P&C Insurance Exam Study Questions with Verified Answers, Exams of Health sciences

Download P&C Insurance Exam Study Questions with Verified Answers and more Exams Health sciences in PDF only on Docsity! p&c insurance exam study questions with all verified answers If a company cancels an auto policy mid-term, the refund will be made on a : A. pro rata basis B. short rate basis C. retroactive basis D. coinsurance basis A. Pro Rata Basis What is the term used to describe terminating the insurance relationship at the end of the policy period? Cancellation Nonrenewal Separation Exclusion B. Nonrenewal Which is the best example of an indirect loss? Sequential loss Liability loss Employee theft Loss of use D. Loss of use Which is a two party contract? Property Casualty Liability Auto A. Property p&c insurance exam study questions with all verified answers Insurance contracts offset A. speculative risk B. pure risk C. gambling D. created risk B. Pure risk Which of the following is a third party contract? Property Casualty Earthquake Theft B. Casualty Risk is best define as chance of loss certainty of loss financial loss sentimental loss A. chance of loss Being subject to a loss is liability indemnity exposure subrogation C. exposure The ranking insured in a Personal Lines contract is the p&c insurance exam study questions with all verified answers A. admitted company B. domestic company C. unauthorized company D. risk retention group A. admitted company A company chartered in Guam or Puerto Rico doing regular business in New York would be considered by New Yorkers to be a(n) A. domestic compnay B. foreign company C. alien company D. international company B. foreign company With regard to insurance, the term consideration means A. the premium and the statements on the application B. the insurer's method of evaluating the applicant for coverage C. the screening process all agents undergo prior to licensing. D. the side-by-side policy comparison by the applicant A. the premium and the statements on the application Which of the following terms indicates that an insurance contract contains the legal enforceable promises of only one party? A. Adhesion B. Unilateral C. Conditional p&c insurance exam study questions with all verified answers D.Aleatory B. Unilateral p&c insurance exam study questions with all verified answers In purchasing an insurance contract, the applicant must accept the contract as written. This type of contract is referred to as a(n) A. settled contract B. aleatory contract C. contract of adhesion D. personal contract C. Contract of adhesion Which of the following principles states that in forming an insurance contract, both parties have a responsibility to the order? A. Doctrine of Warranties B. Doctrine of Representations C. Doctrine of Utmost Good Faith D. Doctrine of Reasonable Expectations C. Doctrine of Utmost Good Faith An incorrect statement made intentionally on a Personal Auto insurance application is a A. Fraud B. Warranty C. Misrepresentation D. Conceament C. Misrepresentation A binder is a(n) A. Interim insuring agreement B. Application p&c insurance exam study questions with all verified answers B. day coverage goes into effect C. day the binder expires D. day following the notification that the binder has been cancelled A. Date of application Which is NOT true regarding hazards and perils? A. Hazards come in three groups: Basic, Broad, and Special B. Perils are active and hazards are inactive C. Hazards can be physical, moral, and morale D. Peril's come in three groups: Basic, broad, and special A. Hazards come in three groups: Basic, Broad, and Special A box of dynamite is a(n) A. moral hazard B. physical hazard C. morale hazard D. excellent addition to a toy collection B. Physical hazard If you look to be covered by everything which is not excluded, you should buy A. special cause of loss B. basic cause of loss C. broad cause of loss D. named peril coverage A. Special Cause of loss All of the following statements concerning valuation in a property policy are true EXCEPT: p&c insurance exam study questions with all verified answers A. Under Agreed Value, the insured and the company establish the value before the loss occurs B. Under the Stated Amount, the insured does not know what will be paid on a loss until the loss occurs C. Under Stated Amount, the insured is guaranteed the limit on the Dec page following a loss D. Functional Replacement is also known as Repair Cost C. Under Stated Amount, the insured is guaranteed the limit on the Dec page following a loss Andy has two property