PROPERTY AND CASUALT Y
INSURANCE - FINAL EXAM
QUESTIONS AND ANSWERS
Question :Which of the following are the authorities that
an agent can hold?Express and implied
Correct Answer:Express and implied
Question :Which of the following terms refers to such
disabilities the loss of a limb, hearing , or eye sight?Permanent partial disability
Correct Answer:Permanent partial disability
Question :Who is NOT considered an employee in an
commercial general liability (CGL) policy?Temporary worker
Correct Answer:Temporary worker
Question :The major portion of the premium of an
equipment breakdown policy pays?For inspections and examinations
Correct Answer:For inspections and examinations
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?80% of the property's replacement cost or more
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 Respond to the consumer's complaint.
Correct Answer:Respond to the consumer's complaint.
Question :All of the following are found in the
declarations section of a policy EXCEPT the Exclusions.
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?Up to $2,000
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
Dividends from a mutual insurer.
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: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
Question :The party to a surety or fidelity bond who
promises to fulfill the obligation is the Principal
Correct Answer:Principal
Question :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?Computer fraud
Correct Answer:Computer fraud
Question :Which of the following would NOT be
covered under the liability section of a personal auto policy?Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain vehicle.
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 30 days.
Correct Answer:30 days.
Question :What will happen if a house covered by a
standard mortgage clause is a total loss?The insurer pays the mortgagee according to the mortgagee's interest in the property.