Property and Casualty Insurance Tests Compilation Bundle

Who is responsible for damage to improvements in a leased building? A) Tenant B) Building owner C) Improvements to a leased building are not covered D) Both the tenant and the building owner correct answer: B Equipment Breakdown insurance covers all of the following, EXCEPT: A) Equipment po...

Bob is thinking about obtaining insurance because he just found out he needs extensive surgery that will require several days in the hospital. This situation of waiting until the last minute to obtain insurance is known as: correct answer: Adverse Selection According to the California insurance ...

The process where by a mutul insurer becomes a stock company is called correct answer: Demutalization The process whereby a stock company a mutal insurer is called correct answer: Mutalization The provision in a property policy which states that the insured has been paid up to their insurabl...

The Governer appoints a Commissioner of Insurance every how many years? correct answer: 4 Maximum fine for knowingly violating cease and desist order is correct answer: $10,000 and possible licesnse revokation. Temporary Licenses are issued for how many days? correct answer: 180 An appli...

Coverage under a comprehensive PL Policy or Homeowners Section II extends: A) To the premises described and to the personal activites of the insured on or off of the premises B) Only to the premises described in the policy C) Only to the personal activities of the insured D) To the premises desc...

Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this ...

Pay the claims covered under the policy. correct answer: A primary obligation of an insurance company is to: Accumulating Risk correct answer: Which of the following is not a reaction to risk? An increase in the possibility that a loss may occur. correct answer: Which of the following descr...

An insured may cancel a Personal Auto Policy by taking which of the following actions? A. Paying the insurance company any past due premiums B. Waiting until the policy expiration date C. Giving written notice to the insurance company D. Informing the producer by telephone correct answer...

An Aircraft Hull Policy provides all the following coverage, except: A Damage to the insured aircraft while it is in flight B Damage to the insured aircraft while it is in motion on the ground C Passenger Liability Coverage D Damage to the insured aircraft while it is not in motion on the ...

The head of the Illinois Department of Insurance is the correct answer: Insurance Director An Insurance Producer who violates a cease and desist order issued by the head of the insurance department may have his license suspended or revoked and be fined a maximum penalty of correct answer: $5,00...

S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy with minimum limits of AT LEAST which of th...

A client can provide insurable interest correct answer: Checking account statements In which of the following would a person have an insurable interest? correct answer: Both "The house she owned but has rented out to a tenant" and "the car on which she is still paying" In property, casua...

Punitive damages are intended to do all of the following except? a. compensate for actual financial losses. b. discourage others from doing wrong. c. discipline the insured. d. make an example of bad behavior correct answer: a. compensate for actual financial losses Which of the following BE...

HO-2, HO-3, HO-4, HO-5, HO-6, and HO-8 are all types of homeowners policies. Which two sets of policies are not solely designed for owner-occupied dwellings? correct answer: HO-5 and HO-8 *HO-4 and HO-6* HO-2 and HO-8 HO-3 and HO-4 The HO-8, also known as the modified coverage form, is des...