LOUISIANA PROPERTY AND CASUALTY EXAM 110
QUESTIONS & CORRECT ANSWERS LATEST 2025
Roy brought his house 10 years ago for 150,000 but it would cost 200,000 to
rebuild it today. Because his house is in a highly desirable area, it's Fair Market
Value $275,000. What amount should the agent recommend that Roy insure his
house for to provide replacement cost for a total loss?
A) 150,000
B) 160,000
C)275,000
D) the ACV of the house - ANSWER-B) 160,000
A participating company headquartered in a Guam authorized to do business in
your state would be described as which company?
A) an admitted, foreign mutual company
B) an admitted, alien mutual company
C) an authorized foreign stock company
D) an authorized alien mutual company - ANSWER-A) an admitted, foreign
mutual company
Ned purchases his business insurance on a calendar year basis. Even though his
$10,000 premium is pre-paid through December 31 he decides to cancel on July 1
because he is selling his business. If he is due a prorated refund what should he
receive? - ANSWER-A) Somewhat more than 5,000
B) Somewhat less than 5,000
,C) 5,000 **
D) imposible to determine from the information given
A company has Liability insurance from two policies written for different amounts.
If the company sustains a covered loss, how are the laws be paid? - ANSWER-
A)Double benefits will be paid
B)The policy purchased first will pay the entire claim
C) Pro rata benefits equal to the proportion of the policy limits each will be paid
****
D) No benefits are payable since this is illegal
Which type of hazard is it example of a person who increases the chance of loss
through carelessness or irresponsible actions? - ANSWER-A) Moral hazard
B) Physical hazard
C) Morale Hazard ****
D) Reckless Hazard
With a commercial lines policy, who does The insurance company deal directly
with on issues like claims, renewals, and policy changes? - ANSWER-A) Insured
B) Named Insured
C) Loss payee
D) First named insured***
Which of the following is eligible for a business owners policy? - ANSWER-A)
Contractor with payroll of 500,000
B) a convenience store with a gasoline pump ***
C) an owner occupier four family dwelling with three residential units
, D) motor vehicles subject to motor vehicle registration
What should be reviewed to determine if a particular loss is covered by an H03? -
ANSWER-A)Declarations
B)Insuring Clause
C) Conditions
D) Exclusions *****
Which of the following best defines a personal insurance contract? - ANSWER-
The insurance contract is designed to transfer risk from the insured to the insurer.
A policy owner is considering upgrading his homeowners coverage from H -O2 to
an H-O3 which statement is true? - ANSWER-A) open perils coverage on personal
property will be included with ho3
B)Vacancy and un occupancy restrictions are eliminated with ho3
C) policy limits on jewelry, firearms, and cash are increased with ho3
D) open perils coverage on the dwelling and other structures will be included on
ho3***
What is known as Special Form Homeowners? - ANSWER-Ho-3
Which of the following describes while ensuring agreement is the heart of an
insurance policy? - ANSWER-It describes property coverage and perils insured
An indirect loss is also known as - ANSWER-consequential loss
What is the purpose of the causes of loss form that lists specific exclusions? -
ANSWER-to state which perils are insured against
QUESTIONS & CORRECT ANSWERS LATEST 2025
Roy brought his house 10 years ago for 150,000 but it would cost 200,000 to
rebuild it today. Because his house is in a highly desirable area, it's Fair Market
Value $275,000. What amount should the agent recommend that Roy insure his
house for to provide replacement cost for a total loss?
A) 150,000
B) 160,000
C)275,000
D) the ACV of the house - ANSWER-B) 160,000
A participating company headquartered in a Guam authorized to do business in
your state would be described as which company?
A) an admitted, foreign mutual company
B) an admitted, alien mutual company
C) an authorized foreign stock company
D) an authorized alien mutual company - ANSWER-A) an admitted, foreign
mutual company
Ned purchases his business insurance on a calendar year basis. Even though his
$10,000 premium is pre-paid through December 31 he decides to cancel on July 1
because he is selling his business. If he is due a prorated refund what should he
receive? - ANSWER-A) Somewhat more than 5,000
B) Somewhat less than 5,000
,C) 5,000 **
D) imposible to determine from the information given
A company has Liability insurance from two policies written for different amounts.
If the company sustains a covered loss, how are the laws be paid? - ANSWER-
A)Double benefits will be paid
B)The policy purchased first will pay the entire claim
C) Pro rata benefits equal to the proportion of the policy limits each will be paid
****
D) No benefits are payable since this is illegal
Which type of hazard is it example of a person who increases the chance of loss
through carelessness or irresponsible actions? - ANSWER-A) Moral hazard
B) Physical hazard
C) Morale Hazard ****
D) Reckless Hazard
With a commercial lines policy, who does The insurance company deal directly
with on issues like claims, renewals, and policy changes? - ANSWER-A) Insured
B) Named Insured
C) Loss payee
D) First named insured***
Which of the following is eligible for a business owners policy? - ANSWER-A)
Contractor with payroll of 500,000
B) a convenience store with a gasoline pump ***
C) an owner occupier four family dwelling with three residential units
, D) motor vehicles subject to motor vehicle registration
What should be reviewed to determine if a particular loss is covered by an H03? -
ANSWER-A)Declarations
B)Insuring Clause
C) Conditions
D) Exclusions *****
Which of the following best defines a personal insurance contract? - ANSWER-
The insurance contract is designed to transfer risk from the insured to the insurer.
A policy owner is considering upgrading his homeowners coverage from H -O2 to
an H-O3 which statement is true? - ANSWER-A) open perils coverage on personal
property will be included with ho3
B)Vacancy and un occupancy restrictions are eliminated with ho3
C) policy limits on jewelry, firearms, and cash are increased with ho3
D) open perils coverage on the dwelling and other structures will be included on
ho3***
What is known as Special Form Homeowners? - ANSWER-Ho-3
Which of the following describes while ensuring agreement is the heart of an
insurance policy? - ANSWER-It describes property coverage and perils insured
An indirect loss is also known as - ANSWER-consequential loss
What is the purpose of the causes of loss form that lists specific exclusions? -
ANSWER-to state which perils are insured against
