Louisiana Property and Casualty Insurance Exam A, B & PRACTICE TEST 700 QUESTIONS AND CORRECT ANSWERS LATEST UPDATE THIS YEAR NEW!!

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Louisiana Property and Casualty Insurance Exam A,

B & PRACTICE TEST 700 QUESTIONS AND CORRECT

ANSWERS LATEST UPDATE THIS YEAR NEW!!
Louisiana Property and Casualty Insurance Exam


QUESTION: Which of the following statements is NOT true regarding a personal umbrella

liability policy?




a) It provides excess liability coverage over underlying personal liability.


b) It provides errors and omissions coverage for an agency.


c) It may cover certain exposures not provided under the primary layer.


d) It may require the payment of a self-insured retention. - ANSWER-b) It provides errors and

omissions coverage for an agency.




Personal umbrella policies cover the personal exposure of the insured. Errors and omissions

coverage is provided only in a professional liability policy.




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QUESTION: A mortgage company is named as a loss payee on the insured's homeowners policy,

under the standard mortgage clause. If the insured suffers a loss due to a fire, which of the

following is true?




a) The entire loss is payable to the insured.


b) The loss is payable to the insured and the mortgagee.


c) The mortgagee should submit a claim to its insurer, and the insured should submit a claim to

the HO policy.


d) The entire loss is payable to the mortgagee. - ANSWER-b) The loss is payable to the insured

and the mortgagee.




Loss is payable to the insured and mortgagee to protect the mortgage company's interest. This

prevents the insured from cashing the check and not completing repairs.




QUESTION: Under which type of coverage does the insurer agree to pay for bodily injury or

property damage liability which the insured has agreed to assume under a written contractual

agreement?




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a) Bodily injury liability policy


b) Contractual liability policy


c) Personal liability policy


d) Property damage liability policy - ANSWER-b) Contractual liability policy




With this coverage, the insurer agrees to pay for bodily injury or property damage liability

which the insured has agreed to assume under a written contractual agreement.




Q; Driver A has a personal auto policy with Part C: UM/UIM limits of 100/300. He is injured by

Driver B who has Part A: Bodily Injury Liability limits of 50/100. It is determined that Driver B is

at fault for the accident. Driver A has $125,000 in medical expenses. How much will his Part C:

UM/UIM coverage pay?




a) $125,000


b) $75,000


c) $50,000


d) $25,000 - ANSWER-c) $50,000


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Underinsured motorist coverage acts as excess over the at-fault motorist's coverage. It will pay

the difference between the insured's UIM limits and the at-fault driver's bodily injury limits (in

this scenario, $100,000 of the insured's coverage minus $50,000 of the other driver's). Because

of the per person limits of Driver A's underinsured motorist coverage, the policy will pay the

amount necessary to bring payment up to the per person limit. The policy will not pay more

than the limits of liability.




QUESTION: Because an insured owns a lot of expensive jewelry, her insurance agent has

advised her to purchase a scheduled personal property endorsement. If the insured adds this

endorsement to her homeowners policy, which of the following statements would be correct?




a) The endorsement becomes primary coverage and the HO contract is secondary.


b) Coverage C limits will no longer apply to the jewelry insured by the endorsement.


c) The amount of coverage will be doubled.


d) The endorsement becomes excess coverage. - ANSWER-b) Coverage C limits will no longer

apply to the jewelry insured by the endorsement.




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