Review Test

Question 1

1) Which one of the following persons would be covered for accidental injury on the insured?s premises under Coverage C of the CGL Medical Payments?
1.
a tenant of the premises
2.
an employee of the insured
3.
person injured in warfare
4.
a volunteer worker

Answer 1

Correct answer: a volunteer worker

Question 2

Question 2 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following does HO-6 provide?
1.
coverage for tenant living in a condominium
2.
coverage for personal property of a condominium owner
3.
broad dwelling coverage for a condominium owner
4.
coverage for the rehabilitation of a condominium structure

Answer 2

Correct answer: coverage for personal property of a condominium owner

Question 3

Question 3 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which exposure is unique to mobile homes?
1.  
loss from foreclosure
2.  
loss from collapse of awnings
3.  
loss from flood damage
4.  
loss from collision damage

Answer 3

Correct answer: loss from collision damage

Question 4

Question 4 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Under the insured?s personal auto policy, which of the following is CORRECT for a newly acquired car to be covered prior to reporting it to the insurance company?
1.
for physical damage coverage to extend it must be a brand new vehicle.
2.
for liability coverage to extend it must only be driven by an insured.
3.
all coverage extends if the insured reports the car within fourteen days.
4.
for uninsured motorist coverage to extend the driver must be the insured.

Answer 4

Correct answer: all coverage extends if the insured reports the car within fourteen days.

Question 5

Question 5 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following would be eligible to collect survivor and death benefits from workers? compensation in the event of the covered injury resulting in the death of an employee? 
1.  
medical provider
2.  
insured's legal team
3.  
spouse of employee
4.  
owner of the business

Answer 5

Correct answer: spouse of employee

Question 6

Question 6 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following policy assignment rights occurs when the named insured dies?
1.
The closest relative takes over the policy.
2.
A new owner of the property takes over the policy.
3.
The insured?s legal representative takes over the policy.
4.
No-one is permitted to take over the policy.

Answer 6

Correct answer: The insured?s legal representative takes over the policy.

Question 7

Question 7 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which document would a lender ask an insured for as evidence that a policy has been written?
1.  
Certificate
2.  
Declarations
3.  
Endorsement
4.  
Policy

Answer 7

Correct answer: Certificate

Question 8

Question 8 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
All of the following specify limits of insurance for the CGL EXCEPT
1.  
legal defense.
2.  
medical expense.
3.  
general aggregate.
4.  
personal and advertising injury.

Answer 8

Correct answer: legal defense.

Question 9

Question 9 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which part of the CGL designates who is an insured?
1.  
conditions
2.  
declarations
3.  
definitions
4.  
insuring agreement

Answer 9

Correct answer: declarations

Question 10

Question 10 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
What does an application for insurance contractually represent for the insured?
1.  
an offer
2.  
a promise to pay
3.  
an agreement of terms
4.  
a primary source of information

Answer 10

Correct answer: an offer

Question 11

Question 11 of 75
Portion Name : Property and Casualty Insurance Practice Examination
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.

Answer 11

Correct answer: bodily Injury to an insured?s nonresident family member or relative.

Question 12

Question 12 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
When the policy term ends and either the insured or the insurance company wants to discontinue coverage which provision is applied?
1.  
expiration
2.  
flat cancel
3.  
cancelation
4.  
nonrenewal

Answer 12

x

Question 13

Question 13 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
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.  
to submit to examination under oath.
3.  
to protect property from further damage.
4.  
to determining adequate indemnification.

Answer 13

Correct answer: to determining adequate indemnification.

Question 14

Question 14 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Which situation is an example of vicarious liability?
1.
The insured injures a friend in hunting accident.
2.
The insured?s employee causes an injury while on the job.
3.
The insured damages a neighbor’s building while trying to enter.
4.
The insured loans a defective ladder to neighbor that results in an injury.

Answer 14

Correct answer: The insured?s employee causes an injury while on the job.

Question 15

Question 15 of 75
Portion Name : Property and Casualty Insurance Practice Examination
The Gramm Leach Bliley Act was enacted to protect consumer?s right to privacy and made mandatory which of the following?
1.
non-disclosure of corporate financial records
2.
collection of personal private information
3.
regulation of banks and financial companies
4.
financial institutions must have a privacy policy in place

Answer 15

Correct answer: financial institutions must have a privacy policy in place

Question 16

Question 16 of 75
Portion Name : Property and Casualty Insurance Practice Examination
All of the following are Unfair Claims Settlement Practices EXCEPT
1.
misrepresentation of policy provisions.
2.
failure to acknowledge pertinent communications.
3.
failure to respond to a first notice of loss within 24 hours.
4.
taking more than 21 days to notice denial of a claim.

