XCEL SOLUTIONS PROPERTY & CASULTY TEST 150 QUESTIONS WITH 100% CORRECT ANSWERS VERIFIED, Exams of Real Estate Management

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XCEL SOLUTIONS PROPERTY & CASULTY TEST 150

QUESTIONS WITH 100% CORRECT ANSWERS

VERIFIED LATEST UPDATE 2024

What is a certificate of authority? - CORRECT ANSWER >>>>The license required for an insurer to conduct business in the state A licensed producer who lives in another state & transacts insurance in AZ is called: - CORRECT ANSWER >>>>A Non-Resident Producer Any of the following may be an unfair claims settlement practice EXCEPT: - CORRECT ANSWER

Refusing to pay persons bringing false or fraudulent claims

What is the best description of an applicant to the AZ auto insurance plan? - CORRECT ANSWER

An applicant in good-faith entitled to coverage but unable to obtain coverage through ordinary methods Which statement regarding the identification of the producer rule is false? - CORRECT ANSWER >>>>A policy is invalidated if the producer is not identified as required by law If an insured's dog bites a guest that results in a settlement amount of $150,000 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? - CORRECT ANSWER >>>>$50, 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? - CORRECT ANSWER >>>>Combined Single Limit

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): - CORRECT ANSWER >>>>Personal Articles Floater For policyholders in the same risk classification, it is unlawful to: - CORRECT ANSWER >>>>Charge different premiums All of the following are main elements of a commercial package policy, EXCEPT: - CORRECT ANSWER >>>>Liability Which of the following homeowner forms pays for loss on a functional replacement cost basis? - CORRECT ANSWER >>>>HO- 8 A motor vehivle liability policy must state all of the following in order to remain in effect, except? - CORRECT ANSWER >>>>Whether the policy has workers comp rider for employees working on the property

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: - CORRECT ANSWER

Frame 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. - CORRECT ANSWER >>>>$2, On 12/12, C suffered a loss under her homeowners liability section. On 12/18, she declared bankruptcy. The insurer: - CORRECT ANSWER >>>>Must cover the loss In cases where the customer is responsible for damage to the shipment instead of the seller & loss will occur, the seller may get sued if losses occur. Therefore, it's best for the seller to have: - CORRECT ANSWER >>>>Contingency Insurance Policies BOP endorsement BP 04 57 which states the insurer will protect against loss of business income due to

the condition of power interruption originating away from the premises is known as: - CORRECT ANSWER >>>>Utility Service Time Element J has a policy & wants to know what his rights & duties of the policy will be & what duties & rights the insurer has. J should read the: - CORRECT ANSWER >>>>Conditions An earned premium resulting from the cancellation of a policy is calculated on: - CORRECT ANSWER

On a pro rata basis, based on the previous year's rate 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: - CORRECT ANSWER >>>>Excess Direct Coverage An insurance company writing business in a state other than the one in which it is domiciled is called:

• CORRECT ANSWER >>>>a Foreign

Y is running a home daycare out of their home & has just earned $50,000 in her first year of business. Under an HO policy, Y's daycare is defined as: - CORRECT ANSWER >>>>Not a business Underwriting guards against - CORRECT ANSWER

Adverse Selection A licensee whose name or address changes must notify the Dept of Insurance within _____ days: - CORRECT ANSWER >>>>30 Days Assumption of risk: - CORRECT ANSWER >>>>States that a party will not collect damages because they should have known what they were doing was risky Under a DP-2 Broad form, which of the following is not a Broad peril? - CORRECT ANSWER Vandalism Which of the following incidents would not be excluded under a DP-3 policy? - CORRECT ANSWER

