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XCEL SOLUTIONS PROPERTY & CASUALTY
EXAM WITH 150 QUESTIONS AND
VERIFIED ANSWERS
QUESTION: A licensee whose name or address changes must notify the Dept of Insurance within _____ days: - ANSWER-30 Days
QUESTION: Assumption of risk: - ANSWER-States that a party will not collect damages because they should have known what they were doing was risky
QUESTION: Under a DP-2 Broad form, which of the following is not a Broad peril? - ANSWER-Vandalism
QUESTION: Which of the following incidents would not be excluded under a DP-3 policy? - ANSWER-Burglary of a property that was vacant for 30 consecutive days
QUESTION: Which of the following are losses excluded under Coverage F? - ANSWER-An individual who is eligible to receive disability insurance
QUESTION: Which of the following will not provide a premium discount from standard market workers comp insurance? - ANSWER-Assigned Risk Plan
QUESTION: The face amount of a Surety bond is called the: - ANSWER-Penalty
QUESTION: M has opened up his business, Tractors & Semis Sales, LLC. His stock will be covered while it is being transported, if he: - ANSWER-Adds the equipment dealers floater
QUESTION: All of the following are correct about the Commercial Endorsement regarding Spoilage EXCEPT: - ANSWER-Coverage extends to stock off premises
QUESTION: What is a certificate of authority? - ANSWER-The license required for an insurer to conduct business in the state.
QUESTION: An earned premium resulting from the cancellation of a policy is calculated on: - ANSWER-On a pro rata basis, based on the previous year's rate
QUESTION: M owns a parking garage & has coverage that states: "We will cover losses regardless if you are legally liable for the loss." This no-fault ideology will be found under: - ANSWER-Excess Direct Coverage
QUESTION: Which statement regarding the identification of the producer rule is false? - ANSWER-A policy is invalidated if the producer is not identified as required by law
QUESTION: If an insured's dog bites a guest that results in a settlement amount of $150, plus attorney fees of $70,000. How much is the insured personally responsible to pay if their homeowners policy Coverage E amount was $100,000? - ANSWER-$50,
QUESTION: J has a policy that pays a maximum single dollar amount for property damage & death or bodily injury. Which Limit of Liability does J's policy have? - ANSWER-Combined Single Limit
QUESTION: E is a professional musician who owns a vintage guitar with a current value of $20,000. E should properly insure this guitar with a(n): - ANSWER-Personal Articles Floater
QUESTION: For policyholders in the same risk classification, it is unlawful to: - ANSWER- Charge different premiums
QUESTION: All of the following are main elements of a commercial package policy, EXCEPT:
QUESTION: Which of the following homeowner forms pays for loss on a functional replacement cost basis? - ANSWER-HO-
QUESTION: A motor vehivle liability policy must state all of the following in order to remain in effect, except? - ANSWER-Whether the policy has workers comp rider for employees working on the property
QUESTION: H builds a 3 flat building that he will rent out to tenants & is the least fire resistant construction available. Under ISO construction guidelines, H's building would be classified as: - ANSWER-Frame
QUESTION: Additional coverages of a Farm owners policy E & F will pay ____ to replace lost farm operations info as a result of a covered cause of loss. - ANSWER-$2,
QUESTION: On 12/12, C suffered a loss under her homeowners liability section. On 12/18, she declared bankruptcy. The insurer: - ANSWER-Must cover the loss
QUESTION: B has a property policy & would like to know perils that are covered. B should read the: - ANSWER-Insuring Clause
QUESTION: Which of the following is NOT an exclusion under Part D, Physical Damage? - ANSWER-Flood Damage
QUESTION: If a loss occurs as a result of Domestic Violence by one insured against another the AZ Special Provisions Endorsement: - ANSWER-Allows the insurer to pay the victimized party & subrogate against the perp
QUESTION: The AZ Auto Insurance Plan may best be described as: - ANSWER-A plan made up of all auto insurance carriers that provides insurance to individuals who cannot obtain coverage in the voluntary market
QUESTION: An insurer operating in the US but headquartered outside the US is: - ANSWER- Alien