Answer 16

Correct answer: failure to respond to a first notice of loss within 24 hours.

Question 17

Question 17 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Workers? compensation coverage is rated on the basis of which of the following?
1.  
employer?s payroll
2.  
employee's earnings
3.  
employer?s gross claims
4.  
employer?s years in business

Answer 17

Correct answer: employer?s payroll

Question 18

Question 18 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following would be covered by a commercial package policy?
1.  
small to medium sized businesses
2.  
ocean marine
3.  
loss due to crime
4.  
injury to worker on the job

Answer 18

Correct answer: loss due to crime

Question 19

Question 19 of 75
Portion Name : Property and Casualty Insurance Practice Examination
The property coverage of a BOP includes which of the following?
1.
motor vehicles
2.
outdoor fencing
3.
outdoor signs that are not attached to the building
4.
carpeting that is permanently installed inside the building

Answer 19

Correct answer: carpeting that is permanently installed inside the building

Question 20

Question 20 of 75
Portion Name : Property and Casualty Insurance Practice Examination
How does the BOP differ from the CPP?
1.
The BOP covers property damage only.
2.
The BOP is specifically designed for larger companies.
3.
The BOP covers small businesses that have multiple locations.
4.
The BOP prepackages a group of coverages desirable to small businesses.

Answer 20

Correct answer: The BOP prepackages a group of coverages desirable to small businesses.

Question 21

Which of the following is covered by the Homeowners Broad form (HO-2) insurance?
1.  
tenants
2.  
breakage of glass
3.  
condominium structures
4.  
structures other than the dwelling

Answer 21

Correct answer: breakage of glass

Question 22

Question 22 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following is the special limit of coverage on the homeowners policy form for property damage to personal watercraft?
1.  
$1,000
2.  
$1,500
3.  
$2,000
4.  
$2,500

Answer 22

Correct answer: $1,500

Question 23

Question 23 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
An injured employee covered under workers? compensation is entitled to reasonably justifiable expenses for retraining. This benefit falls under which of the following?
1.  
medical rehabilitation
2.  
physical rehabilitation
3.  
vocational rehabilitation
4.  
educational rehabilitation

Answer 23

Correct answer: vocational rehabilitation

Question 24

Question 24 of 75
Portion Name : Property and Casualty Insurance Practice Examination
When an insured disagrees with the valuation of a loss and his appraiser and the insurance company?s appraiser disagree, how will the loss be settled?
1.
by the insurance company?s appraiser
2.
a third appraiser called an umpire will make the decision
3.
the insured?s appraiser will determine the valuation of the loss
4.
the amount agreed to by any two of the three

Answer 24

Correct answer: the amount agreed to by any two of the three

Question 25

Question 25 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Federal Crop Insurance is a type of insurance sometimes called which one of the following?
1.  
voluntary private insurance
2.  
special broadened forms insurance
3.  
national association coverage insurance
4.  
residual market insurance

Answer 25

Correct answer: residual market insurance

Question 26

Question 26 of 75
Portion Name : Property and Casualty Insurance Practice Examination
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.

Answer 26

Correct answer: auto not titled to an insured but available for regular use of named insured or family member.

Question 27

Question 27 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following forms trigger coverage for a loss under the commercial general liability policy if a loss happens during the policy period?
1.  
claims made form
2.  
occurrence form
3.  
period certain form
4.  
static form

Answer 27

Correct answer: occurrence form

Question 28

Question 28 of 75
Portion Name : Property and Casualty Insurance Practice Examination
When does the coverage begin for a builders risk form?
1.
The date the policy premium is paid
2.
On the date any construction begins
3.
On the date construction starts above the highest basement floor if there is a basement
4.
On the date construction starts above the lowest basement floor if there is a basement

Answer 28

Correct answer: On the date construction starts above the lowest basement floor if there is a basement

Question 29

Question 29 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
The policy conditions as well as state laws permit the insurance company to cancel or rescind a policy when any of the following exist EXCEPT
1.  
concealment.
2.  
fraud.
3.  
misrepresentation.
4.  
representations.

Answer 29

Correct answer: representations.

