IPCI - Indiana Property and Casualty Insurance Exam

Question 21: An at-fault driver carries liability limits that meet the requirements where he lives, but those limits fall short of the insured's actual bodily injury damages. Which coverage on the insured's own policy is designed to make up that shortfall?

Uninsured motorists coverage

Medical payments coverage

Underinsured motorists coverage

Collision coverage

Question 22: One limit on the commercial general liability declarations page caps the total the insurer will pay for the sum of Coverages A, B and C during a policy period, with one important carve-out for the products and completed operations exposure. Which limit is this?

The general aggregate limit

The each occurrence limit

The medical expense limit

The personal and advertising injury limit

Question 23: Three vehicles are listed on one personal auto policy and four family members are insureds. One accident produces claims from several people. Under Part A of that policy, what determines the most the insurer will pay for that single accident?

The limit multiplied by vehicles listed

The limit times the number of insureds

The total premiums charged for all vehicles

The stated limit for one accident

Question 24: An insured is hurt while riding his motorcycle, and on another occasion a family member is hurt while the covered sedan is being used to carry paying passengers for hire. Which statement describes medical payments coverage for these two situations?

Both injuries are covered without limitation

Only the motorcycle injury is covered

Both injuries fall under Part B exclusions

Only the livery injury is covered

Question 25: A named insured wants the personal auto policy to pay for damage to her own vehicle from an overturn and from hail, rather than for injuries she causes to other people. Which part of the personal auto policy responds to those losses?

Part A liability coverage

Part D, damage to your auto

Part B medical payments coverage

Part C uninsured motorists coverage

Question 26: An insurer defends its insured against an auto bodily injury suit and spends a substantial sum on attorneys. The insured asks whether those legal costs reduce the money available to pay the claimant. How does Part A treat defense costs?

They erode the stated liability limit

They are paid only after judgment

They are shared equally with the insured

They are paid in addition to limits

Question 27: An insured who already carries collision and other than collision on both listed cars buys a third vehicle on Monday. He wants the new car to keep the same physical damage coverage. What must he do to keep that coverage in force on the new car?

Report the new auto within four days

Report the new auto within fourteen days

Nothing, coverage attaches for the full term

Buy a separate policy for it

Question 28: A stock clerk employed by an insured wholesaler knocks over a heavy display while restocking shelves and injures a visiting customer. The coverage form treats certain persons as insureds although they are never listed on the declarations. Which description fits this clerk?

A first named insured on the policy

An executive officer of the corporation

An employee within the scope of employment

An independent contractor hired for the job

Question 29: The insured's covered auto is stolen and he begins renting a car while the police search for it. His policy includes transportation expenses coverage. How long must he wait before that coverage begins paying his rental costs after a theft loss?

There is no waiting period

Twelve hours

Twenty-four hours

Forty-eight hours

Question 30: During one accident at an insured warehouse a visitor suffers bodily injury, her equipment is damaged, and the insurer also reimburses her emergency treatment. One limit caps everything the insurer pays for that single event under Coverages A and C. Which limit is that?

The general aggregate limit

The each occurrence limit

The products-completed operations aggregate limit

The personal and advertising injury limit

Question 31: An insurer issues a commercial general liability coverage form whose obligation switches on at the moment a demand is first presented against the insured, no matter when the underlying injury actually took place. Which coverage trigger form works in that manner?

The occurrence form

The basic extended reporting period

The claims-made form

The common policy conditions form

Question 32: Four situations reach an insurer under a commercial general liability policy: a deliberate assault by the insured, injury from continuous exposure to harmful conditions, a customer's slip in the aisle, and fire damage to the rented storefront. Which one does Coverage A exclude?

Injury from continuous exposure to harmful conditions

The customer who slipped in the aisle

Fire damage to the rented storefront

The deliberate assault by the insured

Question 33: A heating contractor completes a fireplace installation at a customer's home, and months later the workmanship causes a fire that destroys part of the house. Which limit of insurance caps what the insurer will pay for damages of this kind?

The general aggregate limit

The personal and advertising injury limit

The products-completed operations aggregate limit

The damage to premises rented limit

Question 34: In one accident the insured's car sustains body damage and a shattered windshield. Both collision and other than collision coverages are on the policy, each with its own deductible. What option does the policy give the insured in that situation?

Waiving the deductible on both coverages

Splitting the loss between two insurers

Filing the claim under liability coverage

Treating the glass loss as collision

Question 35: A visitor is hurt by falling merchandise inside an insured hardware store, and the store's Coverage C would ordinarily pay her treatment bills. The policy sets a deadline for those expenses. Within what period must the expenses be incurred and reported to the insurer?

Sixty days from the date of accident

Three years from the date of accident

One year from the date of accident

Any time before the policy aggregate exhausts

Question 36: A customer leaves her car at a dealership's service department for repairs, and it is damaged by fire overnight. The garage liability section excludes property in the insured's care. Which coverage under the garage coverage form responds to the customer's loss?

Trailer interchange coverage

Drive other car coverage

Comprehensive on the dealer's owned autos

Garagekeepers coverage

Question 37: A competitor sues a marketing firm after the firm posted damaging remarks about the competitor on social media. The claimant is another business rather than an individual. Which commercial general liability coverage responds to offenses such as libel, slander and advertising injury?

