MO PROPERTY AND CASUALTY EXAM
QUESTIONS WITH CORRECT AND VERIFIED ANSWERS
The insured with a claims-made commercial general liability (CGL) policy may request in writing claim
and occurrence information from the insurer at any time up to 60 days after the policy period ends. The
insurer must provide the information...
Within 45 days
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
Uninsured motorist coverage, bodily injury, and property damage
A basic dwelling policy automatically provides coverage against fire, lightning, and
Internal explosion
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged
property are known as what type of compensatory damages?
Special
What term includes damage where the insured peril was the proximate cause of loss?
Direct loss
In liability insurance policies, supplementary payments are made
In addition to the limit of liability
According to businessowners policy Section I, which of the following is NOT a condition to be met for the
terms of the policy to apply to mortgageholders?
The mortgageholder must petition the state department of insurance for named status
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney
Which of the following would NOT qualify as a hired auto?
An auto borrowed from an employee
Coverage A - Bodily Injury and Property Damage in the CGL policy will cover
Losses due to the insured's negligence
Which method of loss valuation is contrary to the basic concept of indemnity?
Replacement cost
Which of the following is true regarding the fire department service charge under the builders risk form?
It is an additional coverage
Page 1 of 7
, What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy?
80%
A building insured with commercial property insurance has been vacant 90 days. Which of the following
is NOT true?
Payment for unnamed perils is reduced by 25%
A builder's risk form is most often written as which of the following?
Completed value form
A tornado that destroys property would be an example of which of the following?
A peril
Professional liability coverage protects the insured against legal liability resulting from
Errors and omissions
Replacement cost is defined as
Full replacement of property at its current cost, new and without reduction for depreciation
Duties of the insurer found in the property policy conditions include all of the following EXCEPT
Notify the insured in the event of financial difficulty
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
Under the coverage of which of the following liability policies may an insured require the insurer to
defend a claim?
Professional liability
Which of the following is true of dwelling policy coverage?
Exclusions apply to all three policy forms
A company has a businessowners policy on a building with an estimated replacement cost of $300,000.
The company carries $150,000 of insurance. If a loss occurs, how much will the insured company be
paid?
The coinsurance formula would apply
Which of the following types of valuation works best for property whose value does not fluctuate much?
Agreed value
Which of the following is NOT settled on an actual cash value basis while covered under the business
property coverage form?
Page 2 of 7
QUESTIONS WITH CORRECT AND VERIFIED ANSWERS
The insured with a claims-made commercial general liability (CGL) policy may request in writing claim
and occurrence information from the insurer at any time up to 60 days after the policy period ends. The
insurer must provide the information...
Within 45 days
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
Uninsured motorist coverage, bodily injury, and property damage
A basic dwelling policy automatically provides coverage against fire, lightning, and
Internal explosion
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace damaged
property are known as what type of compensatory damages?
Special
What term includes damage where the insured peril was the proximate cause of loss?
Direct loss
In liability insurance policies, supplementary payments are made
In addition to the limit of liability
According to businessowners policy Section I, which of the following is NOT a condition to be met for the
terms of the policy to apply to mortgageholders?
The mortgageholder must petition the state department of insurance for named status
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney
Which of the following would NOT qualify as a hired auto?
An auto borrowed from an employee
Coverage A - Bodily Injury and Property Damage in the CGL policy will cover
Losses due to the insured's negligence
Which method of loss valuation is contrary to the basic concept of indemnity?
Replacement cost
Which of the following is true regarding the fire department service charge under the builders risk form?
It is an additional coverage
Page 1 of 7
, What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy?
80%
A building insured with commercial property insurance has been vacant 90 days. Which of the following
is NOT true?
Payment for unnamed perils is reduced by 25%
A builder's risk form is most often written as which of the following?
Completed value form
A tornado that destroys property would be an example of which of the following?
A peril
Professional liability coverage protects the insured against legal liability resulting from
Errors and omissions
Replacement cost is defined as
Full replacement of property at its current cost, new and without reduction for depreciation
Duties of the insurer found in the property policy conditions include all of the following EXCEPT
Notify the insured in the event of financial difficulty
What type of compensatory damages will pay for pain and suffering and disfigurement?
General
Under the coverage of which of the following liability policies may an insured require the insurer to
defend a claim?
Professional liability
Which of the following is true of dwelling policy coverage?
Exclusions apply to all three policy forms
A company has a businessowners policy on a building with an estimated replacement cost of $300,000.
The company carries $150,000 of insurance. If a loss occurs, how much will the insured company be
paid?
The coinsurance formula would apply
Which of the following types of valuation works best for property whose value does not fluctuate much?
Agreed value
Which of the following is NOT settled on an actual cash value basis while covered under the business
property coverage form?
Page 2 of 7
