SC Property & Casualty Exam

Which of the following types of valuation works best for property whose value does not fluctuate much?

Agreed Value * Agreed value works best for items whose value does not fluctuate much. When a loss occurs, the policy pays the agreed value as specified on the policy schedule, regardless of the insured item's appreciation or depreciation.

Which of the following types of valuation works best for property whose value does not fluctuate much?

Agreed value

In insurance, an offer is usually made when

An applicant submits an application to the insurer

In insurance, and offer is usually made when

An applicant submits an application to the insurer

Worker's Compensation benefits only apply to what type of losses suffered by an employee?

Any bodily injury, death, or disease, as long as it occurred during, or as a result of employment

Which of the following is NOT covered under accounts receivable coverage form?

Any loans required to offset uncollectible amounts

While an insureds covered auto is in the repair shop following damage caused by a collision, the insured would have coverage for which of the following vehicles under a personal auto policy?

Any vehicle not owned by the insured, but furnished for use while the covered auto is out of normal use because of repair

Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customers property, while in the care, custody, and control of the dry cleaners?

Bailee's customer policy

The liability coverage of the business owners policy is written on a

Business owners liability coverage form

Which of the following would be eligible for coverage under the South Carolina Windstorm and Hail Underwriting Association?

Commercial buildings and contents

Which of the following risks is eligible for coverage under a buisnessowners policy?

Condominiums

Which of the following would provide coverage for loss of income when an insured rental dwelling is rendered uninhabitable because of a covered loss?

Coverage D, loss of use/fair rental value

Which of the following coverages will respond if a claim is made, or a suit is brought against an insured for damages due to bodily injury or property damage caused by an occurrence to watch the coverage applies?

Coverage E- personal liability

All of the following are factors in the determination of actual cash value EXCEPT

Insurance premium paid

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

All of the following are true of coverage B- other structures in homeowners policies EXCEPT

It must be added by endorsement to a homeowners policy.

Under a DP-1 form, Coverage C - Personal Property is

Limited to covering a servants property while at the insureds location

Which of the following coverages in dwelling and homeowners policies is for indirect losses?

Loss of use

Which of the following is not considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

Which of the following coverages is included in a unendorsed homeowners policy?

Medical payment to others

Which of the following coverages is included in an unendorsed homeowners policy?

Medical payment to others

When is a hired and nonowned auto liability endorsement available in a business owners policy?

Only if the insured does not have commercial auto coverage

All of the following are additional liability coverage's automatically provided in a homeowners policy EXCEPT

Personal injury

A customer was injured in a supermarket parking lot when a grocery cart rolled into the customers like. Coverage for this claim would be provided under...

Premises and operations

Which of the following liability exposures is most likely for a small specialty clothing retail boutique?

Premises liability exposure

Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is

Provided by the insured's policy on an excess basis.

Under the personal auto policy, liability for bodily injury, resulting from the insured's use of a nonowned automobile is

Provided by the insureds policy on an excess basis

What type of information would be found in a policies insuring agreement?

Renewal dates

The transfer of an insured's right to seek damages from a negligent party to the insurer is found in which of the following clauses?

Subrogation

Which of the following perils is covered by the HO-2 and HO-3?

Sudden and accidental rupture of a heating system

An insured's accounts receivable records have been damaged. The loss may be covered with

The accounts receivable coverage form

In insured's accounts receivable records have been damaged. He lost may be covered with?

The accounts receivable coverage form

An insurance producer has not been appointed to an insurance company. Who is the producer considered to represent?

The client

Who is responsible for covering the expenses associated with the examination of domestic insurer's?

The examined insurer

Negligence is defined as

The failure to do what a reasonable prudent person would do under given circumstances.

All of the following conditions must exist for injury or damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT

The injury or damage must occur within 90 days after the insured's work is completed

Short rate cancellation is used when

The insured cancels a policy prior to its renewal date

The most the insurer will pay for a loss under a business owners policy is

The limit of insurance after the deductible is paid.

Which of the following losses would most likely NOT be covered under coverage A in the dwelling policy?

Theft of a renter's lawnmower used to service the premises

Which of the following losses would most likely not be covered under coverage A in the dwelling policy?

Theft of a renter's lawnmower used to service the premises

Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section?

Up to $1,000 per occurrence

Supplementary payments on a CGL provide all of the following EXCEPT

Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds.

Supplementary payments on a GCL provide all of the following EXCEPT

Up to $500 a day for lost earnings and $2000 for the cost of bail bonds

Which of the following endorsements could be added to a business owners policy to protect against loss of income due to lightning striking an electrical grid making the business unable to operate?

Utility services - time element endorsement

When when uninsured motorist coverage apply?

When the insured is legally liable, but does not have sufficient coverage

Informing an insurance contract, when does acceptance usually occur?