Burglary of a property that was vacant for 30 consecutive days Which of the following are losses excluded under Coverage F? - CORRECT ANSWER >>>>An individual who is eligible to receive disability insurance Which of the following will not provide a premium discount from standard market workers comp insurance? - CORRECT ANSWER >>>>Assigned Risk Plan The face amount of a Surety bond is called the: - CORRECT ANSWER >>>>Penalty M has opened up his business, Tractors & Semis Sales, LLC. His stock will be covered while it is being transported, if he: - CORRECT ANSWER >>>>Adds the equipment dealers floater All of the following are correct about the Commercial Endorsement regarding Spoilage EXCEPT: - CORRECT ANSWER >>>>Coverage extends to stock off premises

Who of the following would be an example of a dram? - CORRECT ANSWER >>>>Buddy's Dive Bar & Grill An insurable interest is measured by: - CORRECT ANSWER >>>>The amount of damages the insured might occur Claims settlement practices of insurers are regulated by: - CORRECT ANSWER >>>>State Insurance Departments B has a property policy & would like to know perils that are covered. B should read the: - CORRECT ANSWER >>>>Insuring Clause Which of the following is NOT an exclusion under Part D, Physical Damage? - CORRECT ANSWER

Flood Damage If a loss occurs as a result of Domestic Violence by one insured against another the AZ Special

Provisions Endorsement: - CORRECT ANSWER

Allows the insurer to pay the victimized party & subrogate against the perp The AZ Auto Insurance Plan may best be described as: - CORRECT ANSWER >>>>A plan made up of all auto insurance carriers that provides insurance to individuals who cannot obtain coverage in the voluntary market An insurer operating in the US but headquartered outside the US is: - CORRECT ANSWER >>>>Alien Which one is not an AZ Motor Vehicle minimum coverage requirement? - CORRECT ANSWER Coverage may be stacked or accumulated when more than one vehicle is covered Which of these is not an Unfair Claims Settlement Practice? - CORRECT ANSWER >>>>Offering to settle a claim by arbitration Insurance Producer Kelly offers insured a $ shopping card if they purchase an insurance

product through her. What is this an example of? - CORRECT ANSWER >>>>Rebating 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? - CORRECT ANSWER >>>>30 Days A producer who attempts to intimidate is engaging in: - CORRECT ANSWER >>>>Coercion Which statement is false regarding the AZ property & casualty insurance guaranty fund? - CORRECT ANSWER >>>>Assessments are divided into four separate accounts A producer must report to the Director any admin action taken against her by any government agency within: - CORRECT ANSWER >>>>30 Days Coverage A in a Dwelling Policy provides all of the following coverages, EXCEPT: - CORRECT ANSWER

Covers all structures attacked to the dwelling

High Rise/Condo building typically have which construction (according to ISO guidelines): - CORRECT ANSWER >>>>Modified/Semi Fire Resistive What is the best expression of premium determination process for Workers Compensation (X means multiply by)? - CORRECT ANSWER

Risk factor of a job classification X $100 of payroll = Premium Which of the following statements about NFIP deductibles is TRUE? - CORRECT ANSWER There is a deductible applied to the building and another to the contents under both the emergency and regular programs T caused an accident that caused B injuries that forced him to miss a week of work. The type of damages that B would collect for lost wages are: - CORRECT ANSWER >>>>Special Damages 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: - CORRECT ANSWER

Commercial articles floater Which of the following Homeowners forms is not named perils coverage? - CORRECT ANSWER HO- 5 Which of the following homeowner forms pay for loss on a function replacement cost basis? - CORRECT ANSWER >>>>HO- 8 How are Coverage D and Coverage E paid in both the Broad and Special forms under the Dwelling Program? - CORRECT ANSWER >>>>Coverage D & E are paid up to 20% got both combined, not each separately, of the dwelling coverage amount. Which of the following losses would be covered under section II of a Business Owners Policy? - CORRECT ANSWER >>>>An insured accidentally slams a shopping cart into a parked car while shopping for business supplies

Which of the following regarding motor carrier insurance is not true? - CORRECT ANSWER

