and post-judgment interest.
b) They pay all reasonable costs incurred by the insured in helping to investigate or
defend a claim.
*c) They pay defense costs even after the aggregate limit has been reached.
d) They pay all expenses incurred by the insurer.
Once the aggregate has been reached, the insurer will not be responsible for paying
further claims; therefore, the insurer no longer pays to defend.
What is the deductible of a personal liability umbrella policy called?
Ans: a) The PIL
b) The CGL
c) The CPP
d) The SIR
The self-insured retention (SIR) is an initial part of a loss the insured pays before the
umbrella pays if no other policy covers the loss.
Which of the following statements is true regarding the commercial general liability
policy's Coverage C - Medical Payments?
© Get it right 2025 Getaway - Stuvia US All rights reserved
