PROMETRIC PRACTICE EXAM QUESTIONS AND ANSWERS

A social organization which is licensed to issue insurance ONLY to its members is an example of which type of insurer? A. Fraternal B. Mutual C. Reciprocal D. Stock - Answer-A. Fraternal Under the Commercial Package Policy (CPP), the Commercial Inland Marine Declarations Form contains information about which one of the following: A. Loss payment B. Conditions C. Policy period D. Other insurance - Answer-C. Policy period Under a Homeowners Policy, the insured location includes all of the following EXCEPT: A. A cemetery plot B. A secondary location used by the insured for a business C. Vacant land on which the insured plans to build a house D. A motel room in which the insured is residing temporarily - Answer-B. A secondary location used by the insured for a business If Policy A states that it will pay after payment by other applicable policies, Policy A is: A. Excess B. Primary C. Pro rata D. Reinsurance - Answer-A. Excess Insurance is an appropriate device to: A. Eliminate hazards B. Transfer risk C. Avoid liability D. Prevent losses - Answer-B. Transfer Risk Under the Homeowners HO-2 Policy, all of the following are covered EXCEPT: A. Dwelling B. Contents C. Personal liability D. Farm outbuildings - Answer-D. Farm outbuildings A Basic Form Dwelling Policy provides: A. Coverage on a named peril basis B. Liabil