Property & Casualty Insurance License Test Property & Casualty Insurance License Test Surety Bonds and Specialty Lines Questions and Answers 2

Question 1

Ocean marine insurance typically covers which of the following under a 'hull' policy?

Accepted Answer

Physical damage to the ship or vessel itself

Answer

Hull coverage under an ocean marine policy insures the physical structure of the ship — the hull, machinery, and equipment — against perils of the sea.

Question 2

Which ocean marine coverage protects the shipper against loss or damage to goods being transported by sea?

Accepted Answer

Cargo coverage

Answer

Cargo coverage protects the owner of goods (not the ship owner) against physical loss or damage to those goods while they are in transit by water.

Question 3

Protection and Indemnity (P&I) insurance in the ocean marine market covers which of the following?

Accepted Answer

The shipowner's third-party liability, including crew injuries and pollution

Answer

P&I insurance covers the shipowner's legal liability to third parties, including personal injury or death of crew and passengers, cargo damage claims, and pollution liability.

Question 4

Under the National Flood Insurance Program (NFIP), flood insurance for most residential and commercial properties is provided through which entity?

Accepted Answer

The federal government via FEMA

Answer

The NFIP, managed by FEMA, is the primary source of flood insurance in the U.S. because most private insurers exclude flood from standard property policies.

Question 5

Aviation insurance hull coverage for physical damage to an aircraft is typically divided into which two categories?

Accepted Answer

In-flight coverage and not-in-motion (ground) coverage

Answer

Aviation hull policies distinguish between in-flight (when the aircraft is airborne or taxiing) and not-in-motion or ground risk coverage, which applies when the aircraft is parked or being towed.

Property & Casualty Insurance License Test Practice Test

Property & Casualty Insurance License Test Practice Test

Property & Casualty Insurance License Test Property & Casualty Insurance License Test Surety Bonds and Specialty Lines Questions and Answers 2