Specialized carriers are contracts that will deliver goods when common carriers are unable to meet their delivery time due to a covered peril. 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: - CORRECT ANSWER >>>>$ Which of the following losses would be covered under ANY crime coverage form? - CORRECT ANSWER >>>>An insurer provides legal expenses to a company who is suing someone that forged checks Assume a CGL has an Aggregate limit of $1,000, 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? - CORRECT ANSWER >>>>$200, Under the Individual Named Insured endorsement:

• CORRECT ANSWER >>>>Coverage is added at no extra premium Farmer D just had a fallen tree damage property on his farm. Under farm owner's coverage, the insurer will pay ___ to remove the fallen tree and debris. - CORRECT ANSWER >>>>$ Heartbeat hospital has been sued by a patient for giving the wrong medicine. The insurer of Heartbeat hospital is ready to settle the claim and pay the loss. Which of the following parties must give permission for the insurer to pay the claim? - CORRECT ANSWER >>>>The insured All of the following are conditions of a homeowners policy found in BOTH Sections I & II, EXCEPT: - CORRECT ANSWER >>>>Appraisal

Work or operations performed by the insured or materials, parts or equipment furnished in connection with such work is defined as: - CORRECT ANSWER >>>>Your Work What is the automatic limit of Coverage B, Medical Payments in the PAP? - CORRECT ANSWER

$1, All of the following is CORRECT about Market Value EXCEPT: - CORRECT ANSWER >>>>An insureds home's valuation is based upon purchase price of the home The Director may suspend a producer's license when the producer: - CORRECT ANSWER Rebates a portion of the commission to the insured Under Part Four of Workers Compensation Policies, which of the following is not included? - CORRECT ANSWER >>>>Renumeration must be provided

Which of the following is NOT true regarding Cargo Insurance? - CORRECT ANSWER >>>>The coverage extends to the vessel's owner Which of the following is found under the definition of a "Breakdown" under the Equipment Breakdown Policy? - CORRECT ANSWER >>>>Mechanical failure including rupture or bursting caused by centrifugal force Which of the following is not true regarding the definition of personal injury in a business owners policy? - CORRECT ANSWER >>>>The endorsement covers false arrest if it is intentional Inland Marine forms which have been preapproved for sale by a department of insurance are referred to as: - CORRECT ANSWER >>>>Filed Forms 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? - CORRECT ANSWER >>>>HO- 3

Collision coverage under Garagekeepers form will not cover: - CORRECT ANSWER >>>>Burning of the auto during transport All of the following statements are correct regarding Insurable interest EXCEPT: - CORRECT ANSWER >>>>The insured must have a speculative risk in the property Under a Homeowners policy, which of the following losses would be covered under Section II? - CORRECT ANSWER >>>>An insured's 6 year old daughter drivers her motorized toy car into the neighbor's flower bed and causes some damage Homeowners coverage that provides for loss when the insured dwelling is not habitable due to a covered loss is found in: - CORRECT ANSWER

Coverage D AZ law requires an authorized insurer to issue motor vehicle insurance identification cards. Which statement is false regarding required proof of insurance? - CORRECT ANSWER >>>>An insurance

binder cannot satisfy the proof of insurance requirement Which of the following Garage coverages provides liability coverage to an insured garage owner/operator for the owner's liability arising out of the damage to the auto's of the customer of the business? - CORRECT ANSWER >>>>Section III, Garagekeepers M owned a factory warehouse that suffered a total loss due to a fire. The insurer discovers that they can scrap some of the metal beams left from the structure to recoup some of their loss paid to the insured. Which method of valuation would allow this to occur? - CORRECT ANSWER >>>>Salvage Value License and permit bonds: - CORRECT ANSWER

Are required by many municipalities before a contractor can work in an area Which of the following losses are excluded under Coverage E? - CORRECT ANSWER >>>>Damage to

property under the care, custody or control of the insured H has just closed on his new home and wants to have his possessions covered on a replacement cost basis. When H calls her agent, the agent explains she must pay extra for an endorsement for such coverage. H's agent must add which of the following endorsements? - CORRECT ANSWER >>>>HO 04 90 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: - CORRECT ANSWER >>>>Indemnity Which of the following statements regarding the mortgage clause is CORRECT? - CORRECT ANSWER