policies with identical peril power covering his property. The first has a limit of $75,000 and the second has a limit of $25,000. If Andy suffers a $4000 covered loss, how will the two policies pay? A. The first will pay $3,000 and the second will pay $1,000. B. The first will pay $4,000 and the second will pay nothing. C. The policies will each pay $2,000 D. The first will pay nothing and the second will pay $4,000 A. The first will pay $3,000 and the second will pay $1,000. The policy provision which allows policyowners to enjoy enhancements made by the company to the policy form they have in force without waiting until a policy renewal date is known as A. subrogation B. salvage C. liberalization p&c insurance exam study questions with all verified answers D. coinsurance C. liberalization p&c insurance exam study questions with all verified answers A. bodily injury B. property damage C. personal injury D. advertising injury C. personal injury Which of the following is true concerning the Medical Payments section of a liability contract? A. It pays only if the insured is legally liable B. It can pay for the injured party's lost wages C. It has rather low dollar limits D. it pays in addition to any liability judgments C. It has rather low dollar limits You are hit by a Greyhound bus, this incident is a(n) A. accident only B. occurrence only C. both D. Neither C. both Which of the following is NOT negligence? A. Ignorance B. Inaction C. Carelessness D. Intentional Act D. Intentional Act Which of the following is true concerning defense costs in a liability contract? p&c insurance exam study questions with all verified answers A. They only pay if you are legally liable B. They pay in addition to the limits of the policy C. They must be purchased separately D. They can cover the insured's costs of suing a negligent party B. They pay in addition to the limits of the policy Assume that Cal's Commercial Liability policy has an occurrence limit of $100,000 and an aggregate limit of $500,000. Further assume that so far this year, his insuror has paid claims of $420,000. when an injured shopper is awarded $90,000, how much will Cal's policy pay? A. $80,000 B. $90,000 C. $100,000 D. Cannot be determined by the information provided A. $80,000 Fire Legal Liability is most important to A. Landlord B. Mortgagee C. Employee D. Tenant D. Tenant Which of the following coverages can be found in all Homeowners forms but in no unendorsed Dwelling policies? A. Wind B. Hail p&c insurance exam study questions with all verified answers C. Vandalism D. Theft p&c insurance exam study questions with all verified answers C. 250 D. 500 C. 250 What is the maximum horsepower allowed for a boat that you own to be covered under the Personal Liability section of a Homeowners policy? A. 25 B. 50 C. 100 D. 200 A. 25 You are driving your car with your son and the neighbor's kid to soccer practice when you run a red light and hit Calvin and his family in their car. Under what part of your Personal Auto Policy would Calvin's injuries be? A. Part A B. Part B C. Part C D. Part D A. Part A Using the above information, what part of your policy covers the neighbor kid's injuries? A. Part A B. Part B C. Part C D. Part D B. Part B p&c insurance exam study questions with all verified answers Using the above information what part of your policy covers Cal's car? A. Part A B. Part B C. Part C D. Part D A. Part A Using the above information what part of your policy covers your car? A. Part A B. Part B C. Part C D. Part D D. Part D You run a stop sign, hitting Calvin and Clara's car. Cal's injuries are in the amount of $30,000 and Clara's total $12,000. Thier car is damaged in the amount of $11,000. Your liability limits are 25/50/10. How much will your company pay for Cal and Clara's bodily damage injury and property damage? A. $47,000 B. $52,000 C. $53,000 D. $75,000 A. $47,000 All of the following are true concerning Auto policy Med p&c insurance exam study questions with all verified answers Pay EXCEPT: p&c insurance exam study questions with all verified answers C. $125,000 D. $150,000 A. $75,000 You and your company cannot agree on the value of the car you totaled. what method is used to settle the dispute? A. Appraisal B. Arbitration C. Small Claims Court D.A Coin toss A. Appraisal A Homeowners policy provides how much liability coverage for a 22 foot, 200 horsepower ski boat? A. $0 B. 500 C. $1,000 D. $1,500 A. $0 A Boatowners policy is usually written on what basis? A. ACV B. Agreed Value C. Functional replacement Value D. Replacement cost