Property and Casualty License
1. The policy provision found in prop- A) Subrogation
erty insurance policies that prevents
the insured from collecting twice for When insureds accept loss payment
the same loss is called from the insurance company, they
must transfer their rights to recov-
A) Subrogation ery to the insurer. This prevents the
B) Consent to settle loss insured from collecting twice for the
C) Right of salvage same loss, and allows the insurer to
D) Appraisal indemnify the insurance company.
2. For a contract to be enforceable by D) Legal and not against public poli-
law, the purpose of the contract must cy
be
The purpose of a contract must be
A) For financial gain legal and not against public policy for
B) For the benefit of the general pub- the contract itself to be enforceable
lic by law (or legal)
C) Of pure intent
D) Legal and not against public poli-
cy
3. Greg owns several buildings, each at B) Specific
a different location and insured on a
separate policy. What type of cover- Specific insurance provides a spe-
age does Greg have? cific amount of coverage for each
property. A blanket insurance policy
A) Special provides coverage for more than one
B) Specific property with a single limit of cover-
C) Schedule age.
D) Blanket
4. Which coverage form would provide B) Annual transit
coverage for all incoming and outgo-
ing shipments?
A) Mail coverage
B) Annual transit
C) Trip transit
, Property and Casualty License
5. Which of the following forms pro- C) Blanket position
vides the broadest coverage under
an employee theft coverage form? Blanket position bond covers all em-
ployees in all positions on a per em-
A) Name schedule ployee basis.
B) Individual
C) Blanket position
D) Position schedule
6. Which professional liability form pro- B) Physicians, surgeons, and den-
vides form coverage for liability aris- tists malpractice
ing out of malpractice, error, or mis-
takes made in rendering professional The physicians, surgeons and den-
services? tists malpractice form provides cov-
erage for liability arising out of mal-
A) Medical malpractice practice, error, or mistakes made in
B) Physicians, surgeons, and den- rendering or failing to render profes-
tists malpractice sional services.
C) Lawyers professional liability
D) Directors liability
7. The pro rata liability clause is de- C) Indemnity
signed to protect the principle of
If more than one policy is in force on
A) Insurable interest the same property at the same time
B) Waiver and estoppel covering the same perils, this is con-
C) Indemnity current coverage. The intent of insur-
D) Subrogation ance is that after a loss, the insured
is restored to the condition he or she
was in before the loss (indemnified).
Each policy pays a percentage of a
loss directly related to the amount
of insurance it provides compared to
the total amount of coverage.
8. All of the following are factors in rat- B) Sales
ing workers compensation insurance
EXCEPT The hazard of the work, the amount
1. The policy provision found in prop- A) Subrogation
erty insurance policies that prevents
the insured from collecting twice for When insureds accept loss payment
the same loss is called from the insurance company, they
must transfer their rights to recov-
A) Subrogation ery to the insurer. This prevents the
B) Consent to settle loss insured from collecting twice for the
C) Right of salvage same loss, and allows the insurer to
D) Appraisal indemnify the insurance company.
2. For a contract to be enforceable by D) Legal and not against public poli-
law, the purpose of the contract must cy
be
The purpose of a contract must be
A) For financial gain legal and not against public policy for
B) For the benefit of the general pub- the contract itself to be enforceable
lic by law (or legal)
C) Of pure intent
D) Legal and not against public poli-
cy
3. Greg owns several buildings, each at B) Specific
a different location and insured on a
separate policy. What type of cover- Specific insurance provides a spe-
age does Greg have? cific amount of coverage for each
property. A blanket insurance policy
A) Special provides coverage for more than one
B) Specific property with a single limit of cover-
C) Schedule age.
D) Blanket
4. Which coverage form would provide B) Annual transit
coverage for all incoming and outgo-
ing shipments?
A) Mail coverage
B) Annual transit
C) Trip transit
, Property and Casualty License
5. Which of the following forms pro- C) Blanket position
vides the broadest coverage under
an employee theft coverage form? Blanket position bond covers all em-
ployees in all positions on a per em-
A) Name schedule ployee basis.
B) Individual
C) Blanket position
D) Position schedule
6. Which professional liability form pro- B) Physicians, surgeons, and den-
vides form coverage for liability aris- tists malpractice
ing out of malpractice, error, or mis-
takes made in rendering professional The physicians, surgeons and den-
services? tists malpractice form provides cov-
erage for liability arising out of mal-
A) Medical malpractice practice, error, or mistakes made in
B) Physicians, surgeons, and den- rendering or failing to render profes-
tists malpractice sional services.
C) Lawyers professional liability
D) Directors liability
7. The pro rata liability clause is de- C) Indemnity
signed to protect the principle of
If more than one policy is in force on
A) Insurable interest the same property at the same time
B) Waiver and estoppel covering the same perils, this is con-
C) Indemnity current coverage. The intent of insur-
D) Subrogation ance is that after a loss, the insured
is restored to the condition he or she
was in before the loss (indemnified).
Each policy pays a percentage of a
loss directly related to the amount
of insurance it provides compared to
the total amount of coverage.
8. All of the following are factors in rat- B) Sales
ing workers compensation insurance
EXCEPT The hazard of the work, the amount
