Exam (elaborations)
PSI PROPERTY CASUALTY PRACTICE QUIZ QUESTIONS AND ANSWERS
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PSI PROPERTY CASUALTY PRACTICE QUIZ QUESTIONS AND ANSWERS
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PSI PROPERTY CASUALTY PRACTICEQUIZ QUESTIONS AND ANSWERS
An insured operates a auto repair shop and has a garage coverage form with
garagekeepers insurance when an employee on a test drive with a customer's car is
involved in a crash. How will the customer's car be covered by the insured's policy? -
Answer-The customer's car is covered for any physical damage while in the custody of
the insured.
Liability arising out of any of the following is excluded from the personal and advertising
injury liability coverage EXCEPT - Answer-unknowingly inflicting injury that violates the
rights of another.
A bank customer's identity was compromised and the thieves made numerous
purchases from a retailer by signing the customer's checks. When the bank refused to
make payment for the goods, the retailer brought suit against the bank. Which coverage
indemnified the bank for liability in the suit? - Answer-forgery and alteration
Workers' compensation coverage is rated on the basis of which of the following? -
Answer-employer's payroll
Which of the following is the party who agrees to be responsible for loss in the case of a
fidelity bond? - Answer-the surety
The insured carries underinsured motorists coverage limits of 250/500/250 on his
automobile policy and his vehicle is struck by an at fault motorist who insures with the
State minimum for liability of 20/40/10. If the insured brings suit for bodily injury
damages to himself of $500,000, how much will he recover from at fault driver's policy?
- Answer-$20k
Under the commercial general liability which one of the following is covered under
supplementary payments? - Answer-cost of bail bonds
When the insured's child spills red juice on the carpet of insured's covered automobile,
which of the following coverages will apply? - Answer-comprehensive
Which of the following best describes the commercial general liability?s general
aggregate annual limit as it applies to the coverage parts of the CGL? - Answer-
Coverage A, B, and C apply in sum and are the most that will be paid subject to the
general aggregate annual limit.
Under liability coverage which of the following will trigger coverage for property
damage? - Answer-unintended damage to tangible property of others
, All of the following are exclusions are found under the personal auto policy Part A
liability coverage, EXCEPT - Answer-bodily Injury to an insured's nonresident family
member or relative.
All of the following specify limits of insurance for the commercial general liability
EXCEPT - Answer-legal defense.
All of the following activities would warrant the imposition of absolute liability EXCEPT -
Answer-risky transportation.
Which of the following is TRUE when the insured's limits of insurance apply per
occurrence? - Answer-Coverage is triggered for smoke damage to siding caused by
repeated acts by insured's neighbor.
Which of the following describes market value? - Answer-It is what property could be
sold for.
Which of the following defines the term peril? - Answer-cause of loss
The Terrorism Risk Insurance Act and the National Flood Insurance Program are similar
by providing which of the following? - Answer-subsidies, loss sharing or excess
coverage
All of the following are responsibilities of the insured listed in the loss provisions for
most property insurance contracts EXCEPT - Answer-to determining adequate
indemnification.
When an insured disagrees with the valuation of a loss and his appraiser and the
insurance company's appraiser disagree, how will the loss be settled? - Answer-the
amount agreed to by any two of the three
Underwriters are permitted to use all of the following when underwriting an application
for insurance EXCEPT - Answer-disability.
Which of the following policy assignment rights occurs when the named insured dies? -
Answer-The insured's legal representative takes over the policy.
The Fair Credit Reporting Act permits consumer reporting agencies to include applicant
information about bankruptcies MORE than 10 years old under which of the following
circumstances?
1. The applicant has been convicted of a felony or fraud.
2. The applicant is a public or political figure.
3. The applicant is seeking a transaction greater than $150,000.
4. The applicant is employed in the financial industry. - Answer-3. The applicant is
seeking a transaction greater than $150,000.
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