1
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Property and Casualty Insurance
Questions and Answers (100% Correct
Answers) Already Graded A+
Under a dwelling policy, an insured tenant may use up to what
percentage of the Coverage C limit of insurance for a covered
loss to improvements, alterations, and additions made at the
insured's expense to that part of the described location occupied
© 2025 Assignment Expert
by the named insured? [ Ans: ] 10%
Which of the following residents in the insured's dwelling is eligible
to receive medical payments under Section II of a Homeowners
Policy? [ Ans: ] A residence employee
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Coverage B of a dwelling policy will not apply to a detached
garage if which of the following is being stored? [ Ans: ] A helium
tank used for the insured's business
All the following injuries are covered under a Workers'
Compensation policy, except: [ Ans: ] An employee whose injury
results from intoxication
In which section of the BOP would coverage for equipment
breakdown be found? [ Ans: ] Optional coverages
All of the following statements regarding property insurance
terminology are true, except: [ Ans: ] Proximate cause is a
secondary cause of loss
Which of the following is true about the National Flood Insurance
Program? [ Ans: ] Property removed to protect it from flood is
covered for 45 days at other locations
What is the term for the first event in the unbroken chain of events,
that resulted in a loss? [ Ans: ] The Proximate Cause
The maximum liability assumed by the Property and Casualty
Insurance Guaranty Association with regard to an individual
, 2
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insured is no more than: [ Ans: ] The amount of each claim, up to
$300,000 per claim
Which of the following is true concerning the Premium Audit
condition of the Commercial General Coverage Part to the
Commercial Package Policy? [ Ans: ] Premium audit determines
what the earned premium will be at the end of the policy period
All of the following are true about liability, except: [ Ans: ] Liability
policies pay costs incurred by an insured to sue negligent third
parties
A property purchased 10 years ago for $100,000 has a
replacement value today of $200,000. It has depreciated 3% each
© 2025 Assignment Expert
year. What is today's actual cash value? [ Ans: ] $140,000
Ocean marine hull insurance covers a vessel for: [ Ans: ] Physical
damage
Guru01 - Stuvia
Which of the following vehicles would be excluded under the
Personal Auto Policy? [ Ans: ] A motorcycle
The Building and Personal Property Coverage Form does not cover
which of the following? [ Ans: ] Liability
Which of the following coverage forms covers the cost of
replacing or reproducing documents that are important for the
continuation of business such as books, files, and maps? [ Ans: ]
Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the
following are included, except: [ Ans: ] Pets belonging to the
insured
Which of the following is not a valid reason to cancel a personal
auto policy after the first 60 days of coverage? [ Ans: ] Claims
history
All of the following are excluded under the BOP, except: [ Ans: ]
Increased cost of construction
Under a Building and Personal Property Coverage Form, up to
what percent of a partial loss would be available for debris
removal? [ Ans: ] 25%
, 3
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Which statement is true of the Equipment Breakdown Protection
Coverage Form? [ Ans: ] It may be written as a coverage part of
the Commercial Package Policy
Which of the following is not covered under the Building and
Personal Property Coverage Form? [ Ans: ] Liability
What is the limit of insurance available under an HO-3 policy for a
tree totally damaged in a hail storm? [ Ans: ] 0%
The following statements regarding hazards are all correct,
except: [ Ans: ] A moral hazard arises from an attitude of
indifference to loss
When an applicant intentionally fails to make a material fact
© 2025 Assignment Expert
known, it is known as: [ Ans: ] Concealment
The shifting of risk of loss to another party is known as which of the
following? [ Ans: ] Risk transfer
Guru01 - Stuvia
An insured with a $500,000 HO-5 policy incurs $1,500 in damages
due to a flood destroying the wood flooring. The policy will pay: [
Ans: ] Zero
Proximate cause refers to: [ Ans: ] An unbroken chain of events
leading to a loss, that were initiated in a negligent act of
wrongdoing
The standard policy structure for insurance policies includes all of
the following sections, except: [ Ans: ] Duties
Choose the true statement about the Basic Dwelling Form. [ Ans:
] The Basic Form covers internal explosion
An entity who owns a fleet of trucks and hauls its own goods
should purchase: [ Ans: ] A Motor Truck Cargo Owners Form
Which of the following is true regarding the Business Auto
Coverage Form? [ Ans: ] The main distinction between a hired
auto and a non-owned auto is whether or not the auto is owned
