Georgi a- Property & Casualty 200 Exam Questions with Complete Solutions All of the following are true regarding aviation insurance EXCEPT: - Correct Answer It can be added to the CPP A customer has 5 identical vases that are insured on an inland marine floater for $30,000 and 1 of the vases is stolen. The remaining 4 vases are appraised at $20,000, how much will the insurer pay? - Correct Answer $10,000 Which of the following is not an unfair claims settlement practice? - Correct Answer Requiring proof of loss to be submitted Theft, disappearance and destruction covers which of the following? - Correct Answer Theft of money and securities from a messenger outside the premises Coverage D on an HO-6 is what? - Correct Answer 30% of C On an ocean marine policy, the peril of voluntarily throwing cargo overboard to save the ship is known
as: - Correct Answer Jettison
The penalty for failure to satisfy the 80% coinsurance requirement on a property policy is: - Correct Answer Only a portion of a partial loss will be paid Insurers eliminate coverage for small claims and to help control the cost of insurance with: - Correct Answer A deductible Which of the following contractual elements consists of the offer and the acceptance? - Correct Answer Agreement All of the following are required elements of a legal contract EXCEPT: - Correct Answer Waiver and estoppel 1 / 3
If the coinsurance requirement is met, the commercial building and personal property form does automatically provides coverage for all of the following EXCEPT: - Correct Answer Business income insurance All of the following are true about extended reporting periods (ERPs) on a CGL EXCEPT: - Correct Answer The ERP extends the policy period All are items to be found in the declarations section of a policy EXCEPT: - Correct Answer Names of all the insureds The commercial building and personal property coverage form provides for several extensions of coverage, but only if: - Correct Answer An 80% or more coinsurance percentage is shown in the declarations All of the following choices are true about insurance EXCEPT: - Correct Answer Insurance is a mechanism for handling speculative risk Under a PAP, when transportation expenses coverage applies, the limits are: - Correct Answer $20 a day, up to a maximum of $600 Hard to place coverage that is written by non-admitted insurers is known as: - Correct Answer Surplus lines The clause in the dwelling policy that limits the liability of the insurer to a portion of the loss no greater than "the amount hereby insured shall bear to the whole insurance covering the property against the peril involved, whether collectible or not" is called the: - Correct Answer Pro-rata liability clause Exclusions in a policy do all of the following EXCEPT: - Correct Answer Provide coverage that was intended, but not clearly expressed Data regarding the premium, limits, name and address of the insured and the policy period are found in what part of the contract? - Correct Answer Declarations 2 / 3
In fire insurance, actual cash value means: - Correct Answer Replacement cost less depreciation You have an HO policy with a limit of $300,000 on your home with a mortgagee clause. The amount that you still owe on your mortgage is $260,000. Your policy has lapsed due to nonpayment of premium and your lender was never notified. After your policy lapsed, your home was destroyed by a fire. Which of the following statements is correct? - Correct Answer The lender has $260,000 in coverage All are true about consideration on an insurance contract EXCEPT: - Correct Answer It must be equal The requirement to submit proof of loss is contained in what part of the policy? - Correct Answer Conditions The policy period is defined as: - Correct Answer The time the policy is in effect A CGL provides medical expense payments for injuries if the expenses are incurred and reported to the insurer within _____ year(s). - Correct Answer 1 On an umbrella policy the retention requirement acts like which of the following? - Correct Answer A deductible When a direct chain of events resulting from a negligent act causes injury or damage, that act is
considered to be: - Correct Answer The proximate cause
The named insured is found where within the policy? - Correct Answer On the policy declarations All of the following statements are true regarding flood insurance EXCEPT: - Correct Answer Coverage may be provided on growing crops or livestock Furniture that is destroyed when a building burns down is an example of what kind of loss? - Correct Answer Direct On an all-risk policy, where would you look to see what is not covered? - Correct Answer Exclusions
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