PC exam

Which of the following types of property does the Dwelling Policy (DP) - Coverage C (Personal Property) cover?

Appliances

How often may the Commissioner of Insurance examine the books or records of a producer?

As often as deemed necessary

The Insurance Guaranty Association is financed by which of the following methods?

Assuring member insurance companies

Nonrenewal occurs at what point in the policy period?

At expiration

A producer who lives in an adjacent state and wants to write insurance in this state MUST obtain which of the following types of license?

Nonresident / Surplus lines ??????

Under a Personal Auto policy, an insured MUST take which of the following acts after a covered loss?

Notify a public adjuster of the loss

Which of the following perils is EXCLUDED under a Homeowners policy?

Nuclear contamination

The XYZ Bank sets up a temporary location after their bank building is destroyed by a tornado. The expenses to lease a new location is an example of:

indirect loss

The transfer of pure risk from one party to another best describes the concept of:

insurance

An insurance producer's appointment in this state may be terminated at any time by the:

insurance company

All of the following statements are correct about the appraisal process EXCEPT when:

insured and insurer disagree on whether the loss is covered

A notice of claim MUST include:

inventory of damaged property

The actual cash value of a property is BEST described as:

its replacement cost less depreciation

H operates a manufacturing plant and carries a Business Income Form. This policy would cover:

loss of earnings as a result of fire damage to the building

The Mississippi Residential Property Insurance Underwriting Association provides:

low cost property insurance to insurable applications

All of the following coverages are provided by Worker's Compensation insurance EXCEPT:

medical care benefits for employee's dependents

Under Mississippi Insurance law deceptive advertising is considered a form of:

misrepresentation

in most liability policies that cover events on an occurrence basis, "occurrence" refers to an event that is:

neither expected nor intended by the insured?

M rents a van from a rental car company to transport employees to a trade show. M's commercial auto policy would define the van as a:

nonowned auto

A Commercial General Liability policy that provides coverage for losses received or recorded only during the policy period is known as:

occurrence policy

If a corporation insured under a Commercial General Liability policy is sued, the insurer will defend the organization as well as :

stockholders

After a loss, an insured owner of an apartment building may waive the right of recovery against which of the following individuals?

tenant ???

An insured receives payment for a loss from the insured's insurer. If another party was at fault, the insured's right of recovery for that loss transfer to:

the insured's company only

The amount of coverage for Uninsured Motorist insurance must not be LESS than:

the minimum limits for Bodily Injury and Personal Damage Liability coverage

An insurance company's maximum exposure under a Business Auto policy is determined by:

the policy's limit of liability

A sudden wind blows an insured's front door closed, knocking the insured's small child into a lamp. The lamp breaks and cuts the child's leg. Which of the following elements is considered the proximate cause of the injury?

the sudden wind

Risk is best defined as:

the uncertainty of loss

Inside the Premises - Robbery and Safe Burglary of Other Property coverage provides protection for loss of property when:

there are visible signs of forcible entry into a safe

The required continuing education credits for a resident producer's license renewal continuation in this state are

24 hours

An insurance company that decides to nonrenew an auto policy must provide the named insured with a minimum of how many days advance notice of the nonrenewal?

30

If a producer license application was denied and a hearing is requested, the Commissioner of Insurance must hold the hearing within a MAXIMUM of how many days after receipt of the request?

30

An insured who is moving to a new location can prorate the limit of insurance for Personal Property for how long?

30 days

Which of the following cases BEST illustrates the concept of negligence?

A driver of a car is ticketed for running a stop sign

A producer may share commissions with which of the folloiwng individuals?

A licensed producer

Under a Commercial General Liability policy, which of the following agreements is NOT considered an insured contract?

A warranty by the insured about the fitness of a product

Which of the following policy provisions cover reasonable expenses incurred by an insured at the request of the insurance company to assist in defending a claim?

Additions and Alterations

Under a Business Auto policy, the term "insured" includes which of the following employees?

An employee who drives a personal car for business purposes

Directors and officers liability provide coverage for:

improperly operating the company on behalf of the stockholders

ABC Corp covers their building and personal property on an unendorsed Building and Personal Property Coverage Form with Basic Cause of Loss. if a fire occurs, which of the following items of ABC's property will NOT be covered if destroyed?

Finished products on pallets sixty feet from the building

In the case of a covered loss, which of the following obligations MUST the insurer fufill?

Complete proof of loss

An insured whose legally parked car is damaged by a mudslide MAY collect for damages under which of the following coverages?

Comprehensive (Other that Collision)

The Commissioner of Insurance may examine the records of an insurance company in order to determine the:

solvency of the company

Which of the following losses would be covered under a Building and Personal Property Coverage form with a Causes of Loss-Basic form attached?

Damage to a roof which is caused by smoke form a nearby industrial operation

Which of the following perils would be covered under an H0-2 policy?

Explosion

Which of the following laws requires an insurer to notify a prospect when an investigation will be made?

Fair Credit Reporting Act

Which of the following best describes the purpose of a Surety Bond?

Guarantee

Which of the following forms would provide the best coverage for the owner of a new condominium unit?

