Property and Casualty Insurance Washington State Practice Test Questions with Answers

Punitive damages are intended to do all of the following EXCEPT 1. Compensate for actual financial losses. 2. Discourage others from doing wrong. 3. Discipline the insured. 4. Make an example of bad behavior. Correct Answer compensate for actual financial losses When an insured selects symbol 2 on the automobile declarations, indicating coverage for any auto titled to the insured, which of the following automobile types will be covered? 1. Any auto 2. Mobile equipment 3. Owned autos only 4. Temporary substituted Correct Answer owned autos only All of the following are exclusions are found under the personal auto policy Part A liability coverage, EXCEPT 1. Damage to property owned or being transported by the insured. 2. Damage to property rented to, used by, or in the care of the insured. 3. Motorized vehicles with fewer than four wheels or designed for off road use. 4. Bodily Injury to an insured?S nonresident family member or relative. Correct Answer bodily injury to an insureds non resident family member or relative All of the following would be found on a declarations page EXCEPT 1. Limits of insurance. 2. Address of insured. 3. Policy exclusions. 4. Costs for coverage. Correct Answer policy exclusions Which of the following would be covered perils under the DP-1 Basic policy form? 1. Falling objects 2. Freezing of plumbing 3. Riot or civil commotion 4. Weight of ice or snow Correct Answer riot or civil commotion Which of the following is TRUE when the insured?S limits of insurance apply per occurrence? 1. The insured pays one deductible for grocery cart damage to a car occurring on different days. 2. Coverage is triggered for smoke damage to siding caused by repeated acts by insured's neighbor. 3. The insured?S claim for damage to his basement walls caused by settling is approved. 4. Liability is NOT covered in a second crash because limits were exceeded in a previous crash Correct Answer coverage is triggered for smoke damage to siding caused by repeated acts by insured's neighbor For the purpose of workers? Compensation insurance all of the following are subject to the workers? Compensation laws, either as an employer or employee EXCEPT 1. An insurance agent. 2. A building contractor. 3. The employee of a party store. 4. A crew member of an ocean going vessel. Correct Answer a crew member of an ocean going vessel Which characteristic of an insurance contract states that when a loss occurs the insured should be restored to the financial condition he was in before the loss? 1. Contract of indemnity 2. Personal contract 3. Contract of adhesion 4. Unilateral contract Correct Answer contract of indemnity