lOMoARcPSD|46240884
PROPERTY AND CASUALITY INSURANCE ACTUAL EXAM NEWEST 2024
ACTUAL EXAM COMPLETE 256 + QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A.
Which of the following are the authorities that an agent can hold? -
ANSWER-Express and implied
Which of the following terms refers to such disabilities the loss of a
limb, hearing , or eye sight? - ANSWER-Permanent partial disability
Who is NOT considered an employee in an commercial general
liability (CGL) policy? - ANSWER-Temporary worker
The major portion of the premium of an equipment breakdown policy
pays? - ANSWER-For inspections and examinations
An insured owns a building valued at $400,000. To comply with the
80% coinsurance provision of his insurance policy, how , much
should he insure the property for? - ANSWER-80% of the property's
replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the
reporting agency must - ANSWER-Respond to the consumer's
complaint.
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All of the following are found in the declarations section of a policy
EXCEPT the - ANSWER-Exclusions.
The cost of restoring farm records is an additional coverage o昀昀ered
under a farm policy. How much will the policy pay to restore the
records? - ANSWER-Up to $2,000
All of the following could be considered rebates if o昀昀ered to an
insured in the sale of insurance EXCEPT - ANSWER-Dividends from a
mutual insurer.
Which of the following may be covered by electronic data processing
coverage form under an inland marine policy? - ANSWER-a)
Computer hardware that is speci昀椀cally scheduled.
b) Extra expense the insured incurs to continue the business
following a loss.
c) Data processing media, including magnetic tapes or paper tapes,
punch cards and discs
The party to a surety or 昀椀delity bond who promises to ful昀椀ll the
obligation is the - ANSWER-Principal
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The transfer of money from inside a banking premises to a person
other than a messenger outside those premises or to a place outside
those premises is covered under which commercial crime coverage?
- ANSWER-Computer fraud
Which of the following would NOT be covered under the liability
section of a personal auto policy? - ANSWER-Bodily injury is caused
by the insured's negligence while driving a three-wheel all-terrain
vehicle.
When a producer holding a certi昀椀cate or a broker's license has a
change in his/her residence or business address, he/she must notify
the Department of Insurance and any company for which the
producer holds an appointment within - ANSWER-30 days.
What will happen if a house covered by a standard mortgage clause
is a total loss? - ANSWER-The insurer pays the mortgagee according
to the mortgagee's interest in the property.
What is the civil penalty for violating a cease and desist order of the
Commissioner? - ANSWER-$10,000
The Business Pursuits endorsement under Section II of a
homeowners policy will cover all of the following EXCEPT - ANSWER-
Business liability.
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, lOMoARcPSD|46240884
If a property is covered by Company A for $20,000 and Company B
covers the same property for $40,000, how much will Company A pay
on a $24,000 loss? - ANSWER-$8,000
The risk management technique that is used to prevent a speci昀椀c
loss by not exposing oneself to that activity is called - ANSWER-
Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation
or defense of a claim will be paid by - ANSWER-The insurer.
Which of the following entities must approve all continuing
education courses in this state? - ANSWER-The Commissioner
An applicant knowingly fails to communicate information that would
help an underwriter make a sound decision regarding coverage. This
is an example of - ANSWER-Concealment
A common exclusion found under physical damage to your auto
includes - ANSWER-Mechanical breakdown.
Which of the following is true regarding a risk retention group? -
ANSWER-It is a liability insurance company owned by its members.
Which of the following best describes a misrepresentation? -
ANSWER-Issuing sales material with exaggerated statements about
policy bene昀椀ts
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PROPERTY AND CASUALITY INSURANCE ACTUAL EXAM NEWEST 2024
ACTUAL EXAM COMPLETE 256 + QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A.
Which of the following are the authorities that an agent can hold? -
ANSWER-Express and implied
Which of the following terms refers to such disabilities the loss of a
limb, hearing , or eye sight? - ANSWER-Permanent partial disability
Who is NOT considered an employee in an commercial general
liability (CGL) policy? - ANSWER-Temporary worker
The major portion of the premium of an equipment breakdown policy
pays? - ANSWER-For inspections and examinations
An insured owns a building valued at $400,000. To comply with the
80% coinsurance provision of his insurance policy, how , much
should he insure the property for? - ANSWER-80% of the property's
replacement cost or more
Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the
reporting agency must - ANSWER-Respond to the consumer's
complaint.
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
All of the following are found in the declarations section of a policy
EXCEPT the - ANSWER-Exclusions.
The cost of restoring farm records is an additional coverage o昀昀ered
under a farm policy. How much will the policy pay to restore the
records? - ANSWER-Up to $2,000
All of the following could be considered rebates if o昀昀ered to an
insured in the sale of insurance EXCEPT - ANSWER-Dividends from a
mutual insurer.
Which of the following may be covered by electronic data processing
coverage form under an inland marine policy? - ANSWER-a)
Computer hardware that is speci昀椀cally scheduled.
b) Extra expense the insured incurs to continue the business
following a loss.
c) Data processing media, including magnetic tapes or paper tapes,
punch cards and discs
The party to a surety or 昀椀delity bond who promises to ful昀椀ll the
obligation is the - ANSWER-Principal
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
The transfer of money from inside a banking premises to a person
other than a messenger outside those premises or to a place outside
those premises is covered under which commercial crime coverage?
- ANSWER-Computer fraud
Which of the following would NOT be covered under the liability
section of a personal auto policy? - ANSWER-Bodily injury is caused
by the insured's negligence while driving a three-wheel all-terrain
vehicle.
When a producer holding a certi昀椀cate or a broker's license has a
change in his/her residence or business address, he/she must notify
the Department of Insurance and any company for which the
producer holds an appointment within - ANSWER-30 days.
What will happen if a house covered by a standard mortgage clause
is a total loss? - ANSWER-The insurer pays the mortgagee according
to the mortgagee's interest in the property.
What is the civil penalty for violating a cease and desist order of the
Commissioner? - ANSWER-$10,000
The Business Pursuits endorsement under Section II of a
homeowners policy will cover all of the following EXCEPT - ANSWER-
Business liability.
Downloaded by damaris mutuli ()
, lOMoARcPSD|46240884
If a property is covered by Company A for $20,000 and Company B
covers the same property for $40,000, how much will Company A pay
on a $24,000 loss? - ANSWER-$8,000
The risk management technique that is used to prevent a speci昀椀c
loss by not exposing oneself to that activity is called - ANSWER-
Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation
or defense of a claim will be paid by - ANSWER-The insurer.
Which of the following entities must approve all continuing
education courses in this state? - ANSWER-The Commissioner
An applicant knowingly fails to communicate information that would
help an underwriter make a sound decision regarding coverage. This
is an example of - ANSWER-Concealment
A common exclusion found under physical damage to your auto
includes - ANSWER-Mechanical breakdown.
Which of the following is true regarding a risk retention group? -
ANSWER-It is a liability insurance company owned by its members.
Which of the following best describes a misrepresentation? -
ANSWER-Issuing sales material with exaggerated statements about
policy bene昀椀ts
Downloaded by damaris mutuli ()
