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Georgia- Pre-License Certification Exam - Property and Casualty General
Terms in this set (100)
Your house burns down because your neighbor negligently burned leaves on a windy day. Your HO policy will pay for your loss and then ____________ to your neighbor to recover the amount paid.
On a Business Auto Policy (BAP), which accurately describes a hired auto?
Which of the following is an accurate definition of an occurrence?
An insurer may decide to include enhancements of coverage without the insured's consent under what clause?
Insurance producers need which type of liability insurance?
When canceling a policy mid-term, the insurer must:
The name of the insured would be found in what part of the policy?
Homeowners liability covers all, EXCEPT?
On a Homeowners policy, where would you look to find the most that the policy will pay?
On a HO, if your daughter hits her ball through your neighbor's window, which of the following statement is CORRECT?
Which is the definition of insurance?
The uncertainty of loss is known as what?
Coverage E on a Mobile Homeowners policy includes which coverages?
A customer has 5 identical vases that are insured on an inland marine floater for $30,000 and one of the vases is stolen. The remaining 4 vases are appraised at $20,000, how much will the insurer pay?
When a negligent party causes your house to burn down, your insurance company will pay your claim. They will then sue the negligent third party. What is this called?
All of the following are reasons that insurers offer deductibles, EXCEPT:
If a store owner hires a janitorial service to clean the floors and a customer slips and falls on the wet floors and sues the store owner, which portion of the store owners CGL would apply?
The cause of loss Basic form covers all of the following, EXCEPT?
If an insured has a single limit PAP of $100,000, what is the most the policy will pay out in an accident?
Concealment is what?
Supplementary payments covered by a CGL would include which of the following?
A commercial insured with a broad form cause of loss form suffers water damage due to a cracked pipe. All of the following are covered, EXCEPT?
If I drop a lamp, but no one is injured, which of the following is CORRECT?
Risk is best defined as:
The purpose of the appraisal clause in a property policy is which of the following?
A farmer has been over spraying his orchard for several years, damaging the trees in the orchard next door. What is this an example of?
Which of the following is a synonym for Comprehensive General Liability?
Commercial General Liability
The property coverages are contained in which of the following?
The insuring agreement
The principle of indemnity is designed to:
Restore the insured to the same position prior to the loss
If a $100,000 home is covered for replacement cost coverage with an 80% co-insurance requirement, what is the minimum limit the insured would have to carry to have partial losses paid in full?
Products and completed operations covers all of the following, EXCEPT?
The cost of a recall
When 2 liability policies cover the same loss, how is payment of the claim determined?
Per the "other insurance" clause
Which of the following properly describes vacancy?
Vacancy is defined as both contents and occupants are gone
On property insurance, when the parties cannot agree on the amount of a claim, either party may invoke which provision?
The appraisal provision
A business income policy is written with a limit of $100,000, and a 25% monthly limitation. How much, after a covered loss, will the policy pay if the insured loses $35,000 the first month and $20,000 the second month?
All of the following are true about an HO-6, EXCEPT?
It includes Coverage B
The client has a CGL written with a policy limit of $100,000. If the lawyers fees related to the claim are $25,000, how much will the policy pay to the claimant in the event of a covered loss?
The covered perils would be found in which part of the policy?
A deer jumps through your plate glass window, damaging your interior walls. If the insured has an HO-3 which of the following is a CORRECT statement.
The policy would cover this since it is all risk and wild animals are not excluded
When a claimant states the truth to the best of his or her knowledge, it is called a:
On a Commercial Building and Personal Property Form which of the following are covered?
Personal injury liability covers all of the following, EXCEPT?
In order for negligence to exist which of the following statements is CORRECT?
Negligence does not exist unless actual injury or damage is sustained
A careless person represents which type of hazard?
After a covered loss, which of the following is a condition found in the policy?
The insured must protect the property from further damage
For total disability, a workers compensation policy will pay how much?
66 2/3% of the injured employee's wages, up to certain maximums
Which of the following is CORRECT regarding Actual cash value?
ACV equals replacement cost minus depreciation
Clark drives his uninsured auto into his own home, which is insured on a HO-2. Which of the following is CORRECT?
The damaged caused to the home and the trees, shrubs, plants and lawns is covered by his homeowners policy
A sudden and unforeseen event resulting in a loss is a what?
