IPCI Indiana Property and Casualty Insurance Exam - Set 5 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A claims adjuster opening a commercial auto policy needs one specific item and knows it will not be found in the coverage form itself. Which of the following would the adjuster expect to see printed on the declarations instead?

The promise to defend the insured

The list of liability exclusions

The liability limit and the deductible

The definition of a covered auto

Question 42: A warehouse worker is hurt while loading a truck during his shift and files a claim. The employer's commercial general liability carrier points to a provision showing that the policy was never intended to cover this injury. Which provision is that?

The medical payments limit per person

The declarations schedule of covered autos

The definition of the insured's product

The exclusion for work-related employee injuries

Question 43: An insured telephoned her insurer the day a guest fell on her stairs, and the company opened a file. Two months later a sheriff serves her with a summons and complaint. Which action does the policy BEST require of her now?

Nothing more; notice was already given

File an answer with the court herself

Send the legal papers to the insurer

Offer the guest a modest settlement

Question 44: A jury returns a bodily injury verdict against an insured, and the insurer also pays the defense lawyer, the court costs and interest running on the judgment. Which of these amounts is NOT paid as a supplementary payment?

The bodily injury judgment itself

The defense lawyer's fees

Interest accruing on the judgment

Court costs taxed against the insured

Question 45: An insured must miss three days of work to attend the trial of a liability claim against her, and she asks whether the policy covers the pay she gave up. Which part of the liability policy responds to that request?

Compensatory damages under the limit

The proof of loss provision

The cancellation and nonrenewal provision

Supplementary payments for loss of earnings

Question 46: Two commercial general liability policies written by different companies cover the same loss, and both forms specify contribution by equal shares. One policy carries a much smaller limit than the other. Which statement describes how payment proceeds under that method?

Equal payments until the smaller limit stops

Each pays in proportion to its limit

The larger limit pays the entire loss

Payment is split evenly regardless of limits

Question 47: A physician's professional liability policy states that the insurer may not settle a claim without the insured's agreement, because a settlement might be read as an admission of error. Which policy provision is being described in that sentence?

The appraisal condition

The hammer clause

The consent to settle provision

The subrogation condition

Question 48: Two separate steps appear in the loss conditions of a policy: one alerts the company that an event has taken place, and the other documents in detail the dollars involved in the damage. Which pairing correctly matches those two steps to their names?

Proof of loss, then notice of claim

Notice of claim, then proof of loss

Demand letter, then proof of loss

Notice of claim, then a cancellation notice

Question 49: A nightclub owner deliberately shoves a patron down a staircase and is later sued for the injuries. The commercial general liability carrier reviews the coverage form and declines the claim. Which policy provision most directly supports that decision?

The declarations limit of insurance

The definition of a covered auto

A condition requiring prompt cooperation

An exclusion for intentional injury

Question 50: A staffing agency leases vehicles from a leasing corporation, which is written onto the agency's auto policy as an insured. A dispatcher driving one of those vehicles on agency business is also protected. How are those two protections best characterized?

Insured by definition, then additional insured

Both parties are additional insureds

Additional insured, then insured by definition

Both parties are named insureds

Congratulations!

You have completed all 5 question sets. Good job!

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