P&C practice test 1 missed questions
An insured employs several people around his house for various tasks. Which of the following individuals would require workers' compensation coverage? a) Private lawn and gardening personnel b) Farm laborers c) Domestic servants d) Part-time laborers for private households
a
How many days do insurers have to acknowledge any claims made by first-party claimants? a) 10 b) 30 c) 7 d) 90
a
How many hours of continuing education must be completed in ethics and Missouri law each licensing period? a) 3 b) 5 c) 16 d) 1
a
What type of coverage is Coverage E in homeowners policies? a) Personal liability b) Additional coverage c) Loss of use d) Personal property
a
An employer carrying worker's compensation insurance must notify its employees within a) 7 days. b) 15 days. c) 30 days. d) 45 days.
c
Which of the following can be licensed as a surplus lines broker? a) A property and casualty producer b) A limited lines producer c) Any resident producer d) Any life and health producer
a
Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices? a) Making comparisons between different policies b) Stating that the insurance policy is a share of stock c) Exaggerating the benefits provided in the policy d) Stating that the competitors will arbitrarily increase their premiums each year
a
Which of the following licensees could be exempt from renewing their license biennially on the anniversary date of issuance? a) A licensee called to active duty with the U.S. Armed forces. b) A producer who has not written any insurance business in Missouri in the past year. c) A producer who attains age 60. d) A producer whose appointment with an insurer has been revoked.
a
#7. Coverage F (medical payments) under a homeowners policy would cover a) A residence employee who is injured on the job. b) A tenant who is injured while on the premises. c) A family member who is injured while residing in the insured premises. d) The insured for injuries sustained while working at home.
a
A businessowners policy is a) A self-contained prepackaged policy. b) A special policy designed for large retail operations. c) Part of a commercial package policy. d) A monoline policy.
a
A professional who wants coverage for all liability exposures should purchase what form of liability insurance? a) Commercial general and professional b) Directors and officers c) Fiduciary and employment practices d) Employee benefits
a
All of the following are other coverages included in both the broad and special form dwelling policy EXCEPT a) Theft of personal property. b) Collapse. c) Breakage of glass. d) Lawns, trees, shrubs, and plants.
a
All of the following people would be considered insureds under the liability section of a homeowners policy EXCEPT a) The 22-year-old niece of the insured who is visiting. b) A 15-year-old foster child residing in the premises. c) The mother of the insured who is residing in the household. d) The legal representative of a deceased insured.
a
All of the following statements describe the concept of strict liability EXCEPT a) It is imposed on defendants engaged in hazardous activities. b) Claimants may need to provide proof that a product defect caused an injury. c) It is imposed regardless of fault. d) It is applied in product liability cases.
a
An insurance producer license contains all of the following information EXCEPT a) Name of the insurer(s) represented by the licensee. b) Issuance date and expiration date of the license. c) Name and address of the licensee. d) Producer identification number.
a
Replacement cost is defined as a) Full replacement of property at its current cost, new and without reduction for depreciation. b) The market value of property of like kind and quality. c) Full replacement of property with like kind and quality, less an allowance for physical deterioration and depreciation. d) Payment of the full policy limits in the event of a total loss.
a
The Director can revoke an insurance producer license for any of the following causes, EXCEPT a) Licensee is charged with bank robbery. b) Violation of any insurance law in another state. c) Licensee fails to comply with an administrative or court order imposing a child support obligation. d) Licensee providing materially incorrect or untrue information in the license application.
a
The crime of forced entry into the premises of another by a person or persons with felonious intent is defined as a a) Burglary. b) Breaking and entering. c) Theft. d) Robbery.
a
Under a dwelling policy, which of the following is NOT a factor in determining a loss? a) The amount negotiated by the insured b) The policy limit c) The amount reflecting the insured's interest in the property at the time of loss d) The amount necessary to repair or replace the property
a
Coverage for all of the following is found in Section I of a homeowners policy EXCEPT a) Personal property. b) Personal liability. c) Dwelling. d) Other structures.
b
In insurance, producers are permitted to share or split commissions if a) There is a written agreement between the agents. b) Both are properly licensed for the line of insurance. c) The insured knows and agrees to the arrangement. d) The insurance department knows of the arrangement.
b
In order to form a business entity providing medical malpractice insurance, how many licensed persons are required? a) 12 b) 3 c) 6 d) 9
b
Rental Reimbursement is only available if the policy includes which coverage? a) Named Nonowner Coverage b) Other Than Collision Coverage c) Extended Nonowned Coverage for Named Insured d) Towing and Labor Costs
b
The Federal Fair Credit Reporting Act a) Prevents money laundering. b) Regulates consumer reports. c) Protects customer privacy. d) Regulates telemarketing.
b
The Missouri Basic Property Insurance and Placement Program is available to a) Only those with commercial property risks unable to obtain coverage in the voluntary market. b) Any person in the state entitled to have but unable to obtain property coverage through the voluntary market, subject to program maximums. c) Any persons wishing to obtain property insurance in the state. d) All residential property risks up to $100,000 in value.
b
What type of compensatory damages will pay for pain and suffering and disfigurement? a) Normal b) General c) Special (specific) d) Tort
b
When a vehicle travels from one state to another, what happens to the limits of policy liability in a personal auto policy? a) They decrease based on the state law. b) They do not change. c) They do not apply. d) They increase based on the state law.