QUESTION: Which one is not an AZ Motor Vehicle minimum coverage requirement? - ANSWER-Coverage may be stacked or accumulated when more than one vehicle is covered
QUESTION: Which of these is not an Unfair Claims Settlement Practice? - ANSWER-Offering to settle a claim by arbitration
QUESTION: Insurance Producer Kelly offers insured a $500 shopping card if they purchase an insurance product through her. What is this an example of? - ANSWER-Rebating
QUESTION: No declination of insurance coverage or termination of a binder can be based on the information from a consumer report after how many days from the application date? - ANSWER-30 Days
QUESTION: A producer who attempts to intimidate is engaging in: - ANSWER-Coercion
QUESTION: Which statement is false regarding the AZ property & casualty insurance guaranty fund? - ANSWER-Assessments are divided into four separate accounts
QUESTION: G's band has hit the big time and will be touring the world. The band's manager has called you to make sure that their equipment is covered as they travel. The coverage you will place on G's band for this purpose would be: - ANSWER-Commercial articles floater
QUESTION: Which of the following Homeowners forms is not named perils coverage? - ANSWER-HO-
QUESTION: Which of the following homeowner forms pay for loss on a function replacement cost basis? - ANSWER-HO-
QUESTION: How are Coverage D and Coverage E paid in both the Broad and Special forms under the Dwelling Program? - ANSWER-Coverage D & E are paid up to 20% got both combined, not each separately, of the dwelling coverage amount.
QUESTION: Which of the following losses would be covered under section II of a Business Owners Policy? - ANSWER-An insured accidentally slams a shopping cart into a parked car while shopping for business supplies
QUESTION: Which of the following regarding motor carrier insurance is not true? - ANSWER- Specialized carriers are contracts that will deliver goods when common carriers are unable to meet their delivery time due to a covered peril.
QUESTION: K's 14 year old son has intentionally thrown a baseball through her neighbor's window. Under the damage to property of others clause in Section II of K's Homeowners policy, the amount the insurer will pay for this loss is: - ANSWER-$
QUESTION: Which of the following losses would be covered under ANY crime coverage form?
- ANSWER-An insurer provides legal expenses to a company who is suing someone that forged checks
QUESTION: Assume a CGL has an Aggregate limit of $1,000,000 and a per occurrence limit of $500,000. Three separate accidents during the policy period are brought and each award is for $400,000. How much will the policy pay for the third or final award? - ANSWER-$200,
QUESTION: Under the Individual Named Insured endorsement: - ANSWER-Coverage is added at no extra premium
QUESTION: The Director may suspend a producer's license when the producer: - ANSWER- Rebates a portion of the commission to the insured
QUESTION: Under Part Four of Workers Compensation Policies, which of the following is not included? - ANSWER-Renumeration must be provided
QUESTION: Which of the following is NOT true regarding Cargo Insurance? - ANSWER-The coverage extends to the vessel's owner
QUESTION: Which of the following is found under the definition of a "Breakdown" under the Equipment Breakdown Policy? - ANSWER-Mechanical failure including rupture or bursting caused by centrifugal force
QUESTION: Which of the following is not true regarding the definition of personal injury in a business owners policy? - ANSWER-The endorsement covers false arrest if it is intentional
QUESTION: Inland Marine forms which have been preapproved for sale by a department of insurance are referred to as: - ANSWER-Filed Forms
QUESTION: Which of the following homeowners forms will cover structures on an open peril basis but will not cover personal property on a named perils basis? - ANSWER-HO-
QUESTION: Collision coverage under Garagekeepers form will not cover: - ANSWER-Burning of the auto during transport
QUESTION: All of the following statements are correct regarding Insurable interest EXCEPT: - ANSWER-The insured must have a speculative risk in the property
QUESTION: Under a Homeowners policy, which of the following losses would be covered under Section II? - ANSWER-An insured's 6 year old daughter drivers her motorized toy car into the neighbor's flower bed and causes some damage
