Property & Casualty Insurance License Test Surety Bonds and Specialty Lines Questions and Answers Flashcards
6 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Property & Casualty Insurance License Test Surety Bonds and Specialty Lines Questions and Answers flashcards as text
Ocean marine insurance typically covers which of the following under a 'hull' policy?
Answer: Physical damage to the ship or vessel itself
Hull coverage under an ocean marine policy insures the physical structure of the ship — the hull, machinery, and equipment — against perils of the sea.
Which ocean marine coverage protects the shipper against loss or damage to goods being transported by sea?
Answer: Cargo coverage
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.
Protection and Indemnity (P&I) insurance in the ocean marine market covers which of the following?
Answer: The shipowner's third-party liability, including crew injuries and pollution
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.
Under the National Flood Insurance Program (NFIP), flood insurance for most residential and commercial properties is provided through which entity?
Answer: The federal government via FEMA
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.
Aviation insurance hull coverage for physical damage to an aircraft is typically divided into which two categories?
Answer: In-flight coverage and not-in-motion (ground) coverage
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.
Which type of specialty insurance covers crops against losses caused by adverse weather, insects, disease, or other unavoidable perils?
Answer: Crop insurance (Multiple Peril Crop Insurance)
Multiple Peril Crop Insurance (MPCI), often backed by the USDA's Risk Management Agency, covers farmers for yield losses caused by natural events such as drought, flood, frost, and disease.