Louisiana Property and Casualty Practice Exam | Questions with 100% Correct Answers |
Updated &Verified | 2024-2025 | 100% Score
What is a hazard? - ✔✔An increase in the possibility that a loss might occur
the purpose of insurance is to? - ✔✔Transfer risk from a person, business, or organization to an
insurance company that agrees to pay for losses in exchange for a premium.
mutual company - ✔✔type of insurance company in which the policyholder is considered an owner,
with the right to vote and share in the profits.
$50 - ✔✔the renewal fee for a Louisiana producer license.
b McCarran-Ferguson Act - ✔✔the federal law that says the federal government can only regulate
insurance companies to the extent they are not regulated by state law.
Adhesion Contract - ✔✔an insurance policy is prepared by the insurance company, with little or no input
from the insured. this means that an insurance policy is a
HO-6 - ✔✔an individual who owns and lives in a condominium can obtain broad coverage for personal
property in the condo under which Homeowners form?
experience rating - ✔✔what rating method involves modifying the premium based on the insured's loss
experience over a specified period of time?
pain and suffering - ✔✔which type of benefits is generally not provided by a state's workers
compensation law?
foreign - ✔✔which of the following describes an insurance company doing business in a state other than
the where it is incorporated?
, open peril policy - ✔✔type of insurance policy that insures against all risks of loss that are not
specifically excluded by the policy?
replacement cost-depreciation - ✔✔which of the following describes actual cash value?
Actual Cash Value (ACV) - ✔✔Recplacement Cost - Depreciation Cost
$5000 - ✔✔an insured purchased new furniture for $6000. At the time of a fire loss, it had depreciated
$2000. The same furniture will cost $7000 to replace. What is the actual cash value of the destroyed
furniture?
Loss of income resulting from property damage at the insured's property - ✔✔the primary purpose of
the business income coverage forms is to reimburse the insured for?
HO-2 - ✔✔the homeowners form that provides open peril coverage on the dwelling and broad coverage
on personal property is the...
damage from an explosion caused by the centrifugal force of moving parts - ✔✔which of the following
losses to covered equipment would be covered under the EQUIPMENT BREAKDOWN PROTECTION
coverage form?
10 - ✔✔according to the cancellation condition in the Common Policy-Conditions form, if the insurance
company is cancelling a Commercial Package policy for nonpayment of premium, the insured must be
given at least how many days notice of cancellation?
liability - ✔✔which of the following coverages IS included in the Homeowners Policy but is NOT included
in an unendorsed Dwelling policy?
HO-5 - ✔✔open peril coverage for both the dwelling and personal property is provided by the...
Updated &Verified | 2024-2025 | 100% Score
What is a hazard? - ✔✔An increase in the possibility that a loss might occur
the purpose of insurance is to? - ✔✔Transfer risk from a person, business, or organization to an
insurance company that agrees to pay for losses in exchange for a premium.
mutual company - ✔✔type of insurance company in which the policyholder is considered an owner,
with the right to vote and share in the profits.
$50 - ✔✔the renewal fee for a Louisiana producer license.
b McCarran-Ferguson Act - ✔✔the federal law that says the federal government can only regulate
insurance companies to the extent they are not regulated by state law.
Adhesion Contract - ✔✔an insurance policy is prepared by the insurance company, with little or no input
from the insured. this means that an insurance policy is a
HO-6 - ✔✔an individual who owns and lives in a condominium can obtain broad coverage for personal
property in the condo under which Homeowners form?
experience rating - ✔✔what rating method involves modifying the premium based on the insured's loss
experience over a specified period of time?
pain and suffering - ✔✔which type of benefits is generally not provided by a state's workers
compensation law?
foreign - ✔✔which of the following describes an insurance company doing business in a state other than
the where it is incorporated?
, open peril policy - ✔✔type of insurance policy that insures against all risks of loss that are not
specifically excluded by the policy?
replacement cost-depreciation - ✔✔which of the following describes actual cash value?
Actual Cash Value (ACV) - ✔✔Recplacement Cost - Depreciation Cost
$5000 - ✔✔an insured purchased new furniture for $6000. At the time of a fire loss, it had depreciated
$2000. The same furniture will cost $7000 to replace. What is the actual cash value of the destroyed
furniture?
Loss of income resulting from property damage at the insured's property - ✔✔the primary purpose of
the business income coverage forms is to reimburse the insured for?
HO-2 - ✔✔the homeowners form that provides open peril coverage on the dwelling and broad coverage
on personal property is the...
damage from an explosion caused by the centrifugal force of moving parts - ✔✔which of the following
losses to covered equipment would be covered under the EQUIPMENT BREAKDOWN PROTECTION
coverage form?
10 - ✔✔according to the cancellation condition in the Common Policy-Conditions form, if the insurance
company is cancelling a Commercial Package policy for nonpayment of premium, the insured must be
given at least how many days notice of cancellation?
liability - ✔✔which of the following coverages IS included in the Homeowners Policy but is NOT included
in an unendorsed Dwelling policy?
HO-5 - ✔✔open peril coverage for both the dwelling and personal property is provided by the...