D. Replacement cost Which of the following would a boatowners policy NOT cover? p&c insurance exam study questions with all verified answers A. hull B. trailer p&c insurance exam study questions with all verified answers C. Motors D. Fishing equipment D. Fishing equipment If the owner of a Yacht policy warrants that his vessel will be in storage through May 1, and is actually sailing his boat on April 10 when the company discovers his actions, what will happen? A. He will be reprimanded B. He will be fined C. His coverage will be cancelled D. his rates will increase C. His coverage will be cancelled Under the National Flood Program, which of the following is true? A. You must live in a flood plain to buy the policy B. If your community fails to participate you may still purchase flood insurance C. Building losses are settled ACV and contents are settled as Replacement cost D. the minimum building deductible for a property insured for $90,000 is $1,000 D. the minimum building deductible for a property insured for $90,000 is $1,000 Which of the the following could a farmer NOT cover under an NFIP policy? A. House p&c insurance exam study questions with all verified answers B. 12:01 AM Which of the following is Not a coverage module choice in the CPP? A. Crime B. Farm C. Inland marine D. Garagekeepers D. Garagekeepers Which of the following options is NOT available in the Commercial Property policy? A. Agreed Value B. Replacement Cost C. Inflation Guard D. Fair market Value D. Fair market Value Which if the following losses would NOT be covered by the Basic Cause of Loss form? A. Collapse B. Wind C. Hail D. Civil Commotion A. Collapse What is the standard deductible in a Commercial Property policy? A. $100 B. $250 C. $500 p&c insurance exam study questions with all verified answers D. $1,000 C. $500 What is the maximum that the Fire Department Service charge will pay in a Commercial Policy? A.$250 B. $500 C. $1,000 D. $1,500 C. $1,000 A vacant building can lose coverage altogether after how many days? A. 10 B. 30 C. 45 D. 60 D. 60 In a Business Income coverage, the time elapsed from the loss until the building is fully repaired is known at the A. down time B. period of restoration C. extended period D. coinsurance period B. period of restoration Who certifies an act of terrorism? A. President p&c insurance exam study questions with all verified answers B. Sec of Def p&c insurance exam study questions with all verified answers C. 3yr D. 5 yr A. 1 yr 7.A policyowner is charged a self-insured retention with his umbrella when A. he suffers any loss B. his underlying coverage reaches its limit C. his Excess Liability policy reaches is limit D. his underlying policy does not provide coverage D. his underlying policy does not provide coverage Which of the following is covered under the CGL? A. Pollution Liability B. Professional Liability C. Employee injury liability D. Independent Contractor liability B. Professional Liability Medical Payment limits are expresses as A. occurrence limits B. aggregate limits C. agreed value limits D. per person limits D. per person limits If Carl is assigned to drive a cash deposit to the bank, Carl is acting as a A. messenger B. custodian p&c insurance exam study questions with all verified answers C. guard D. watchperson A. messenger Which of the following is NOT money? A. currency B. Coins C. Register Checks D. Securities D. Securities A thief finds the door to an appliance store has been left unlocked. He enters and take several Big Screen TV's. The thief had committed A. burglary B. robbery C. theft D. vandalism C. theft Robbery of a watchperson is considered to be a (n) A. burglary B. robbery C. holdup D. extortion A. burglary Fidelity Bonds are used in connection with A. Employee errors and omissions B. employee absences p&c insurance exam study questions with all verified answers C. employee negligence D. employee theft D. employee theft To cover all employees on one Fidelity bond you would use a(n) A. Individual Bond B. Name Schedule Bond C. Blanket Bond D. Position schedule bond C. Blanket Bond The Commercial Crime policy pays for losses in the basis of what? A. ACV B. Replacement Cost C. Functional replacement cost D.Agreed Value A. ACV Which would not be covered under a Commercial Crime policy? A. Theft B. Forgery C. Vandalism D. Computer Fraud C. Vandalism Forgery and Alterations covers Commercial Crime Losses involving A. incoming counterfeit money p&c insurance exam study questions with all verified answers B. Fire damage is covered by equipment breakdown coverage p&c insurance