Louisiana Property and Casualty Exam | Questions with 100% Correct Answers | Updated
&Verified | 2024-2025 | 100% Score
Surety Bond - ✔✔aka performance bonds.
contract bond- guarantee that contractors perform according to contract
court bond- required by court to enforce certain behavior
license & permit bond- required by municipalities as a condition for granting a license to engage in
activity
Fidelity Bonds - ✔✔aka Honesty Bonds- cover employer from direct loss due to fraudulent & dishonest
acts of employees
Individual Bond- bond single employee
None Schedule Bond- bond several employees
Position Schedule Bond- bond single position
Blanket Bond- covers all employees
Commercial Basic Form --causes of loss - ✔✔Covered- Fire, lightning, windstorm, smoke, aircraft, riot,
sprinkler leak sinkhole, volcanic action
excludes- ordnance of law, earth quake, government action, nuclear hazard, utility services, war, fungus,
rot
additional coverage available for fungus rot and bacteria $15,000
Commercial Broad Form-- causes of loss - ✔✔covers all basic +3
falling objects, weight of ice, snow, and sleet, water damage by accidental discharge
Same exclusions as basin+1
additional coverage available for collapse
,Commercial Special Form--causes of loss - ✔✔provides coverage for risk of direct physical loss unless
excluded (OPEN PERIL)
exclusions- damage to steam boiler, interior by rain, none of inventory, nor for fragile articles
limits
$2500-furs
$2500 jewelry
$2500 Patterns
$250 Stamps
Commercial Building & Personal Property Coverage - ✔✔Covers: building and business personal
property
excludes: Debt, animals, autos, canoes
limits: $2500 per sign, $25% or $10000 debris removal, $1000 Fire Dept.,$10000 Pollution clean up,
$10000 or more cost of Construction, $2500 Electronic Data
Deductible: $500
insurance is required to coinsure 80% of replacement value
Commercial Builders Risk Coverage Form - ✔✔covers: Foundation, Machinery, building materials,
excludes: land, trees, antenna, signs not attached to building
no liability coverage
written on a completed value basis (must submit reports)
coinsurance % appears on Dec. Page
causes of loss is same as Building & Personal Prop Coverage
Commercial Condominium Association Coverage Form - ✔✔includes the building & fixtures that are part
of the building
if unit owner has insurance covering the same property the associations insurance will be primary
, Condominium Commercial Unit - ✔✔Owners Coverage Form
only covers business personal property of unit owner
(fixtures, improvements, appliances)
is excess insurance if duplicate insurance exist
Time Element Coverage Form - ✔✔aka business income form - provides insurance for two types of
INDIRECT LOSSS: loss of income and extra expense
income- net income before taxes + payroll
extra expenses- expenses incurred that would not have had if there were no loss
coinsurance applies unless Agreed Value Coverage
Coverage is subject to causes of loss form attached to policy
Legal Liability Coverage Form - ✔✔insures the insured's legal liability for loss of damage to real or
personal property owned by others but in insured's care
written for tenant
Covers for loss of use and pays defensive coverage
Premises & Operations Exposure - ✔✔an insured business conducts its operations both at its office &
elsewhere
if a business or any employer causes bodily injury or property damage the business may be legally liable
must take place within the coverage territory
covers liability for bodily & property
&Verified | 2024-2025 | 100% Score
Surety Bond - ✔✔aka performance bonds.
contract bond- guarantee that contractors perform according to contract
court bond- required by court to enforce certain behavior
license & permit bond- required by municipalities as a condition for granting a license to engage in
activity
Fidelity Bonds - ✔✔aka Honesty Bonds- cover employer from direct loss due to fraudulent & dishonest
acts of employees
Individual Bond- bond single employee
None Schedule Bond- bond several employees
Position Schedule Bond- bond single position
Blanket Bond- covers all employees
Commercial Basic Form --causes of loss - ✔✔Covered- Fire, lightning, windstorm, smoke, aircraft, riot,
sprinkler leak sinkhole, volcanic action
excludes- ordnance of law, earth quake, government action, nuclear hazard, utility services, war, fungus,
rot
additional coverage available for fungus rot and bacteria $15,000
Commercial Broad Form-- causes of loss - ✔✔covers all basic +3
falling objects, weight of ice, snow, and sleet, water damage by accidental discharge
Same exclusions as basin+1
additional coverage available for collapse
,Commercial Special Form--causes of loss - ✔✔provides coverage for risk of direct physical loss unless
excluded (OPEN PERIL)
exclusions- damage to steam boiler, interior by rain, none of inventory, nor for fragile articles
limits
$2500-furs
$2500 jewelry
$2500 Patterns
$250 Stamps
Commercial Building & Personal Property Coverage - ✔✔Covers: building and business personal
property
excludes: Debt, animals, autos, canoes
limits: $2500 per sign, $25% or $10000 debris removal, $1000 Fire Dept.,$10000 Pollution clean up,
$10000 or more cost of Construction, $2500 Electronic Data
Deductible: $500
insurance is required to coinsure 80% of replacement value
Commercial Builders Risk Coverage Form - ✔✔covers: Foundation, Machinery, building materials,
excludes: land, trees, antenna, signs not attached to building
no liability coverage
written on a completed value basis (must submit reports)
coinsurance % appears on Dec. Page
causes of loss is same as Building & Personal Prop Coverage
Commercial Condominium Association Coverage Form - ✔✔includes the building & fixtures that are part
of the building
if unit owner has insurance covering the same property the associations insurance will be primary
, Condominium Commercial Unit - ✔✔Owners Coverage Form
only covers business personal property of unit owner
(fixtures, improvements, appliances)
is excess insurance if duplicate insurance exist
Time Element Coverage Form - ✔✔aka business income form - provides insurance for two types of
INDIRECT LOSSS: loss of income and extra expense
income- net income before taxes + payroll
extra expenses- expenses incurred that would not have had if there were no loss
coinsurance applies unless Agreed Value Coverage
Coverage is subject to causes of loss form attached to policy
Legal Liability Coverage Form - ✔✔insures the insured's legal liability for loss of damage to real or
personal property owned by others but in insured's care
written for tenant
Covers for loss of use and pays defensive coverage
Premises & Operations Exposure - ✔✔an insured business conducts its operations both at its office &
elsewhere
if a business or any employer causes bodily injury or property damage the business may be legally liable
must take place within the coverage territory
covers liability for bodily & property
