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PEARSON VUE: CASUALT Y
INSURANCE PRACTICE E XAM
ALREADY GRADED A+
Question : An insured may cancel a Personal Auto Policy
by taking which of the following actions?
- Paying the insurance company any past due premiums
- Waiting until the policy expiration date
- Giving written notice to the insurance company
- Informing the producer by telephone
Correct answer: C
Question : In insurance, which of the following terms
refers to continuous or repeated exposure to conditions that may result in bodily injury or damage neither expected nor intended?
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- An accident
- An occurrence
- An event
- A condition
Correct answer: B
Question : Which of the following vehicles is considered
a temporary substitute auto under a Personal Auto policy?
- A neighbor's pickup truck borrowed by an insured to
run an errand
- An auto purchased by an insured to replace a
previously owned vehicle
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- An auto rented by an insured when the insured is on
vacation
- An auto rented by an insured when the insured's car is
in a garage for repairs
Correct answer: D
Question : An insurance binder is best described as:
- a large bound volume of rules, rates, and forms
- a rate manual supplied by one of the rating
organizations
- a temporary agreement to pay a claim pending final
settlement
- temporary short-term evidence of coverage
Correct answer: D
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Question : Anything that increases the chance of loss is
known as a(n):
- risk
- hazard
- direct loss
- indirect loss
Correct answer: B
Question : The Fair Credit Reporting Act requires the:
- insurance company to review the applicant's credit
history prior to underwriting a policy