exam study questions with all verified answers Which of the following would NOT be covered by Equipment Breakdown coverage? A. Steam Boilers B. Refrigeration Equipment C. Computers D. Toilets D. Toilets Equipment Breakdown coverage losses are settled on what basis A. ACV B. Replacement Cost C. Functional Replacement Cost D.Agreed Value B. Replacement Cost The insurance company may suspend coverage on any unsafe insured object by giving written notice how many days in advance? A. 10 B. 15 C. 30 D. the suspension is immediate D. the suspension is immediate How many vehicles are required to qualify for fleet rates? A. 5 or more B. 10 or more C. 20 or more D. 25 or more p&c insurance exam study questions with all verified answers A. 5 or more A company which provides private passenger vehicles for each of its 10 sales reps would likely purchase the A. Business Auto coverage form B. motor carriers coverage form C. Auto dealers coverage form D. personal auto policy A. Business Auto coverage form A business concerned with its liability when employees use their own vehicles on company business needs A. Drive other car coverage B. Individual Named Insured endoresement C. Employee as insured endorsement D. Symbol #9 nonowned autos only A. Business Auto coverage form A Car Wash concerned about its responsibility for customers's cars should buy A. Motor Carrier Coverage Form B. Auto Dealers Coverage Form C. Garagekeepers endorsement to business auto D. Drive other Car Coverage C. Garagekeepers endorsement to business auto The Motor Carrier Act of 1980 requires minimum liability limits of when transporting specified hazardous materials such as explosives. A. 1,000,000 p&c insurance exam study questions with all verified answers B. Lists everything that can be covered by an Inland Marine policy C. Lists the risks that cannot be covered by a Marine policy D. Generally distinguishes Marine risks from Property risks D. Generally distinguishes Marine risks from Property risks Which of the following appears in the Nationwide Marine Definition A. Ships B. Boats C. Commercial Property floater risks D. Commercial Liability floater risks C. Commercial Property floater risks The property coverage's under a BOP protect against losses due to A. Basic Perils B. Broad Form Perils C. Specified Perils D. Open Perils D. Open Perils The Additional coverage and the Extensions coverage under a BOP A. must be purchased separately B. must be earned C. are provided automatically D. are added by endorsement C. are provided automatically Liability Coverage under a BOP p&c insurance exam study questions with all verified answers is p&c insurance exam study questions with all verified answers A. occurrence triggered B. accident triggered C. Claims Made triggered D. either Claims Made or Accident Triggered A. occurrence triggered Minimum liability limits under a BOP are A. 50,000 per occurrence B. 100,000 per occurrence C. 250,000 per occurrence D. 300,000 per occurrence D. 300,000 per occurrence The Fire legal limit under a BOP is A. 25,000 B. 50,000 C. 100,000 D. 250,000 B. 50,000 The basic deductible under a BOP is A. 500 B. 1,000 C. 2,500 D. 5,000 A. 500 A building insured under a BOP loses vandalism coverage after it has been vacant for Days. A. 1 p&c insurance exam study questions with all verified answers A. Fellow Servant B. Assumption of Risk C. Intervening Cause D. Contributory Negligence C. Intervening Cause Which is a factor in Workers Compensation? A. Negligence B. Fault C. Assumption of Risk D. Occupation-Related D. Occupation-Related Which is NOT a regular source for Workers Comp coverage? A. Private Companies B. Monopolistic state funds C. Self-Insurance D. Lloyd's D. Lloyd's Which is not a benefit of Workers Comp Part one? A. Medical Expenses B. Disability Income C. Long Term Care D. Rehabilitation C. Long Term Care Which is a level of disability recognized by most state Work Comp statutes? A. Partial Total p&c insurance exam study questions with all verified answers B. Temporary Total C. Temporary Permanent D. Total Partial B. Temporary Total Part Two- Employers Liability has which of the following occupational accident limits? A. $100,000/accident B. $100,000/person C. $250,000/accident D. $250,000/person A. $100,000/accident Part- Two Employers Liability has which of the following occupational sickness limits? A. $100,000/accident B. $100,000/person C. $250,000/accident D. $250,000/person B. $100,000/person Which of the following has the greatest impact on Workers Comp Rates? A. Frequency of claims B. Severity of Claims C. Cause