Question 30

Question 30 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following is an example of replacement cost valuation?
1.
fair market value of item at time of loss
2.
actual cash value of item at time of loss
3.
cost new without depreciation at the time of loss
4.
cost of functional value of item at time of loss

Answer 30

Correct answer: cost new without depreciation at the time of loss

Question 31

Question 31 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
The insured has a commercial auto policy with a drive other car broadened coverage liability for named individuals (DOC) endorsement. In which of the following would the named individual be covered?
1.  
racing company  car
2.  
driving neighbor?s auto
3.  
any vehicle owned by insured
4.  
family member driving company vehicle

Answer 31

Correct answer: driving neighbor?s auto

Question 32

Question 32 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following types of policy BEST describes the DP-2 Broad form policy?
1.  
all risk
2.  
expanded
3.  
named perils
4.  
open perils

Answer 32

Correct answer: named perils

Question 33

Question 33 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following is the financial injury sustained by the insured caused by an accident for which the insurer, in consideration of the premium, has undertaken to indemnify the insured?
1.  
exposure
2.  
loss
3.  
peril
4.  
risk

Answer 33

Correct answer: loss

Question 34

Question 34 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following causes of loss to a vehicle will trigger collision coverage on the personal auto policy Part D- coverage for damage to your auto?
1.  
Contact with an animal
2.  
Explosion or earthquake
3.  
Missiles or falling objects
4.  
Vehicle upset

Answer 34

Correct answer: Vehicle upset

Question 35

Question 35 of 75
Portion Name : Property and Casualty Insurance Practice Examination
An extended reporting period attached to a general liability policy provides coverage in which of the following ways?
1.
It provides coverage for claims made outside the policy term.
2.
It gives an additional 30 days coverage beyond the policy term.
3.
It gives an additional 10 years coverage beyond the policy term.
4.
It covers any gap between the claims-made and occurrence forms.

Answer 35

Correct answer: It provides coverage for claims made outside the policy term.

Question 36

Question 36 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following Homeowners form provides the most comprehensive coverage?
1.  
HO-4
2.  
HO-5
3.  
HO-6
4.  
HO-8

Answer 36

Correct answer: HO-5

Question 37

Question 37 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following is considered a hired auto under the commercial auto policy symbol 8?
1.
any auto the insured owns and rents
2.
autos rented or borrowed from employees
3.
autos the insured leases, borrows or rents
4.
any auto the insured will use during the policy period

Answer 37

Correct answer: autos the insured leases, borrows or rents

Question 38

Question 38 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
An insureds place of business is broken in to and merchandise unlawfully taken during the night, the insured is the victim of which type of crime?
1.  
robbery
2.  
burglary
3.  
breaking and entering
4.  
safe cracking

Answer 38

Correct answer: burglary

Question 39

Question 39 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Liability arising out of any of the following is excluded from the personal and advertising injury liability coverage EXCEPT
1.
unknowingly inflicting injury that violates the rights of another.
2.
oral or written publication of material that the insured knows is false.
3.
criminal acts committed by or at the direction of the insured.
4.
failure of goods or products to conform with advertised quality.

Answer 39

Correct answer: unknowingly inflicting injury that violates the rights of anothe

Question 40

Question 40 of 75
Portion Name : Property and Casualty Insurance Practice Examination
When an insured is driving his covered automobile causes an accident that results in injury, his automobile medical payments will pay medical expenses for all of the following EXCEPT
1.
the insured?s own injuries.
2.
the brother’s injury, an occupant in insured?s vehicle.
3.
his daughter’s injuries, an occupant in insured?s vehicle.
4.
any occupant of the other not at fault vehicle.

Answer 40

Correct answer: any occupant of the other not at fault vehicle.

Question 41

Question 41 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following is the party who agrees to be responsible for loss in the case of a fidelity bond?
1.  
the surety
2.  
the oblige
3.  
the principal
4.  
the bondholder

Answer 41

Correct answer: the surety

Question 42

Question 42 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Mysterious disappearance in insurance refers to which occurrence?
1.
someone fleeing the scene of a crime without explanation
2.
a kidnapping and constitutes a felony for the individuals involved
3.
the disappearance of property without any explanation of what happened
4.
the disappearance of a person with no clues to their whereabouts or well being

Answer 42

Correct answer: the disappearance of property without any explanation of what happened

Question 43

Question 43 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
All of the following losses are excluded from the DP-1 basic policy form EXCEPT
1.  
earth movement.
2.  
lightning strike.
3.  
power interruption.
4.  
water damage.

Answer 43

lightning strike

Question 44

Question 44 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
All of the following are elements of a valid contract EXCEPT
1.  
competent parties.
2.  
consideration.
3.  
legal purpose.
4.  
provisions.

Answer 44

Correct answer: provisions.