It gives the morgagee separate rights under the policy A negligent act that, defined under civil law, is an action recoverable for injuries inflicted upon an

innocent party is known as a(n): - CORRECT ANSWER >>>>Tort "Your product" is defined under a BOP as: - CORRECT ANSWER >>>>Containers that house an insured's real property According to contents policy limits under the NFIP, the limit for small business losses due to a flood under the regular program is: - CORRECT ANSWER

$500, Under a Business Auto Policy, the categories of covered autos are found in which part of the contract? - CORRECT ANSWER >>>>Declarations 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 $400. How much will the homeowners policy pay under the Loss to a Pair or Set clause? - CORRECT ANSWER >>>>$ Protection and indemnity insurance protects against which of the following losses? - CORRECT

ANSWER >>>>While trying to save damaged cargo, a ship's crew gets repeatedly hit with waves which causes the crew to become ill The statements which follow concerning the Claims Made Coverage Trigger are true, EXCEPT: - CORRECT ANSWER >>>>The claim can take place anywhere in the world and is not limited to any specific geographic area 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. - CORRECT ANSWER >>>>60 Days 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? - CORRECT ANSWER >>>>$0

D has a single family home located at a permanent residency. The type of coverage that D has is considered to be: - CORRECT ANSWER >>>>Specific Which of the following is true regarding contractors equipment floaters? - CORRECT ANSWER

Portable heavy machinery is covered as it is

being transported All of the following statements are CORRECT regarding insurable interest, EXCEPT: - CORRECT ANSWER >>>>The insured must have a speculative risk in the property There are three claims under B's Businessowners policy that have triggered the MedPay coverage. L suffered a loss for $5,000, M suffered a loss for $7,000 & N suffered a loss for $10,000. Which is the total amount the insurer will pay under MedPay for the three losses combined? - CORRECT ANSWER

$15,000

All of the following are additional coverages under Section II of a homeowners policy, EXCEPT: - CORRECT ANSWER >>>>Personal Injury What is the main advantage to an insurer under a Claims Made CGL? - CORRECT ANSWER >>>>The insurer knows the definitive date upon which their potential liability ends The cyber security rule states that: - CORRECT ANSWER >>>>An individual may be fined up to $10,000 for failing to comply If a basic illustration is not provided, the insurer MUST provide a policy summary to a prospective insured at which of the following times? - CORRECT ANSWER >>>>When the policy is delivered Which of the following would be examples of an insurer using individual rating? - CORRECT 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

A coverage trigger is: - CORRECT ANSWER >>>>The event that makes a CGL policy respond to a claim Which of the following liability policies feature a SIR as part of coverage? - CORRECT ANSWER

Professional Liability Which of the following statements concerning landscape coverage in homeowners policy is NOT ACCURATE? - CORRECT ANSWER >>>>HO-4 provides up to $500 per tree up to a maximum of 10% of the Coverage A amount If a business is concerned with repetitive coverages and paying more than once for the same coverage, the Commercial Package Policy solves this issue: - CORRECT ANSWER >>>>through interline endorsements Which statement is false regarding the uninsured automobile coverage that must be offered by insurers? - CORRECT ANSWER >>>>It provides at

least $10,000 in case of property damage to an insured person caused by an uninsured driver 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? - CORRECT ANSWER

$160 Under Part 4 of Workers Compensation Policies, which of the following is not included? - CORRECT ANSWER >>>>Renumeration must be provided Which of the following facts about the Flood Program is FALSE? - CORRECT ANSWER >>>>Private carriers share in losses through the WYO Basic Form Farm Coverage will cover: - CORRECT ANSWER >>>>Fire None of the following general type of business can qualify for the BOP, EXCEPT: - CORRECT ANSWER Small to medium sized concerns