When the insurer's underwriter approves coverage

When would uninsured motorist coverage apply?

When the other party is legally liable but has no insurance

Coverage E: Personal Liability

Which of the following coverages will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury or property damage caused by an occurrence to which the coverage applies

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

In business owners policies, which of the following additional coverages, will require a deductible?

debris removal

In addition to the common policy conditions, all of the following conditions apply to liability coverage EXCEPT

employers liability

How often must producers complete continuing education hours?

every 2 years

Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

occurrence

Rental reimbursement is only available if the policy includes which coverage?

other than collision coverage

Which of the following limits, shown in the declarations of a policy, applies to medical expenses?

per person

The causes of loss insured against in an insurance policy are known as

perils

With respect to the personal auto policy, which of the following vehicles could be classified as a non-owned auto?

A vehicle that is titled to another person, but is being used with permission by an insured

With respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?

A vehicle that is titled to another person, but is being used with permission by an insured

Which part of an insurance policy covers claim related expenses, reasonable expenses incurred by an insured to protect damage property from further loss, or defense expenses?

Additional coverage

Which part of an insurance policy covers claims related expenses, reasonable expenses incurred by an insured to protect damage to property from further loss, or defense expenses?

Additional coverage

A producer licensed in life and health as well as property and casualty, must complete a minimum of how many hours in each line of authority every 2 years?

8

A producer, licensed in life and health, as well as property and casualty, must complete a minimum of how many hours in each line of authority every two years?

8

Which of the following statements is incorrect about appointment of producers?

A Certificate of Authority is the license given by the insurer to its producers.

With respect to auto insurance, the term owned autos includes all of the following EXCEPT

A pickup or van titled to and used in the named insured's business

Which of the following would be considered an uninsured vehicle?

A vehicle fleeing a hit-and-run accident

An uninsured motor vehicle includes all of the following EXCEPT

A vehicle owned and operated by a self-insurer

Anyone who willfully violates a cease and desist order can we find what maximum amount per day?

$100

Super Value Store has a commercial general liability policy written with a general aggregate limit of $300,000 and an occurrence limit of $100,000. A customer injured on the premises was awarded $45,000 for medical expenses and loss of earnings, and $60,000 for pain and suffering. The court costs and attorney fees were $15,000. How much will the CGL policy pay?

$115,000

Auto insurers who are unfairly discriminatory may face fines of up to

$200,000

An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must be replaced. The new roof will cost $6,000 at today's prices. If the roof has been depreciating at $200 per year and his policy is ACV, how much will it pay toward the insured's new roof?

$5,000

All of the following are special personal limits under a homeowners policy EXCEPT

$500 for business personal property on the insured premises

An insured has a personal auto policy with both comprehensive(other-than-collision) and collision coverage. His car stolen and recovered five days later. If the insured claims transportation expenses of $20 per day, how much will his policy pay?

$60

The business owners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period?

1 year

Other structures are covered for what amount under the coverage B- other structures of a homeowners policy?

10% of Coverage A

Other structures are covered for what amount under the coverage B - other structures of a homeowners policy

10% of coverage A

A producer submit an application for insurance to an insurer for whom they are not appointed. Within how many days after the application was submitted must an insurer file a notice of agent appointment with the director?

15 days

If the actual values exceed the limit of insurance, the business owners policy contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by

25%

If the actual values exceeded the limit of insurance, the business owners policy contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by...

25%

The Mail Coverage Form is always written on a reporting form basis; after the end of each reporting period shown in the declarations, reports are due within...

30 days

Under business owners policy section 1, if an insurer wants to cancel the policy for any reason except nonpayment of premium, how many days before the effective cancellation date must the insurer notify the mortgage holder?

30 days

When a producers appointment is canceled by the company, the department of insurance must be notified within

30 days

A business owners policy insured owns a craft store. The protective safeguards endorsement requires the store to have a functional automatic sprinkler system. A winter storm freezes the pipes to the sprinkler system, causing the system to shut down. How many hours does the insured how to restore the system before being required to notify the insurer?

48 hours

In the event of theft of a covered vehicle, transportation expenses coverage in a personal auto policy will cover the expenses starting how many hours after theft?

48 hours

A producer failed to complete the required continuing education credit hours for this compliance period. Within what time period after the deadline may the license be reinstated?

6 months

Auto insurance policies may not be issued for a period of less than

6 months

All of following are found in the declaration section of a policy EXCEPT the

Exclusions

Which of the following statements would be an example of a product liability claim?

Faulty packaging of a cereal caused spoilage that resulted in someone getting sick.

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount will the insured's policy pay?

Higher limits

An insured is involved in an auto accident in another state. The state has a financial responsibility law that specifies limits of liability higher than the limits shown in the declarations. What amount with the insurance policy pay?

Higher limits