P & C FINAL EXAM!!, Accurately Answered Questions/ 100% Verified/ Graded A. latest update. 2022/2023

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P & C FINAL EXAM!!, Accurately Answered Questions/ 100% Verified/ Graded A. latest update. 2022/2023 A portion of an insurance contract that informs who and what is covered, in addition to when c... overage is effective, is known as the a. Declaration page b. Insuring agreement c. Conditions d. Exclusions - ✔✔a. Declaration page The law that says the federal government has the right to regulate insurance only to the extent it is not regulated by state law is _________. a. the McCarran-Ferguson Act. b. the Gramm-Leach-Bliley Act. c. the FCRA. d. the Violent Crime Control and Law Enforcement Act of 1994. - ✔✔a. the McCarran-Ferguson Act. The pair and set clause found in property insurance policies states that in the event of a loss to only part of a pair or set, losses will be settled a. As if the entire pair or set had been destroyed b. At the proportionate amount of the stated value c. Either by repairing or replacing the damaged part or by paying the difference between the actual cash value before and after the loss d. Based on the actual cash value of the individual part - ✔✔c. Either by repairing or replacing the damaged part or by paying the difference between the actual cash value before and after the loss All of the following are eligible risks under a businessowners policy EXCEPT a. The tenant of an office building b. A general contractor who operates primarily off premises -----> INCORRECT c. The owner of a five story office building ----> Incorrect d. A 50 unit apartment complex with a small gift shop on premises The correct answer can be found in Chapter 8 - ✔✔ The federal law that removed the barriers between commercial banking, investment banking, and insurance was the _______________. a. Gramm-Leach-Bliley Act. b. McCarran-Ferguson Act c. Violent Crime Control and Law Enforcement Act of 1994. -----> Incorrect d. Sherman Anti-Trust Act. ----> INCORRECT Incorrect, Please Review Chapter 1 - ✔✔ Which of the following constitutes valid consideration? a. Warranties ----> INCORRECT b. Premiums c. Statements ----> Incorrect d. Representations The correct answer can be found in Chapter 7 - ✔✔ Each of the following is a producer's responsibility to the insurer EXCEPT to a. Be loyal to the insurer's interest b. Obey all legal instructions provided by the insurer c. Perform all duties regardless of the degree of care d. Keep the insurer informed of all facts related to its agency relationship - ✔✔c. Perform all duties regardless of the degree of care If an insured desires coverage on loss of money and securities that can result from breaking and entering the business premises, which of the following crime coverage forms should be purchased a. Premises burglary b. Inside - theft of money and securities c. Inside the premises - robbery or safe burglary of other property -----> Incorrect d. Safe depository The correct answer can be found in Chapter 7 - ✔✔ All of the following statements are correct concerning an umbrella liability policy EXCEPT it a. Provides extra limits of coverage b. Is an indemnity contract on behalf of an insured for a variety of liability losses c. Is the only liability contract an individual or business needs d. Provides coverage for exposures not covered by other policies - ✔✔c. Is the only liability contract an individual or business needs Replacement cost less depreciation defines a. Actual cash value b. Market value c. Insurable value d. Liberalization amount - ✔✔a. Actual cash value All of the following are considered duties of a producer EXCEPT to a. Review client's current policy b. Determine the exposures that confront the client c. Aid a client during a claim ----> Incorrect d. Advance premiums to a client The correct answer can be found in Chapter 2 - ✔✔ Which of the following insurance principles permits a policy holder to be reimbursed for losses experienced? a. Subrogation b. Insurable interest c. Direct loss d. Indemnification - ✔✔d. Indemnification What type of Ocean Marine insurance provides physical damage coverage for the ship while it is in transit? a. Cargo b. Freight ----> INCORRECT c. Protection and Indemnity ----> Incorrect d. Hull The correct answer can be found in Chapter 10 - ✔✔ Personal business property out in the open is covered under a commercial property policy only while a. Located within eyesight of the described premises b. Specifically described on the declarations c. Within 50 feet of the described premises d. Within 100 feet of the described premises - ✔✔d. Within 100 feet of the described premises Each of the following may be victims of a robbery of a business's property EXCEPT a a. Custodian b. Messenger c. Night watchman d. Safe or vault - ✔✔c. Night watchman If Scott and Wendy file bankruptcy, which of the following is TRUE regarding their insurance policy a. Scott and Wendy can abandon their property to the insurance company because they no longer have an insurable interest. b. The insurer's responsibilities are not eliminated. c. The mortgage company loses its interest in the property. d. Scott and Wendy's interest in their property is excess over any other creditors. - ✔✔b. The insurer's responsibilities are not eliminated. Which of the following describes actual cash value? a. Replacement cost-depreciation b. Agreed amount c. Cost to repair or replace d. Market value-depreciation - ✔✔a. Replacement cost-depreciation The insured's home is covered by a DP-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage? a. $60,000 b. $46,000 c. $58,000 d. $48,000 - ✔✔d. $48,000 Which Surety bond guarantees that bills for labor and materials will be paid by the contractor to the subcontractors as they are due? a. Supply bond b. Completion bond c. Payment bond d. Performance bond - ✔✔c. Payment bond Which of the following commercial liability policy versions covers injuries sustained during a policy period even if the claim is not actually filed years after the policy has been cancelled? a. Claims