Property and Casualty Exam
1. the one basic characteristic of any type of insurance is that the insured
is returned to the same status that existed prior to the loss, but without a
chance for gain or profit: true
2. which of the following coverages does an open peril policy provide?: perils
other than those specifically named as being excluded
3. determine the actual cash value in the following situation: original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount
at time of fire-5,000 current replacement cost 12,000: 7,000
4. liquor liability: need for a dram shot, liquor, or package store
5. inherent vice or defect: iron rusting, milk going sour, rubber breaking down are
all inherent vices
6. how is hitting an animal on the road covered?: other than collision otc
7. medicare supplement insurance: aka medical gap insurance. must include
1/7
,core benefits
8. ordinance or law: an endorsement for building code upgrades
9. loss sustained/discovery forms under crime coverage: loss is for later than
the policy period. discovery is for before the policy (loss is later, discovery before)
10. designated brush fire or civil unrest areas: qualifying areas under the fair
plan
11. stop loss provision: used in health insurance to limit the maximum amount
of money the insured would have to pay out of pocket on a health claim in any
particular claim
12. shortages of inventory: under crime insurance the employee dishonesty
endorsement never covers
13. can the mortgagee still collect if the insured burns their house down: yes,
the mortgage clause is a standard provision
14. otc covers: earthquake, flood, hail, theft, hitting an animal, gunshots (no
2/7
, collision or upset)
15. law of large numbers: the greater the number of insured the more accurately
the prediction
16. where does a driver have coverage?: U.S. Canada and US possessions eg
puerto rico, guam
3/7
1. the one basic characteristic of any type of insurance is that the insured
is returned to the same status that existed prior to the loss, but without a
chance for gain or profit: true
2. which of the following coverages does an open peril policy provide?: perils
other than those specifically named as being excluded
3. determine the actual cash value in the following situation: original price of
office equiptment when purchased 8 years ago- 9,000. depreciated amount
at time of fire-5,000 current replacement cost 12,000: 7,000
4. liquor liability: need for a dram shot, liquor, or package store
5. inherent vice or defect: iron rusting, milk going sour, rubber breaking down are
all inherent vices
6. how is hitting an animal on the road covered?: other than collision otc
7. medicare supplement insurance: aka medical gap insurance. must include
1/7
,core benefits
8. ordinance or law: an endorsement for building code upgrades
9. loss sustained/discovery forms under crime coverage: loss is for later than
the policy period. discovery is for before the policy (loss is later, discovery before)
10. designated brush fire or civil unrest areas: qualifying areas under the fair
plan
11. stop loss provision: used in health insurance to limit the maximum amount
of money the insured would have to pay out of pocket on a health claim in any
particular claim
12. shortages of inventory: under crime insurance the employee dishonesty
endorsement never covers
13. can the mortgagee still collect if the insured burns their house down: yes,
the mortgage clause is a standard provision
14. otc covers: earthquake, flood, hail, theft, hitting an animal, gunshots (no
2/7
, collision or upset)
15. law of large numbers: the greater the number of insured the more accurately
the prediction
16. where does a driver have coverage?: U.S. Canada and US possessions eg
puerto rico, guam
3/7
