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

Cargo being transported aboard the vessel

Answer

Liability for injuries to dock workers

Answer

Loss of the vessel's anticipated freight revenue

Question 2

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

Accepted Answer

Cargo coverage

Answer

Hull coverage

Answer

Protection and indemnity (P&I)

Answer

Freight insurance

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

Physical damage to the vessel's hull and machinery

Answer

Theft of cargo by dock workers

Answer

The port authority's liability for vessel collisions

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

State-run insurance pools

Answer

Standard private homeowners insurers

Answer

The Lloyd's of London market exclusively

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

Liability coverage and property damage coverage

Answer

Named perils coverage and all-risk coverage

Answer

Scheduled coverage and blanket coverage

Question 6

Which type of specialty insurance covers crops against losses caused by adverse weather, insects, disease, or other unavoidable perils?

Accepted Answer

Crop insurance (Multiple Peril Crop Insurance)

Answer

Inland marine floater

Answer

Agricultural commercial property policy

Answer

Business interruption coverage for farms