made form b. Occurrence form c. Premises form d. Contractual liability form - ✔✔b. Occurrence form A business is sued because a wall constructed on its property 12 years ago collapsed and injured a child last week. Which of the following statements is NOT CORRECT? a. The current insurance company is obligated to defend the insured b. Coverage is provided under the premises and operations section of the CGL policy c. Coverage is provided under the completed liability section of a CGL policy d. The current insurance company must defend the insured if the case is arbitrated - ✔✔c. Coverage is provided under the completed liability section of a CGL policy All of the following statements are correct concerning personal liability coverage provided by a homeowners policy EXCEPT a. It is generally a single limit policy b. It covers an insured's legal liability as a result of non business activities c. An insurer will not defend a liability suit that is obviously groundless d. The basic limit of coverage is $Flic - ✔✔c. An insurer will not defend a liability suit that is obviously groundless If a driver loses control of his auto and damages the fence of a neighbor, the damages will be paid for by the driver's a. Collision b. Comprehensive c. Uninsured motorist d. Property damage liability - ✔✔d. Property damage liability Which one of the following is NOT an element of insurability? a. Loss must be calculable b. Risk of loss must represent a financial hardship c. Cost of insurance must not be catastrophic d. Risk of loss is a speculative risk - ✔✔d. Risk of loss is a speculative risk A short term proof of insurance coverage provided to an applicant until a policy can be produced is known as a(n) a. Endorsement b. Preliminary contract c. Proposal ----> Incorrect d. Binder - ✔✔d. Binder A building owner purchases a fire policy providing $60,000 worth of coverage with an 80% coinsurance clause for his $100,000 building. He suffers a $10,000 loss. How much of the loss will the company pay? a. $1,667 b. $7,500 c. $8,000 ----> Incorrect d. $10,000 ----> INCORRECT can be found in Chapter 3 - ✔✔ What is the primary difference between a claims-made and occurrence form of a CGL policy a. The claims made form provides coverage only for events that take place during the policy period b. The claims made policy provides coverage for claims first made during the policy period c. The occurrence form provides coverage for claims that occur after the expiration of the policy using a tail d. The occurrence form is issued with an aggregate limit and the claims made form is not - ✔✔b. The claims made policy provides coverage for claims first made during the policy period A farmer's crops being damaged by toxic fumes that have been escaping continuously from a factory is an example of a(n) a. Occurrence b. Accident c. Secondary cause d. Insurable interest - ✔✔a. Occurrence Each of the following is covered under a commercial property policy EXCEPT a. Merchandise b. Outdoor curbside signs c. Fixtures d. Furniture - ✔✔b. Outdoor curbside signs Premium rates for workers' compensation are based upon a. Per $100 of payroll b. Per 100 square feet c. Per $100 of protection d. Per diem assessments - ✔✔a. Per $100 of payroll All of the following losses would be covered by a personal auto policy EXCEPT a. A medical payment claim reported 4 years after the accident causing the injury b. Bodily injury to a passenger who owns her own auto policy c. A person injured while alighting from the insured's auto d. Injuries sustained by an insured who is struck by a car while walking across the street - ✔✔a. A medical payment claim reported 4 years after the accident causing the injury A commercial general liability policy provides coverage for a. Bodily injury to an employee b. Damage to property owned by an insured c. Bodily injury caused by an auto accident d. Liability for slander - ✔✔d. Liability for slander "Your product" under a commercial general liability policy does NOT include which of the following? a. Any goods or products manufactured by the insured b. Vending machines rented to others c. Containers furnished in connection with the product ----> Incorrect d. Warranties made with respect to the fitness or quality of the product ----> INCORRECT The correct answer can be found in Chapter 7 - ✔✔ Aviation insurance provides an insured with liability protection while an insured is a. In the air only b. In the air or on the ground c. On the ground only d. In the air, including takeoff and touchdown - ✔✔b. In the air or on the ground Uncertainty concerning financial loss best describes the concept of a. Indemnity b. Insurance c. Risk d. Hazards - ✔✔c. Risk The type of insurance company in which the policy holder is considered an owner, with the right to vote and share in the profits, is a a. Stock company. b. Mutual company. c. Reciprocal Company. d. Lloyd's Association. - ✔✔b. Mutual company. SAFE MONEY INSURANCE COMPANY sent John the commission schedule that showed the commissions he would make if he sold one of their new lines of insurance. It was policies not mentioned in his contract. They also sent John the marketing materials and application forms. John's right to sell the new policies was created by _____________________. a. apparent authority. b. implied authority. c. express authority. ---> Incorrect d. general authority. Incorrect, Please Review Chapter 2 - ✔✔ The federal law that says the federal government can only regulate insurance companies to the extent they are not regulated by state law is a. The Law Enforcement Act of 1994 b. the McCarran -Ferguson Act. c. Gramm-Leach- Bliley Act d. FCRA - ✔✔b. the McCarran -Ferguson Act. A diamond ring that is shoplifted from a jewelry store display is considered the subject of a. Mysterious disappearance b. Theft c. Robbery d. Embezzlement - ✔✔b. Theft For a contract to be valid, the parties involved must be competent to contract. Each of the following is considered a competent party EXCEPT a. A 21 year-old man b. A foreigner [Show More]

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