by an employee
For Expert help and assignment solutions, +254707240657
Property and Casualty Insurance
Questions and Answers (100% Correct
Answers) Already Graded A+
Under a dwelling policy, an insured tenant may use up to what
percentage of the Coverage C limit of insurance for a covered
loss to improvements, alterations, and additions made at the
insured's expense to that part of the described location occupied
© 2025 Assignment Expert
by the named insured? [ Ans: ] 10%
Which of the following residents in the insured's dwelling is eligible
to receive medical payments under Section II of a Homeowners
Policy? [ Ans: ] A residence employee
Guru01 - Stuvia
Coverage B of a dwelling policy will not apply to a detached
garage if which of the following is being stored? [ Ans: ] A helium
tank used for the insured's business
All the following injuries are covered under a Workers'
Compensation policy, except: [ Ans: ] An employee whose injury
results from intoxication
In which section of the BOP would coverage for equipment
breakdown be found? [ Ans: ] Optional coverages
All of the following statements regarding property insurance
terminology are true, except: [ Ans: ] Proximate cause is a
secondary cause of loss
Which of the following is true about the National Flood Insurance
Program? [ Ans: ] Property removed to protect it from flood is
covered for 45 days at other locations
What is the term for the first event in the unbroken chain of events,
that resulted in a loss? [ Ans: ] The Proximate Cause
The maximum liability assumed by the Property and Casualty
Insurance Guaranty Association with regard to an individual
, 2
For Expert help and assignment solutions, +254707240657
insured is no more than: [ Ans: ] The amount of each claim, up to
$300,000 per claim
Which of the following is true concerning the Premium Audit
condition of the Commercial General Coverage Part to the
Commercial Package Policy? [ Ans: ] Premium audit determines
what the earned premium will be at the end of the policy period
All of the following are true about liability, except: [ Ans: ] Liability
policies pay costs incurred by an insured to sue negligent third
parties
A property purchased 10 years ago for $100,000 has a
replacement value today of $200,000. It has depreciated 3% each
© 2025 Assignment Expert
year. What is today's actual cash value? [ Ans: ] $140,000
Ocean marine hull insurance covers a vessel for: [ Ans: ] Physical
damage
Guru01 - Stuvia
Which of the following vehicles would be excluded under the
Personal Auto Policy? [ Ans: ] A motorcycle
The Building and Personal Property Coverage Form does not cover
which of the following? [ Ans: ] Liability
Which of the following coverage forms covers the cost of
replacing or reproducing documents that are important for the
continuation of business such as books, files, and maps? [ Ans: ]
Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the
following are included, except: [ Ans: ] Pets belonging to the
insured
Which of the following is not a valid reason to cancel a personal
auto policy after the first 60 days of coverage? [ Ans: ] Claims
history
All of the following are excluded under the BOP, except: [ Ans: ]
Increased cost of construction
Under a Building and Personal Property Coverage Form, up to
what percent of a partial loss would be available for debris
removal? [ Ans: ] 25%
, 3
For Expert help and assignment solutions, +254707240657
Which statement is true of the Equipment Breakdown Protection
Coverage Form? [ Ans: ] It may be written as a coverage part of
the Commercial Package Policy
Which of the following is not covered under the Building and
Personal Property Coverage Form? [ Ans: ] Liability
What is the limit of insurance available under an HO-3 policy for a
tree totally damaged in a hail storm? [ Ans: ] 0%
The following statements regarding hazards are all correct,
except: [ Ans: ] A moral hazard arises from an attitude of
indifference to loss
When an applicant intentionally fails to make a material fact
© 2025 Assignment Expert
known, it is known as: [ Ans: ] Concealment
The shifting of risk of loss to another party is known as which of the
following? [ Ans: ] Risk transfer
Guru01 - Stuvia
An insured with a $500,000 HO-5 policy incurs $1,500 in damages
due to a flood destroying the wood flooring. The policy will pay: [
Ans: ] Zero
Proximate cause refers to: [ Ans: ] An unbroken chain of events
leading to a loss, that were initiated in a negligent act of
wrongdoing
The standard policy structure for insurance policies includes all of
the following sections, except: [ Ans: ] Duties
Choose the true statement about the Basic Dwelling Form. [ Ans:
] The Basic Form covers internal explosion
An entity who owns a fleet of trucks and hauls its own goods
should purchase: [ Ans: ] A Motor Truck Cargo Owners Form
Which of the following is true regarding the Business Auto
Coverage Form? [ Ans: ] The main distinction between a hired
auto and a non-owned auto is whether or not the auto is owned
by an employee
