Missed Questions for PNC License

A tornado that destroys property would be an example of which of the following?

A peril

An uninsured motor vehicle includes all of the following EXCEPT

A vehicle being used for public livery.

What type of liability would a person who owns wild animals have?

Absolute

Which of the following coverages is NOT included in the basic form dwelling policy?

Additional living expense

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

Agreed value

Crime insurance is usually written on what basis?

All-risk

Marine insurance may be utilized to write all of the following types of risks EXCEPT

Furniture and fixtures.

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

Loss of use

Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?

Mechanical breakdown

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

Premises liability exposure

The other insurance provision that limits the liability of the insurer to a portion of the loss no greater than the amount the insurer bears to all the insurance covering the property is called

Pro rata liability.

What type of information would be found in a policy's insuring agreement?

Renewal dates

Which of the following is used in the formula for calculating the actual cash value of a property?

Replacement cost

What is the deductible of a personal liability umbrella policy called?

The SIR

Which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy?

The Surf Side Club Waterfront Restaurant is damaged when flood waters rise and seep into the restaurant.

An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered

Unoccupied.

A rural area is defined by the insurance code as a community with

A class 9 or 10 fire protection grade.

How is the Commissioner selected for the office?

Appointed by the Governor

Under businessowners policy Section I, if an insurer wants to cancel a policy for any reason except nonpayment of premium, how many days before the effective cancellation date must the insurer notify the mortgageholder?

30 days

If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for

30 days.

The Insurance Code permits an insurer to cancel a Homeowners policy midterm under certain conditions. Which one of the following is NOT a situation covered by one of those conditions?

The insured failed to reveal information about his children's health history.

Under additional coverages for homeowners policies, what is the maximum amount that can be charged to the insured for fire department services?

$500

Which of the following is an example of a protective safeguard in a businessowners policy?

Automatic sprinkler system

A producer's daughter, who is unlicensed, works part time in her father's insurance agency. She may perform all of the following activities EXCEPT

Collect premiums for in-force policies and explain coverages written by the producer.

An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?

Combined single

The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay?

Company A will pay $16,000; Company B will pay $8,000.

An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?

Consequential

A startup used car dealership buys cars at auto auctions in 30 states. It wants to be certain that damage coverage is provided when the cars are driven or transported from the auctions to the dealership. In regard to the business auto physical damage coverage, which is true?

Coverage is provided at additional premium.

What is the purpose of the coinsurance clause found in property insurance policies?

Encourage the insured to insure the property closer to its full value

Which of the following is NOT the consideration in a policy?

The application given to a prospective insured

Which of the following would modify the original insurance contract by either adding or removing coverage?

Endorsements

Professional liability coverage protects the insured against legal liability resulting from

Errors and omissions.

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

Exclusions.

All of the following are conditions commonly found in the insurance policy EXCEPT

Insuring agreement.

Which of the following statements is NOT true regarding a personal umbrella liability policy?

It provides errors and omissions coverage for an agency.

Mark's company gives its employees Thursday and Friday off for Thanksgiving. On Wednesday night, after his office has closed, Mark is dropping off material to a customer when he is involved in an accident. When does Mark have to report the accident to his employer to be eligible for Workers Compensation benefits?

On the next business day

An insured owns several buildings, each at a different location and insured on a separate policy. What type of coverage does the insured have?

Specific

Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called

Specific coverage.

A passenger in a friend's car is injured while getting into the car. Which of the following statements would apply if both the passenger and the driver had medical payments coverage under a personal auto policy?

The driver's policy would be primary.

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.

How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?

It removes the coverage.

An insurance producer fails to obtain automobile insurance for a client after agreeing to do so. The client is involved in an automobile accident after running a red light and is found to be at fault. The damage to the other vehicle totals $5,000. Which statement regarding the producer's errors and omissions liability policy is true?

It will provide coverage because the damage to the client resulted from the producer's negligence.

Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck?

Motor truck cargo policy - truckers form

An insured's 9-year-old son threw a ball, accidentally breaking a neighbor's plate glass window. The insured was found legally liable for the cost of replacing the window. This is an example of

Vicarious liability.

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Warranty