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Property and Casualty Exam Prep (AR) Questions and Answers 2025, Exams of Advanced Education

Property and Casualty Exam Prep (AR) Questions and Answers 2025

Typology: Exams

2024/2025

Available from 06/25/2025

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Property and Casualty Exam Prep (AR)
The minimum amounts of auto liability required in AR is? - answer25,000PP, 50,000 per
accident, 25,000 PD
The minimum amount of Uninsured Motorist coverage required in AR is? -
answer25,000PP, 50,000 per accident
The common Policy declaration of the commercial package policy would provide what
information? - answer Insureds Business Description
How does the dwelling policy provide theft coverage? - answerIt must be added by
endorsement
When an insurer cancels an auto liability policy for an reason other than non payment of
the premium in Arkansas, it is required to give the insured written notice at least.. -
answer20 days in advance
Automobile insurance policies covering private passenger vehicles in Arkansas must
include no-fault benefits for loss of income. For a working individual who is disabled
because of an accident, the benefit percentage and duration is.. - answer70% of the
loss of income- up to 52 weeks
Which of the following terms describes a building in which no one is present but
occupants intend to return? - answerUnoccupied
Making statements that misrepresent an insurance policy in order to induce an insured
to replace the contact with one issued by another carrier is a prohibited practice known
as... - answerTwisting
Transacting insurance means all of the following - answerSoliciting Insurance, Writing
an application, and Negotiating Insurance.
When an insurer decides not to renew an auto liability policy, it is required to give
written notice of non renewal to the named insured at least how many days in advance?
- answer20 days
The Property and Casualty Insurance Guarantee Program will only pay a maximum of
how much for any individual covered claim for unearned premium? - answer$25,000.00
A dwelling policy can be used to insure all of the following except..
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Property and Casualty Exam Prep (AR)

The minimum amounts of auto liability required in AR is? - answer25,000PP, 50,000 per accident, 25,000 PD The minimum amount of Uninsured Motorist coverage required in AR is? - answer25,000PP, 50,000 per accident The common Policy declaration of the commercial package policy would provide what information? - answer Insureds Business Description How does the dwelling policy provide theft coverage? - answerIt must be added by endorsement When an insurer cancels an auto liability policy for an reason other than non payment of the premium in Arkansas, it is required to give the insured written notice at least.. - answer20 days in advance Automobile insurance policies covering private passenger vehicles in Arkansas must include no-fault benefits for loss of income. For a working individual who is disabled because of an accident, the benefit percentage and duration is.. - answer70% of the loss of income- up to 52 weeks Which of the following terms describes a building in which no one is present but occupants intend to return? - answerUnoccupied Making statements that misrepresent an insurance policy in order to induce an insured to replace the contact with one issued by another carrier is a prohibited practice known as... - answerTwisting Transacting insurance means all of the following - answerSoliciting Insurance, Writing an application, and Negotiating Insurance. When an insurer decides not to renew an auto liability policy, it is required to give written notice of non renewal to the named insured at least how many days in advance?

  • answer20 days The Property and Casualty Insurance Guarantee Program will only pay a maximum of how much for any individual covered claim for unearned premium? - answer$25,000. A dwelling policy can be used to insure all of the following except..

A- Rental Homes B- Lake Cabins C- Duplexes D- An apartment building with 6 units - answerCORRECT- D The federal government is not obligated under the TRIA to make payments for any portion of losses that exceed how much anually? - answer100 Billion The insured is looking for the amount of coverage in the property and casualty policy. This information would be found where? - answerThe Declarations All of the following are benefits specified by workers compensations laws except.. A-Rehabilitation Benefits B- Retirement Plan Contributions C- Lost Wages D- Medical Expenses - answerCORRECT- B What is the process of evaluating risk and exposures to potential clients? - answerUnderwriting Which of the following situations is covered under a commercial general liability policy? A- An insured boat rams into another boat B- A shopper is injured when a shelf of merchandise collapses. C- An insured car strikes a pedestrian - answerCORRECT- B An insured speeds through a neighborhood, almost striking several children. Under the insurance definition of negligence, such an insured would be held - answerNot legally liable The business owners policy will pay reasonable expenses for how long? - answer1 year from date of accident In Arkansas, every licensed insurance producer must notify the commissioner in writing of any change in business address within how many days of the change? - answer days The following perils may be insured against under a basic dwelling policy except- A- Fire B- Lightning C- Vandalism and Malicious Mischief D- Flood - answerCORRECT- D A policy may be amended only with a(n): - answerEndorsement

A- Bails Bonds B- Contractual Liability C- Care, Custody, and Control D- Completed Operations - answerCORRECT- A Which of the following is NOT true about underinsured motorist coverage? A- When purchased, this coverage must be written for limits at least equal to the minimum financial responsibility requirements for liability coverage. B- It may be sold independently even if the uninsured motorist coverage is rejected. C- It is an optional coverage and may be rejected in writing. - answerCORRECT- B Under the Workers Compensation Law, if death results from work related injury, the employer must pay how much for actual funeral expenses? - answer$6, Depending on the circumstances, a passenger injured in an automobile accident may be able to recover under all of the following coverages EXCEPT- A- Medical Payments B- Liability C- Uninsured Motorist D- Collison - answerCORRECT- D Initially workers' comp disability income benefits are not allowed for the first 7 days of disability. However, retroactive benefits will be paid for the first 7 days if the disability continues for a period of at least how long following the date of injury? - answer2 weeks Which of the following is NOT a use of autos symbols in the commercial auto policy- A- To determine how coverage will apply to vehicles acquired after the policy effective date. B- To identify which coverage applies to which vehicle. C- To customize the policy of the insureds needs by selecting appropriate coverages D- To determine which rating territory applies to covered autos. - answerCORRECT-D What is the purpose of the MCS-90 endorsement for motor carrier policies of insurance for public liability? - answerIt provides proof that the company carriers an amount of insurance required by law. For a loss to be covered under TRIA, the cause of loss MUST- A- Result in losses in excess of 10 million B- Be certified by an act of Terrorism C- Result in the loss of a life D- Be the result of criminal activity. - answerCORRECT- B

