ExamfX-final exam1 UPDATED ACTUAL
Questions and CORRECT Answers
1. A professional liability policy will provide coverage for loss in all of the following cases,
except, when the insured doctor was shown to be
(Choose from the following options)
1. Criminally negligent.
2. Incompetent.
3. Negligent.
4. Improperly trained. - CORRECT ANSWER - 4. Improperly trained.
Right answer
1. Criminally negligent.
2. Which of the following best describes the amount of loss assessment coverage included under
a homeowners policy liability coverage section?
(Choose from the following options)
1. Up to $10,000 aggregate for the policy period
2. Up to $5,000 aggregate for the policy period
3. Up to $1,000 per occurrence
4. Up to $2,500 per occurrence - CORRECT ANSWER - 1. Up to $10,000 aggregate for
the policy period
Right Answer
3. Up to $1,000 per occurrence
,3. Using an air-cooled engine, a proposed insured has developed a new, experimental aircraft. If
the inventor applies for liability insurance, what rating type will the insurer most likely use?
(Choose from the following options)
1. Class
2. Schedule
3. Merit
4. Judgment - CORRECT ANSWER - 4. Judgment
4. Which of the following departments is responsible for developing mortality and morbidity
tables?
(Choose from the following options)
1. Marketing
2. Underwriting
3. Secretarial
4. Actuarial - CORRECT ANSWER - 4. Actuarial
5. In order to become an admitted, authorized insurer, what is the primary body of law about
which an applicant company must be concerned?
(Choose from the following options)
1. California Penal Code
2. California Constitution
3. California Insurance Code
,4. California Business Code - CORRECT ANSWER - 3. California Insurance Code
6. All of the following statements concerning coinsurance are true, EXCEPT
(Choose from the following options)
1. It is used to help adequacy and equity in rates.
2. The insured agrees to maintain insurance equal to some specified percentage of the value of
the property.
3. If the insurance carried is less than required, the insurance may not cover the whole loss.
4. The coinsurance formula also will be applied to total losses. - CORRECT ANSWER - 4.
The coinsurance formula also will be applied to total losses.
7. With respect to auto insurance, the term owned autos includes all of the following EXCEPT
(Choose from the following options)
1. Any private passenger auto leased to the named insured for a period of more than 6 months.
2. A pickup or van titled to and used in the named insured's business.
3. Any private passenger auto titled to the named insured.
4. A pickup or van acquired by the named insured during the policy period. - CORRECT
ANSWER - 2. A pickup or van titled to and used in the named insured's business.
8. Which of the following would NOT be considered a flood?
(Choose from the following options)
1. Sewer backup
2. Overflow of tidal waters
, 3. Mudslides
4. Runoff of surface waters - CORRECT ANSWER - 1. Sewer backup
9. An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered
accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the
insured, $4,000 for the first passenger, and $8,000 for the third passenger. How much will the
policy pay under medical payments coverage?
(Choose from the following options)
1. $14,000
2. $15,000
3. $5,000 maximum for the accident
4. $5,000 minus the policy deductible - CORRECT ANSWER - 1. $14,000
10. According to California Insurance Code, all licensees must prominently display their
individual license numbers on all of the following EXCEPT
(Choose from the following options)
1. Motor club advertisements.
2. Marketing materials.
3. Printed advertisements.
4. Business cards. - CORRECT ANSWER - 1. Motor club advertisements.
11. The at-fault driver in an insured's auto crash had the state required minimums for auto
liability coverage, but not enough to pay for all the damage done to the insured. This driver is
(Choose from the following options)
Questions and CORRECT Answers
1. A professional liability policy will provide coverage for loss in all of the following cases,
except, when the insured doctor was shown to be
(Choose from the following options)
1. Criminally negligent.
2. Incompetent.
3. Negligent.
4. Improperly trained. - CORRECT ANSWER - 4. Improperly trained.
Right answer
1. Criminally negligent.
2. Which of the following best describes the amount of loss assessment coverage included under
a homeowners policy liability coverage section?
(Choose from the following options)
1. Up to $10,000 aggregate for the policy period
2. Up to $5,000 aggregate for the policy period
3. Up to $1,000 per occurrence
4. Up to $2,500 per occurrence - CORRECT ANSWER - 1. Up to $10,000 aggregate for
the policy period
Right Answer
3. Up to $1,000 per occurrence
,3. Using an air-cooled engine, a proposed insured has developed a new, experimental aircraft. If
the inventor applies for liability insurance, what rating type will the insurer most likely use?
(Choose from the following options)
1. Class
2. Schedule
3. Merit
4. Judgment - CORRECT ANSWER - 4. Judgment
4. Which of the following departments is responsible for developing mortality and morbidity
tables?
(Choose from the following options)
1. Marketing
2. Underwriting
3. Secretarial
4. Actuarial - CORRECT ANSWER - 4. Actuarial
5. In order to become an admitted, authorized insurer, what is the primary body of law about
which an applicant company must be concerned?
(Choose from the following options)
1. California Penal Code
2. California Constitution
3. California Insurance Code
,4. California Business Code - CORRECT ANSWER - 3. California Insurance Code
6. All of the following statements concerning coinsurance are true, EXCEPT
(Choose from the following options)
1. It is used to help adequacy and equity in rates.
2. The insured agrees to maintain insurance equal to some specified percentage of the value of
the property.
3. If the insurance carried is less than required, the insurance may not cover the whole loss.
4. The coinsurance formula also will be applied to total losses. - CORRECT ANSWER - 4.
The coinsurance formula also will be applied to total losses.
7. With respect to auto insurance, the term owned autos includes all of the following EXCEPT
(Choose from the following options)
1. Any private passenger auto leased to the named insured for a period of more than 6 months.
2. A pickup or van titled to and used in the named insured's business.
3. Any private passenger auto titled to the named insured.
4. A pickup or van acquired by the named insured during the policy period. - CORRECT
ANSWER - 2. A pickup or van titled to and used in the named insured's business.
8. Which of the following would NOT be considered a flood?
(Choose from the following options)
1. Sewer backup
2. Overflow of tidal waters
, 3. Mudslides
4. Runoff of surface waters - CORRECT ANSWER - 1. Sewer backup
9. An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered
accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the
insured, $4,000 for the first passenger, and $8,000 for the third passenger. How much will the
policy pay under medical payments coverage?
(Choose from the following options)
1. $14,000
2. $15,000
3. $5,000 maximum for the accident
4. $5,000 minus the policy deductible - CORRECT ANSWER - 1. $14,000
10. According to California Insurance Code, all licensees must prominently display their
individual license numbers on all of the following EXCEPT
(Choose from the following options)
1. Motor club advertisements.
2. Marketing materials.
3. Printed advertisements.
4. Business cards. - CORRECT ANSWER - 1. Motor club advertisements.
11. The at-fault driver in an insured's auto crash had the state required minimums for auto
liability coverage, but not enough to pay for all the damage done to the insured. This driver is
(Choose from the following options)
