PROPERTY AND CASUALT Y

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PROPERTY AND CASUALT Y

INSURANCE EXAM QUEST IONS

AND ANSWERS PART ONE

ALREADY GRADED A+

Question : Which of the following are the authorities that

an agent can hold?

Correct answer: Express and implied

Question : Which of the following terms refers to such

disabilities the loss of a limb, hearing , or eye sight?

Correct answer: Permanent partial disability

Question : Who is NOT considered an employee in an

commercial general liability (CGL) policy?

Correct answer: Temporary worker

Question : The major portion of the premium of an

equipment breakdown policy pays?

Correct answer: For inspections and examinations

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Question : An insured owns a building valued at

$400,000. To comply with the 80% coinsurance provision of his insurance policy, how , much should he insure the property for?

Correct answer: 80% of the property's replacement cost or

more

Question : Under the Fair Credit Reporting Act, if the

consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

Correct answer: Respond to the consumer's complaint.

Question : All of the following are found in the

declarations section of a policy EXCEPT the

Correct answer: Exclusions.

Question : The cost of restoring farm records is an

additional coverage offered under a farm policy. How much will the policy pay to restore the records?

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Correct answer: Up to $2,000

Question : All of the following could be considered

rebates if offered to an insured in the sale of insurance

EXCEPT

Correct answer: Dividends from a mutual insurer.

Question : Which of the following may be covered by

electronic data processing coverage form under an inland marine policy?

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

Correct answer: b) Extra expense the insured incurs to

continue the business following a loss.

Question : The transfer of money from inside a banking

premises to a person other than a messenger outside those

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premises or to a place outside those premises is covered under which commercial crime coverage?

Correct answer: Computer fraud

Question : Which of the following would NOT be

covered under the liability section of a personal auto policy?

Correct answer: Bodily injury is caused by the insured's

negligence while driving a three-wheel all-terrain vehicle.

Question : 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

Correct answer: 30 days.

Question : What will happen if a house covered by a

standard mortgage clause is a total loss?

Correct answer: The insurer pays the mortgagee

according to the mortgagee's interest in the property.