Question 45

Question 45 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Employees are barred from suing employers in court to obtain compensation for injuries covered by workers? compensation because of which of the following doctrines?
1.  
employer liability
2.  
exclusive remedy
3.  
workman liability
4.  
no fault insurance

Answer 45

Correct answer: exclusive remedy

Question 46

Question 46 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following defines the term peril?
1.  
chance of loss
2.  
cause of loss
3.  
uncertainty of loss
4.  
risk of loss

Answer 46

Correct answer: cause of loss

Question 47

Question 47 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Workers? compensation benefits for loss of wages include which of the following?
1.  
reimbursement for medical bills
2.  
complete replacement for lost wages
3.  
replacement of a portion of lost wages
4.  
income stream for survivors

Answer 47

Correct answer: replacement of a portion of lost wages

Question 48

Question 48 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
In which of the following DP forms is the dwelling covered under open perils and the personal property on a named peril basis?
1.  
DP-1
2.  
DP-2
3.  
DP-3
4.  
DP-4

Answer 48

Correct answer: DP-3

Question 49

Question 49 of 75
Portion Name : Property and Casualty Insurance Practice Examination
As a general rule, inland marine insurance covers all of following EXCEPT
1.
domestic shipments of goods.
2.
merchandise while it is being manufactured.
3.
musical instruments for professional use.
4.
contractor tools used on a job site.

Answer 49

Correct answer: merchandise while it is being manufactured.

Question 50

Question 50 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
A person who intentionally defrauds and insurance company to gain from a claim is an example of which type of hazard?
1.  
legal hazard
2.  
moral hazard
3.  
morale hazard
4.  
physical hazard

Answer 50

Correct answer: moral hazard

Question 51

Question 51 of 75
Portion Name : Property and Casualty Insurance Practice Examination
What is the purpose of the causes of loss form that lists specific exclusions?
1.
to inform the insurer what the loss is in a claim
2.
to state which properties are covered in a loss
3.
to state which perils are insured against
4.
to inform the insured whether the loss in a claim is covered

Answer 51

Correct answer: to state which perils are insured against

Question 52

Question 52 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Which applies when an insured is found legally liable for the loss of another and is ordered to pay general damages?
1.
Compensation is ordered to set an example.
2.
Compensation is ordered to punish insured.
3.
Damages compensate for pain and suffering.
4.
Insured must pay medical and lost wages expense.

Answer 52

Correct answer: Damages compensate for pain and suffering.

Question 53

Question 53 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which characteristic of an insurance contract states that when a loss occurs the insured should be restored to the financial condition he was in before the loss?
1.  
contract of indemnity
2.  
personal contract
3.  
contract of adhesion
4.  
unilateral contract

Answer 53

Correct answer: contract of indemnity

Question 54

Question 54 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
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.

Answer 54

Correct answer: builder’s floater form.

Question 55

Question 55 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which coverage forms are used when the insured sustains loss of revenue due to direct physical loss from a peril insured against that forces the insured to suspend operations during the period of restoration?
1.  
Causes of Loss forms
2.  
Business Income Coverage forms
3.  
Suspension forms
4.  
Commercial Casualty forms

Answer 55

Correct answer: Business Income Coverage forms

Question 56

Question 56 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
The Causes of Loss form for farm property lists which of the following?
1.  
the type of property insured
2.  
the amount of insurance provided
3.  
perils property is insured against
4.  
exclusions to named insureds

Answer 56

Correct answer: perils property is insured against

Question 57

Question 57 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following liability insurance policies would provide coverage to ABC Company in a suit brought by a fired employee for wrongful discharge?
1.  
Employers Liability
2.  
Workers? Compensation
3.  
Commercial General Liability
4.  
Employment Practices Liability

Answer 57

Correct answer: Employment Practices Liability

Question 58

Question 58 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
All of the following are examples of insurable interest EXCEPT
1.  
insuring your home.
2.  
insuring expensive jewelry.
3.  
insuring your friend's automobile.
4.  
insuring business property you own.

Answer 58

Correct answer: insuring your friend’s automobile.

Question 59

Question 59 of 75
Portion Name : Property and Casualty Insurance Practice Examination
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.

Answer 59

Correct answer: labor costs are performed at the shop are limited to $25.

Question 60

Question 60 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following created The National Flood Insurance Program?
1.  
an association of mortgage banks
2.  
the United States Congress
3.  
governors of flood prone states
4.  
a consortium of insurance companies

Answer 60

Correct answer: the United States Congress

Question 61

Question 61 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
The insured carries uninsured motorist coverage limits of 100/300/100 and is struck by an uninsured motorist, who will pay insured?s bodily injury damages claimed for $100,000?
1.  
the state?s uninsured motorist fund
2.  
the uninsured driver
3.  
the insured?s insurance company
4.  
the insured has no avenue to recover

Answer 61

Correct answer: the insured?s insurance company

Question 62

Question 62 of 75
Portion Name : Property and Casualty Insurance Practice Examination
All of the following are considered an insured under the liability part of a personal auto insurance policy EXCEPT
1.
a relative with out of state drivers license.
2.
a neighbor who borrows the vehicle for a trip.
3.
a nonresident relative who has no insurance
4.
a stranger who takes the car without permission.

