P & C Test Sample Questions

In the insurance industry, which of the following terms refers to continuous or repeated exposure to conditions that may result in bodily injury or damage neither expected nor intended?

An occurrence

Vehicles which may be insured by a personal auto policy are described in the eligibility rules. Each of the following statements is true about vehicles eligible for personal auto policy (PAP) coverage, EXCEPT:
A) Vehicles with fewer than four wheels are e

Vehicles with fewer than four wheels are eligible.

Homeowners - Coverage C excludes all of the following types of property, EXCEPT:
A) Property belonging to the 13-year-old son of the insured while he is at summer camp.
B) Pet parakeets.
C) An antique couch scheduled by endorsement.
D.) Property belonging

Property belonging to the 13-year-old son of the insured while he is at summer camp.

Which of the following would be covered under a garage liability policy?
A) Injury of damage arising out of a fishing boat the named insured stored in his garage.
B) Damage to property the insured is transporting to another location.
C) The use of covered

Injury or damage arising out of a fishing boat the named insured stored in his garage.

A Pro Rata Liability Clause is included in an insurance policy to deal with the problem of:
A) Excessive insurance policies.
B) Inadequate coverages.
C) Conditional coverages.
D) Duplicate insurance policies.

Duplicate insurance policies.
The purpose of this clause is to illustrate the method to determine each insurer's liability in case of a loss. Each insurer pays its fair share determined by the percentage that the carrier's limit bears to the total coverag

Under the law of agency, all of the following are they types of authority an agent might have, EXCEPT:
A) Express Authority
B) Implied Authority
C) Apparent Authority
D) Uncertain Authority

Uncertain Authority

In automobile insurance Supplementary Payments refer to which of the following?
A) Payments made by the insured for damages exceeding his policy limits.
B) Payments received by the insured directly from the person or persons who caused a loss.
C) Payments

Payment of defense and other expenses by the insurance company beyond the limits of liability.

A producer who offers a prospect on-half of the commissions as an inducement to purchase insurance is guilty of:
A) Rebating
B) Twisting
C) Misrepresentation
D) Concealment

Rebating
Offering a financial inducement to a consumer to buy insurance defines rebating.

Medical Payments coverage under a Homeowner policy are available for expenses resulting from an injury to:
A) The named insured.
B) A residence employee
C) Any regular resident in the household of the insured
D) A tenant of the insured

A residence employee
This could be someone who mows the lawn. However, if a residence employee is covered under Workers Compensation Coverage then the Medical Payments Coverage would not apply. Coverage does not apply to the insured or member of the house

An insurance agent is:
A. An individual who has the authority to sell insurance and countersign insurance contracts for an insurer.
B. An individual who has the authority to sell insurance for an insurer, but cannot countersign insurance contracts for tha

A: An insurance agent is an individual who has the authority to sell insurance and countersign insurance contracts for an insurer.
An individual who has the authority to sell insurance for an insurer, but cannot countersign insurance contracts for that in

An admitted insurer is:
A. An organization that sells insurance within the state in which it was formed.
B. An organization that is allowed to sell insurance within a particular state.
C. An organization that is not allowed to sell insurance within a part

B: An admitted insurer, which is also known as an authorized insurer, is an organization that is allowed to sell insurance within a particular state. An organization that sells insurance within the state in which it was formed (choice "A") is known as a d

It is illegal for an insurance agent to do all of the following EXCEPT:
A. Sell insurance without a license for the state in which the individual is selling insurance.
B. Sell insurance for an insurer that is located outside of the state in which the agen

B. an insurance agent is allowed to sell insurance for an insurer that is located outside of the state in which the agent is located, as long as the insurer and the agent are licensed to sell insurance in that state.

The Fair Credit Reporting Act requires an insurer to do all of the following EXCEPT:
A. Notify a consumer that the insurer has requested a regular consumer report about the consumer within three days of the date that the report is requested.
B. Notify a c

A

What is a peril?
A. A resource that is no longer available to an individual and/or an organization.
B. An event that causes an individual and/or an organization to lose a resource.
C. Any activity, behavior, or physical condition that increases the likeli

B.