Mary was involved in an accident with a hit-and-run driver. The car was damaged. Which of the following items would be covered under the Collison coverage in the personal auto policy? A- The vehicle is towed to the body shop B- Mary's luggage in the trunk is destroyed C- The front windshield is shattered - answerCORRECT- C If a licensee allows his license to lapse, within how many months after the renewal due date can he reinstate his license without taking a written examination? - answer Months The business auto coverage form uses the symbol to denote the vehicle to which each of the policy coverage applies. Which symbol is the most restrictive? - answerSymbol 7 The liberalization provision will do what? - answerAutomatically broaden coverage without additional premium if there is revision to the policy. Under the medical payments coverage of a personal auto policy, the insurer pays for medical expenses and funeral services incurred within how many years from the date of an accident? A- 1 B- 2 C- 5 D- 3 - answerCORRECT- D Which one of the following auto policy coverages would pay for damage to the insureds car that the insured motorist caused by hitting a farmers cattle while driving through the country? A- Other than Collison B- Liability C- Uninsured Motorists D- Collison - answerCORRECT- A Which of the following transit polices protect the shipper or receiver of goods against loss of good in transit incoming and outgoing all year long? A- Annual Transit Policy B- Bill of lading C- Trip Transit Policy D- Property in Tranit - answerCORRECT- A

A- Water damage from flood or surface water. B- Earth Movement such as earthquake, mudflow, and landslide. C- Failure of the insured to care for the property before the loss. D- Power failure occurring away from the insured premises. - answerCORRECT- D The greatest difference between the dwelling basic form (dp-1) and the broad form (dp-

  1. is that the DP-2 automatically includes coverage for what? A- Earthquake B- Fire and Lightning C- Flood D- VMM - answerCORRECT- D In the workers compensation insurance, the experience modification factor is.. A- related to a benefits plan B- Based on the number of employees C- Depends on the amount of the deposit premium D- Applied as a method of rewarding those employers with better-than-average loss experience. - answerCORRECT- D Mark wants to purchase a policy for his manufacturing company to include premises liability, products liability, and completed operations. Which policy would cover all of these losses? A- Products and completed operations liability B- Personal injury liability C- Commercial general liability D- Contractual liability - answerCORRECT- C What type of coverage is typically found in Professional Liability policy? - answerWrongful acts, errors, or omissions the insured commits, and in some cases, bodily injury. Part Two - Employers Liability Insurance, of a workers compensation insurance policy includes all of following limits of liability EXCEPT- A- For all compensation paid under benefits required by workers compensation laws. B-For all bodily injury by disease during the policy term. C- For each employee injured by disease during the policy term. D- For all bodily injury arising from a single accident. - answerCORRECT- A Why do insurance policies usually define who is considered an insured under the policy? - answerTo Specify who is covered in addition to the named insured.

Defamation - answerThe action of damaging the good reputation of someone; slander or libel. When does the flood insurance take place? - answer30 days after the date of the application and payment of premium. If John's father transfers ownership of a house to John, which one of the following statements regarding insurance on the house is CORRECT? A- John can buy insurance because he has an insurable interest. B- John must purchase the house from his father to obtain an insurable interest in it. C- John's father must retain his policy on the house. D- John's father must assign his policy to John as well. - answerCORRECT- A The insured has a policy that covers hair, fire, wind, and lightning. Which of the following would be covered? A- A window that is broken in a riot. B- A roof that is damaged in an electrical storms. C- A rainstorm that causes the basement to flood. D- A roof that collapses from heavy snow. - answerCORRECT- B Assume that a toy store has a fairly stable inventory except in November and December, when its inventory triples. What is the best way to insure the increase in the amount of coverage needed? A- Business income and extra expense endorsement. B- Blanket policy. C- Value reporting form. D- Peak season endorsement. - answerCORRECT- C All of the following statements regarding Part D coverage for damage to your auto are correct EXCEPT- A- This coverage covers all personal property in the vehicle. B- This coverage is commonly known as physical damage coverage. C- This coverage pays for direct and indirect loss to the named insureds covered auto. D- This coverage pays for direct and indirect loss to the named insureds rental or borrowed cars. - answerCORRECT- A The commercial crime policy covers loss to money and securities outside the insureds premises while money or securities are in the care and custody of who? - answerMessenger An auto policy would provide coverage for an auto driven in all of the following places EXCEPT:

Under a business income coverage form business income is: A- Net income plus continuing expenses, including payroll B- Net income plus continuing expenses, excluding payroll C- Net income after taxes D- Gross income - answerCORRECT- A