Coverage B, personal and advertising injury

Coverage A, bodily injury and property damage

Coverage C, medical payments

Supplementary payments for defense costs

Question 38: A trucking client wants a less expensive alternative to comprehensive on its business auto physical damage, accepting a short named peril list that includes fire, lightning, theft, windstorm, flood and vandalism. Which physical damage option best matches that description?

Comprehensive coverage

Collision coverage

Specified causes of loss coverage

Trailer interchange coverage

Question 39: A claims-made commercial general liability policy shows a date in its declarations that reaches backward before the policy's effective date. An incident must have taken place on or after that date for a claim to be covered. Which item on the declarations page is this?

The retroactive date

The policy expiration date

The extended reporting period date

The general aggregate limit

Question 40: A sole proprietor carries a business auto policy but no personal auto policy, and she wants her resident family members protected while they drive. Which commercial auto endorsement extends coverage very similar to a personal auto policy to those family members?

Drive other car endorsement

Additional insured lessor endorsement

Individual named insured endorsement

Mobile equipment endorsement

IPCI Indiana Property and Casualty Insurance Exam - Set 4 - Part 2

Question 21: An at-fault driver carries liability limits that meet the requirements where he lives, but those limits fall short of the insured's actual bodily injury damages. Which coverage on the insured's own policy is designed to make up that shortfall?

Question 22: One limit on the commercial general liability declarations page caps the total the insurer will pay for the sum of Coverages A, B and C during a policy period, with one important carve-out for the products and completed operations exposure. Which limit is this?

Question 23: Three vehicles are listed on one personal auto policy and four family members are insureds. One accident produces claims from several people. Under Part A of that policy, what determines the most the insurer will pay for that single accident?

Question 24: An insured is hurt while riding his motorcycle, and on another occasion a family member is hurt while the covered sedan is being used to carry paying passengers for hire. Which statement describes medical payments coverage for these two situations?

Question 25: A named insured wants the personal auto policy to pay for damage to her own vehicle from an overturn and from hail, rather than for injuries she causes to other people. Which part of the personal auto policy responds to those losses?

Question 26: An insurer defends its insured against an auto bodily injury suit and spends a substantial sum on attorneys. The insured asks whether those legal costs reduce the money available to pay the claimant. How does Part A treat defense costs?

Question 27: An insured who already carries collision and other than collision on both listed cars buys a third vehicle on Monday. He wants the new car to keep the same physical damage coverage. What must he do to keep that coverage in force on the new car?

Question 28: A stock clerk employed by an insured wholesaler knocks over a heavy display while restocking shelves and injures a visiting customer. The coverage form treats certain persons as insureds although they are never listed on the declarations. Which description fits this clerk?

Question 29: The insured's covered auto is stolen and he begins renting a car while the police search for it. His policy includes transportation expenses coverage. How long must he wait before that coverage begins paying his rental costs after a theft loss?

Question 30: During one accident at an insured warehouse a visitor suffers bodily injury, her equipment is damaged, and the insurer also reimburses her emergency treatment. One limit caps everything the insurer pays for that single event under Coverages A and C. Which limit is that?

Question 31: An insurer issues a commercial general liability coverage form whose obligation switches on at the moment a demand is first presented against the insured, no matter when the underlying injury actually took place. Which coverage trigger form works in that manner?

Question 32: Four situations reach an insurer under a commercial general liability policy: a deliberate assault by the insured, injury from continuous exposure to harmful conditions, a customer's slip in the aisle, and fire damage to the rented storefront. Which one does Coverage A exclude?

Question 33: A heating contractor completes a fireplace installation at a customer's home, and months later the workmanship causes a fire that destroys part of the house. Which limit of insurance caps what the insurer will pay for damages of this kind?

Question 34: In one accident the insured's car sustains body damage and a shattered windshield. Both collision and other than collision coverages are on the policy, each with its own deductible. What option does the policy give the insured in that situation?

Question 35: A visitor is hurt by falling merchandise inside an insured hardware store, and the store's Coverage C would ordinarily pay her treatment bills. The policy sets a deadline for those expenses. Within what period must the expenses be incurred and reported to the insurer?

Question 36: A customer leaves her car at a dealership's service department for repairs, and it is damaged by fire overnight. The garage liability section excludes property in the insured's care. Which coverage under the garage coverage form responds to the customer's loss?

Question 37: A competitor sues a marketing firm after the firm posted damaging remarks about the competitor on social media. The claimant is another business rather than an individual. Which commercial general liability coverage responds to offenses such as libel, slander and advertising injury?

Question 38: A trucking client wants a less expensive alternative to comprehensive on its business auto physical damage, accepting a short named peril list that includes fire, lightning, theft, windstorm, flood and vandalism. Which physical damage option best matches that description?

Question 39: A claims-made commercial general liability policy shows a date in its declarations that reaches backward before the policy's effective date. An incident must have taken place on or after that date for a claim to be covered. Which item on the declarations page is this?

Question 40: A sole proprietor carries a business auto policy but no personal auto policy, and she wants her resident family members protected while they drive. Which commercial auto endorsement extends coverage very similar to a personal auto policy to those family members?

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