PROPERTY & CASUALTY INSURANCE COMPREHENSIVE EXAM PREP QUESTIONS AND ANSWERS

Spouse of a partner Which of the following would be insured under the CGL policy? 3 years Under the PAP, how long does an injured party have following an accident to report a Medical Payments Claim? Proximate Cause is a secondary cause of loss. All of the following statements regarding property insurance terminology are true, except: The Commercial General Liability policy Section II of the BOP policy provides the same liability coverage as: An unintentional tort Negligence is what kind of tort? Inchmaree Clause Which of the following provisions in an Ocean Marine policy covers direct damage caused by bursting of boilers? The maximum that will be paid is equal to the limit of the policy with the higher limit of liability Under Part F of the Personal Auto Policy, which of the following is correct when there are two or more auto policies issued by the insurer on the same auto? The Special Form Which cause of loss form for the commercial property coverage part will cover loss of sales merchandise due to a burglary? Open Perils The HO-5 personal property coverages are insured on which basis? Burglary The taking of property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by visible signs of forcible entry or exit is known as: Accident An unintended and unforeseen event from which a loss results is called which of the following? Coverage is written on a replacement cost basis All of the following statements about the fine arts floater are true, except: Policies are standardized All of the following are true of Ocean Marine Insurance, except: The insurer has the right, but is not obligated, to make inspections and surveys at any time. Which of the following is correct about inspections and surveys under the common policy conditions of the CPP? An air conditioning unit intentionally disabled by an employee The Equipment Breakdown policy would not cover which of the following? A storeowner falsely detains a young child believing the child egged the store. Which of the following scenarios would be covered under personal injury coverage? It is the policy that pays first with respect to other policies Which of the following best describes a liability policy that is written on a primary basis? Time element losses and direct losses are the same Which statement is false about commercial property insurance? $80,000 H's liability policy has the following limits: $35,000 per person, $350,000 per occurrence, and $2,000,000 aggregate. This year, three claimants file in the amount $15,000, $30,000, and $45,000. How much will the policy pay? Temporary expenses to expedite permanent repairs of damaged property essential for the operation of the business Under the Equipment Breakdown protection coverage form, expediting expenses coverage pays for which of the following? Rental car A temporary substitute vehicle is not a covered auto if used to substitute for which of the following? Used to insure individual personal property on an itemized or scheduled basis Under personal Inland Marine Insurance, the Personal Articles Floater is: The United States, its territories and possessions, Puerto Rico, and Canada Which of the following are the Territorial Limits of the Personal Auto Policy? The Retroactive Date What is the date after which an occurrence can take place and be covered under the claims made form? The Residence Premises Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as: 3/4 ton pickup Which of the following is not included in the definition of mobile equipment? Against open peril for 30 days Under the BOP, the additional coverage for preservation of property is covered in which of the following ways? Deductibles help reduce the number of frivolous or small claims Which of the following statements regarding deductibles is true? 180 The Director can issue a temporary license for up to _________days without requiring an exam if he/she determines that the license is necessary in certain cases. The main distinction between a hired auto and a non-owned auto is whether or not the auto is owned by an employee Which of the following is true regarding the Business Auto Coverage Form? To provide protection for insureds and claimants against financial losses when a property and casualty insurer becomes insolvent Why does the South Dakota Insurance Guaranty Association exist? Consideration In an insurance contract, the value that each party gives the other is called the: Custodian An insured, partner, or employee who has care and custody of insured property within the premises. A binder specifies the premium account All of the following statements about binders are true, except: The policy will pay up to $1,000 for fire department service chare coverage Which of the following statements about fire department service charge coverage is not correct? Supplementary payments will reduce the limits of the policy Which of the following statements regarding Supplementary Payments under the CGL is false? Water damage resulting from a burst pipe Which of the following best describes a direct loss? Uninsured Motorist Coverage Physical damage coverage under a business auto coverage form includes all of the following except: Mysterious Disappearance The loss of property when the cause of loss is not known. This is NOT theft, burglary, or robbery. The policy premium amount All of the following must be list