of claims D. Cost of claims A. Frequency of claims Which Federal Workers Comp Law covers seamen? p&c insurance exam study questions with all verified answers A. Federal Employer Liability Act B. Longshore and harbor Workers Act C. Jones Act D. Outer Continental Shelf Lands Act C. Jones Act Which Federal Workers Comp Law covers Postal workers? A. Federal Employer Liability Act B. Longshore and harbor Workers Act C. Jones Act D. Outer Continental Shelf Lands Act A. Federal Employer Liability Act 1.To obtain an Alabama Producer's license you must be at least A. 16 B. 18 C. 21 D. 22 B. 18 2.The concept of due process involves which of the following elements? A. Notice B. Hearing C. both notice and hearing D. neither notice nor hearing C. both notice and hearing 3. If Alabama Department of Insurance believes you are in violation of the insurance statues and you file a written demand p&c insurance exam study questions with all verified answers 7.A Change in your legal address requires that you notify the Commissioner within how many days? A. 10 B. 14 C. 30 D. 60 C. 30 8. How many hours of insurance continuing education must you complete each year? 10 12 15 40 B. 12 9. How many hours of continuing education can you carry over from one year to the next? None 12 15 40 A. None 10. As a licensed Producer, you must keep records of all insurance transactions for at leastyears. 2 3 5 p&c insurance exam study questions with all verified answers D. 10 B. 3 11. A temporary Producer license may be issued for up to months. A. 3 B. 6 C. 9 D. 12 B. 6 12.Unless revoked, your Producers license will remain in effect for A. 6 months B. One year C. two years D. as long as you meet the con-ed requirements and pay the fee's C. two years 13.Lying to replace is considered A. Twisting B. Embezzlement C. Rebating D. Coercion A. Twisting 14.Offering to give your client half of your commission in order to motivate him to buy from you is considered A. Twisting p&c insurance exam study questions with all verified answers B. Embezzlement p&c insurance exam study questions with all verified answers C. Two years D. Four Years C. Two years 4.A Surplus Line Producer places coverage with an unauthorized insurer. The producer must file an affidavit with the state within: A. 10 days of the effective date of coverage B. 20 days of policy delivery C. 30 days of the effective date of coverage D. 31 days of policy delviery C. 30 days of the effective date of coverage 5.A Surplus Line Producer most post a bond in the amount of: A. $10,000 B. $20,000 C. $25,000 D. $50,000 D. $50,000 6.The purpose of the Insurance Guaranty Association is to: A. Provide Insurance companies with a reserve amount of money the can access to pay claims B. Guarantee everyone who applies for a policy is accepted C. Protect policy owners if an insurance company becomes insolvent p&c insurance exam study questions with all verified answers D. standardize and guarantee premiums C. Protect policy owners if an insurance company becomes insolvent 7.The maximum liability of the Insurance Guaranty Association on any one claim is: p&c insurance exam study questions with all verified answers A. $150,000 B. $ 200,000 C. $250,000 D. $500,000 A. $150,000 8. Which of the following would most likely be covered by Workers Comp? A. An intoxicated employee injures himself at work B. An employee is injured by a negligent act of a co-worker C. An employee is injured by the intentional act of a co- worker D.An employee with a stressful personal life suffers a mental breakdown B. An employee is injured by a negligent act of a co- worker 9. Which of the following would be classified as a dependent under Workers Comp Law? A. the unemployed 21 y/o son of an injured employee B. the married 18 y/o daughter on an injured employee C. The former wife of the employee D. the handicapped, unemployable 22 y/o son of the injured employee D. the handicapped, unemployable 22 y/o son of the injured employee 10.Death benefits could be paid under Workers Comp for a maximum of: p&c insurance exam study questions with all verified answers 2.The minimum level of legal Auto Liability in AL is: p&c insurance exam study questions with all verified answers A. 10/20/10 B. 20/40/10 C. 20/40/20 D. 25/50/25 D. 25/50/25 3. Failing to show evidence of insurance to a LE Officer who requests it is: A. only a civil violation B. Class A Felony C. Class C Felony D. Class C Misdemeanor D. Class C Misdemeanor 4.The notification requirement for cancellation of an Auto policy for nonpayment of premium is at least: A. 5 days B. 10 days C. 