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Property and casualty insurance Exam 1/ Questions with Correct Verified Answers/ Latest 2024.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT - ANS - Dividends from a mutual insurer.
Which of the following may be covered by electronic data processing coverage form under an inland marine policy? - ANS –
a) Computer hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards and
discs
The party to a surety or fidelity bond who promises to fulfill the obligation is the - ANS - Principal
The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage? - ANS - Computer fraud
Which of the following would NOT be covered under the liability section of a personal auto policy? - ANS - Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle.
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2 When a producer holding a certificate or a broker's license has a change in his/her residence or business address, he/she must notify the Department of Insurance and any company for which the producer holds an appointment within - ANS - 30 days.
What will happen if a house covered by a standard mortgage clause is a total loss? - ANS - The insurer pays the mortgagee according to the mortgagee's interest in the property.
A type of policy that is used to provide a specific amount of replacement cost for a given risk after it has been destroyed is called a(n) - ANS - Valued policy.
In terms of parties to a contract, which of the following does NOT describe a competent party? - ANS - The person must have at least completed secondary education.
An individual's construction company leaves mobile equipment and construction machinery on the job site until the project is completed. What could this individual use to insure it? - ANS - Contractors equipment floater
If an insured lives in a high-risk area and can't find an insurer that will cover his/her property, which of the following would most likely provide coverage? - ANS - The FAIR Plan
If an insurer changes a form that it uses to transact insurance, it must do which of the following? - ANS - File the form with the Commissioner for approval
Which of the following is NOT a duty of the employer/insured if an injury occurs at the workplace? - ANS - Make voluntary payments for treatment of the worker's injury
An insured has a personal property replacement cost endorsement under her homeowners policy. If an expensive painting and an antique chair are stolen from the insured's home, what will the insured receive on the claim under that endorsement? - ANS - Nothing
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3 Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? - ANS - Bailee's customer policy
What is the civil penalty for violating a cease and desist order of the Commissioner? -
ANS - $10,000
The Business Pursuits endorsement under Section II of a homeowners policy will cover all of the following EXCEPT - ANS - Business liability.
If a property is covered by Company A for $20,000 and Company B covers the same property for $40,000, how much will Company A pay on a $24,000 loss? - ANS - $8,000
The risk management technique that is used to prevent a specific loss by not exposing oneself to that activity is called - ANS - Avoidance.
In a farm policy, any cost incurred by the insurer for the investigation or defense of a claim will be paid by - ANS - The insurer.
Which of the following entities must approve all continuing education courses in this state? - ANS - The Commissioner
An applicant knowingly fails to communicate information that would help an underwriter make a sound decision regarding coverage. This is an example of - ANS - Concealment
A common exclusion found under physical damage to your auto includes - ANS - Mechanical breakdown.
Which of the following is true regarding a risk retention group? - ANS - It is a liability insurance company owned by its members.
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