PSI Practice Property and Casualty
Exam Questions with Latest Update
Which of the following represents the primary amount of insurance for the HO-4? -
Answer-3. Coverage C
The claims-made liability form provides coverage from a date that precedes the policy
effective date. Which of the following defines that date? - Answer-Retroactive date
If the insured has a loss with a private passenger nonowned temporary substitute
vehicle how will the loss be treated by the insured's own policy for physical damage? -
Answer-The broadest coverage available extends from the insured's policy.
Mobile homes can be insured in all of the following ways EXCEPT
1. with a HO-8 Modified Coverage form.
2. on a separate mobile homeowners package policy.
3. with a DP-1 if the mobile home is on a foundation.
4. on a mobile homeowners endorsement to a HO-3 form. - Answer-1. with a HO-8
Modified Coverage form.
Which policy condition is invoked when parties to an insured loss cannot agree? -
Answer-Arbitration
Which of the following is the special limit of coverage on the homeowners policy form for
property damage to personal watercraft? - Answer-$1,500
An injured employee covered under workers' compensation is entitled to reasonably
justifiable expenses for retraining. This benefit falls under which of the following? -
Answer-Vocational rehabilitation
The Causes of Loss form for farm property lists which of the following?
1. the type of property insured
2. the amount of insurance provided
3. perils property is insured against
4. exclusions to named insureds - Answer-3. perils property is insured against
Which of the following created The National Flood Insurance Program? - Answer-the
United States Congress
Exclusions common to liability coverage for both the personal auto policy and the
business auto policy include all of the following EXCEPT
, 1. work related injuries to insured's employees.
2. vehicles used in prearranged racing or speed contests.
3. for bodily injury or property damage caused intentionally by the insured.
4. for liability arising while the insured auto is being used in an auto business. - Answer-
4. for liability arising while the insured auto is being used in an auto business.
Which of the following makes use of market value in determining loss valuation? -
Answer-Property is evaluated for what it sells for at the time of the loss.
Homeowner Form HO-2 provides coverage for loss of appliances, carpeting, and other
household furnishings for a maximum of how much? - Answer-$2,500
Workers' compensation coverage is rated on the basis of which of the following? -
Answer-Employer's payroll
A bank customer's identity was compromised and the thieves made numerous
purchases from a retailer by signing the customer's checks. When the bank refused to
make payment for the goods, the retailer brought suit against the bank. Which coverage
indemnified the bank for liability in the suit? - Answer-forgery and alteration
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. - Answer-4. a crew member of an ocean
going vessel.
Which of the following types of crime best describe the unlawful act of taking property
from the care and custody of another person while threatening to cause bodily harm? -
Answer-Robbery
Which of the following describes why the insuring agreement is the heart of an
insurance policy? - Answer-It describes property covered and perils insured.
Liability arising out of any of the following is excluded from the personal and advertising
injury liability coverage EXCEPT
1. unknowingly inflicting injury that violates the rights of another.
2. oral or written publication of material that the insured knows is false.
3. criminal acts committed by or at the direction of the insured.
4. failure of goods or products to conform with advertised quality. - Answer-1.
unknowingly inflicting injury that violates the rights of another.
Exam Questions with Latest Update
Which of the following represents the primary amount of insurance for the HO-4? -
Answer-3. Coverage C
The claims-made liability form provides coverage from a date that precedes the policy
effective date. Which of the following defines that date? - Answer-Retroactive date
If the insured has a loss with a private passenger nonowned temporary substitute
vehicle how will the loss be treated by the insured's own policy for physical damage? -
Answer-The broadest coverage available extends from the insured's policy.
Mobile homes can be insured in all of the following ways EXCEPT
1. with a HO-8 Modified Coverage form.
2. on a separate mobile homeowners package policy.
3. with a DP-1 if the mobile home is on a foundation.
4. on a mobile homeowners endorsement to a HO-3 form. - Answer-1. with a HO-8
Modified Coverage form.
Which policy condition is invoked when parties to an insured loss cannot agree? -
Answer-Arbitration
Which of the following is the special limit of coverage on the homeowners policy form for
property damage to personal watercraft? - Answer-$1,500
An injured employee covered under workers' compensation is entitled to reasonably
justifiable expenses for retraining. This benefit falls under which of the following? -
Answer-Vocational rehabilitation
The Causes of Loss form for farm property lists which of the following?
1. the type of property insured
2. the amount of insurance provided
3. perils property is insured against
4. exclusions to named insureds - Answer-3. perils property is insured against
Which of the following created The National Flood Insurance Program? - Answer-the
United States Congress
Exclusions common to liability coverage for both the personal auto policy and the
business auto policy include all of the following EXCEPT
, 1. work related injuries to insured's employees.
2. vehicles used in prearranged racing or speed contests.
3. for bodily injury or property damage caused intentionally by the insured.
4. for liability arising while the insured auto is being used in an auto business. - Answer-
4. for liability arising while the insured auto is being used in an auto business.
Which of the following makes use of market value in determining loss valuation? -
Answer-Property is evaluated for what it sells for at the time of the loss.
Homeowner Form HO-2 provides coverage for loss of appliances, carpeting, and other
household furnishings for a maximum of how much? - Answer-$2,500
Workers' compensation coverage is rated on the basis of which of the following? -
Answer-Employer's payroll
A bank customer's identity was compromised and the thieves made numerous
purchases from a retailer by signing the customer's checks. When the bank refused to
make payment for the goods, the retailer brought suit against the bank. Which coverage
indemnified the bank for liability in the suit? - Answer-forgery and alteration
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. - Answer-4. a crew member of an ocean
going vessel.
Which of the following types of crime best describe the unlawful act of taking property
from the care and custody of another person while threatening to cause bodily harm? -
Answer-Robbery
Which of the following describes why the insuring agreement is the heart of an
insurance policy? - Answer-It describes property covered and perils insured.
Liability arising out of any of the following is excluded from the personal and advertising
injury liability coverage EXCEPT
1. unknowingly inflicting injury that violates the rights of another.
2. oral or written publication of material that the insured knows is false.
3. criminal acts committed by or at the direction of the insured.
4. failure of goods or products to conform with advertised quality. - Answer-1.
unknowingly inflicting injury that violates the rights of another.
