1
Property and casualty Questions with Answers
(100% Correct Answers)
An agent license can be suspended or revoked by Answer: writing primarily
controlled business
If an insured hides information and fails to disclose a known material fact to
the insurer is known as Answer: Concealment
which of the following statements pertaining to medical payment Part C of the
CGL is false Answer: A person has to establish the liability of the insured
before medical benefits will be paid under the contract
All of the following is Correct about Market Value EXCEPT Answer: The only
policy that normally carries Market Value is HO-6 form
What is Market Value? Answer: the value is the price at which property will
sell in regular marketplace when the sell nor buyer is forced to terms.
All of the following are covered under Directors and Officers Coverage
EXCEPT Answer: Punitive Damages
What does Directors and Officers (D&O) insurance protect? Answer:
individuals that serve as officers or on the board of directors of organizations
and protects them against wrongful actors or omissions. It does not pay fines,
salary or punitive damages
If the building in which a business operates is a total loss, which of the
following expenses will not be covered under Business Income Coverage?
Answer: Utility Bills
Business Income Coverage? Answer: does not pay for expenses that are
susceptibile to the shutdown( no building means not electric or gas bills) and
only continuing expenses of the business are paid
,2
What is the minimum dollar coverage amount requirement for Basic for
coverage in a Dwelling policy? Answer: There is not minimum dollar coverage
requirement
J is an agent who has induced an insured through misrepresentation to
surrender an existing insurance policy. What is J guilty of? Answer: Twisting
What is Twisting? Answer: is inducing or attempting to induce any insured
person through misrepresentation to lapse, forfeit or surrender insurance
Which type of Fidelity Bond would cover a maximum amount for a single loss
regardless of the number of employees involved? Answer: Commercial Blanket
What does a Commercial Blanket bond cover? Answer: covers a maximum
amount not matter how many employees are in involved in a single loss
When may an insured cancel an Insurance policy? Answer: At any time with
proper notice
Exclusions Answer: limit the scope of benefits, list which type of perils are not
covered, limits the wording of the insuring agreements
K owns a factory and has an Equipment Breakdown Policy on his business.
Which of the following would be covered as a pure accident under the contract
language? Answer: A boiler malfunctions and blows up
Which of the following statements about NFIP deductibles are TRUE?
Answer: There is a deductible applied to the building and another to the
contents under both the emergency and regular programs.
If a painter wished to buy a Business Owner Policy? Answer: His payroll
cannot exceed $300,000
Contractors such as painters, electricians, drywallers, carpenters etc are all
eligible for the BOP (Business Owner Policy) whats the stipulation? Answer:
The maximum payroll cant exceed $300,00
, 3
Beth is offered a favorable loan on a new car, but is uncomfortable when the
loan officer indicates that she needs to place her auto insurance with a specific
agent in order to make sure the loan is approved. This kind of intimidation is
legally called Answer: Coercion
what is coercion? Answer: any kind of threat or intimidating action to
participate in an insurance transaction
An example of an unfair claims settlement practice Answer: turning down a
claim without providing the basis of denial
Replacement Cost Answer: provides benefits that are the exact amount of
money to replace destroyed property at the time loss occured
Which statement concerning parts of a Personal Auto Policy is true? Answer:
Each part of Coverage (A,B,C,D) each have their own insuring agreements, set
of exclusions and are subject to general provisions of each sections policy
which of the following policy types most resemble the Farm Policy? Answer:
Homeowners policy
T s applying for a policy and has had many claims in the past on other
properties. The agent tells T that based on his past the insurer may want to
investigate into T's past claims. This type of report is Answer: Inspection report
Which of the following polices are considered to be professionally liability
insurance? Answer: Malpractice and Errors and Omissions
T owns a small business and hires a messenger to take last nights earnings and
deposit in the bank. On the way to the bank, the messenger is robbed and the
deposit has been stolen. Which of the following crime coverage forms would
cover such events? Answer: Robbery outside the premises coverage
Harry bought a used Mercedes in great condition and would like Part D
coverage for the vehicle on his PAP. Harry currently has Part D coverage on
one of his 2 currently covered autos. How long does Harry have to notify the
Property and casualty Questions with Answers
(100% Correct Answers)
An agent license can be suspended or revoked by Answer: writing primarily
controlled business
If an insured hides information and fails to disclose a known material fact to
the insurer is known as Answer: Concealment
which of the following statements pertaining to medical payment Part C of the
CGL is false Answer: A person has to establish the liability of the insured
before medical benefits will be paid under the contract
All of the following is Correct about Market Value EXCEPT Answer: The only
policy that normally carries Market Value is HO-6 form
What is Market Value? Answer: the value is the price at which property will
sell in regular marketplace when the sell nor buyer is forced to terms.