15 days D. 20 days B. 10 days 5. Which of the following would NOT be an allowable reason for cancellation of an Auto Policy? A. Auto is unsafe B. a driver of the car has been using alcohol to excess C. regular driver of the car has epilepsy D. regular driver of the car is a teenager D. regular driver of the car is a teenager p&c insurance exam study questions with all verified answers 6. Which of the following is true concerning Uninsured/Underinsured motorist coverage? A. By law it is a mandatory coverage in every Auto Policy B. By law it must be offered in every Auto Policy C. The insured can only collect from uninsured motorist if they (the insured) are at fault for an accident D. The minimum amount of bodily injury that must be included is $40,000 per person B. By law it must be offered in every Auto Policy 7. What is the minimum age at which older drivers may be eligible for a rate reduction? A. 45 B. 50 C. 55 D. 60 C. 55 8. If, for the second time during a four year period the owner of a car has been found to have not maintained the legal liability coverage required, then his registration can be suspended for: A. 30 days B. 4 months C. 6 months D. 12 months B. 4 months p&c insurance exam study questions with all verified answers D. $10,000 B. $1,000 p&c insurance exam study questions with all verified answers 3.Your unlicensed brother-in-law Jeremy used some of your sales materials to sell a Life Policy to a friend of his. Now he wants the $400 commission you would have been paid for the sale. If you pay the commission, how much could you be fined for paying a commission to a non licensed person? A. $10,000 B. $1,200 C. $400 D. the law doesn't provide for a fine but you could lose your license B. $1,200 4.To be able to transact business in AL, an insurance company must A. be approved by a majority of existing insurance companies operating in the state B. be recommended by the AL Legislative Oversight Committee C. hold an AL Certificate of Authority D. Prove that its policies will offer better coverage or lower prices than any other insurer operating in the state C. hold an AL Certificate of Authority 5.The minimum age for obtaining a resident insurance Producer license is A. 18 B. 20 p&c insurance exam study questions with all verified answers C. 21 D. not regulated A. 18 p&c insurance exam study questions with all verified answers A. $1,000 B. $5,000 C. $10,000 D. $12,000 C. $10,000 10.A Producer who sells Mr. Karnes a policy in March 2015 must keep all records of the transaction until A. Mar 2016 B. Mar 2017 C. Mar 2018 D. Mar 2020 C. Mar 2018 11.In order to get your Producer license reinstated if it has been lapsed for more than 12 months you must A. Start over B. pay a penalty C. Complete extra Cont-Ed requirements and a fine D. submit a written request for a waiver with the Commissioner A. Start over 13.After receiving your Producer License, you must still be "appointed" by to transact insurance business in the state. A. An insurance company who you will sell policys B. the Commissioner p&c insurance exam study questions with all verified answers C. the governing board of the DOInsurance D. an agency p&c insurance exam study questions with all verified answers A. An insurance company who you will sell policys 14.Which of the following is NOT an Unfair Trade Practice in AL? A. Rebating B. Twisting C. Failure to pay income taxes D. Unfair Discrimination C. Failure to pay income taxes 19. If the Commissioner notifies you that you may have violated the Unfair Trade Practices Act, you will have at least days before a hearing where you can tell your side of the story. A. 5 B. 10 C. 15 D. 30 B. 10 21.TO be granted an Al Adjusters license, and applicant must be A. 18 or older B. 19 or older C. 21 or older D. 18 or older PLUS 2 years apprenticeship B. 19 or older 22.Unless suspended, an Adjusters license is valid for p&c insurance exam study questions with all verified answers 29.Workers Comp pays burial expenses for those who die because of an on the job injury in the amount of p&c insurance exam study questions with all verified answers A. 1,500 B. 2,500 C. 3,000 D. 5,000 C. 3,000 30.An injured employee who received Perm Total Disability will receive A. 2/3 of average weekly earnings B. 1/2 of average weekly earnings C. 90% of average weekly earnings D. 100% of average weekly earnings for 10 years A. 2/3 of average weekly earnings 31.In Al, the minimum legal liability limit for Bodily Injury per occurrence is A. 25,000 B. 35,000 C. 50,000 D. 100,000 C. 50,000 32.When Sandra is stopped for a moving