ACAS EXAM BEST PRACTICE KNOWLEDGE 2024 WITH
CORRECT ANSWERS.
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire
department quickly arrives and puts out the fire. Unfortunately, there is water
damage due to the water from the fire hoses. This water damage would be covered
because - ANSWER Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of
the insured while the plane is in for storage or service is: - ANSWER Hangarkeepers
liability
Under the commercial property form, what length of time must expire before a
building is considered "vacant" -- thereby suspending some coverages, while
reducing payment on others? - ANSWER 60 days
A florist wanted coverage on business contents, which vary in amount over the
course of a year. Which form best covers this situation? - ANSWER The value
reporting endorsement
A community applied to be part of the National Flood Insurance Program. Until they
are approved, what is the status of the community of the community? - ANSWER
They are in the emergency program
Both commercial property and liability were combined into one policy, thus saving
money on underwriting expense. What is this combination called? - ANSWER A
package policy
What is the smallest amount of liability insurance under the business-owners policy
(BOP)? - ANSWER $300,000
Which of the following would be excluded under a personal articles floater on an "all
risks" basis? - ANSWER Insects destroy a valuable postage stamp worth $500
A ship loaded with lumber encountered a terrible storm, and some of the lumber
was thrown overboard to save the ship - this action is called: - ANSWER Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen
from the job site. What inland marine form is best suited for this exposure? -
ANSWER The contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy
EXCEPT: - ANSWER Theft from and "off site" location
An Umbrella Policy may be broader than the underlying policies and respond as
primary coverage. When the Umbrella is primary, there is an amount to be paid by
the insured - this is called: - ANSWER The self-insured retention
If a person does not own an auto, but must provide Auto Liability, for what would he
ask his agent? - ANSWER A named non-owned policy
, ACAS EXAM BEST PRACTICE KNOWLEDGE 2024 WITH
CORRECT ANSWERS.
Which of the following is false concerning flood insurance? - ANSWER To be
insured for flood, a new building must be 25% complete, have the walls up - roof not
required to qualify
Vacancy of more than days suspends coverage on all the following EXCEPT: -
ANSWER Weight of ice and snow
If a homeowner lives in a home 80% or more of the time, Flood coverage will
respond to a loss in what manner? - ANSWER Replacement cost on primary
residence, actual cash value on others structures
All of the following are optional limits for the liability section of a BOP EXCEPT: -
ANSWER $250,000
Under Equipment Breakdown Protection, also called Boiler and Machinery
Coverage, the following are true statements: - ANSWER -Minimum limit for liability
is $500,000
-"Accident" is defined as sudden and accidental breakdowns
-Exclusions include wear & tear and deterioration
There are advantages of an agent recommending a commercial package policy
over several monoline policies. Which of the following would NOT be an advantage?
- ANSWER The terminology in the package policy is easier to understand
A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania
over the course of the next 10 months. What inland marine coverage best fits this
exposure? - ANSWER An annual transit policy
An Inland Marine or Personal Articles Floater might be used to cover all of the
following except: - ANSWER Personal Auto
Exclusions to the All Risk Coverage of a Personal Article Floater Policy include all
of the following excepting: - ANSWER Theft
Umbrella Policies provide additional... - ANSWER Liability coverage
Umbrella Policies... - ANSWER - May contain a Self-insured retention
- May have coverage that is not available in the underlying policy
- May cover more than one underlying policy
Which of the following is true: - ANSWER With Flood Insurance, "other structures"
are paid at Actual Cash Value
Actual Cash Value - ANSWER Is current cost minus depreciation
Which entity manages the Flood Insurance program? - ANSWER FEMA & NFIP
CORRECT ANSWERS.
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire
department quickly arrives and puts out the fire. Unfortunately, there is water
damage due to the water from the fire hoses. This water damage would be covered
because - ANSWER Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of
the insured while the plane is in for storage or service is: - ANSWER Hangarkeepers
liability
Under the commercial property form, what length of time must expire before a
building is considered "vacant" -- thereby suspending some coverages, while
reducing payment on others? - ANSWER 60 days
A florist wanted coverage on business contents, which vary in amount over the
course of a year. Which form best covers this situation? - ANSWER The value
reporting endorsement
A community applied to be part of the National Flood Insurance Program. Until they
are approved, what is the status of the community of the community? - ANSWER
They are in the emergency program
Both commercial property and liability were combined into one policy, thus saving
money on underwriting expense. What is this combination called? - ANSWER A
package policy
What is the smallest amount of liability insurance under the business-owners policy
(BOP)? - ANSWER $300,000
Which of the following would be excluded under a personal articles floater on an "all
risks" basis? - ANSWER Insects destroy a valuable postage stamp worth $500
A ship loaded with lumber encountered a terrible storm, and some of the lumber
was thrown overboard to save the ship - this action is called: - ANSWER Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen
from the job site. What inland marine form is best suited for this exposure? -
ANSWER The contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy
EXCEPT: - ANSWER Theft from and "off site" location
An Umbrella Policy may be broader than the underlying policies and respond as
primary coverage. When the Umbrella is primary, there is an amount to be paid by
the insured - this is called: - ANSWER The self-insured retention
If a person does not own an auto, but must provide Auto Liability, for what would he
ask his agent? - ANSWER A named non-owned policy
, ACAS EXAM BEST PRACTICE KNOWLEDGE 2024 WITH
CORRECT ANSWERS.
Which of the following is false concerning flood insurance? - ANSWER To be
insured for flood, a new building must be 25% complete, have the walls up - roof not
required to qualify
Vacancy of more than days suspends coverage on all the following EXCEPT: -
ANSWER Weight of ice and snow
If a homeowner lives in a home 80% or more of the time, Flood coverage will
respond to a loss in what manner? - ANSWER Replacement cost on primary
residence, actual cash value on others structures
All of the following are optional limits for the liability section of a BOP EXCEPT: -
ANSWER $250,000
Under Equipment Breakdown Protection, also called Boiler and Machinery
Coverage, the following are true statements: - ANSWER -Minimum limit for liability
is $500,000
-"Accident" is defined as sudden and accidental breakdowns
-Exclusions include wear & tear and deterioration
There are advantages of an agent recommending a commercial package policy
over several monoline policies. Which of the following would NOT be an advantage?
- ANSWER The terminology in the package policy is easier to understand
A shipper contemplates 10 or 11 loads of produce to be shipped to Pennsylvania
over the course of the next 10 months. What inland marine coverage best fits this
exposure? - ANSWER An annual transit policy
An Inland Marine or Personal Articles Floater might be used to cover all of the
following except: - ANSWER Personal Auto
Exclusions to the All Risk Coverage of a Personal Article Floater Policy include all
of the following excepting: - ANSWER Theft
Umbrella Policies provide additional... - ANSWER Liability coverage
Umbrella Policies... - ANSWER - May contain a Self-insured retention
- May have coverage that is not available in the underlying policy
- May cover more than one underlying policy
Which of the following is true: - ANSWER With Flood Insurance, "other structures"
are paid at Actual Cash Value
Actual Cash Value - ANSWER Is current cost minus depreciation
Which entity manages the Flood Insurance program? - ANSWER FEMA & NFIP