All of the following are covered under Directors and Officers Coverage
EXCEPT Answer: Punitive Damages
What does Directors and Officers (D&O) insurance protect? Answer:
individuals that serve as officers or on the board of directors of organizations
and protects them against wrongful actors or omissions. It does not pay fines,
salary or punitive damages
If the building in which a business operates is a total loss, which of the
following expenses will not be covered under Business Income Coverage?
Answer: Utility Bills
Business Income Coverage? Answer: does not pay for expenses that are
susceptibile to the shutdown( no building means not electric or gas bills) and
only continuing expenses of the business are paid
,2
What is the minimum dollar coverage amount requirement for Basic for
coverage in a Dwelling policy? Answer: There is not minimum dollar coverage
requirement
J is an agent who has induced an insured through misrepresentation to
surrender an existing insurance policy. What is J guilty of? Answer: Twisting
What is Twisting? Answer: is inducing or attempting to induce any insured
person through misrepresentation to lapse, forfeit or surrender insurance
Which type of Fidelity Bond would cover a maximum amount for a single loss
regardless of the number of employees involved? Answer: Commercial Blanket
What does a Commercial Blanket bond cover? Answer: covers a maximum
amount not matter how many employees are in involved in a single loss
When may an insured cancel an Insurance policy? Answer: At any time with
proper notice
Exclusions Answer: limit the scope of benefits, list which type of perils are not
covered, limits the wording of the insuring agreements
K owns a factory and has an Equipment Breakdown Policy on his business.
Which of the following would be covered as a pure accident under the contract
language? Answer: A boiler malfunctions and blows up
Which of the following statements about NFIP deductibles are TRUE?
Answer: There is a deductible applied to the building and another to the
contents under both the emergency and regular programs.
If a painter wished to buy a Business Owner Policy? Answer: His payroll
cannot exceed $300,000
Contractors such as painters, electricians, drywallers, carpenters etc are all
eligible for the BOP (Business Owner Policy) whats the stipulation? Answer:
The maximum payroll cant exceed $300,00
, 3
Beth is offered a favorable loan on a new car, but is uncomfortable when the
loan officer indicates that she needs to place her auto insurance with a specific
agent in order to make sure the loan is approved. This kind of intimidation is
legally called Answer: Coercion
what is coercion? Answer: any kind of threat or intimidating action to
participate in an insurance transaction
An example of an unfair claims settlement practice Answer: turning down a
claim without providing the basis of denial
Replacement Cost Answer: provides benefits that are the exact amount of
money to replace destroyed property at the time loss occured
Which statement concerning parts of a Personal Auto Policy is true? Answer:
Each part of Coverage (A,B,C,D) each have their own insuring agreements, set
of exclusions and are subject to general provisions of each sections policy
which of the following policy types most resemble the Farm Policy? Answer:
Homeowners policy
T s applying for a policy and has had many claims in the past on other
properties. The agent tells T that based on his past the insurer may want to
investigate into T's past claims. This type of report is Answer: Inspection report
Which of the following polices are considered to be professionally liability
insurance? Answer: Malpractice and Errors and Omissions
T owns a small business and hires a messenger to take last nights earnings and
deposit in the bank. On the way to the bank, the messenger is robbed and the
deposit has been stolen. Which of the following crime coverage forms would
cover such events? Answer: Robbery outside the premises coverage
Harry bought a used Mercedes in great condition and would like Part D
coverage for the vehicle on his PAP. Harry currently has Part D coverage on
one of his 2 currently covered autos. How long does Harry have to notify the
