Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Arkansas Property & Casualty Practice Exam Questions and Answers, Exams of Advanced Computer Programming

Arkansas Property & Casualty Practice Exam Questions and Answers

Typology: Exams

2024/2025

Available from 06/25/2025

johniewalker91
johniewalker91 🇺🇸

635 documents

1 / 7

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Arkansas Property & Casualty Practice
Exam
Pay the claims covered under the policy. - answer A primary obligation of an insurance
company is to:
Accumulating Risk - answer Which of the following is not a reaction to risk?
An increase in the possibility that a loss may occur. - answer Which of the following
describes a hazard?
Requiring the policyholder to carry insurance to value. - answer Which of the following
best meets the test of the "Principle of Indemnity"?
Overpayment of a claim - answer The principle of indemnity is designed to avoid:
Flood - answerWhich of the following losses would not be covered on an "all-risk" crop
insurance policy?
Crime Insurance - answerThe Fair Plan offers what kind of coverage for individuals and
businesses in high hazard areas?
Embezzlement - answerAn agent who collects premiums and converts those premiums
to his own personal use is guilty of:
Deductible - answerWhich of the following terms describes what is subtracted from a
claim payment to the insured?
Parol Evidence rule - answerOral discussion prior to the development of a written
contract can not be used to extend the terms of the final document. This because of the:
The agent must be appointed by each company. - answerTo be licensed by more than
one insurance company:
The covered perils - answerThe basic difference between the DP-1 and the DP-3 is:
The client - answerWhich of the following has the unlimited right to cancel an insurance
policy?
The trigger - answerThe main difference between a claims made liability coverage and
an occurence for liability coverage is:
pf3
pf4
pf5

Partial preview of the text

Download Arkansas Property & Casualty Practice Exam Questions and Answers and more Exams Advanced Computer Programming in PDF only on Docsity!

Arkansas Property & Casualty Practice

Exam

Pay the claims covered under the policy. - answer A primary obligation of an insurance company is to: Accumulating Risk - answer Which of the following is not a reaction to risk? An increase in the possibility that a loss may occur. - answer Which of the following describes a hazard? Requiring the policyholder to carry insurance to value. - answer Which of the following best meets the test of the "Principle of Indemnity"? Overpayment of a claim - answer The principle of indemnity is designed to avoid: Flood - answerWhich of the following losses would not be covered on an "all-risk" crop insurance policy? Crime Insurance - answerThe Fair Plan offers what kind of coverage for individuals and businesses in high hazard areas? Embezzlement - answerAn agent who collects premiums and converts those premiums to his own personal use is guilty of: Deductible - answerWhich of the following terms describes what is subtracted from a claim payment to the insured? Parol Evidence rule - answerOral discussion prior to the development of a written contract can not be used to extend the terms of the final document. This because of the: The agent must be appointed by each company. - answerTo be licensed by more than one insurance company: The covered perils - answerThe basic difference between the DP-1 and the DP-3 is: The client - answerWhich of the following has the unlimited right to cancel an insurance policy? The trigger - answerThe main difference between a claims made liability coverage and an occurence for liability coverage is:

Endorsement - answerWhat is used to change an insurance policy from its original wording? A claim by the mortgagee can be denied. - answerAn insured hires someone to burn his home. The insurance company can prove this fact. All of the following are true except: Surplus Lines Insurance - answerA certificate of authority is not required for transacting: Retained Limit - answerAn umbrella liability policy has a form of deductible called: The insured building is vacant for over 60 days. - answerCoverage against loss by some perils (vandalism, theft, etc.) under the Building and Personal Property Coverage form is suspended if: A retired person. - answerWhich of the following may be competent? $7,250 - answerA 15 year old dwelling valued at $100,000 is insured for $60,000 on an HO-3 with an HO-15 encorsement. A $250 deductible applies. If the insured had a $10,000 loss, how much would he be paid? Appealed to the Courts - answerAn order of the Commissioner may be: Professional Liability is used in lieu of General Liability - answerAll of the following are true about Professional Liability except: Damages caused by products after their sale. - answerWhich of the following exposures is covered under the basic Commercial General Liability policy? On the biennial anniversary of your birthday. - answerProperty and Casualty licenses must be renewed: Risk - answerWhich of the following terms is defined as the uncertainty of future outcome? Unilateral - answerBecause the exact terms of an insurance policy are not the subject of negotiation with the companym the contract of insurance is said to be: The Zone Exam - answerThe kind of examination performed of a foreign insurer for the benefit of all licensing states is called: he must return his license within 10 days - answerIf an agent leaves the state to take domicile elsewhere: The policyholders - answerWho elects the Board of Directors in a mutual insurance company?

