P&C EXAM Series 106 Questions With Complete Solutions
A banker is ready to close on a customer's loan. The bank is
prepared to offer the loan but the only if the customer purchases
an insurance policy from the bank in the amount of the loan.
This is an example of... Correct Answers Coercion
(This is an example of the illegal practice of coercion.)
A builder's risk form is most often written as which of the
following? Correct Answers Completed value form
(A building under construction could be insured on reporting
forms, but the value of the building should only increase during
the policy period. To prevent all the administrative work
required for reporting forms, most often completed value forms
are used.)
A farmer is remodeling his 100-year-old farmhouse. He is in the
process of painting the porch and hanging shutters. He keeps his
ladder, paint, and other materials used to remodel his home
under the porch. Which of the following provides coverage for
his remodeling materials? Correct Answers Coverage A
(Coverage A covers materials and supplies used to construct,
alter, or repair the dwelling. These materials used to service the
dwelling are located on or next to the insured dwelling.)
A large antenna is damaged when a tree branch hits an insured
farm dwelling during a storm. Coverage A of a farm property
,coverage form would insure damages for this occurrence up to
Correct Answers $1,000
(Antennas, towers, and satellite dishes attached to the dwelling
are covered under Coverage A, but have a special limit of
insurance of $1,000 in any 1 occurrence.)
A producer's license has been revoked for a violation of the
Insurance Code. When can the producer apply for a new
license? Correct Answers Within 1 year of the revocation
(If a producer license has been revoked, the producer may file
another license application within 1 year form the effective date
of revocation, or within 5 years from the date of final court order
if judicial review of revocation is sought.)
A trucking company owns a large fleet of trucks that transport
oil across state lines. According to the financial responsibility
requirements set by the Motor Carrier Act of 1980, what is the
minimum amount of insurance the company must carry on
vehicles that transport oil and certain categories of hazardous
waste? Correct Answers $1 million
(The minimum requirements for haulers of oil and certain
categories of hazardous waste in interstate commerce is $1
million.)
According to the appraisal condition of a homeowners policy,
what procedure may be followed if the insurer and insured do
not agree as to the size of a loss? Correct Answers Either part
may make a written request for an appraisal
, (If the insurer and the insured are unable to reach an agreement
as to the value of damaged property, either party may make a
written request for appraisal.)
All of the following are parts of a personal auto policy EXCEPT
Correct Answers Garage coverage
(PAP is divided into 6 parts: Liability Coverage, Medical
Payments Coverage, Uninsured Motorist Coverage, Coverage
for Damage to Your Auto, Duties after an Accident or Loss, and
General Provisions, Garage Coverage is a section in a
commercial auto policy.)
All of the following are true of Coverage B - Other Structures in
homeowners policies EXCEPT Correct Answers It must be
added by endorsement to a homeowners policy
(Homeowners policies automatically provide an amount of
insurance in Coverage B that is equal to 10% of the amount
written as Coverage A. This amount may be increased by
endorsement.)
All of the following would be eligible for coverage under the
dwelling policy EXCEPT Correct Answers A house that has 5
residential units
(Eligibility requires that the dwelling have not more than 4
family units.)
A banker is ready to close on a customer's loan. The bank is
prepared to offer the loan but the only if the customer purchases
an insurance policy from the bank in the amount of the loan.
This is an example of... Correct Answers Coercion
(This is an example of the illegal practice of coercion.)
A builder's risk form is most often written as which of the
following? Correct Answers Completed value form
(A building under construction could be insured on reporting
forms, but the value of the building should only increase during
the policy period. To prevent all the administrative work
required for reporting forms, most often completed value forms
are used.)
A farmer is remodeling his 100-year-old farmhouse. He is in the
process of painting the porch and hanging shutters. He keeps his
ladder, paint, and other materials used to remodel his home
under the porch. Which of the following provides coverage for
his remodeling materials? Correct Answers Coverage A
(Coverage A covers materials and supplies used to construct,
alter, or repair the dwelling. These materials used to service the
dwelling are located on or next to the insured dwelling.)
A large antenna is damaged when a tree branch hits an insured
farm dwelling during a storm. Coverage A of a farm property
,coverage form would insure damages for this occurrence up to
Correct Answers $1,000
(Antennas, towers, and satellite dishes attached to the dwelling
are covered under Coverage A, but have a special limit of
insurance of $1,000 in any 1 occurrence.)
A producer's license has been revoked for a violation of the
Insurance Code. When can the producer apply for a new
license? Correct Answers Within 1 year of the revocation
(If a producer license has been revoked, the producer may file
another license application within 1 year form the effective date
of revocation, or within 5 years from the date of final court order
if judicial review of revocation is sought.)
A trucking company owns a large fleet of trucks that transport
oil across state lines. According to the financial responsibility
requirements set by the Motor Carrier Act of 1980, what is the
minimum amount of insurance the company must carry on
vehicles that transport oil and certain categories of hazardous
waste? Correct Answers $1 million
(The minimum requirements for haulers of oil and certain
categories of hazardous waste in interstate commerce is $1
million.)
According to the appraisal condition of a homeowners policy,
what procedure may be followed if the insurer and insured do
not agree as to the size of a loss? Correct Answers Either part
may make a written request for an appraisal
, (If the insurer and the insured are unable to reach an agreement
as to the value of damaged property, either party may make a
written request for appraisal.)
All of the following are parts of a personal auto policy EXCEPT
Correct Answers Garage coverage
(PAP is divided into 6 parts: Liability Coverage, Medical
Payments Coverage, Uninsured Motorist Coverage, Coverage
for Damage to Your Auto, Duties after an Accident or Loss, and
General Provisions, Garage Coverage is a section in a
commercial auto policy.)
All of the following are true of Coverage B - Other Structures in
homeowners policies EXCEPT Correct Answers It must be
added by endorsement to a homeowners policy
(Homeowners policies automatically provide an amount of
insurance in Coverage B that is equal to 10% of the amount
written as Coverage A. This amount may be increased by
endorsement.)
All of the following would be eligible for coverage under the
dwelling policy EXCEPT Correct Answers A house that has 5
residential units
(Eligibility requires that the dwelling have not more than 4
family units.)
