Practice Test- Property and Casualty Insurance Washington State Update Exam Questions and 100% Verified Correct Answers Using Marking Scheme Scored 100% A bank customer?s identity was compromised and the thieves made numerous purchases from a retailer by signing the customer?s checks. When the bank refused to make payment for the goods, the retailer brought suit against the bank. Which coverage indemnified the bank for liability in the suit?
1.shopkeeper?s coverage 2.forgery and alteration 3.lender?s liability 4.anti fraud coverage - Ans forgery and alteration
A woman slips on icy steps and breaks her leg. Which of the following is the peril in this situation?
1.the fall 2.the icy steps 3.the broken leg 4.the season of the year - Ans the fall
All of the following are common exclusions in a liability policy EXCEPT 1.damage to property owned by the insured.
2.losses covered under workers' compensation laws.
3.damage caused by acts of civil disobedience and riots.
4.damage to property in the insured's care, custody, or control. - Ans damage caused by acts of civil disobedience and riots
All of the following are considered an insured under Part A liability coverage, of the personal auto policy EXCEPT 1.owners of a vehicle the insured is using.
2. 1 / 3
employer while insured is driving a company car.
3.anyone using the insured?s car with permission.
4.others to the extent that they share liability with the insured. - Ans employer while insured is driving a company car
All of the following are correct for towing and labor costs coverage on the personal auto policy EXCEPT 1.settlement is by reimbursement.
2.coverage is available by endorsement.
3.towing and labor are combined per occurrence.
4.labor costs are performed at the shop are limited to $25. - Ans labor costs are performed at the shop are limited to $25
All of the following are elements of a valid contract EXCEPT 1.competent parties.
2.consideration.
3.legal purpose.
4.provisions. - Ans provisions
All of the following are exclusions are found under the personal auto policy Part A liability coverage, EXCEPT 1.damage to property owned or being transported by the insured.
2.damage to property rented to, used by, or in the care of the insured.
3.motorized vehicles with fewer than four wheels or designed for off road use.
4.bodily Injury to an insured?s nonresident family member or relative. - Ans bodily injury to an insureds non resident family member or relative
All of the following are responsibilities of the insured listed in the loss provisions for most property insurance contracts EXCEPT 1.to give prompt notice of claim.
2. 2 / 3
to submit to examination under oath.
3.to protect property from further damage.
4.to determining adequate indemnification. - Ans to determining adequate indemnification
All of the following are the most commonly used personal inland marine forms EXCEPT 1.personal property form.
2.personal articles form.
3.builder's floater form.
4.personal effects form. - Ans builders floater form
All of the following demonstrate insurable interest EXCEPT 1.purchasing fire insurance on a newly acquired cottage.
2.adding collision coverage on auto due to a new loan.
3.deciding to insure an inherited firearms collection.
4.insuring an engagement ring given to fiancée. - Ans insuring an engagement ring given to fiancee
All of the following describe a nonowned auto under the commercial auto policy symbol
9 EXCEPT
1.auto not titled to an insured but available for regular use of named insured or family member.
2.nonowned auto is designated for liability coverage only.
3.includes autos owned by employees but used in the insured?s business.
4.autos used in the insured?s business that are not leased, hired, rented, or borrowed. - Ans auto not titled to an insured but available for regular use of named insured or family member
All of the following perils are specifically listed in the policy as being other than collision losses EXCEPT 1.fire.
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