MPCP - Minnesota Property and Casualty Producer Exam

Question 1: A homeowner stacks lumber and roofing shingles beside her house, planning to build a storage shed next month. Fire destroys the pile before construction starts. Under a homeowners policy, which Section One coverage responds to the loss of those materials?

Coverage A, dwelling

Coverage B, other structures

Coverage C, personal property

Coverage D, loss of use

Question 2: A producer adds the extended coverage perils to a client's basic dwelling form for an additional premium. The client asks what happens to the internal explosion peril that was already in the contract. Which statement correctly describes the effect of that endorsement?

Internal explosion coverage is dropped entirely

Both perils apply with separate deductibles

The broader explosion peril replaces it

Internal explosion becomes an optional buyback

Question 3: An architect insures drawings and deeds under an inland marine form on which each item is individually described in the declarations with its own limit. A neighboring firm insures similar property for one blanket amount. Which of the following correctly labels these two approaches?

Reporting coverage and peak season coverage

Scheduled coverage and unscheduled coverage

Bailee coverage and transit coverage

Open peril coverage and named peril coverage

Question 4: A burglar takes a diamond ring, a gold watch and a mink stole from an insured's bedroom. The homeowners policy applies a single special limit of liability to theft losses in that group of articles. Which amount is that limit?

One thousand five hundred dollars

Two hundred dollars

One thousand dollars

Two thousand five hundred dollars

Question 5: A commercial property policy is being assembled for a warehouse. It already contains the commercial property declarations form, the commercial property conditions form and the building and personal property coverage form. One required piece is still missing. Which of the following must be added?

A value reporting form

A causes of loss form

A peak season endorsement

An equipment breakdown coverage form

Question 6: A jeweler asks why the exclusion pages in her new commercial property policy are so much longer than her neighbor's, even though both insure similar buildings. Her policy insures direct physical loss unless the cause is specifically excluded. Which causes of loss form does she carry?

Basic causes of loss form

Broad causes of loss form

Special causes of loss form

Value reporting form

Question 7: A town has just applied to join the flood program, and federal officials have not yet finished mapping its flood rates. A resident wants flood insurance right away. Which statement describes the coverage available to her at this stage?

No coverage until mapping is complete

Full regular program limits are available

Coverage only through a private carrier

Limited amounts at subsidized emergency rates

Question 8: A dwelling insured on the broad form carries building limits well above eighty percent of replacement cost. A tornado destroys the house and the owner's ten-year-old furniture inside it. How will the insurer value these two parts of the claim?

Dwelling replacement cost, furniture actual cash value

Both settled at actual cash value

Both settled at replacement cost

Dwelling actual cash value, furniture replacement cost

Question 9: A client upgrades to a DP-3 special form and tells his neighbor that everything he owns is now covered on an open peril basis. His producer corrects him about how the two sides of the property section work. Which description is accurate?

Open peril on every covered property class

Named basic perils on buildings and contents

Open peril contents, named peril buildings

Open peril buildings, named broad peril contents

Question 10: After a break-in at his rented cottage, an owner learns his dwelling policy pays nothing for the stolen television, and he is also surprised that a visitor's injury claim is not covered. Which statement best describes the dwelling policy in this respect?

Theft and liability are always included

Only theft may be added later

Both must be added by endorsement

Neither can ever be purchased

Question 11: An insured buys a thirty-two-foot sailboat with inboard auxiliary power and asks which product the industry uses for a craft that size. His producer explains the dividing line between two personal watercraft products. Which policy fits this vessel?

A boatowners package policy

A personal watercraft policy

A dwelling policy endorsement

A personal yacht policy

Question 12: A farm coverage part is written for a dairy operation. The insured wants the barn, two silos and the perimeter fencing insured, none of which is a residence. Which farm property coverage picks up structures of that kind?

Coverage B, other private structures

Coverage E, scheduled farm personal property

Coverage G, other farm structures

Coverage F, unscheduled farm personal property

Question 13: A farmer insured under the farm basic causes of loss reports that a neighbor's dogs attacked and killed several calves. He also lost a heifer to lightning the same week. His agent reviews which level of coverage he selected. What is the outcome?

Both losses are covered

Neither loss is covered

Only the dog attack is covered

Only the lightning loss is covered

Question 14: A storm knocks out electricity to an entire neighborhood for twelve hours. Nothing on the insured's property is damaged, but the food in the freezer thaws and spoils. How does a homeowners form respond to the spoiled food claim?

Excluded as off-premises power failure

Covered under Coverage C

Covered as an additional coverage

Covered once the outage exceeds twelve hours

Question 15: Of the six categories in the nationwide marine definition, two belong to ocean marine and one covers personal risks. A producer is asked to name a category that falls to commercial inland marine instead. Which of the following belongs in that commercial group?

Imports

Exports

Instrumentalities of transportation or communication

Personal property floaters

Question 16: A piano teacher gives lessons in her living room, and a schoolteacher works at a public school across town. Both hold homeowners policies whose Section Two excludes business pursuits. Which endorsement pairing restores liability protection for each of them?

Home day care for both teachers

Business pursuits, then incidental occupancies

Personal injury endorsement for both teachers

Incidental occupancies, then business pursuits

Question 17: A child from down the street is bitten by an insured's dog in the front yard and needs stitches. The insured wants the bill paid quickly without a finding of fault. Which statement describes how Coverage F handles this?

It pays only after a judgment

It covers household residents equally

It pays necessary medical expense, no fault

It requires proof of negligence first

Question 18: An insured on a dwelling special form watches a quake crack his foundation and topple a chimney. His producer had never discussed this peril with him. How does a standard dwelling policy treat earth movement losses of this kind?

Covered as a broad form peril

Excluded unless an endorsement adds it

Covered subject to a larger deductible

Covered only for other structures

Question 19: A tenant retailer insured under a businessowners policy loses several items in a covered fire: new carpeting the tenant installed, a leased copier the lease requires the tenant to insure, and a delivery van registered for road use. Which item falls outside business personal property?

The tenant's newly installed carpeting

The leased copier the tenant insures

All three items are covered

The registered delivery van

Question 20: A client asks his producer whether a dwelling policy can be written on an apartment building he owns. The producer checks the number of separate living units in the structure before answering. Which limit on unit count applies to an eligible dwelling risk?

No more than two units

No more than six units

No more than four units

No more than twelve units

MPCP Minnesota Property and Casualty Producer Exam - Set 2 - Part 1