P&C Property & Casualty Insurance License MCQ 2

Question 1

Under a standard homeowners policy, which of the following losses would typically be EXCLUDED?

Accepted Answer

Flood damage from a rising river

Answer

Flood damage caused by rising bodies of water is excluded under standard homeowners policies and requires a separate NFIP or private flood policy.

Question 2

The 'other structures' coverage in a homeowners policy typically provides what percentage of the dwelling coverage limit?

Accepted Answer

10%

Answer

Coverage B (Other Structures) is typically set at 10% of the Coverage A (dwelling) limit under standard HO policies.

Question 3

An insured's car is damaged by a hit-and-run driver. Which auto coverage would pay for the insured's vehicle repairs?

Accepted Answer

Uninsured Motorist Property Damage

Answer

Uninsured Motorist Property Damage (UMPD) covers vehicle damage caused by an uninsured or unidentified (hit-and-run) driver.

Question 4

Which insurance principle prevents an insured from profiting from a loss by collecting from both their own insurer and a negligent third party for the same damage?

Accepted Answer

Subrogation

Answer

Subrogation allows the insurer to recover from a negligent third party after paying the insured, preventing the insured from receiving a double recovery.

Question 5

A Commercial General Liability (CGL) policy's 'occurrence' trigger means coverage applies when:

Accepted Answer

The injury or damage occurs during the policy period

Answer

Under an occurrence-based CGL, coverage is triggered when the bodily injury or property damage actually occurs, regardless of when the claim is made.

Property & Casualty Insurance License Test Practice Test

Property & Casualty Insurance License Test Practice Test

P&C Property & Casualty Insurance License MCQ 2