p and c part 1

Question 1

which of the following would be known as the process whereby an insurer determines appropriate changes for its policies

Answer 1

rate making

Question 2

all the following would be considered benefits of insurance except

Answer 2

retention of the loss by the insured

Question 3

the amount paid for damaged property which is equal to the price for which it could have ben sold is the

Answer 3

market value

Question 4

under an unendorsed commercial property coverage form with no optional coverage on what basis are buildings valued

Answer 4

actual cash value

Question 5

if an insured discovers an occurrence 75 days after the expiration of a claim made commercial liability policy, what must the insured have in order for the loss to be covered

Answer 5

supplemental extended reporting period

Question 6

all the following meet the definition of the insured under an h0-3 policy except
A a 70 year old grandparent residing in adult care facility
B an 89 year old uncle residing in the household
c an 18 year old foster child residing in the insured home

Answer 6

a 70 year old grandparent residing in an adult care facility

Question 7

the loss under a water craft endorsement is covered if it arises out of
A the use of water coat for a business party
B the use of the water craft to carry property Fee
C the use of a sailboat in racing competition

Answer 7

the use of the watercraft for a business party

Question 8

actual cash value is defined as

Answer 8

the amount replaced damaged property less depreciation

Question 9

all the following are vehicles are eligible for coverage under a persona; auto policy except
A an SUV owned by a 25 year old
B a pickup truck leased to husband and wife
C a private passenger auto owned by a partnership

Answer 9

a private passenger auto owned by a parterre ship

Question 10

exclusive agents

Answer 10

generally represent only one insurer

Question 11

a common formula that is used to establish cash value is

Answer 11

ACV =replacement cost-depreciation

Question 12

which of the following coverages is a property insurance coverage 
A medical payments
B personal injury
C other then collision
D property damage liability

Answer 12

other than collision

Question 13

professionals are exposed to liability for failure to properly perform their pro duties. which of the following would be the least likely prospect for a professional liability policy 
A dentist 
B pro basketball player 
C Attorney
D Architect

Answer 13

Pro basketball player

Question 14

are standardized umbrella policies available

Answer 14

yes standardized umbrella policies are available

Question 15

which of the following is listed on a commercial general liability declaration page as an aggregate limit
A property Damage
B products/ completed operations
C bodily injury limit 
D pollution liability limit

Answer 15

products completed operations

Question 16

alll the following are characteristics of an ideally insurable loss exposure except
A losses are accidental
B losses that are definite and Measurable
C large number of similar exposure units
D losses that are catastrophic

Answer 16

losses that are catastrophic

Question 17

the insurance code definition of an insurance broker

Answer 17

someone paid to transact insurance on behalf of another person but not on the behalf of the insurer