Download Exam FX Louisiana Property commercial ACCURATE TESTED VERSIONS OF THE EXAM FROM 2024 and more Exams Credit and Risk Management in PDF only on Docsity!
Exam FX Louisiana Property commercial
ACCURATE TESTED VERSIONS OF THE EXAM
FROM 2025 TO 2026 | ACCURATE AND
VERIFIED ANSWERS | NEXT GEN FORMAT |
GUARANTEED PASS WITH 100+ QUESTIONS
A special limit of $1,000 per occurrence applies to such items page ___ Which of the following covers a carrier for liability for loss to cargo while it is being transported in a truck? (a) Trip Transit Policy (b) Trucks Coverage Form (c) Motor Truck Cargo Policy--Truckers Form (d) Motor Truck Cargo Policy--Owners Form
- ANSWER (c) Motor Truck Cargo Policy--Truckers Form The Motor Trucker Cargo Truckers is a liability insurance and the Owners Form is a property coverage. page
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? (a) $20,000 all expenses incurred during a 12-month period (b) $5,000 for all expenses during a 12-month period (c) $10,000 for all expenses incurred during a 12-month period (d) $15,000 all expenses incurred during a 12-month period
- ANSWER (c) $10,000 for all expenses incurred during a 12-month period The maximum the insurer will pay under this extension is $10,000 for all expenses incurred during a 12-month period. page Which situation would NOT be covered by the basic Causes of Loss form under a commercial property policy? (a) The Surf Side Club Waterfront Restaurant is damaged when floodwaters rise and seep into the restaurant (b) Piccolo Pete's Cafe has its door broken by vandals trying to get inside (c) The automatic fire protective sprinkler system inside New Realities Book Shop leaks, causing damage to the store. (d) Gordon's Motorcycle Heaven is damaged by the sudden sinking of land created by the action of water on limestone. - ANSWER (a) The Surf Side Club Waterfront Restaurant is damaged when floodwaters rise and seep into the restaurant
(a) 50% (b) 75% (c) 80% (d) 90%
- ANSWER (c) 80% Coverage F--Unscheduled Farm Personal Property insures all farm personal property on a blanket basis. Coverage F is subject to an 80% coinsurance clause. page In equipment breakdown coverage, all accidents would be considered a single accident if they occur... (a) At the same location within a 48-hour period (b) At a single location, at the same time, and from the same cause (c) At all insured locations at the same time and from the same cause (d) At the same location within a 24-hour period - ANSWER (b) At a single location, at the same time, and from the same cause Which of the following is true regarding the Fire Department Service Charge under the Builders Risk Form? (a) It is an additional coverage (b) It is an automatic coverage for $ (c) It is not available in this form
(d) It is a high-deductible endorsement
- ANSWER (a) It is an additional coverage The Fire Department Service Charge is considered an additional amount of insurance. Up to $1,000 coverage is included. Coverage under the Builders Risk Form will end in all of the following situations EXCEPT: (a) 60 days after the construction has ended. (b) Construction has been abandoned. (c) 60 days after the building became occupied. (d) The insured has sold the property. - ANSWER (a) 60 days after the construction has ended. Coverage under the Builders Risk Form ends if it is abandoned without any plans to complete it or if the insured's interest in the property ceases, or 60 days after the building is occupied, or 90 days after construction is completed. page 81 Farm policy coverage B - structures would pay how much for loss outside antenna, Tower, or satellite dish? (a) Up to $1,
(a) Personal Property Floater (b) Equipment Dealers Coverage Form (c) Contractors Equipment Floater (d) Installation Floater
- ANSWER (b) Equipment Dealers Coverage Form An Equipment Dealer's Coverage Form covers dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and watercraft. page A contract for the transport of goods between the shipper and the carrier is called... (a) A bailment (b) A binder (c) A bill of sale (d) A bill of - ANSWER (d) A bill of lading Which policy consists of the Declarations and Conditions, Endorsements, and other attachments applicable to a single line of insurance?