Mobile Home policies would cover all of the following, EXCEPT:
The costs associated with moving the mobile home to a new permanent location
On a CGL, the policy provision that applies to a claim that occurred during the policy period, but wasn't turned in until after policy expiration is called the what?
Extended reporting period
Theft, disappearance and destruction cover which of the following?
Theft of money and securities from a messenger outside the premises
Which of the following is an indirect coverage that is automatically included on a DP-1 Basic form.
Something that a customer states exists and will continue to exist in the future is called a what?
The transfer of the insured's rights to the insurer after a loss is known as:
Which of the following is true about inland marine floaters?
On a Mobile Homeowners policy, coverage D is how much?
30% of A
All of the following are true about negligence EXCEPT:
The negligent act need not be the proximate cause of the injury
Something that increases the risk is known as a:
What is the purpose of insurance?
To retain risk
You may purchase workers compensation from all of the following, EXCEPT?
A stock company
A PAP covers all, EXCEPT?
An auto mechanic test driving your car
If a part was made in the USA, a CGL will provide liability coverage for the product where?
Anywhere in the world
Of the following, which is CORRECT about Coverage C on a Dwelling Policy?
Coverage C is not included unless listed on the declaration page and a premium is charged
On a Mobile Homeowners policy which of the following is INCORRECT?
The policy covers the cost of moving or relocating the mobile home
May only be issue by the insurance company
On an Umbrella policy the Retention limit acts like a what?
The client has a Basic DP-1. If a riot causes a fire and the fire destroys the home which statement is TRUE?
Riots are always covered
Paint fumes escaping over a period of time is an example of a what?
All are true about subrogation EXCEPT:
It applies to all parts of the policy
Actual cash value is defined as:
Replacement cost minus depreciation
What is the document that producers may give to a customer stating when coverage begins?
If I purposely lied to my agent when I purchase a dwelling policy, this is an example of which of the following?
Which of the following is true about a vacant building?
A building is vacant when both the contents and the occupants are gone
Under a PAP, if you negligently hit a tree, causing your passenger bodily injury, which of the following statement is true?
Your PAP will cover the passenger's bodily injury and loss of earnings up to your BI per person limit
When the insurance company receives an acceptable proof of loss on a covered claim, what must they do?
Investigate the claim
What portion of a CGL would cover a waitress spilling hot soup on a customer that causes burns?
Products and completed operations
On liability insurance, when the insurer and the insured cannot agree as to who is entitled to recover and/or how much, either party may invoke the right of?
An insured, who is aware of a water leak, eventually turns in a claim for his ruined floors. Which of the following statements is true?
This is not covered because the damage occurred over a period of time and this damage was not accidental or unexpected, the insured was aware of the water leak
The term cause of loss Basic form describes what kind of a policy?
Business income insurance covers which of the following?
Loss of earnings
All of the following are true regarding Medical Coverage on a CGL, EXCEPT?
It covers corporate officers
If a commercial business wants coverage for their liability related to vacant land what should the owner purchase?
Premises and operations liability
What states the time and date of the claim, as well as the description of the loss?
Statement of claim*?
On a PAP a temporary substitute auto is best described as which of the following?
One provided for you because your car is out of service
When an insured needs more coverage than provided by his CGL, what would you recommend?
Purchase an umbrella policy
A client can provide insurable interest via:
Checking account statements*?
If the co-insurance requirement is met, the Commercial Building and Personal Property form does automatically provides coverage for all of the following, EXCEPT?
Business income insurance
Which of the following is CORRECT concerning a flood insurance policy?
You can increase your flood insurance limit after the policy has been in force 30 days*?
The insurer may require from the insured an assignment of all rights of recovery against any party for loss to the extent that payment has been made. This is known as:
Wet leaves on the sidewalk are considered to be a:
The named insured is found where within the policy?
On the policy declarations
A Commercial Building and Personal Property Form automatically extends coverage to all of the following, EXCEPT?
A dwelling is covered by two policies, one from Company A and one from Company B. In the event of a loss, how will the claim be paid?
The claim will be paid pro-rata
On a casualty policy, where would you look to determine what is not covered?
Which of the following is covered by advertising injury liability?
Infringement of copyright
All of the following are true about casualty insurance binders of coverage EXCEPT:
A mortgage company is required to accept the renewal of a binder
A mysterious disappearance is best described as?
Insurance is known as:
A transfer of risk
Coverage provided by Part D of a personal auto policy is which of the following?
Replacement cost basis*?
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