








Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Property and Casualty Insurance Test Question with verified solutions
Typology: Exams
1 / 14
This page cannot be seen from the preview
Don't miss anything!
What |! is |! a |! peril? |! - |! Correct |! answer |! ✔A |! Peril |! is |! a |! cause |! of |! loss What |! is |! a |! hazard? |! - |! Correct |! answer |! ✔Something |! that |! increases |! the |! chance |! of |! a |! loss What |! is |! the |! difference |! between |! a |! Moral |! hazard |! and |! a |! Morale |! Hazard? |! - |! Correct |! answer |! ✔Moral |! Hazard |! - |! dishonesty, |! against |! the |! law Morale |! Hazard |! - |! carelessness What |! is |! the |! method |! of |! handling |! risk |! that |! involves |! a |! deductible? |! - |! Correct |! answer |! ✔Retention |! (loss |! or |! portion |! of |! loss) If |! a |! fire |! causes |! damage |! to |! a |! building, |! what |! is |! the |! fire |! considered? |! - |! Correct |! answer |! ✔A |! Peril What |! are |! the |! elements |! of |! an |! insurable |! risk? |! - |! Correct |! answer |! ✔CANHAM Calculable, |! Affordable, |! Non-Catastrophic, |! Homogeneous, |! Accidental, |! Measurable
If |! an |! insurance |! company |! is |! housed |! in |! Tennessee, |! what |! type |! of |! insurer |! are |! they |! considered? |! - |! Correct |! answer |! ✔Domestic An |! insurance |! company |! incorporated |! in |! Wisconsin |! and |! conducting |! business |! in |! Minnesota |! is |! know |! as |! what |! type |! of |! insurer? |! - |! Correct |! answer |! ✔Foreign What |! is |! it |! meant |! by |! "Express |! Authority"? |! - |! Correct |! answer |! ✔Authorities |! are |! written |! in |! agent |! contract What |! is |! a |! term |! that |! is |! typically |! used |! to |! describe |! an |! Insurance |! Agent? |! - |! Correct |! answer |! ✔Fiduciary |! - |! a |! person |! in |! a |! position |! of |! financial |! trust What |! is |! a |! contract |! or |! device |! for |! transferring |! risk |! from |! a |! persons, |! business, |! or |! organization |! to |! an |! insurance |! company? |! - |! Correct |! answer |! ✔Insurance What |! is |! Reinsurance? |! - |! Correct |! answer |! ✔When |! insurance |! companies |! purchase |! insurance |! to |! cover |! their |! own |! exposures |! to |! loss What |! is |! a |! fiduciary? |! - |! Correct |! answer |! ✔A |! person |! in |! a |! position |! of |! financial |! trust What |! is |! it |! meant |! by |! a |! contract |! of |! adhesion? |! - |! Correct |! answer |! ✔Policy |! written |! by |! the |! insurer |! with |! the |! insured |! having |! no |! input
What |! is |! the |! difference |! between |! a |! direct |! loss |! and |! an |! indirect |! loss? |! - |! Correct |! answer |! ✔Direct |! - |! immediate |! damage |! caused |! by |! peril Indirect |! - |! loss |! over |! time |! as |! a |! result |! of |! the |! direct |! loss How |! is |! ACV |! calculated? |! - |! Correct |! answer |! ✔Replacement |! Cost |! - |! depreciation |! = What |! is |! the |! coinsurance |! clause |! and |! what |! is |! the |! percentage |! required |! by |! the |! insurer? |! - |! Correct |! answer |! ✔Requires |! the |! insured |! to |! carry |! the |! standard |! coinsurance |! amount |! of |! the |! insurance |! policy; |! 80% What |! is |! the |! method |! called |! when |! the |! insured |! and |! insurance |! company |! cannot |! agree |! on |! a |! settlement? |! - |! Correct |! answer |! ✔Appraisal |! method What |! is |! a |! bailee? |! - |! Correct |! answer |! ✔A |! person |! or |! organization |! that |! has |! temporary |! possession |! of |! someone |! else's |! personal |! property What |! is |! a |! tort? |! - |! Correct |! answer |! ✔A |! civil |! wrong |! that |! causes |! someone |! else |! to |! suffer |! a |! loss What |! is |! Vicarious |! Liability? |! - |! Correct |! answer |! ✔Liability |! for |! the |! actions |! of |! another What |! are |! the |! five |! property |! coverages |! and |! associated |! lettering? |! - |! Correct |! answer |! ✔A |! - |! Dwelling B |! - |! Other |! structured |! (detached, |! appurtenant)
