P&C EXAM Series 106 questions
correctly answered to pass
An insured's house is damaged by a fire and is uninhabitable. As a result, the insured has to rent
an apartment until repairs are made. A dwelling insurance policy will pay for the expense of
renting the apartment. Which type of broad or special form coverage does the insured have? -
correct answer ✔✔Coverage E - Additional Living Expense
(Coverage E is a broad or special form under the dwelling policy that pays for additional living
expenses while the insured's dwelling is being repaired.)
The minimum limits for bodily injury to 2 or more persons injured in a single accident is - correct
answer ✔✔$30,000
(Every automobile liability insurance policy written for delivery in Louisiana must provide a
minimum of $30,000 for bodily injury to or death of 2 or more person in a single accident.)
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 answer ✔✔Coercion
(This is an example of the illegal practice of coercion.)
If a consumer requests additional information concerning an investigative consumer report,
how long does the insurer or reporting agency have to comply? - correct answer ✔✔5 days
,(Consumers must be advised that they have a right to request additional information
concerning investigative consumer reports, and the insurer or reporting agency has 5 days to
provide the consumer with the additional information.)
What method of premium computation relates an employer's losses, payroll, and premiums to
the rating bureau's classifications of operations? - correct answer ✔✔Experience modification
factor
(An experience modification factor is developed by a rating bureau. The calculations relate an
employer's losses, payroll, and premiums, segregated according to classifications of operations,
all as reported to the bureau by the employer's insurance company.)
While an insured's covered auto is in the repair shop following damage caused by a collision,
the insured would have coverage for which of the following vehicle under a personal auto
policy? - correct answer ✔✔Any vehicle not owned by the insured, but furnished for use while
the covered auto is out of normal use because of repair.
(The temporary auto coverage provision allows the personal auto policy to provide coverage for
an insured while using any vehicle as a temporary substitute for any other vehicle described in
the policy that is out of normal use because of breakdown, repair, or servicing. This coverage
does not apply to vehicles not owned by the insured, but furnished for an insured's regular use.)
Which of the following is NOT covered under accounts receivable coverage form? - correct
answer ✔✔Any loans required to offset uncollectible amounts.
(Loan principal amounts are not covered under the form. However, other expenses, such as
interest on necessary loans, are covered.)
CGL Coverage B (Personal and Advertising Injury) will cover - correct answer ✔✔Inadvertent
injury to others caused in the course of advertising the insured's product.
, (Personal and advertising injury coverage does not apply to professional advertisers or
intentional injury, and does not guarantee the product will perform as advertised.)
In which type of commercial crime policy coverage is triggered by a loss that happens during the
policy period but is not necessarily discovered during the policy period? - correct answer
✔✔Loss sustained form
(Loss sustained crime coverage pays for losses that occur during the policy period and are found
for up to 1 year after the policy is terminated.)
The part of the insurance contract that describes the covered perils and the nature of coverage
of the contractual agreement between the insurer and the insured is called the - correct answer
✔✔Insuring agreement
(The insuring agreement is the part of the policy structure that describes the insured perils and
the method of indemnification.)
Which authority is NOT stated in an agent's contract but is required for the agent to conduct
business? - correct answer ✔✔Implied
(Implied authority is not written in the agent's contract but is required in order for the agent to
conduct business. Implied authority exists because not every single detail of an agent's
authority can be written in a contract.)
An insured's business is damaged because of a fire, and he is forced to close the business
temporarily for repairs. As a result, the insured lost income. What type of loss is this? - correct
answer ✔✔Consequential
(Consequential loss, also known as indirect loss, is a second financial loss caused by a covered
direct loss.)
correctly answered to pass
An insured's house is damaged by a fire and is uninhabitable. As a result, the insured has to rent
an apartment until repairs are made. A dwelling insurance policy will pay for the expense of
renting the apartment. Which type of broad or special form coverage does the insured have? -
correct answer ✔✔Coverage E - Additional Living Expense
(Coverage E is a broad or special form under the dwelling policy that pays for additional living
expenses while the insured's dwelling is being repaired.)
The minimum limits for bodily injury to 2 or more persons injured in a single accident is - correct
answer ✔✔$30,000
(Every automobile liability insurance policy written for delivery in Louisiana must provide a
minimum of $30,000 for bodily injury to or death of 2 or more person in a single accident.)
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 answer ✔✔Coercion
(This is an example of the illegal practice of coercion.)
If a consumer requests additional information concerning an investigative consumer report,
how long does the insurer or reporting agency have to comply? - correct answer ✔✔5 days
,(Consumers must be advised that they have a right to request additional information
concerning investigative consumer reports, and the insurer or reporting agency has 5 days to
provide the consumer with the additional information.)
What method of premium computation relates an employer's losses, payroll, and premiums to
the rating bureau's classifications of operations? - correct answer ✔✔Experience modification
factor
(An experience modification factor is developed by a rating bureau. The calculations relate an
employer's losses, payroll, and premiums, segregated according to classifications of operations,
all as reported to the bureau by the employer's insurance company.)
While an insured's covered auto is in the repair shop following damage caused by a collision,
the insured would have coverage for which of the following vehicle under a personal auto
policy? - correct answer ✔✔Any vehicle not owned by the insured, but furnished for use while
the covered auto is out of normal use because of repair.
(The temporary auto coverage provision allows the personal auto policy to provide coverage for
an insured while using any vehicle as a temporary substitute for any other vehicle described in
the policy that is out of normal use because of breakdown, repair, or servicing. This coverage
does not apply to vehicles not owned by the insured, but furnished for an insured's regular use.)
Which of the following is NOT covered under accounts receivable coverage form? - correct
answer ✔✔Any loans required to offset uncollectible amounts.
(Loan principal amounts are not covered under the form. However, other expenses, such as
interest on necessary loans, are covered.)
CGL Coverage B (Personal and Advertising Injury) will cover - correct answer ✔✔Inadvertent
injury to others caused in the course of advertising the insured's product.
, (Personal and advertising injury coverage does not apply to professional advertisers or
intentional injury, and does not guarantee the product will perform as advertised.)
In which type of commercial crime policy coverage is triggered by a loss that happens during the
policy period but is not necessarily discovered during the policy period? - correct answer
✔✔Loss sustained form
(Loss sustained crime coverage pays for losses that occur during the policy period and are found
for up to 1 year after the policy is terminated.)
The part of the insurance contract that describes the covered perils and the nature of coverage
of the contractual agreement between the insurer and the insured is called the - correct answer
✔✔Insuring agreement
(The insuring agreement is the part of the policy structure that describes the insured perils and
the method of indemnification.)
Which authority is NOT stated in an agent's contract but is required for the agent to conduct
business? - correct answer ✔✔Implied
(Implied authority is not written in the agent's contract but is required in order for the agent to
conduct business. Implied authority exists because not every single detail of an agent's
authority can be written in a contract.)
An insured's business is damaged because of a fire, and he is forced to close the business
temporarily for repairs. As a result, the insured lost income. What type of loss is this? - correct
answer ✔✔Consequential
(Consequential loss, also known as indirect loss, is a second financial loss caused by a covered
direct loss.)