QUESTION: Homeowners coverage that provides for loss when the insured dwelling is not habitable due to a covered loss is found in: - ANSWER-Coverage D
QUESTION: AZ law requires an authorized insurer to issue motor vehicle insurance identification cards. Which statement is false regarding required proof of insurance? - ANSWER-An insurance binder cannot satisfy the proof of insurance requirement
QUESTION: Actual Cash Value (ACV) takes usage of property into consideration when an insurer pays a claim so that the insured becomes whole again after a loss. To restore an insured in this manner is known as: - ANSWER-Indemnity
QUESTION: Which of the following statements regarding the mortgage clause is CORRECT? - ANSWER-It gives the morgagee separate rights under the policy
QUESTION: A negligent act that, defined under civil law, is an action recoverable for injuries inflicted upon an innocent party is known as a(n): - ANSWER-Tort
QUESTION: "Your product" is defined under a BOP as: - ANSWER-Containers that house an insured's real property
QUESTION: According to contents policy limits under the NFIP, the limit for small business losses due to a flood under the regular program is: - ANSWER-$500,
QUESTION: Under a Business Auto Policy, the categories of covered autos are found in which part of the contract? - ANSWER-Declarations
QUESTION: The actual cash value (ACV) of a set of dishes is $1,000 before several parts of the set are broken, leave a value of only $400. How much will the homeowners policy pay under the Loss to a Pair or Set clause? - ANSWER-$
QUESTION: Protection and indemnity insurance protects against which of the following losses?
- ANSWER-While trying to save damaged cargo, a ship's crew gets repeatedly hit with waves which causes the crew to become ill
QUESTION: The statements which follow concerning the Claims Made Coverage Trigger are true, EXCEPT: - ANSWER-The claim can take place anywhere in the world and is not limited to any specific geographic area
QUESTION: According to section I & II of a homeowners policy, for liberalization to take effect, the insurer must broaden coverage within ____ days in order for a policy holder to receive the upgraded benefit of the change. - ANSWER-60 Days
QUESTION: Assume a CGL has an Aggregate limit of $1,000,000 and a per occurrence limit of $500,000. Three separate accidents during the policy period are brought and each award is for $500,000. How much will the policy pay for the third or final award? - ANSWER-$
QUESTION: What is the main advantage to an insurer under a Claims Made CGL? - ANSWER- The insurer knows the definitive date upon which their potential liability ends
QUESTION: The cyber security rule states that: - ANSWER-An individual may be fined up to $10,000 for failing to comply
QUESTION: If a basic illustration is not provided, the insurer MUST provide a policy summary to a prospective insured at which of the following times? - ANSWER-When the policy is delivered
QUESTION: Which of the following would be examples of an insurer using individual rating? - ANSWER-An insured's factory has an underwriting inspection of their facility and the company uses the inspection report to determine the factory's insurance cost
QUESTION: A coverage trigger is: - ANSWER-The event that makes a CGL policy respond to a claim
QUESTION: Which of the following liability policies feature a SIR as part of coverage? - ANSWER-Professional Liability
QUESTION: Which of the following statements concerning landscape coverage in homeowners policy is NOT ACCURATE? - ANSWER-HO-4 provides up to $500 per tree up to a maximum of 10% of the Coverage A amount
QUESTION: If a business is concerned with repetitive coverages and paying more than once for the same coverage, the Commercial Package Policy solves this issue: - ANSWER-through interline endorsements
QUESTION: Which statement is false regarding the uninsured automobile coverage that must be offered by insurers? - ANSWER-It provides at least $10,000 in case of property damage to an insured person caused by an uninsured driver
QUESTION: An insured, with Part D coverage, has his car stolen and incurs extra transportation expenses of about $30 per day for the 10 days since the theft, when the car is recovered. How much will his policy reimburse for this expense? - ANSWER-$
QUESTION: Under Part 4 of Workers Compensation Policies, which of the following is not included? - ANSWER-Renumeration must be provided