C |! - |! Insured's |! personal |! property |! (off-premises |! covered |! up |! to |! 10% |! of |! C) D |! - |! Fair |! Rental |! Value E |! - |! Additional |! Living |! Expense Property |! coverage |! B |! provides |! coverage |! for |! what? |! - |! Correct |! answer |! ✔Other |! structures; |! 10% |! of |! A How |! much |! will |! DP-2 |! and |! DP-3 |! cover |! for |! trees, |! shrubs, |! and |! other |! plants? |! - |! Correct |! answer |! ✔$500 |! for |! any |! one |! tree/shrub/plant Which |! dwelling |! form |! covers |! collapse? |! - |! Correct |! answer |! ✔DP-2 |! and |! DP- For |! Dwelling |! insurance, |! how |! long |! will |! the |! insured |! cover |! medical |! payments |! to |! others |! after |! the |! policy |! expires? |! - |! Correct |! answer |! ✔ 3 |! years |! after |! the |! accident Which |! section |! of |! the |! Homeowners |! policy |! does |! not |! contain |! a |! deductible? |! - |! Correct |! answer |! ✔Section |! II |! - |! Liability What |! are |! the |! three |! perils |! covered |! in |! a |! basic |! form |! for |! homeowners? |! - |! Correct |! answer |! ✔WCSHAVVER For |! a |! homeowners |! policy, |! how |! much |! is |! covered |! for |! the |! fire |! department |! service |! charge? |! - |! Correct |! answer |! ✔Up |! to |! $500, |! no |! deductible
$2,000 |! deductible What |! type |! of |! coverage |! covers |! a |! mobile |! home |! in |! transit? |! - |! Correct |! answer |! ✔Trip-Transit |! coverage When |! does |! mobile |! home |! coverage |! take |! effect? |! - |! Correct |! answer |! ✔As |! soon |! as |! the |! mobile |! home |! is |! set |! on |! a |! permanent |! foundation What |! is |! Jettison? |! - |! Correct |! answer |! ✔When |! the |! crew |! of |! a |! ship |! tosses |! cargo |! over |! the |! side |! of |! the |! ship What |! is |! Barrity? |! - |! Correct |! answer |! ✔When |! a |! ship's |! crew |! commits |! criminal |! acts What |! is |! the |! special |! limit |! of |! watercraft |! under |! a |! homeowners |! policy, |! if |! not |! large |! enough |! to |! be |! excluded? |! - |! Correct |! answer |! ✔$1, Which |! inland |! marine |! form |! provides |! open |! peril |! coverage |! for |! the |! same |! categories |! of |! property |! covered |! under |! the |! homeowners |! scheduled |! personal |! property |! endorsement? |! - |! Correct |! answer |! ✔Personal |! articles |! form What |! is |! the |! standard |! deductible |! under |! the |! emergency |! program |! of |! the |! National |! Flood |! insurance |! program? |! - |! Correct |! answer |! ✔$2,
What |! type |! of |! coverages |! can |! be |! included |! in |! a |! Commercial |! Package |! Policy? |! - |! Correct |! answer |! ✔Property, |! CGL, |! Auto, |! Inland |! Marine What |! is |! an |! interline |! endorsement? |! - |! Correct |! answer |! ✔An |! endorsement |! that |! may |! be |! used |! with |! more |! than |! one |! line |! of |! insurance What |! is |! subrogation? |! - |! Correct |! answer |! ✔A |! legal |! right |! that |! allows |! one |! party |! to |! make |! payment |! that |! is |! actually |! owed |! by |! another |! party, |! and |! then |! collect |! the |! money |! from |! the |! party |! that |! owes |! the |! debt |! after |! the |! fact When |! does |! coverage |! stop |! for |! vandalism |! in |! a |! vacant |! building |! under |! a |! property |! policy? |! - |! Correct |! answer |! ✔ 60 |! days Business |! personal |! property |! is |! covered |! while |! it |! is |! in |! within |! how |! many |! feet |! of |! the |! main |! premises? |! - |! Correct |! answer |! ✔ 100 |! feet What |! does |! a |! builders |! risk |! policy |! expire? |! - |! Correct |! answer |! ✔When |! the |! project |! is |! completed, |! occupied, |! or |! abandoned In |! an |! extra |! expense |! coverage |! form, |! what |! amount |! of |! days |! are |! meant |! if |! the |! coverage |! states: |! 40%/80%/100% |! - |! Correct |! answer |! ✔ 30 |! days |! or |! less |! will |! pay |! 40% 31-60 |! days |! will |! pay |! 80% 61+ |! days |! will |! pay |! 100%
How |! long |! does |! the |! insured |! have |! to |! report |! expenses |! of |! medical |! payments |! under |! a |! Commercial |! General |! Liability |! policy? |! - |! Correct |! answer |! ✔ 1 |! year |! of |! the |! date |! of |! the |! accident What |! is |! the |! purpose |! of |! a |! retroactive |! date? |! - |! Correct |! answer |! ✔Excludes |! claims |! made |! before |! the |! policy |! effective |! date How |! long |! does |! an |! Extended |! Reporting |! Period |! cover |! claims |! made |! after |! the |! expiration |! date |! of |! the |! policy? |! - |! Correct |! answer |! ✔Extended, |! 60 |! days Covered |! up |! to |! 5 |! years |! with |! basic |! tail |! extension What |! territory |! is |! typically |! not |! part |! of |! the |! definition |! of |! the |! coverage |! territories? |! - |! Correct |! answer |! ✔Mexico What |! is |! a |! Messenger? |! - |! Correct |! answer |! ✔Someone |! who |! has |! care |! and |! custody |! of |! property |! while |! it |! is |! OUTSIDE |! the |! premises What |! is |! a |! Custodian? |! - |! Correct |! answer |! ✔Someone |! who |! has |! care |! and |! custody |! of |! property |! while |! it |! is |! INSIDE |! the |! premises What |! act |! specifies |! a |! theft |! as |! a |! burglary? |! - |! Correct |! answer |! ✔Signs |! of |! forced |! entry/exit Theft |! excludes |! what |! type |! of |! coverage? |! - |! Correct |! answer |! ✔Mysterious |! Disapearance
Regarding |! bonds, |! who |! has |! the |! obligation |! to |! complete |! a |! contract? |! - |! Correct |! answer |! ✔Principle, |! or |! Obligor How |! many |! parties |! are |! typically |! involved |! in |! a |! bond? |! - |! Correct |! answer |! ✔Three |! parties Which |! business |! auto |! coverage |! form |! symbol |! is |! the |! "any |! auto" |! symbol |! used |! only |! to |! designate |! liability |! coverage? |! - |! Correct |! answer |! ✔Symbol |! 1 What |! is |! the |! most |! restrictive |! business |! auto |! coverage |! form |! symbol? |! - |! Correct |! answer |! ✔Symbol |! 7 Which |! auto |! coverage |! symbol |! covers |! a |! customer's |! auto |! left |! with |! the |! insured |! for |! service? |! - |! Correct |! answer |! ✔Symbol |! 30 What |! form |! is |! used |! to |! prove |! truckers |! liability |! and |! proof |! of |! financial |! responsibility? |! - |! Correct |! answer |! ✔MCS-90 |! endorsement What |! are |! four |! examples |! of |! Professional |! Liability |! insurance? |! - |! Correct |! answer |! ✔Medical |! malpractice Errors |! and |! omissions Directors |! and |! officers Fiduciary |! liability
How |! much |! are |! signs |! attached |! to |! the |! building |! covered |! for |! in |! a |! BOP |! policy? |!
What |! part |! of |! workers |! Compensation |! covers |! premium? |! - |! Correct |! answer |! ✔Part |! five