Practice Exam P&C

A building valued at $200,000 is insured for $150,000; and coverage is written with an 80% coinsurance requirement and a $1,000 deductible. The building is totally destroyed and the debris removal expenses amount to $10,000. How much will the Building and Personal Property Coverage Form pay?

$159,000

In the commercial package policy, the Earthquake and Volcanic Eruption Endorsement covers an earthquake and all shocks or eruptions that occur within what period?

168 Hours

All of these apply to the cancellation or non-renewal of an Auto Policy in Texas after 60 days, EXCEPT?

30 days notice for non-payment of premium

Which policy proved the broadest coverage, HO?

5

In the Business Income and Extra Expense coverages the Period of Restoration begins how many hours after the time of loss?

72 Hours

Which of these would not be required for recovery of a loss under the replacement cost extension?

A deduction for depreciation is calculated

A Family Member in the Personal Auto Policy is which of the following?

A person who is a resident of a household and related by blood, marriage or adoption, or a foster child

Burglary applies to which of the following crime claims?

A thief breaks down a door to enter a store and steal merchandise

All of the following are exclusions for the liability coverage in the Personal Auto Policy, EXCEPT?

A vehicle driven by your minor, unlicensed driver

Vandalism is not covered in the added endorsed DP-1 dwelling policy?

After 60 days of vacancy

Which of the following incidents is not covered under the Inside Theft of Money and Securities Form?

Attempted robbery of a custodian

Which of the following autos is covered under Symbol 9 of the Business Auto Coverage Form?

Autos owned by the insured's employees while used in the insured's business

Which Dwelling Policy form does not cover burglar damage?

Basic Form (DP-1)

Under the Businessowners Liability Coverage, after a claim has been paid, any recovery rights?

Belong to the insurer

A producer delivers a notification of coverage date and coverage amount it would be called?

Binder

Which of the following is included in Section III of the Businessowners Coverage Form?

Common Policy Conditions

The rules and procedures to be followed by the insured and the insurer are found in which section of an insurance policy?

Conditions

The spouse of which Businessowners Policy named insured is not eligible as an insured?

Corporation

In a HO-2 homeowners policy, a burglar breaks thru an outside and inside wall. Where would these damages be covered?

Coverage A

Under a Dwelling Policy, a detached carport on the insured premises is covered where?

Coverage B

Choose the correct statement regarding coverage under the Products Exposure Liability Coverage.

Coverage applies to the bodily injury (BI) and property damage (PD) the product causes, but not to the product itself

Choose the correct statement concerning the Special Causes of Loss Form in the Commercial Package Policy.

Coverage is provided for losses caused by Risks of Direct Physical Loss except as specifically limited or excluded

All of the following are true of the Business Auto Coverage Form, EXCEPT?

Covers injuries to employees

Under the Dwelling policies, which is correct regarding coverage of trees, shrubs or plants?

Damage by wind, hail, weight of ice, snow or sleet is not covered

All of the following about Products Exposure Liability Coverage are correct, EXCEPT?

Damage to the product itself is covered

Where in a Commercial Package Policy would you find the beginning and expiration dates?

Declerations

If a person makes a false statement about another company's financial condition, this is known as?

Defamation

In an HO-3 policy which of these would be paid under liability?

Dog bite

You moved to a Workers' Compensation ___________ state and discovered it does not require the employer to purchase Workers' Compensation coverage on their employees.

Elective

Under Commercial Crime Coverage, which of the following is not included in the definition of Money?

Evidence of Debt

When only the Workers Compensation policy will pay for employee injuries, it is because of this provision.

Exclusive remedy

When a producer collects a premium on an insurance contract and deposits that in a trust account for the insurer. This makes the producer a?

Fiduciary

In a Commercial Package Policy, which of these supplemental coverages is not subject to a deductible?

Fire Department service charge

Choose the claim that would not be covered under Section II of the Homeowners Policy.

First aid expenses for your children

Which statement is false regarding Subrogation?

Includes filing suit against the insured

Restoring an insured back to the same financial situation or economic condition that existed prior to a loss is which of these?

Indemnification

An insured's boat is in storage allowing a return on premium is called which type of warranty?

Lay Up

Builders risk policy would include all of these coverages, EXCEPT?

Liability

The Building and Personal Property Coverage form of the Commercial Package Policy covers all the following, EXCEPT?

Liability for the building

Coverage D of the Dwelling Policy includes?

Loss of rent from a renter of the property

Which Workers' Compensation type is only available through a state fund?

Monopolistic

An insurer decides to terminate a policy when the existing policy is canceled. This is an example of?

Non-renewal

The scheduled Personal Effects Floater covers described property on a(n) ___________ basis.

Open Peril

A person owns a vending machine business. He has a vending machine at a business he does not own. A customer is injured while pulling product from the machine. Where is this covered in the Commercial General Liability policy?

Operations liability

The Extra Expense form pays the necessary expenses incurred by the insured during which of the following?

Period of Restoration

Optional Coverages under the Businessowners Policy include all of the following, EXCEPT?

Personal property of others that is in the insured's care, custody and control

Experience rating is what type of rate making for an insurer?

Policyholder's past losses

___________ is not a common policy condition on a commercial property policy?

Premiums

Choose the false statement about an Umbrella Liability Policy.

Property in the care and custody of the insured is covered

The purpose of the Texas Fair Plan Association is to do which of the following?

Provide coverage to those who were cancelled by previous insurers

The ___________ cause is that which produces the injury in a natural and continuous sequence of events, unbroken by any efficient intervening cause.

Proximate

The Basic Causes of Loss Form in the commercial package policy includes all of the following perils, EXCEPT?

Smoke from industrial operations

The Basic form of the Commercial Package Policy includes coverage for all the following perils, EXCEPT?

Smoke from industrial operations

A manufacturer is held liable if a product caused an injury whether the product was or was not defective. This describes what type of liability?

Strict

Which association covers wind and hail losses in designated areas in Texas?

TWIA

All of the following are true of the Building and Personal Property Coverage Form, EXCEPT?

Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage

All of the following are true of the HO-2, EXCEPT?

The HO-2 pays for losses on an open peril basis

Which of the following is true regarding Completed Operations Coverage?

The coverage will pay for bodily injury and/or property damage caused by negligent or faulty work by the insured, but will not pay for the cost of replacing the work that caused the loss

In a flood policy, the insured increased their limits of coverage from $150,000 to $250,000. Which of these applies?

The increased coverage becomes effective after 30 days

Which of the following is false about the CGL policy form?

The limits of the policy stated in the Declarations are the maximum amounts payable for the life of the policy

The Extra Expenses Coverage Form covers?

The necessary additional expenses that are insured during the period of restoration that would not have incurred if there had not been a direct loss

Which of the following is not included in the Declarations of a Property Policy?

The perils that are not covered

A producer failed to complete the required 24 hours on continuing education within the 24-month period. Which of these would apply?

The producer has 90 days to complete the continuing education and pay $50 for each hour not completed.

Under the Crime Coverage Part to the Commercial Package Policy, which of the following is the broadest and most inclusive?

Theft

What are the territorial limits of the Commercial General Liability Coverage Part of the Commercial Package Policy?

United States, its territories and possessions, Puerto Rico and Canada

All the following would be coverages in a Workers Compensation policy, EXCEPT?

Unlimited death benefits

Which of the following is correct regarding damage caused by vandalism under the Basic Dwelling Form?

Vandalism coverage must be added by endorsement