HO-6

Which of the following statements is CORRECT about a Business Income Coverage Form?

It provides coverage for income interruption from physical damage only at the location described in the policy.

If an insured's guest suffers minor injuries when falling down the steps of the insured's home, the insured's guest MAY be reimbursed under which of the following sections of the insured's Homeowners policy?

Medical Payments

Which of the following actions represent consideration is an insurance contract?

Paying the premium

Which of the following options would provide coverage for claims resulting from slander?

Personal Injury Liability

Which of the following situations is an example of an unfair trade practice by a producer?

Placing a deceptive newspaper ad

The manager of a grocery store loses control of a cart that collides with a customer and injures the customer's leg. Which of the following sections of a Commercial General Liability policy would provide coverage in this situation?

Premises and Operations

An accountant who wants coverage for damages resulting from any errors that the accountant might take on a client's tax return should purchase which of the following liability coverages?

Professional

T has a Personal Auto policy. Should T be involved in an accident in which T is at fault, T's policy will cover bodily injury up to $300,000 for all persona involved. However, the policy will only cover bodily injury up to $200,000 for each person. What is this an example of?

Split limits

Who may cancel a Commercial General Liability policy?

The first named insured

Which of the following incidents would be covered under the Collision coverage of an automobile policy?

The insured's car hits a boat trailer.

Which of the following situations occurs when an insured increases the amount of a deductible?

The policy premium decreases

Which of the following coverages under a Business Auto policy provides payment to an insured who sustains bodily injury by a hit and run driver?

Uninsured Motorists

Which of the following types of coverage MUST be waived by a written statement?

Uninsured/Underinsured Motorist

A statement providing an outline of coverage with evidence that insurance is in force is referred to as:

a Certificate of Insurance

A staircase that does NOT have an adequate handrail is an example of:

a hazard

Under a Personal Auto policy, a sworn statement made by an insured verifying the amount, date, and cause of loss is referred to as:

a loss notice

The Commissioner of Insure has the authority to impose which of the following penalties on a producer who has violated insurance law?

a monetary fine

The purpose of the Coinsurance clause is to:

a or b

Commercial insurance policies issued with a deposit or provisional premium would be subject to:

an audit

J request insurance on a neighbor's home in his own name. The insurance producer explains that such a policy sale would violate the principle of:

assignment

An application for Homeowners insurance is denied based on a consumer report furnised to the insurer. Under the provisions of the Fair Credit Reporting Act, the applicant has the right to take all of the following actions EXCEPT:

be advised of the name of the reporting agency

The Insurance Guaranty Association becomes involved in an insurance company's affairs when the company:

becomes insolvent

The Commissioner on Insurance may suspend or revoke the license of a producer who violates the Unfair Trade Practices Act only if the producer has:

been found guilty of similar violations in the past

A producer issues which of the following to inform the insured and the insurance company of the date and time coverage takes effect?

binder

A Personal Auto policy provides liability coverage for losses caused:

by an unlicensed operator of a vehicle

The act of intentionally withholding from an insurance application a fact that would affect issuance of the policy is referred to as:

concealment

The part of the policy obligating the insurer to provide coverage stated in the policy is the:

conditions

Policies contain exclusions to eliminate:

coverage for uninsured perils

The Commercial Package Policy declarations contain:

description of the property insured

Which of the following acts by an insurance company could be considered an unfair claims settlement practice?

failing to acknowledge correspondence sent by a policyholder regarding a claim

An insurance company formed under the laws of a state other than Mississippi is known in this state as:

foreign

Under a Personal Auto policy, a temporary substitute automobile is an auto that is:

furnished while the covered auto is being repaired

An insurance company may cancel a Personal Automobile policy if the insured:

has had his or her driver's license suspended during the policy period

The premium charged for a standard Worker's Compensation policy is based primarily on a company's:

payroll

A dead tree beside a home is BEST described as which of the following types of hazard?

physical hazard

The law of large numbers permits insurers to:

predict losses more accurately

All of the following as duties of the Commissioner of Insurance EXCEPT to:

proctor the insurance licensing examinations

A nonresident producer's licence will be terminated automatically when the:

producer's resident license for that class of insurance is terminated

A contractor finishes construction work on a building in accordance with the terms of a contract. Six months later, a ceiling fixture installed by the contractor falls and injures an occupant of the building. Which of the following Commercial General Liability hazards does this represent?

products and completed operations

In order to cover equipment used to maintain the premises under a Commercial Property policy, an insured must:

purchase a specific amount of coverage

Under a basic Building and Personal Property Coverage Form, loss valuation is based on:

replacement cost ??????

Statements made by a prospective insured on an insurance application and which the insured believes to be true are referred to as:

representations

Premium development for product liability coverage is based on:

size of the premises

Making an unfair comparison of two policies to replace one policy with another is defined as:

twisting

For insurance purposes, a building that has no contents or occupants is defined as:

vacant

Damage to the insured's property when water enters through holes in the roof or walls caused by wind or hail is covered by which of the following type of policy?

windstorm

Coverage F (Medical Payments) under a Homeowners policy would provide coverage for medical expenses to others:

without regard to fault