(a) Commercial Package (b) Monoline (c) Insurance (d) Casualty
- ANSWER (b) Monoline A Monoline Policy contains only one coverage part page 72 A Commercial Package Policy (CPP) allows the insured to select the coverage needed and customize the policy to meet the needs of the insured's business. In a CPP, the business owner may select from all of the following types of coverage EXCEPT: (a) Crime Coverage (b) Boiler and Machinery Coverage (c) General Liability Coverage (d) Workers Compensation Coverage - ANSWER (d) Workers compensation coverage Workers Compensation is not available through the Commercial Package Policy (CPP). page 74
The commercial property declarations page contains which of the following information? (a) Description of the Property Insured (b) Common Policy Conditions (c) Interline Endorsements (d) Cause of Loss Forms - ANSWER (a) description of property insured The Declarations Page provides the information as to who, what, where, and how much. The Interline Endorsements, Policy Conditions, and Cause of Loss Forms are modular parts that are combined to create the contract page 74 A specific coverage part is listed on the Commercial Package Policy (CPP) Declarations Page, but there is no premium shown. What does that mean? (a) Coverage is automatic. (b) There is no coverage. (c) Coverage applies without premium. (d) This must be a misprint on the form - ANSWER (b) There is no coverage If no premium amount is shown, there is no coverage for that coverage part
page 74 According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties... (a) automatically transfer to a legal representative (b) transfer to a legal representative after court appointment (c) die with the insured (d) are suspended until probate is completed - ANSWER (a) automatically transfer to a legal representative The Insurance Services, Inc. (ISO) common policy conditions for the commercial package policy stares that in the event the insured's death, rights, and duties are automatically transferred to the insured's legal; representative page 75 In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer? (a) First named insured (b) Last named insured (c) Beneficiary (d) Insurer - ANSWER (a) First named insured
Business Personal Property (BPP) Coverage Form covers all of the following EXCEPT... (a) stock (b) automobiles held for sale (c) furniture and fixtures (d) machinery that is not permanently installed - ANSWER (b) Automobiles held for sale Automobiles held for sale are among the exclusions in the BPP Form. The rest are covered types of property. page 76 Which item would NOT be covered under building coverage in a building and personal property policy? (a) The tables and chairs used by a coffee shop as part of their outdoor seating (b) The building housing a dress shop (c) The ice cream case permanently installed in an ice cream shop (d) The bulldozer being used as part of a business addition under construction that is parked 500 feet from the building - ANSWER (d) the bulldozer being used as part of a business addition under construction that is parked 500 feet from the building Building Coverage insures the building described, including outdoor fixtures and furniture, items used to service the property, permanently installed machinery
and equipment, and additions under construction, including materials, supplies, and equipment within 100 feet of the premises. Page 76 A business owner has a building and personal property policy that covers a shed in which he stores extra parts. If he buys a second shed for the same purposes, this will be automatically covered for how long? (a) 15 days (b) 20 days (c) 30 days (d) 45 days - ANSWER (c) 30 days Coverage is for 30 days for newly acquired buildings and personal property that are similar in use to the property insured. Page 77 Under business owners policy Section I, if an insurer wants to non-renew a policy, how many days before the expiration date must the insurer notify the mortgage holder? (a) 10 days (b) 15 days (c) 20 days (d) 30 days - ANSWER (a) 10 days
(c) each coverage form will pay a pro rata share (d) neither will pay - ANSWER (a) the Association Coverage Form will be considered primary and pay the loss The Association Form is always considered primary and will pay the entire loss. page 80 Which of the following statements concerning the builders risk coverage form is correct? (a) It may not be written for perils other than fire and extended coverage (b) It may be written on a Reporting Form or the Completed Value of the structure (c) It usually continues in effect for 1 year after completion of the structure (d) It covers the interest of the builder only, and cannot include coverage for the owner - ANSWER (b) It may be written on a Reporting Form or the Completed Value of the structure Builders Risk Insurance is a Property Insurance Form that provides direct damage coverage on structures while they are under construction. Coverage may be written on a Completed Value Form (requires 100% co-insurance) or Reporting Form (values are reported as completed). page 81 All of the following types of property are covered by a standard Builders Risk Form EXCEPT...
(a) the building itself (b) temporary structures (c) machinery that with be permanently attached to the building (d) tools 50 feet away from the building - ANSWER (d) tools 50 feet away from the building Property covered under a Builder's Risk Coverage Form includes the building or structure, temporary structures, foundations, fixtures, machinery, equipment, materials, and supplies within 100 feet of the premises if intended to become a permanent part of the building. Tools that are NOT intended to become permanent part of the structure will NOT be covered no matter how close they are to the building. page 81 Builder's risk is most often written on which form? (a) Reporting Form (b) Specific Value Form (c) Completed Value Form (d) Scheduled Form - ANSWER (c) Completed Value form A bill of lading is a contract between the carrier and the shipper detailing the carrier's responsibilities and duties
A misrepresentation would be considered fraud if it is intentional and material. Fraud would be grounds for voiding the contract. Insurable interest in a property policy must be proven. - ANSWER At the time of loss. Between the time a policy is issued and when a loss occurs, ownership may have changed, mortgages may have been put into place, etc. Therefore, in property and casualty insurance, insurable interest must exist at the time of loss. For a contract to be enforceable by law, the purpose of the contract must be - ANSWER Legal and not against public policy., The purpose of a contract must be legal and not against public policy for the contract itself to be enforceable by law (or legal). A beauty parlor burns to the ground. What type of loss is this to the owner? - ANSWER Direct., Damage caused by a peril that is insured against is classified as direct loss. Property insurance that provides $100,000 coverage for a building and $50, coverage for personal property at a single location is called - ANSWER Specific coverage., One location is insured for a specific amount of insurance on the structure and contents. Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of - ANSWER Occurrence.,
An occurrence includes those losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected. The Federal Fair Credit Reporting Act - ANSWER Regulates consumer reports, The Federal Fair Credit Reporting Act regulates consumer reports, also known as consumer investigative reports, or credit reports. The amount an insurer will pay under Coverage D (Loss of Use) depends on - ANSWER The amount of coverage on the dwelling., Loss of use is usually limited to a percentage of the overall dwelling or personal property coverage (when dealing with HO-4 and HO-6). What is a material misrepresentation? - ANSWER A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company. The Gramm-Leach-Bliley Act was passed to - ANSWER Protect private customer information filed with a financial institution., What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy? - ANSWER Open peril policy., Open peril (special) policies cover everything except what they say they don't. Named peril policies cover only perils named in them. Under businessowners policy Section I, if an insurer wants to cancel a policy for any reason except nonpayment of premium, how many days before the effective