violation by the AHP she couldn't find her insurance card. How long does she have to prove she had insurance before her license is suspended. A. 10 days B. 30 days C. 36 days D. 45 days p&c insurance exam study questions with all verified answers B. 30 days 33.Which is the following is NOT true about Under/Uninsured Motorist coverage in AL? A. It must be offered by the company B. It can be rejected in writing by the insured C. Minimum bodily injury limit is $25,000 per person and 50,000 per occurrence D. it must be accepted and paid for with every policy D. it must be accepted and paid for with every policy 34.In order to Qualify for an older driver rate reduction the insured must be A. 55 B. 60 C. 65 D. 68 A. 55 35.Which of the following is NOT a reason an Auto Policy can be cancelled? A. Requested an extension for State Income Taxes B. Filing False claims C. Insured driver is diagnosed with heart disease D. Convicted of a felony in the last 36 months A. Requested an extension for State Income Taxes 37.What must happen after cancellation of an Auto Policy for any reason other than nonpayment of premium? p&c insurance exam study questions with all verified answers 26.Which homeowners coverage provides for indirect loss coverage A. Coverage A- Dwelling B. Coverage B- Other Structures C. Coverage C- Personal Property D. Coverage D- Loss of Use D. Coverage D- Loss of Use 27.A home is covered under s Homeowners Comprehensive for HO-5 for $150,000. The cost of replacing the home is $200,000. Following a total loss, the insured would receive a settlement up of , disregarding any deductible. A. up to the Replacement Cost B. up to the Actual Cash Value C. up to the Market Value D. up to the stated Value B. up to the Actual Cash Value 29.Which of the following is true concerning a Special Form Homeowners HO-3 without endorsement? A. It will pay ACV of personal property losses. B. Coverage A Dwelling is issued on a named peril basis C. Coverage B Other Structures is removed by endorsement to reduce the premium if there are no other structures D. the HO-3 is most frequently used to cover tenants A. It will pay ACV of personal property losses. 30.A Dwelling policy sold without endorsement will cover p&c insurance exam study questions with all verified answers A. theft p&c insurance exam study questions with all verified answers B. property C. casualty D. medical payments B. property 33. For which of the following losses would you have coverage under a DP-3/ A. a thief steals your tools from the garage B. Your dog bites your neighbor C. Ice blocks your gutters ans water seeps into your home D.A visitor trips in your living room a breaks his wrist C. Ice blocks your gutters ans water seeps into your home 38. A Personal Auto Policy will provide Supplementary Payments to cover all of the following EXCEPT: A. costs of investigating the accident B. the premium for a bail bond C. the premium for an appeal bond D. rental car coverage D. rental car coverage 41. The collision coverage of a Personal Auto Policy pays claims on what basis? A. Actual Cash Value B. Replacement Cost C. Stated Value D.Agreed Value A. Actual Cash Value 43. Your personal Auto Med Pay would not cover which of the following? p&c insurance exam study questions with all verified answers A. Minimally qualified B. Uninsured Motorist C. Underinsured Motorist D.Auto risk pool motorist B. Uninsured Motorist 54.A flood policy becomes effective at what time? A. when coverage is bound B. on the date of application C. 30 days following the date of application D. 60 days following the date of application C. 30 days following the date of application 55.Under the National Flood program, which is true? A. the deductible can be applied twice, once to the building and again to the contents B. If your community fails to participate in the flood program, you can still buy flood insurance C. Building losses are settled ACV and contents are settled as Replacement cost. D. You must live in a flood plain to buy a Flood policy A. the deductible can be applied twice, once to the building and again to the contents 58. Which of the following calculations reflects the method by which an insurance premium is calculated? A. unit of exposure divided by the rate B. unit of exposure times the rate C. unit of exposure plus the rate p&c insurance exam study questions with all verified answers D. unit of exposure minus the rate B. unit of exposure times the rate 60. Under the Laws of Agency, the insurance company you represents in the . A. Obligee B. Principal C. Fiduciary D. Broker B. Principal