P&C Casualty Insurance Policies 2

Question 1

A Business Owner's Policy (BOP) is designed primarily for:

Accepted Answer

Small-to-medium-sized businesses that meet eligibility criteria

Answer

Large corporations with complex risks

Answer

Government entities and municipalities

Answer

High-hazard industries like mining or chemicals

Question 2

Under a personal auto policy (PAP), 'uninsured motorist' coverage pays when:

Accepted Answer

An uninsured driver causes bodily injury to the insured or passengers

Answer

The insured causes an accident while uninsured

Answer

The insured's vehicle is stolen

Answer

The insured's vehicle sustains mechanical breakdown

Question 3

Which homeowners policy form is known as the 'broad form' and covers the dwelling on a named-perils basis?

Accepted Answer

HO-2

Answer

HO-1

Answer

HO-3

Answer

HO-5

Question 4

In a personal auto policy, Part D (Physical Damage) includes which two coverages?

Accepted Answer

Collision and other-than-collision (comprehensive)

Answer

Liability and medical payments

Answer

Uninsured motorist and underinsured motorist

Answer

Towing and rental reimbursement

Question 5

Which of the following is typically excluded under a standard homeowners policy?

Accepted Answer

Flood damage

Answer

Fire damage to the dwelling

Answer

Theft of personal property

Answer

Liability for a guest's slip-and-fall

Question 6

A 'claims-made' liability policy provides coverage when:

Accepted Answer

The claim is first made against the insured during the policy period, regardless of when the injury occurred

Answer

The injury occurs and the claim is filed in the same policy year

Answer

The insured reports the loss within 30 days of the policy expiration

Answer

The injury occurs during the policy period only