The insured runs over a caddy with his golf mobile. - answerWhich of the following losses would be covered by Comprehensive Personal Liability? Professional - answerWhich of the following liability coverages may require the insured's consent before the insurance comnpany settles and pays a loss? Perils insured against. - answerWhich policy part does not apply to Section II of a Homeowner's policy? Offer and Acceptance - answerA contract in which there is an act for a promise is referred to as: Appointed for a four year term. - answerThe Commissioner of Insurance: Automobiles - answerInland Marine insurance is commonly used to insure all of the following items EXCEPT: Boiler and Machinery - answerWhich of the following is an optional coverage on S.M.P? $25,000 bodily injury for each person, $50,000 bodily injury for each accident, $25, property damage per accident. - answerAutomobile limits of liability expressed as $25,000/$50,000/$25,000 means: Coverage for hired autos. - answerWhich of the following endorsements would insure trucks which have been temporarily leased by the insured's house painting business? A faulty toaster manufactured by the insured sets fire to a consumer's home. - answerWhich of the following would be covered by a C.G.L. policy? Claims made coverage is not offered for Professional Liability. - answerWhich of the following is not true about the claims made liability form? Stolen. - answerUnder the physical damage portion of the personal auto policy, transportation expnses are provided if the insured's car is: 25/50 BI and 25 PD - answerMinimum automobile financial responsibility requirements in Arkansas are: A building which has been vacant for 2-1/2 months is vandalized. - answerWhich of the following losses is not covered by the Vandalism and Malicious Mischief endorsement? Liberalization Clause. - answerWhich condition of a Commercial Package Policy may broaden the insured's coverage, if the company develops a newer policy form? Per Person, Per Accident - answerIn auto insurance, medical payments limits apply:

For each separate accident. - answerThe liability limits on a Personal Auto Policy may be paid: The insured while driving his own auto on the company business. - answerWhich of the following would not be eligible for auto medical payments coverage? A Certificate of Authority - answerThe document permitting an insurer to transact insurance in Arkansas is known as: A 1/2 ton pickup used by a farmer. - answerWhich of the following are eligible for coverage under the Personal Auto Policy? Extended Non-Ownership Liability - answerA sales person is furnished a vehicle from the office motor pool on a regular basis. Which auto policy endorsement is recommended? Continuous until cancelled. - answerWhen does a fidelity bond expire? Goods stolen by someone gaining entrance to the premises after closing hours by sneaking through an unlocked window. - answerThe Premises Burglary coverage form will cover all of the following except: Licensed local agents, who represent the Federal Flood Insurance Program. - answerFlood insurance may only be purchased through: Contractual Liability - answerWhich of the following coverages would be BEST suited for a prospective insured who wants coverage against liability assumed by written and oral agreements? Nothing - answerFred Jones Trucking buys a Theft, Disappearance and Destruction coverage form in the amount of $25,000. Fred discovers that the dock foreman and two truckers have conspired to steal $55,000 over a period of time. How much will be paid? Theft of a $10,000 gun collection. - answerAn insured has an HO 3 with no special endorsements. Which of the following losses would not be covered in full? A voluntary action to rid the ship of cargo to prevent further peril. - answerIn Ocean Marine Insurance, jettison is: For the entire policy period. - answerAggregate limits apply: Loss to CB radio equipment which is not permanently installed. - answerUnder a personal auto policy, which of the following types of physical damage loss is not covered?

A passenger in an automobile; getting into an automobile; walking across the street. - answerAutomobile medical payments coverage applies when an insured person is injured while: Auto dealers and body repair shops; Machinery and implement dealers and storage garages; service stations and public parking places. - answerWhich of the following are eligible to buy garage liability insurance? Professional liability coverages. - answerWhich of the following is NOT eligible to be included in the Commercial Package Policy? A large steel manufacturer. - answerWhich of the following would not be eligible to purchase credit insurance? Breakage of a plate glass window by vandals. - answerA dwelling policy with the V&MM endorsement attached does not cover which of the following: Four seasons. - answerUnder a Crop Hail Policy, the term and coverage may not be written as which of the following? The Inchmaree Clause. - answerThe Ocean Marine Policy endorsement that provides coverage for neglect of the crew to maintain equipment is: Employee dishonesty, 3-D and forgery. - answerWhich of the following below are not types of surety bonds? The obligee, principal and guarantor. - answerThe three parties to a surety bond are: Falling objects. - answerOn commercial policies, basic coverage does not insure loss against which peril? Replacement cost minus depreciation. - answerWhich of the following best describes actual cash value? The 165 line New York Standard Fire Policy of 1943. - answerThe standard fire policy issued in most states is known as: