PSI PA Property And Casualty Exam
Guide With Questions And Correct
Answers
Broker c- ccorrect canswers✔✔According cto cthe cinsurance claw, cwho cis cthe cprincipal?
90 cdays c- ccorrect canswers✔✔An capplication cas ca cresident cagent cmust cbe cmade
cin chow cmany cdays cif can cindividual cestablishes ca cprincipal cplace cof cresidence
cwithin cPa cfrom canother cstate?
a ctemporary clicense c- ccorrect canswers✔✔issued cfor c180 cdays cfor csurviving
cspouse, csurviving cinactive cofficer cor cpartner, clegal crepresentative. cCan cbe cused
cupon cdeath cor cincompetency cof cproducer, cor cwhen cindividuals care cserving cin cthe
cmilitary.
Endorse cInsurers c- ccorrect canswers✔✔Commissioner ccan cdo call cof cthe cfollowing
cexcept?
provides cincorrect cor cmisleading cinfo, cbeen cdenied cin canother cstate cor cviolated
ccommonwealth cinsurance claws. c- ccorrect canswers✔✔Insurance cdepartment ccan
cdeny can capplication cif cthe capplicant....
Cease c& cDesist corder c- ccorrect canswers✔✔the cinsurance cdepartment cmay cissue
cthis cwhich crequires cthe cinsurer cor cperson cto cstop cactivity cin cquestion
the cGovernor c- ccorrect canswers✔✔Insurance ccommissioner cis cappointed cby...
Guaranty cFund c- ccorrect canswers✔✔administered cby ca cU.S. cstate cto cprotect
cpolicyholders cin cthe cevent cthat can cinsurance ccompany cdefaults con cbenefit
cpayments cor cbecomes cinsolvent. cProducers care cprohibited cto cadvertise cit's
cexistence cto csecure cbusiness.
Rate cRegulation c- ccorrect canswers✔✔Performed cby ccommissioner cto cprohibit crates
cthat care cexcessive, cinadequate cor cunfairly;y cdiscriminatory.
10 cworking cdays c- ccorrect canswers✔✔Insurance ccompany cshould cacknowledge
creceipt cof cclaim cwithin...
15 cdays c- ccorrect canswers✔✔Insurance cshould crespond cto cinsurance cdepartment
cinquiry cwithin...
Rebating c- ccorrect canswers✔✔Bribery, creturning ca cportion cof cthe cpremium cor cthe
cagent's/broker's ccommission con cthe cpremium cto cthe cinsured cor cother
cINDUCEMENTS cto cplace cbusiness cwith ca cspecific cinsurer.
Misrepresentation c- ccorrect canswers✔✔When cproducer cmakes cfalse cstatements
Twisting c- ccorrect canswers✔✔When cinsurance cagent cmakes cincomplete
ccomparisons cas can cinducement cto cterminate, csurrender cone's cpolicy cfor canother cof
csimilar crisks
False cAdvertising c- ccorrect canswers✔✔using cmedia cwith cdeliberate cdeceit cto
cdefraud
Coercion c- ccorrect canswers✔✔persuading csomeone cto cbuy cinsurance cthrough cthe
cuse cof cthreats
Misappropriation cof cfunds c- ccorrect canswers✔✔improper cholding, cbreaking cfiduciary
cobligations
Defamation c- ccorrect canswers✔✔making cfalse cor cderogatory cstatements cas cto
cinsurance ccompany's cfinancial cposition
Redlining c- ccorrect canswers✔✔unfair cdiscrimination cbased con clocation cof cinsured's
chome cor cbusiness
Commingling cfunds c- ccorrect canswers✔✔when ca cproducer cis ccollecting cpremiums
cfrom capplicants cand cadding cit cto ctheir cpersonal cfunds, cholding cout cpremium
Fiduciary cresponsibility c- ccorrect canswers✔✔is ca cproducer's cobligation cto chandle
cfunds cof cthe cinsured cin ca cresponsible cand cethical cmanner
The cInsurer c- ccorrect canswers✔✔Who ccan cterminate ca cproducers cappointment
Insurance cProducer c- ccorrect canswers✔✔means cany cperson/entity cwho cor cwhich cis
clicensed cto csolicit, cnegotiate, cor csell cinsurance.
the cdepartment cof cinsurance c- ccorrect canswers✔✔Who cis callowed cto cconduct cas
cmany cexaminations cof cinsurance cagencies/agents cas cthey cwant
Commissions c- ccorrect canswers✔✔can cbe cshared cwhen c2 cproducers care cin cthe
csame cauthority
Consulting cFees c- ccorrect canswers✔✔allowed, cmust cinclude ca cwritten cadvance
cnotice cof cthe cfee cdisclosed cto cthe cperson cand cmust cbe creasonable cin crelationship
cto cservice cprovided
Gramm-Leach-Bailey cAct c- ccorrect canswers✔✔purpose cis cto cprotect cthe cprivacy cof
cconsumer cfinancial cinfo c(customers ccan copt cout cand cprohibit cinsurance cagency
cfrom cdisseminating cnonpublic cpersonal cinfo cto cnon-affiliated cthird cparty)
$5000/$10000/$15000 c- ccorrect canswers✔✔Insurance cFraud cRegulation, ccriminal
cprosecution cand ccivil cpenalty cup cto? c(amounts)
Fair cCredit cReporting cAct c- ccorrect canswers✔✔established cto cprotect cconsumers
cfrom cunfair cand cinaccurate cinfo, cmax cpenalty cof c$2500 cand/or c2 cyears cin cprison
protect cagainst cthe ccirculation cof cinaccurate cor cobsolete cpersonal cor cfinancial cinfo.
c- ccorrect canswers✔✔QOT: cPrimary cpurpose cof cthe cFCRA c(fair ccredit creport. cact)
cis cto...?
$50,000 cand/or c10-15 cyears cin cprison c- ccorrect canswers✔✔Fraud c& cFalse
cstatements---fraud cthat caffects cinterstate ccommerce csuffers cmax cpenalty cof...
Risk c- ccorrect canswers✔✔exposure cto cor cuncertainty cof closs
Pure cRisk c- ccorrect canswers✔✔only ccan cbe cno ccharge cor closs, conly ctype cof crisk
cinsurance ccovers c(no cfinancial cgain)
Speculative cRisk c- ccorrect canswers✔✔can ceither cbe clost cor chave cthe cchance cto
cwin cfrom ca crisk c(ex. cGambling)
Hazards c- ccorrect canswers✔✔conditions cthat cincrease cthe cprobability cof can cinsured
closs
Physical cHazard c- ccorrect canswers✔✔individual ccharacteristics cthat cincrease cthe
cchances cof cthe ccause cof closs---(physical ccondition, cpast cmedical chistory, cbirth
cdefect, cblindness)
Moral cHazard c- ccorrect canswers✔✔tendencies ctowards cincreased crisk
c(character/reputation)
Morale cHazards c- ccorrect canswers✔✔arise cfrom cstate cof cmind cthat ccauses
cindifference cto closs c(carelessness)
Elements cof cinsurable crisk c- ccorrect canswers✔✔must cbe cdefinable, caccidental,
cpredictable, claw cof clarge c#s cshould capply, ccreate cfinancial chardship, creasonable
cpremiums, cnot ccatastrophic
Exposure c- ccorrect canswers✔✔unit cof cmeasurement cused cto cdetermine crates
ccharged cfor cinsurance ccoverage
Homogeneous c- ccorrect canswers✔✔large c# cof cunits chaving cthe csame cor csimilar
cexposure cto closs
Insurance c- ccorrect canswers✔✔transfers cthe crisk cof closs cfrom cindividual cor centity
cto cinsurance ccompany, cwhich cspreads cthe ccosts cof cunexpected closses cto cmany
cindividuals, cincludes csolicitation, cnegotiations, csale, cand cadvising con cindividual
cconcerns, ccoverage cor cclaims
Loss c- ccorrect canswers✔✔the creduction, cdecrease, cor cdisappearance cof cvalue cof
cthe cperson cor cproperty cinsured cin ca cpolicy, ccaused cby ca cnamed cperil
Avoidance, cretention c(reduce cpremiums), csharing, creduction, cand ctransfer c- ccorrect
canswers✔✔Methods cof cHandling cRisk cinclude...
Avoidance c- ccorrect canswers✔✔eliminating cexposure cfor closs c(ex. cavoid cairplane
ccrash cby cnot cgetting cin cairplane)
Retention c- ccorrect canswers✔✔planned cassumption cof crisk cby can cinsured cthrough
cthe cuse cof cdeductibles, cco-payments, cor cself cinsurance
Purposes care: c1) creduce cexpenses, cimprove ccash cflow c2) cincrease ccontrol cof
cclaim creserving cand cclaim csettlements c3) cfund cfor closses cthat ccannot cbe cinsured
Self-Insurance c- ccorrect canswers✔✔when cinsured caccepts cresponsibility cfor closs
cbefore cthe ccompany cpays
Sharing c- ccorrect canswers✔✔method cof cdealing cwith crisk cfor ca cgroup cof cindividual
cpersons cor cbusinesses cwith cthe csame csimilar cexposure cto closs cto cshare cthe
closses cthat coccur cwith cthat cgroup
Reduction c- ccorrect canswers✔✔lessen cthe cpossibility cor cseverity cof ca closs c(ex.
cinstalling csmoke cdetectors, cphysical cto cdetect chealth cproblems, clife cstyle cchange)
Transfer c- ccorrect canswers✔✔most ceffective cmethod cof cdecreasing crisk, crisk cor
closs cis cborne cby ca cthird cparty c(Insurance ccompany) cso cthat cthe cinsured cis
crelieved cof csome cof cthe cfinancial closses
Adverse cSelection c- ccorrect canswers✔✔insuring crisks cthat care cmore cprone cto
closses cthan caverage crisk c(poorer crisks ctend cto cseek cinsurance cor cfile cclaims cto ca
cgreater cextent cthan cbetter crisks) ccompanies ccan crefuse cor crestrict ccoverage cfor
cbad crisks cor ccharge cthem ca chigher crate
Reinsurance c- ccorrect canswers✔✔protects cinsurance cagencies cfrom ccatastrophic
crisks c(war/nuclear cevents)
Stock ccompanies c- ccorrect canswers✔✔owned cby cstockholders, cright cof cvoting cand
cincurring cprofits cor closses
Mutual cCompanies c- ccorrect canswers✔✔owned cby cpolicyholders, cshare cprofit cin
cform cof cdividends, calso chave cvoting crights
Fraternals c- ccorrect canswers✔✔organized cwelfare cplans
Reciprocals c- ccorrect canswers✔✔"members" cmanaged cby can cattorney cin cfact
Domestic cInsurers c- ccorrect canswers✔✔incorporated cin cthe csame cstate cas cthe
chome coffice
Foreign cInsurers c- ccorrect canswers✔✔incorporated cin canother cstate/territory
Alien cInsurers c- ccorrect canswers✔✔incorporated coutside cof cthe cU.S
Warranties c- ccorrect canswers✔✔QOT: cAn capplication cthat cis cmade cwith cfacts cthat
care cbelieved cto cbe cwithout cdoubt ctrue care ccalled...***
Insurer c- ccorrect canswers✔✔QOT: cWho cis cthe crepresentative cof cthe cinsurance
cproducer?***
appointed cby can cinsurer c- ccorrect canswers✔✔QOT: cProducers cshall cnot cact cas
cinsured cuntil...***
Retention c(reduces cpremiums) c- ccorrect canswers✔✔QOT: cA cperson cdecides cnot cto
cget cphysical cdamage ccoverage con ctheir csnowmobile. cWhat cform cof crisk
cmanagement cis cthis?***
Their cpremium cincreased cand ctheir climits cdecreased. c- ccorrect canswers✔✔QOT: cA
cdeductible cgoes cfrom c$250 cto c$500, cthe cperson cwill chave...***
Reasonable cExpectations c- ccorrect canswers✔✔QOT: cCourts cmay crely con cthis clegal
cdoctrine cto csee cif ccoverage capplies...***
Loss creserves, closs cadjusting cexpenses, coperating cexpenses, cprofits c- ccorrect
canswers✔✔QOT: cWhat cis ca ccomponent cof ca crate?
Express cauthority c- ccorrect canswers✔✔QOT: cAn cagent chas cwhat cauthority cwhen cit
cis cwritten cin ctext? c***
Definite cTerms c- ccorrect canswers✔✔QOT: cAn cagreement cis cconsidered...***
Implied cauthority c- ccorrect canswers✔✔QOT: c( c) cis cnot cwritten cin ctext, cbut cis
cassumed c**
Primary cInsurer c- ccorrect canswers✔✔QOT: cWhen ca cperson ctransfers cinsurance
cfrom cone cinsurer cto canother, cthey cassume cthe crole cof...***
The cinsured c- ccorrect canswers✔✔QOT: cAmbiguous cwording con can cinsurance
ccontract cwould cbe cmore chelpful ctowards cwhom? c***
Consideration c- ccorrect canswers✔✔QOT: cWhat cis cit ccalled cwhen cboth cparties cbring
cin csomething cof cvalue cto ca ccontract? c***
Whenever csomeone cneeds cto cbe crestored cto cthe csame cfinancial cstatus c- ccorrect
canswers✔✔QOT: cWhat cis cindemnity?***
Provided ca cway cto cshare cthe crisk cof closs cfrom cfuture cterrorist cattacks cwith cthe
cinsurance cindustry. c- ccorrect canswers✔✔QOT: cThe cterrorism cact cof c2007 cdid
cwhat? c**
No, cbecause cshe cdoesn't chave cinsurable cinterest c- ccorrect canswers✔✔QOT: cA
cperson cis centitled cto ca chome cof cher cgrandmother cafter cshe cdies cbut cthe chome cis
cin canother cstate. cCan cshe cpurchase chomeowner's cpolicy cinsurance cfor cthe chome
cnow?***
Underwriting c- ccorrect canswers✔✔QOT: cAn cactivity cthat cdoesn't crequire ca cproducer
clicense?***
Minimize closs cexposure c(risk cretention) c- ccorrect canswers✔✔QOT: cWhy cdoes can
cinsurer cwant can cinsured cto cgo cthrough cthe cunderwriting cprocess? c***
Loss cRatio c- ccorrect canswers✔✔ratio cof closses cincurred cto cpremiums cearned
c(indication cof cprofitability)
Manufacturing ccompany ccant coperate cbecause cone cof cits csuppliers cis cnot cworking
c- ccorrect canswers✔✔QOT: cWhat cis can cexample cof cconsequential closs? c***
Specific cInsurance c- ccorrect canswers✔✔single camount cof cinsurance cfor ca cspecific
clocation
Blanket cInsurance c- ccorrect canswers✔✔single camount cof cinsurance cthat cis
cprovided cto call clocations
Scheduled cInsurance c- ccorrect canswers✔✔specific camounts cof cinsurance cprovided
cto cspecific clocations
Masonry c- ccorrect canswers✔✔QOT: cWhat cis cthe crequired c2+ chours cof cfire crating?
c**
Actual cCash cValue c(ACV) c- ccorrect canswers✔✔reinforces ctopic cof cindemnity--
replacement ccost, cminus cdepreciation
Replacement cCost c- ccorrect canswers✔✔contrary cto cthe cbasic cconcept cof cindemnity
Functional cReplacement cCost c- ccorrect canswers✔✔cost cto creplace cwith cmodern,
cless cexpensive cmaterials
Market cValue c- ccorrect canswers✔✔what ca cbuyer cwill cpay ca cseller c(seldom cwritten)
Agreed cValue c- ccorrect canswers✔✔agreed cupon
Stated cAmount c- ccorrect canswers✔✔least cof cACV, cstated camount, cor ccost cof
crepair c(max can cinsurer cwill cpay)
Concurrent cInsurance c- ccorrect canswers✔✔coverage cwritten cto ccover cthe csame
cproperty cand con cthe csame ccoverage cbasis
Non cconcurrent cInsurance c- ccorrect canswers✔✔coverage cwritten cto ccover cthe
csame cproperty cand con cthe csame ccoverage cbasis--generally cexcess
Torts c- ccorrect canswers✔✔a cwrongful cact cor cthe cviolation cof csomeones crights cthat
cleads cto clegal cliability c(excluded cfrom cliability cinsurance cpolices)
Intentional ctort c- ccorrect canswers✔✔any cdeliberate cact cthat ccauses charm cto
canother cperson cregardless cof cwhether cthe coffending cparty cintended cto cinjure cthe
caggravated cparty
Unintentional ctort c- ccorrect canswers✔✔result cof cacting cwithout cproper ccare
c(negligence)
Negligence cAct c- ccorrect canswers✔✔1) clegal cduty-- cmust cbe cshown cdefendant chad
ca clegal cduty cto cact cor cnot cto cact
2) cstandard cof ccare- cacting cas ca creasonable cperson cwould
3) cunbroken cchain cof cevents
4) cactual closs cor cdamage
Comparative cNegligence c- ccorrect canswers✔✔the cfault cis cshared cbetween cthe
cparties cinvolved c& cthe cawards cfor cdamages care creduced cby cthe cpercentage cof
cnegligence cof ceach cparty c(statutory cdefense)
Contributory cNegligence c- ccorrect canswers✔✔the cinjured cparty cmust cbe ccompletely
cfree cof cfault cin corder cto ccollect c(any cfault cwill cdefeat cclaim) c(common claw)
Assumption cof crisk c- ccorrect canswers✔✔you cunderstand cthat csomething cdangerous
cmight chappen c(baseball cgame, chockey cgame) c(common claw)
Intervening cCause c- ccorrect canswers✔✔reduced crecovery cto can cinjured cperson cif
can cintervening ccause cinterrupted cthe cchain cof cevents cand csets cin cmotion ca cbrand
cnew cchain cof cevents c(common claw)
Special cdamages c- ccorrect canswers✔✔(economic) ccompensatory, cout-of-pocket
cexpenses cfor cmedical, cmiscellaneous cand closs cof cwages
General cDamages c- ccorrect canswers✔✔(non-economic) ccompensate cthe cinjured
cperson cfor cpain cand csuffering, cmental canquish
Punitive cDamages c- ccorrect canswers✔✔form cof cpunishment cfor cextreme
coutrageous cbehavior, cgross cnegligence, cor cwillful cintent.
Liberalization c- ccorrect canswers✔✔QOT: cThe cpolicy cis cgetting cbigger, cand cthe
cpremium cdoesn't cchange
Salvage c- ccorrect canswers✔✔property cthat cis ctaken cby cthe cinsurer cto creduce cits
closs cafter ca cclaim cis cpaid
1) cpay cvalue cof clost cor cdamaged cproperty
2) cpay ccost cof crepairing cor creplacing
3) ctake call cor cpart cof cproperty cat can cagreed cor cappraised cvalue
4) crepair, crebuild, cor creplace cat clike ckind cand cquality c- ccorrect canswers✔✔Claim
csettlement coptions cfor cinsurer cinclude...
Bind c- ccorrect canswers✔✔temporary cinsurance ccontract cthat ccan cbe cmad cwritten
cor corally cfor ca cperiod cof c30 cdays cor cless
PA cInsurance cGuaranty cAssociation cAct c- ccorrect canswers✔✔protection cto cinsured
cwhen cthe cadmitted ccarriers cbecome cinsolvent
180 cdays c- ccorrect canswers✔✔Property cinsurance cremains cin ceffect cfor c( c) cdays
cafter cthe cinsured's cdeath cor cuntil cthe cend cof cthe cpolicy cperiod c(the clater)
automatically cprovides cthe cextra ccoverage c- ccorrect canswers✔✔QOT: cStandard cfire
cpolicy....***
Dwelling cPolicy c- ccorrect canswers✔✔insurance ccoverage cfor cresidential crental
cproperties cup cto c4 cunits cor coccupied cby cno cmore cthan c5 croomers
-owner cor ctenant coccupied
-basic, cbroad, cor cspecial cform
A) cDwelling
B) cOther cstructures c10% cof cA
C) cPersonal cproperty c10% cof cC
D) cFair cRental cValue
E) cAdditional cLiving cExpenses c(Does cnot capply cto cBasic cform)
DP1- cACV
DP c2&3- creplacement ccost cvalue c- ccorrect canswers✔✔Coverage cA, cB, cC, cD, cand
cE cof cdwelling cpolicy
Dwelling cPolicy c- ccorrect canswers✔✔QOT: cA c4 capartment cbuilding cwith c5 croomers
cor cboarders cwould chave cwhat ccoverage?
Personal cLiability cSupplement cCoverages cL c& cM c- ccorrect canswers✔✔provides
cliability cand cmedical cpayments cto cothers
Damage cby cflood csurface cwater cor cany cwater cis cnot ccovered c- ccorrect
canswers✔✔QOT: cWater cdamage closs cthat cis cnot ccovered cunder can cendorsed
cdwelling cpolicy? c**
Fair crental cvalue c- ccorrect canswers✔✔QOT: cCoverage cD cfor cdwelling cpolicy cis..
Peak cSeason cCoverage c- ccorrect canswers✔✔QOT: cWhen ca cstore chas cmore
cinventory cduring cthe cpeak cseason, cwhich ccoverage cshould cthey cuse? c**
Ordinance cor cLaw ccoverage c- ccorrect canswers✔✔Coverage cfor closs ccaused cby
cenforcement cof cordinances cor claws cregulating cconstruction cand crepair cof cdamaged
cbuildings. c(endorsement)
Commercial cInland cMarine cCoverage c- ccorrect canswers✔✔created cto censure
cproperty csuch cas ccargo cthat cwas cbeing ctransported cfrom cocean cgoing cvessels cto
cdestinations cinland cor cwithin ca ccountry
-written con cscheduled c"open cperil" cbasis
Anything cover csea c- ccorrect canswers✔✔QOT: cWhat cisn't ccovered cunder ca
cCommericial cInland cMarine cPolicy? c**
Covers cportable cproperty clocated con cland, cbridges, cand ctunnels c- ccorrect
canswers✔✔QOT: cWhat cis cthe cpurpose cof cthe cInland cMarine cCoverage?
Equipment cDealers cForm c- ccorrect canswers✔✔covers ca cdealers cstock cin ctrade,
csuch cas cconstruction, cagri, cand cother cmobile cequip
monies cand csecurities c- ccorrect canswers✔✔QOT: cEverything cis ccovered cunder
cvaluable cpapers cand crecords cexcept.. c**
Signs cForm c- ccorrect canswers✔✔covers cneon, cfluorescent, cautomatic cor
cmechanical celectric csigns cand clamps
Contractors cEquipment cform c- ccorrect canswers✔✔bulldozers, ctractors. cWritten con ca
cspecial cor cnamed cperil cbasis cand ccoinsurance cprovision cgenerally capplies
Common cCarriers c- ccorrect canswers✔✔offer cservices cto cpublic cat clarge cand care
clegally cliable cfor cdamage cto cproperty cthey ctransport c(bill cof clading)
Truckers cform c- ccorrect canswers✔✔provides cliability ccoverage cto ccover ccargo cof
cothers cthat cis cbeing ctransported. cTrucker cis ccovered cif che cis cnegligent.
Barns c& cother cfarm cstructures c- ccorrect canswers✔✔QOT: cWhat cis cincluded cin
cFarm cCoverage cG? c**
A) cDwelling
B) cOther cStructures c(not cfarm cstructures)
C) cPersonal cProperty c(non-farming) c$3000 cfor closs cof ctheft cby cfirearms, c$5000 cfor
cgrave cmarkers, c$500 cfor cbusiness cprop caway cfrom cpremise c
D) cLoss cof cUse
E) cScheduled cFarm cPersonal cProperty- cdoes cnot cinclude cturkeys, ccrops, ctrees, cor
chousehold cpersonal citems
- cfarm cpersonal cproperty cmay calso cbe cinsured con cblanket cbasis cunder ccoverage cF
F) cUnscheduled cFarm cPersonal cProperty- c80% ccoinsurance crequirement
G) cBarns cand cother cfarm cstructures c- ccorrect canswers✔✔Farm cproperty ccoverages
cA-G
Farm cLiability cCoverage cForm c- ccorrect canswers✔✔similar cto chomeowner csection
cII ccoverage cfor cpersonal cexposures cand ccommercial cgeneral cliability cpolicy cfor cthe
cbusiness ccoverage
When ca ccommunity capplies cfor cthe cprogram cand cNFIP ccriteria cis cmet c- ccorrect
canswers✔✔QOT: cWhat cmust chappen cfor cthe cfederal cemergency cflood cinsurance
cprogram cto cgo cinto ceffect?
Difference cin cCondition c(DIC) c- ccorrect canswers✔✔usually cprovides cflood cand
cearthquake ccoverage, cusually cwritten cwith cproperty cpolicies cto cfill cthe cgaps.
cWritten con call crisk cbasis csecured cthrough cthe csurplus clines cmarket
Stockholders c- ccorrect canswers✔✔QOT: cWhat cdoes ca cDirectors cand cOfficial's
ccoverage cnot ccover?
Under cinsured c- ccorrect canswers✔✔QOT: cCoinsurance cpenalizes cwho?
false carrest, cslander cand cinvasion cof cprivacy c- ccorrect canswers✔✔QOT: cHO
cPersonal cinjury cLiability cendorsement capplies cto:
A) cDwelling
B) cOther cStructures- c10% cof ccoverage cA c(blanket camt)
C) cPersonal cProperty-- c50% cof ccoverage cA canywhere cin cthe cworld c- ccorrect
canswers✔✔HOP cCoverage cI- cProperty- cA-D?
E) cPersonal cLiability
F) cMedical cPayments cto cothers c(up cto c3 cyears) c- ccorrect canswers✔✔HOP cSection
cII- cLiability cCoverage- cE&F?
1. cRepair cor creplace cto cvalue cprior cto closs cor c
2. ccompare cthe cACV cof cthe cpair cprior cto cthe closs cto cvalue cafter closs cand cpay
cdifference c- ccorrect canswers✔✔QOT: cA cpair cof cglassware cis cbroken cor cstolen,
chow cdoes cone cdamaged cor cstolen cin cthe cset cget creplaced? c**
Nuclear cHazard c- ccorrect canswers✔✔QOT: cDwelling cand cHO cpolices cboth cexclude
cwhat cin ctheir cpolicies? c**
Unique cHomes c- ccorrect canswers✔✔QOT: cHomeowner cpolicy cHO c8 cis cfor... c**
running cover ca cneighbors cfence cwith crage c- ccorrect canswers✔✔QOT: cHomeowners
cpolicy cwould cexlude...***
all csmall cbusinesses c- ccorrect canswers✔✔QOT: cA cbusiness cowner's cpolicy cis
cfor...**
First cAid c- ccorrect canswers✔✔QOT: cMedical cpayments cwill cpay cfor cwhat cwhen ca
cgirl cslips cand cfalls cin ca cgrocery cstore? c**
occurrence cbasis c- ccorrect canswers✔✔QOT: cBusiness cliability ccoverage cis cwritten
con ca c( c) cbasis?
Employer c- ccorrect canswers✔✔QOT: cWho cis cresponsible cfor creporting ca closs cto
cthe cinsurer?
Individual cnamed cinsured c- ccorrect canswers✔✔QOT: cIf csomeone cwants cto cbring
csomeone con cthat cis crelative?
Copyright cinfringement, cslander cor clibel c- ccorrect canswers✔✔QOT: cWhat cis can
cexample cof ca cbusiness cadvertising cinjury?
Time celement- cdirect cdamage c- ccorrect canswers✔✔QOT: cOutage cin ca cplant cand
cthe cbusiness cshould cbuy cwhat cendorsement?
Monopolistic cWC c- ccorrect canswers✔✔when cemployers care crequired cto cpurchase
cWC cfrom ca cstate coperated centity.
Competitive cWC c- ccorrect canswers✔✔when cWC cis cpurchased cby cemployers cfrom
cthose cinsurers cauthorized cto cwrite ccasualty cinsurance
6 c- ccorrect canswers✔✔QOT: cWhat cis cthe cmax cnumber cof chealthcare cproviders
cemployers ccan cestablish?
120 cdays c- ccorrect canswers✔✔Within chow cmany cdays cfrom cdate cof cinjury cdo
cemployees chave cto cnotify cthe cemployer cof cthe cinjury c??
persons cother cthan cseamen cwho care cengaged cin cmaritime cactivity. cMust cpass
csitus cand cstatus ctest. c- ccorrect canswers✔✔QOT: cWhat cis cthe cUS cLong cshore cand
cHarbor cworkers ccompensation cact?
pain c& csuffering c- ccorrect canswers✔✔QOT: cWhat cwouldn't cbe ccovered cunder cWC
cclaim? c**
Temporary cPartial c- ccorrect canswers✔✔QOT: cPerson cis cunable cto cearn csame
camount cof cmoney cdue cto cWC cclaim, cthis cperson cis cconsidered? c**
Temporary cTotal c- ccorrect canswers✔✔QOT: cPerson cis chospitalized cfor c4 cweeks
cwithout cbeing cable cto cwork cbut cgoes cback cto cwork cafter cthe ctime... c**
7 cdays c- ccorrect canswers✔✔QOT: cIf cyou care cunable cto creturn cto cwork cfor cmore
cthan chow cmany cdays cuntil cyou ccan cbe cconsidered centitled cfor cworkers ccomp? c**
"Remember cit cis cimportant cto ctell cyour cemployer cabout cyour cinjury" c- ccorrect
canswers✔✔QOT: cWhat csign cwould ca cbusiness cowner cput con ca cwall cfor cworkers
ccomp? c***
insured's clegal cliability carising cout cof cinjuries cor cdamages csuffered cby cthe cpublic,
ctenants, cand/or ccustomers
A) cbodily cinjury cand cproperty cdamage
B) cpersonal cand cadvertising cinjury
C) cmedical cpayments c- ccorrect canswers✔✔QOT: cWhat ctype cof ccoverage cdoes
cCGL cinclude?
premises cand coperations c(at cinsured's cbusiness), cproducts cand ccompleted
coperations c(exposures caway cfrom cpremise) c- ccorrect canswers✔✔QOT: cWhat cmajor
csublines cdoes cCGL ccoverage cpart cinclude?
liquor cliability, cintended cinjury, cworkers ccomp, cpollution, cand cwar c- ccorrect
canswers✔✔QOT: cWhat cis cexcluded cfrom cCGL ccoverage cA cBI c& cPD? c**
slander, clibel, cinvasion cof cprivacy, cfalse carrest, cwrongful centry cor ceviction c- ccorrect
canswers✔✔QOT: cWhat cwould ca cpersonal cinjury cbe cconsidered cin ca cCGL
cCoverage cB?
medical cexpenses ccaused cby can caccident, cregardless cof cfault. cExcludes cthose cwho
chave cWC, cathletics, cor cwar c- ccorrect canswers✔✔Coverage cC- cMedical cPayments
cof cCGL ccovers...
Supplemental cPayments c- ccorrect canswers✔✔payments cmade cby cinsurer cthat
cinclude cexpenses cincurred cby cinsured cincluding clegal cfees, ccosts ctaxed cagainst
cthe cinsured cin ca csuit, creasonable cclaims ccosts cup cto c$250 cper cday cfor closs cof
cearning, ccosts cof cbonds cto crelease cattachment, cbail cbonds cup cto c$250, cand cpost
cjudgement. c(excludes cpre-judgement)
in caddition cto cthe cpolicy climit cof cliability c- ccorrect canswers✔✔QOT: cLegal cdefense
ccosts care cpaid..
Occurrence cForm c- ccorrect canswers✔✔applies cto cinjury cor cdamage cthat coccurs
cduring cthe cpolicy cperiod cregardless cof cwhen cthe cclaim cis creported cto cthe cinsurer
c(accident con c6/30/11, cpolicy cterm cis c1/1/11 cto c1/1/12, cpolicy cwill crespond cwhether
caccident cis creported cduring cor cafter cpolicy cperiod) c*** con ctest
Claims-Made cForm c- ccorrect canswers✔✔applies cto cclaims coccurring con cor cafter
cthe cretroactive cdate cand cmade cduring cthe cclaims-made cpolicy cperiod, ceven cif cthe
cinjury cor cdamage coccurred cmany cyears cbefore cthe ccurrent cpolicy cterm
Inside cthe cPremises---Theft c- ccorrect canswers✔✔QOT: cIf ca cman cwalks cinto ca
cjewelry cstore cand cdemands cloose cdiamonds cin cthe cstore, cwhat cform cwill cbe cused?
c**
In can carmored ccar cdriving caway c- ccorrect canswers✔✔QOT: cOutside cthe cpremises
cinsurance cwould ccover cwhich cof cthe cfollowing cscenarios? c**
Commercial cCrime cCoverage cPolicy c- ccorrect canswers✔✔can cbe cwritten cas
ccoverage cpart cwithin cCPP cor cas ca cmono-line cpolicy, cpays can cowner cof ca
cbusiness cfor cthe closs cof ccovered cproperty cdue cto cits cwrongful ctaking cby canother
Burglary c- ccorrect canswers✔✔taking cof cproperty cwithin cthe cpremise cby cunlawful
centering cas cevidenced cby cmarks cof cforcible centry cor cexit
Robbery c- ccorrect canswers✔✔unlawful ctaking cof cproperty cfrom cthe ccare cand
ccustody cof ca cperson cwith cthe cthreat cof cbodily charm
Theft c- ccorrect canswers✔✔unlawful ctaking cof cmoney, csecurities cand cother cproperty
Loss cSustained cform c- ccorrect canswers✔✔covers closses cthat care csustained cduring
cthe cpolicy cperiod cand cdiscovered cwithin cone cyear cof cpolicy cexpiration
loss cof cmoney cat cFACE cVALUE cand closs cof csecurities cpaid cat cCLOSING cVALUES
cand closs cof cproperty cpaid cat cACTUAL cCASH cVALUE c- ccorrect canswers✔✔QOT:
cCommercial ccrime ccoverage cincludes ca cvaluation cclause cthat cestablishes..
Equipment cBreakdown cCoverage c- ccorrect canswers✔✔pays cfor cdirect cdamage cto
ccovered cproperty ccaused cby ca ccovered ccause cof closs. cFills cgap cof cbuilding cand
cpersonal cproperty cform
breakdown cmeans;
-failure cof cpressure cor cvacuum cequip
-mechanical cfailure, cincludes crupture cor cbursting ccaused cby ccentrifugal cforce
-electrical cfailure cincluding carcing c- ccorrect canswers✔✔QOT: cWhich cof cthe
cfollowing cwould cbe ccovered cunder cequipment cbreakdown ccoverage?**
fire cor ccombustion cexplosion, cwar, cordinance cor claw, cearth cmovement, cwater,
cdeterioration, ccorrosion, cerosion, cwear cand ctear c- ccorrect canswers✔✔Breakdown
ccoverage cexcludes...
Building c& cPersonal cProperty cform
A) cBuildings
B) cBusiness cpersonal cproperty- cbusiness cpp cused coff cpremises ccan cbe cinsured
cunder ccommercial cinland cmarine cform
C) cPersonal cProperty cof cOthers- clocated cin cinsured cbuilding cor cwithin c100ft c-
ccorrect canswers✔✔used cto cinsure call ctypes cof ccommercial cproperty cexcept cthose
cclassified cas cbuilders' crisk cor ccondominiums
Coverages cA-C
debris cremoval cand coutdoor csigns c- ccorrect canswers✔✔QOT: cSub climits cof
cinsurance capply cto...
Builders cRisk cForm c- ccorrect canswers✔✔similar cto cbuilding c& cpersonal cprop cform,
ccoverage cbegins con cdate cof cconstruction c& cceases cwhen cprop cis caccepted cby
cpurchaser, c90 cdays cafter cconstruction cis ccompleted, c60 cdays cafter cbuilding cis
coccupied, cwhen cinsured's cinterest cin cthe cprop cceases. cWritten con ca ccompleted
cvalue cor con ca creporting cform cbasis
Business cIncome cCoverage cform c- ccorrect canswers✔✔provides cincome cto ca
cbusiness cafter csuspension cof coperations cdue cto cdirect cphysical closs cor cdamage cto
cprop cby ca ccovered ccause c
-provided cduring cthe cperiod cof crestoration
-72 chour cdeductible
-extended cbusiness cincome cfor ca cmax cperiod cof c30 cdays
covers cexpenses cincurred cby cthe cinsured cwhile cthe cinsured cis chaving cto crestore
ctheir cbusiness cto cnormal coperations c- ccorrect canswers✔✔QOT: cDefine cexpense
ccoverage cform... c**
contractors cequipment cfloater c- ccorrect canswers✔✔QOT: cWhat cis cmost csimilar cto ca
ccommercial cproperty cfloater crisk? c**
Coverage cI- cPersonal c& cAdvertising cLiability c- ccorrect canswers✔✔-covers cinsured
cfor cpersonal cinjury clike cslander cor clibel
-covers calso cfor cadvertising cinjury clike ccopyright cinfringement
-exclusions care- cintentional cacts, ccontractual cliability, cbreach cof ccontract, cor cfailure
cof cgoods cto cperform
Basic cLoss cunder cAgricultural/Farm c- ccorrect canswers✔✔collision ccoverage
cprovided cfor cCov cE c& cF c(death cof clivestock con ca cpublic croad), closs cof clivestock
cby cflood cor cearthquake
Broad cLoss cunder cAgricultural/Farm c- ccorrect canswers✔✔electrocution cof clivestock,
cattacks con clivestock, caccidental cshooting cof clivestock, cdrowning cof clive cstock,
caccidental cdeath cof clive cstock cduring cloading/unloading
Other cFarm cStructures c- ccorrect canswers✔✔QOT: cWhat cis ca cbarn cconsidered con
ca cfarm?
50% c- ccorrect canswers✔✔If cbuilding cis cvacant cor cunoccupied c(on cfarm) cbeyond ca
cperiod cof c120 cdays, climits cof cinsurance care creduced cby...
Commercial cAuto cCoverage c- ccorrect canswers✔✔provides ccoverage cfor cbusinesses
cthat cown, cuse cor cservice cautomobiles cor ctrucks.
-truckers cthat cmove ccargo
-garages cthat cservice cthe cauto cbusiness
Business cAuto cCoverage cform c- ccorrect canswers✔✔used cto cinsure cowned, cleased,
chired, cor cborrowed cbusiness cautos
covered cautos c- ccorrect canswers✔✔sec c1 ccommercial cauto--No cfault c#5, cnon
cowned c#9
liability ccoverage c- ccorrect canswers✔✔sec c2 ccommercial cauto-- cmobile cequip cis
ccoverd cwhen cbeing ctowed cby ccovered cauto
-temporary csubstitute cauto calso ccovered
that cstates cstatutory crequired climits cof cliability c- ccorrect canswers✔✔Any cout cof
cstate cauto cwill cautomatically chave...
$20/day, cmax cof c$600, cafter c48 chour cafter cthe ctheft c- ccorrect canswers✔✔Physical
cdamage ccoverage cfor ctransportation cexpenses cas ca cresult cof ctheft cpays...
$1000 c- ccorrect canswers✔✔Sound creproductions cequip cperminately cinstalled cin
cstolen cvehicle cis ccovered cup cto...
franchise cauto cdealer c- ccorrect canswers✔✔QOT: cWho cis cmost clikely cto cpurchase
cGarage cCoverage cform?
Motor cCarrier cAct cof c1980 c- ccorrect canswers✔✔applies cto cvehicles cin cexcess cof
c10,000 clbs cthat chaul ccargo cover cstate clines cand/or ctransport chazardous cmaterial
$750,000 cfor ctransporting cnon-hazardous cproperty, c$5 cmillion cfor chazardous
cmaterial cor cexplosives, cand c$1 cmillion cfor coil ctransportation c- ccorrect
canswers✔✔QOT: cWhat cis cthe cminimum camount cof cfinancial cresponsibility
crequirements cfor ca c45,000 clb ctransportation ctrucker?
Commercial cAuto cEndorsement--Additional cInsured- c- ccorrect canswers✔✔used
cwhen cvehicle cis cunder ca clong cterm clease
Mobile cEquipment cendorsement c- ccorrect canswers✔✔includes ccoverage cfor cliability,
cmedical cpayments, cuninsured cmotorist cand cphysical cdamage
PA cMotor cVehicle cFinancial cResponsibility cLaw c- ccorrect canswers✔✔made cin ceffort
cto creduce chigh ccost cof cautomobile cinsurance cand creduce cthe cnumber cof cpeople
cdriving cwithout cinsurance
purchase cof cautomobile cliability cinsurance, cthrough cthe cposting cof ca cbond cor cbeing
cqualified cas cself-insured c- ccorrect canswers✔✔An cowner cof ca cvehicle cis crequired
cto cshow cfinancial cresponsibility cat ctime cof cregistration, cand cfinancial cresponsibility
cmeans:
tort coption, cunisured cmotorist, cunderinsured cmotorist cor cstacked ccoverage c- ccorrect
canswers✔✔The cPMVFRL coffers ccoverage cfor...
limits cat c15k/30k/5k--answer cis c5,000 c- ccorrect canswers✔✔QOT: cPMVFR claw
cminimum ccoverage cfor cowning c& coperating ca cmotor cvehicle cin cthe cstate? c***
workers ccomp c- ccorrect canswers✔✔QOT: cPAMVFRL cis cprimary cto cother ccoverages
cbut cexcludes...
Limited cTort c- ccorrect canswers✔✔limits cthe cinsured's cright cto csue cexcept cin ccases
cinvolving c"Serious cinjury", cthen cinsured ccan csue cfor cpain cand csuffering
Full cTort c- ccorrect canswers✔✔does cnot climit cindividual's cright cto csue-- ccan ccollect
cboth cspecific cdamages cand cnon-economic cdamages cregardless cof cinjury cseverity
pain c& csuffering c- ccorrect canswers✔✔QOT: cWhat cis cconsidered ca cnon ceconomic
closs cin cPAP c& cCAP? c**
24 cmonths c- ccorrect canswers✔✔QOT: cAccidental cdeath cbenefits ccover cdeath
cresulting cfrom can cinjury cin ca cmotor cvehicle caccident cfor chow clong cafter cthe
caccident? c**
Transportation cexpenses c- ccorrect canswers✔✔QOT: cWhat cis cexcluded cfrom cfirst
cparty cbenefits?
Combined cSingle c- ccorrect canswers✔✔A cperson chas ca cPAP cwith c$50,000 climit cfor
cBI cand ca c$25,000 climit cfor cPD. cWhat cis cthe climit cconsidered? c*
1. cindividuals cwho cown ca ccurrently cregistered cmotor cvehicle cand cdo cnot chave
cinsurance
2. coperate cor coccupy ca crecreational cvehicle cnot cintended cfor chighway cuse
3. coperate ca cmotorcycle crequired cto cbe cregistered
4. cintentionally cinjure cor cattempt
5. ccommitting cfelony
6. cseeking cto celude clawful capprehension cor carrest cby cpolice c
** cbenefits cmay cbit cbe cdenied csolely cbc cthe cdriver cis cunder cthe cinfluence cof
cdrugs/alcohol c- ccorrect canswers✔✔Ineligible cclaimants cfrom cfirst cparty cbenefits
cinclude:
Uninsured cMotorist c- ccorrect canswers✔✔pays cfor cbodily cinjury ccaused cby cone cwith
cno cinsurance--**must cbe crejected cby cinsured cto celiminate ccoverage-- cif cnot
crejected, c$15,000 cfor cinjuries/person cand c$30,000 caggregate
Under cinsured cMotorist c- ccorrect canswers✔✔pays cfor cinjuries ccaused cby cmotorist
cwhose cinsurance cis cinadequate, csame ccoverage cas c
um
Comprehensive c(other cthan ccollision) c- ccorrect canswers✔✔QOT: cIf ca ctractor ctrailer
chits ca cdeer, cwhat ctype cof cprovision cwould cbe cused? c**
Collision cInsurance c- ccorrect canswers✔✔pays cfor cthe cdamage cto can cinsured's ccar
cfrom ccrash cwith canother cobject cor cvehicle c($500 cstandard cdeductible)
Joint cOwnership cCoverage c- ccorrect canswers✔✔provides ccoverage cbetween
cindividuals cother cthan chusband cand cwife
Golf cCart c- ccorrect canswers✔✔QOT: cWhat cwould cbe ccovered cunder ca
cmiscellaneous cauto ccoverage? c**
named cnon cowner cendorsement c- ccorrect canswers✔✔QOT: cAn cindividual cis
cseeking ca cpersonal cumbrella cpolicy cin caddition cto ctheir cpersonal cauto ccoverage.
cWhat cendorsement cwould cthey cget? c**
extended cnon-owner cendorsement c- ccorrect canswers✔✔QOT: cA cgirl cuses cher cown
cvehicle cfor cpizza cdelivery. cWhat cinsurance cshould cthe cpizza cbusiness chave cfor
cher?
backing cinto ca cmailbox c- ccorrect canswers✔✔QOT: cPersonal cliability ccoverage cfor
can cauto cpolicy cwill ccover... c**
Assigned cRisk cPlan c- ccorrect canswers✔✔developed cto cprovide ccoverage cto
cindividuals cthat care cunable cto csecure cinsurance cthrough cthe cvoluntary cmarket
its ccoverage climits c- ccorrect canswers✔✔QOT: cWhat cis cthe cdifference cbetween ca
cseperate cCPL cand cthe chomeowner/dwelling cpolicy cliability cinsurance?
Provides cerrors cand comissions ccoverage c- ccorrect canswers✔✔QOT: cAll cof cthe
cfollowing care ctrue cfor cpersonal cumbrella cpolicy cexcept... c*
Special cLiability cInsurances c- ccorrect canswers✔✔Medical cmalpractice--covers
cdoctors
legal cerrors c& comissions-- ccovers clawyers
Agent's c& cbroker's cerrors c& comissions- cfailure cto crecommend cproper ccoverage cor
cfailure cto cprocess capplications
directors c& cofficers cliability
fiduciary cliability
liquor cliability
employment cpractices- cexposures cemployers cface, cliability carising cfor cdiscrimination,
csexual charassment, cetc
1. cprofessional c& cbusiness cliability ccoverage's cis cexcluded cfrom call cother cprimary
cpersonal cand ccommercial cinsurance cpolices
2. cincreased crisk cof csuit c- ccorrect canswers✔✔Need cfor cspecial cliability ccoverages
care cimportant cbc... c(2 creasons)
Surety cBond c- ccorrect canswers✔✔is ca ccontract cbetween cthree cparties—the
cprincipal c(you), cthe csurety c(us) cand cthe cobligee c(the centity crequiring cthe cbond)—in
cwhich cthe csurety cfinancially cguarantees cto can cobligee cthat cthe cprincipal cwill cact cin
caccordance cwith cthe cterms cestablished cby cthe cbond.
-in ceffect cuntil cthe cprincipal cfulfills cits cobligation
Ocean cMarine cInsurance c- ccorrect canswers✔✔encompasses ca cvariety cof cinsurance
ccoverages cdesigned cto cprotect cmerchandise, cgoods, cworkers, cpassengers cand
ccrews caboard cshipping cvessels cand ccargo cstorage cduring cmarine ctransport
cdomestically cor cabroad.
Hull cCoverage c- ccorrect canswers✔✔insures cagainst cdamage cto cor closs cof cthe cship
citself
Cargo cCoverage c- ccorrect canswers✔✔insures cagainst cdamage cto cthe ccargo
Freight cCoverage c- ccorrect canswers✔✔indirect closs ccoverage cthat creimburse cthe
cpayor cfor closs cof cincome cthat cwould cbe cearned cfor cmoving cthe ccargo
Protection cand cIndemnity c- ccorrect canswers✔✔provides cmarine clegal cliability
ccoverage cand cinsures cthe cship cowner cagainst cliability cto cseamen, clong cshore
cmen, cand charbor cworkers, closs cof ccargo cand ccollision
The cJones cAct c- ccorrect canswers✔✔applies cto cseamen cand cpermits clawsuits cdue
cto cinjuries csustained cthrough cemployers cfault cor cnegligence
shipping ccosts c- ccorrect canswers✔✔QOT: ceverything cis ccovered cunder can cocean
cmarine ccoverage cexcept... c**
Open cPeril c- ccorrect canswers✔✔QOT: cWhat ctype cof cperil cwould ca cpersonal cyacht
cbe c?
National cFlood cInsurance cProgram
**Building climit cfor cNFIP cis c$250,000 cfor csingle cfamily c& cother cresidential cand
c$500,000 cfor csmall cbusiness cor cnonresidential c- ccorrect canswers✔✔provides
ccoverage cagainst ccatastrophic ceffects cof cflood, cincentive cfor clocal ccommunities cto
cimprove cland cuse cby cminimizing cfuture cflood closses
Declarations c- ccorrect canswers✔✔section cof cinsurance cPOLICY cw/ cbasic cinfo clike
cinsured cname, caddress, camount cof ccoverage cand cpremiums
Conditions c- ccorrect canswers✔✔indicates cthe cgeneral crules cor cprocedures cthat cthe
cinsurer cand cinsured cagree cto cfollow cunder cthe cterms cof cpolicy