b
Which of the following is NOT covered by the condominium unit owners endorsement? a) Fixtures in the building b) Furniture in the building c) Alterations to the building d) Appliances in the building
b
Which of the following is a prerequisite of obtaining a producer license? a) Be appointed by an insurer authorized to transact insurance in Missouri b) Pass an examination administered by the testing service designated by the Director c) Attend an approved prelicensing education class d) Satisfy the Missouri continuing education requirement for the license sought
b
Which of the following losses would NOT be covered by a homeowners policy? a) A $800 outboard motor destroyed by hail b) A coin collection valued at $500 lost in a fire c) A $550 utility trailer blown away by a tornado d) A stolen silver tea set worth $2,000
b
Which of the following statements would be correct if an insured failed to maintain the underlying limits as required by a personal umbrella policy? a) The insured would have to pay the self-insured retention limit. b) The insured would be responsible for the amount required as underlying limits in the event of a claim. c) It would have no effect on the umbrella policy. d) The policy will be cancelled.
b
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? a) Slandering b) Defamation c) Undercutting d) Twisting
b
All of the following actions could be grounds for the Director to suspend or revoke an insurance license, EXCEPT a) A producer has their license suspended or revoked in another state. b) A producer demonstrates a lack of trustworthiness or competence. c) A producer uses poor judgment in binding a risk. d) A producer is convicted of a felony.
c
All of the following statements regarding uninsured & underinsured motorist coverage, in the state of Missouri, are true EXCEPT a) The uninsured & underinsured coverage maybe provided by the policy itself, or by a supplemental endorsement. b) An uninsured motorist is defined as an unidentified hit-and-run driver. c) An insured motorist is defined as a motorist with auto liability coverage at least with legally required minimums, but too low to pay for all the damage done to the other vehicle. d) No automobile liability insurance can be issued in the state unless it also provides coverage for uninsured/underinsured motorists.
c
Before the Director will issue a license, a person must meet all of the following qualifications EXCEPT a) File an application with the Director. b) Pass an examination for each line for which a license is sought. c) Be appointed to represent at least one authorized insurance company. d) Be at least 18 years of age.
c
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period? a) 90 days b) 1 year c) 3 years d) 5 years
c
How much is covered for debris removal under the HO property additional coverages? a) Everything after a $200 deductible b) Nothing, unless added by an endorsement c) All reasonable costs d) 90% of the total cost of clean-up
c
In Missouri, owners of registered vehicles must maintain proof of financial responsibility in the event of a motor vehicle accident. Which of the following statements regarding the Missouri motor vehicle financial responsibility is true? a) Proof of financial responsibility is only required for those motor vehicle accidents that result in bodily injury of $500 or more. b) Financial responsibility must be proven at the time of vehicle purchase. c) Financial responsibility must be proven at the time of vehicle registration and at the each renewal. d) Proof of financial responsibility is only required for those motor vehicle accidents that result in property damage in excess of $2,000
c
In which of the following situations is it legal to limit coverage based on marital status? a) Legal separation during the application process b) Divorce within the last six months of applying for insurance c) It is never legal to limit coverage based on marital status. d) Excessive number of divorces, as defined by the Insurance Code
c
The occurrence form trigger is based on which of the following? a) The amount of the insured's deductible b) The amount of claims made during the policy period c) The date when injury or damage occurs d) The place where the injury or damage occurs
c
Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim? a) General liability b) Personal liability c) Professional liability d) Auto liability
c
Which of the following is NOT a primary property coverage in homeowners coverage? a) Other structures b) Loss of use c) Collapse d) Dwelling
c
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of? a) Unfair claims b) Twisting c) Defamation d) False advertising
d
An insured carries a property policy on her home in the amount of $250,000. A bank is shown as the mortgagor in the policy. Last month the insured made her final mortgage payment, but did not remove the bank from the policy. In the event of a covered loss to her home, how much will the bank receive? a) Up to the amount of debt that the insured has with the bank b) The standard minimum of 10% that is paid to lenders c) All of the payment would be made to the mortgagor shown in the policy. d) Nothing
d
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of a) Concealment. b) Unfair claim practice. c) Rebating. d) Misrepresentation.
d
Participation in the Missouri Automobile Insurance Plan is required for a) Agencies marketing motor vehicle coverage. b) Drivers with certain motor vehicle violations. c) Specialty car owner/drivers. d) Auto liability insurers.
d
Theft coverage under an HO-8 is restricted to a) The larger of 10% of the personal property limit or $1,000. b) There is no theft coverage under an HO-8. c) $250. d) The actual cash value of what was stolen, with limits for certain classes of property.
d
What must every insurance carrier writing workers' compensation insurance establish for its insured employers upon request? a) A person who can answer questions for any employee of the insurer that is available 24/7 b) A contingency fund in case of excess claims being processed in a given year c) A group plan that has convertible term insurance should the group policy be terminated d) A comprehensive safety engineering and management program
d
Which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss? a) Loss payment clause b) Valuation clause c) Loss settlement clause d) Appraisal clause
d
Which of these is defined as the maximum limit of coverage available under a liability policy during a policy year, regardless of the number of claims that may be made or the number of accidents that may occur? a) Combined single limit of liability b) Per occurrence limit of liability c) Split limit of liability d) Aggregate limit of liability
d
Who is NOT an insured for liability on a BAP? a) Anyone using a covered auto with permission b) Anyone liable for the conduct of the insured c) The named insured in any covered auto d) The owner of a car the insured borrows
d
Who is responsible for covering the expenses associated with the examination of domestic insurers? a) The Director b) The Department of Insurance c) The Insurance Guaranty Association d) The examined insurer
d
Who will transport the property of anyone who hires them? a) Private carriers b) Motor truck carriers c) Commercial carriers d) Common carriers
d