MPCP - Minnesota Property and Casualty Producer Exam

Question 21: A landlord insures a rented single-family house on a dwelling form and buys the personal property coverage. A kitchen fire destroys the landlord's stove and refrigerator along with the tenant's sofa and clothing. How does the personal property coverage respond?

It pays for all damaged property

Only the tenant's property is covered

It pays nothing on rental property

Only the landlord's property is covered

Question 22: A store's rear wall caves in abruptly. The owner admits she noticed rotted joists months earlier and did nothing. Her commercial property policy carries the broad causes of loss form with its collapse additional coverage. Which of the following best describes how the collapse claim is handled?

Not covered, the decay was known beforehand

Covered, since collapse was sudden and abrupt

Covered, decay is a specified collapse cause

Not covered, broad form omits collapse entirely

Question 23: A trucking company hauls freight belonging to other businesses and buys motor truck cargo coverage in the truckers form. A grocery chain that hauls only its own goods on its own trucks buys the owners form. Which statement compares these two correctly?

Both are direct damage coverage forms

Both are liability forms for hired carriers

Truckers form is liability, owners form direct

Owners goods coverage is liability insurance

Question 24: A shipping company asks for a commercial package policy that will carry property, general liability, commercial inland marine and coverage on cargo carried by vessel across the ocean. One of these coverages is not eligible for the package. Which one must stand alone?

Commercial inland marine coverage

Business income coverage

Builders risk coverage

Ocean marine coverage

Question 25: A three-person accounting office wants one simple contract in which property and liability coverages are already bundled together rather than a policy assembled part by part from a long menu of commercial forms. Which product matches what this small business is asking for?

A businessowners policy

A commercial package policy

A monoline commercial property policy

A commercial inland marine floater

Question 26: A homeowners policy lists several classes of property that Coverage C never insures, including animals, birds and fish, credit cards, and property belonging to boarders. Which additional class of property appears on that same list of excluded personal property?

Clothing owned by the insured

A guest's suitcase at the residence

Motorized vehicles and their accessories

Furniture in a spare bedroom

Question 27: A family's home floods. They ask their producer about four items: the temporary apartment they rented during repairs, the shrubs washed out of the front yard, the couch in the finished basement, and the washing machine on the main floor. Which one does the flood policy cover?

The main floor washing machine

The rented temporary apartment

The shrubs in the yard

The basement couch

Question 28: A mobile home package policy insures a manufactured home for a stated amount. The owner wants to know what portion of that amount is automatically available for her belongings and then for loss of use after a covered loss. Which pair of percentages applies?

Contents fifty percent, loss of use thirty

Contents thirty percent, loss of use fifty

Contents sixty percent, loss of use forty

Contents forty percent, loss of use twenty

Question 29: A city newspaper cannot afford to stop printing even for a day and tells its producer it does not want reimbursement for lost earnings, only money to keep publishing from a temporary site after a loss. Which commercial property coverage form fits that request?

Business income without extra expense form

Extra expense coverage form

Building and personal property form

Legal liability coverage form

Question 30: An owner-occupant wants a homeowners policy that lists every covered cause of loss for the dwelling, other structures and contents, adding perils such as falling objects, collapse and the weight of ice, snow and sleet. Which homeowners form fits that description?

HO-2 broad form

HO-4 tenants form

HO-6 unit-owners form

HO-5 comprehensive form

Question 31: A commercial laundry's large boiler ruptures when a pressure control fails, wrecking the vessel. A month earlier a different unit had simply drifted out of calibration. The laundry carries the equipment breakdown coverage form. Which of the following correctly applies the form's definition of breakdown?

Both events are breakdowns under the form

Neither event meets the breakdown definition

Only the pressure vessel failure is covered

Only the calibration problem is a breakdown

Question 32: A twenty-two-year-old woman lived with her parents until she left for college, where she now attends classes full time and lives in a dormitory. Her father owns the family home and holds the homeowners policy. Which statement describes her status?

She qualifies as an insured

She lost insured status upon moving

She needs her own tenants policy

Coverage stops at age twenty-one

Question 33: A roofing contractor moves compressors, nail guns and a small crane among a dozen job sites each month, and wants a single form that follows the equipment wherever the crews happen to be working. Which inland marine form should the producer recommend?

Installation floater

Electronic data processing equipment floater

Jewelers block coverage form

Contractors equipment floater

Question 34: A staffing firm's server is hit by malicious code that destroys client files, and the attackers demand payment to stop publishing stolen personal data. The firm bought an internet liability and network protection endorsement. Which first-party coverages respond to these two losses?

Website publishing and network security liability

Electronic data restoration and cyber extortion

Equipment breakdown and spoilage damage coverage

Accounts receivable and valuable papers forms

Question 35: A student takes a laptop, a bicycle and clothing with her when she travels overseas for a semester. Her parents hold a homeowners policy at the family home. How much Coverage C applies to their property while it is away from the residence premises?

Ten percent, minimum one thousand dollars

The full Coverage C limit

Twenty-five percent of Coverage C

Five hundred dollars maximum

Question 36: Four insureds report water losses in the same week: a burst washing machine hose, a sewer backup through a basement drain, a river overrunning its banks across the neighborhood, and a broken water main in the street. Which loss meets the flood definition?

The burst washing machine hose

The river overrunning its banks

The sewer backup through the drain

The broken water main in the street

Question 37: Private insurers largely refused to write flood coverage, so in nineteen sixty-eight Congress created a program that makes flood insurance available to eligible communities through federal subsidization. A single federal agency manages that program today. Which agency administers it?

The state insurance department

A pool of private insurers

The Federal Emergency Management Agency

The National Association of Insurance Commissioners

Question 38: An underwriter reviews an application for a homeowners policy on a residential building that the applicant occupies and also rents to other households. Homeowners eligibility caps the number of families the building may house. Which number is that limit?

One family only

Four families

Two families

Three families

Question 39: A dental practice owns its building, fills it with chairs, cabinets and imaging machines, and stores patient dentures belonging to customers on site. The practice buys one coverage form for all three exposures at that address. Which form provides those three categories?

Building and personal property coverage form