Answer 62

Correct answer: a stranger who takes the car without permission.

Question 63

Question 63 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following limits of insurance on the dwelling are available and apply to Coverage D-Fair Rental Value?
1.  
10%
2.  
15%
3.  
20%
4.  
25%

Answer 63

Correct answer: 20%

Question 64

Question 64 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Under the CGL which one of the following is covered under supplementary payments?
1.
cost of bail bonds
2.
defense costs for the plaintiff
3.
court costs taxed against a third party
4.
loss of earnings expense of over $250 a day

Answer 64

x

Question 65

Question 65 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
A cable company uses employees to install equipment in customers? homes. The company purchases a bond from an insurance company to protect itself from potential dishonest acts of the employees. Which of the following types of bond does the cable company purchase?
1.  
blanket bond
2.  
fidelity bond
3.  
schedule bond
4.  
surety bond

Answer 65

Correct answer: fidelity bond

Question 66

Question 66 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
The insured is mowing his lawn when a stranger is noticed in the backyard. The stranger claims to be a substitute delivery person. Several days later a gold watch can not be found. Which of the following describes the loss?
1.  
robbery
2.  
burglary
3.  
theft of property
4.  
mysterious disappearance

Answer 66

Correct answer: mysterious disappearance

Question 67

Question 67 of 75
Portion Name : Property and Casualty Insurance Practice Examination
An insured operates a auto repair shop and has a garage coverage form with garagekeepers insurance when an employee on a test drive with a customer?s car is involved in a crash. How will the customer?s car be covered by the insured?s policy?
1.
All coverage is excluded under the garagekeepers insurance for the nonowned car.
2.
The insured?s policy is excess to the employee?s policy and covers any physical damage.
3.
The customer?s car is covered for any physical damage while in the custody of the insured.
4.
Physical damage coverage is specifically excluded for off premise occurrences.

Answer 67

Correct answer: The customer?s car is covered for any physical damage while in the custody of the insured.

Question 68

Question 68 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Purchasing boatowners insurance is an example of which of the following?
1.  
avoidance
2.  
control
3.  
retention
4.  
transfer

Answer 68

Correct answer: transfer

Question 69

Question 69 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
All of the following would be found on a declarations page EXCEPT
1.  
limits of insurance.
2.  
address of insured.
3.  
policy exclusions.
4.  
costs for coverage.

Answer 69

Correct answer: policy exclusions.

Question 70

Question 70 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following represents the maximum amount reimbursable for tree debris removal for one occurrence under all Homeowners forms?
1.  
5% of coverage A
2.  
15% of coverage A
3.  
$500
4.  
$1,000

Answer 70

Correct answer: $1,000

Question 71

Question 71 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following business liability exposures does a slip and fall loss fall under?
1.  
indirect and contingent
2.  
medical expense
3.  
premises and operations
4.  
retail hazards

Answer 71

Correct answer: premises and operation

Question 72

Question 72 of 75
Portion Name : Property and Casualty Insurance Practice Examination
Mobile homes can be insured in all of the following ways EXCEPT
1.
with a HO-8 Modified Coverage form.
2.
on a separate mobile homeowners package policy.
3.
with a DP-1 if the mobile home is on a foundation.
4.
on a mobile homeowners endorsement to a HO-3 form.

Answer 72

Correct answer: with a HO-8 Modified Coverage form.

Question 73

Question 73 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Which of the following provides insurance for employers when workers not covered by workers? compensation insurance are injured on the job and sue for compensation?
1.  
employer liability
2.  
no fault insurance
3.  
worker insurance
4.  
employee indemnity

Answer 73

x

Question 74

Question 74 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
An insured with split liability limits of 100/300/100 is at fault in an automobile accident and the other vehicle sustains $6,500 in property damages as well as two occupants have bodily injury and are claiming $150,000 each.  What is the most insurance will pay to each occupant?
1.  
$100,000
2.  
$150,000
3.  
$200.000
4.  
$300,000

Answer 74

x

Question 75

Question 75 of 75	
Portion Name : Property and Casualty Insurance Practice Examination
Underwriters are permitted to use all of the following when underwriting an application for insurance EXCEPT
1.  
age, race, and religion.
2.  
inspection services.
3.  
credit reports.
4.  
claim history.

Answer 75

Correct answer: age, race, and religion.