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

Illinois State University (ISU)Advanced Computer Programming

Arkansas Property & Casualty Practice Exam Questions and Answers

Typology: Exams

2024/2025

Available from 06/25/2025

johniewalker91
johniewalker91 🇺🇸

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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:
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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: