MPCP Minnesota Property and Casualty Producer 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: Before the federal terrorism insurance program will respond to a loss, a particular official must certify that an act of terrorism has occurred, acting in consultation with other federal officials. Which of the following identifies the official who makes that certification?

The Secretary of the Treasury

The state insurance commissioner

The Secretary of Homeland Security

The Attorney General of the United States

Question 42: A property owner leasing space to a print shop requires the shop's liability policy to protect the owner as well for claims arising out of the leased premises. The shop's insurer amends the policy to include the owner. Which status does the owner receive?

Named insured

Additional insured

First named insured

Insured by definition

Question 43: A commercial casualty policy contains a section spelling out the rules of conduct for both parties, including the insurer's right to inspect the insured's premises and the steps the insured must follow for coverage to apply. Which part is that?

Declarations

Insuring agreement

Definitions

Conditions

Question 44: A process server hands an insured a summons and complaint arising from a car crash he caused. The liability policy tells him exactly what to do with those papers rather than answering them himself. Which duty after a loss applies?

Hire his own defense attorney immediately

Forward the legal papers to the insurer

Settle the claim before the hearing date

Store the papers until the trial date

Question 45: A bodily injury claim is presented under two liability policies. One contract attaches immediately upon the occurrence and must respond before the other pays anything at all. Which of the following terms describes the coverage that must respond first?

Excess coverage

Pro rata coverage

Contributing coverage

Primary insurance

Question 46: Two liability insurers cover the same commercial loss, and each agrees to pay the share of the loss that its own limit bears to the total insurance available. Which of the following names this method of dividing the payment between them?

Contribution by limits, also called pro rata

Contribution by equal shares

Primary and excess layering

Subrogation against the other insurer

Question 47: A claim adjuster asks the insured to prepare an official, detailed inventory of the damages, listing each item and its value, and asks that the document be signed and sworn. Which document in the claim process is the adjuster requesting?

The notice of claim

The proof of loss

The supplementary payments schedule

A written cancellation notice

Question 48: A groundless suit is brought against an insured business, and the case is eventually dismissed with no finding of fault. The insurer had already hired and paid a defense attorney throughout. How does the liability policy treat that legal expense?

It is deducted from the limit

It is repaid by the insured later

It is paid even without liability

It is denied when fault is absent

Question 49: A manufacturer carries a primary liability policy with a limit of one hundred thousand dollars and a second contract written above it. A covered judgment exceeds the first limit. Which of the following describes how the second contract responds?

It pays what the primary does not

It shares equally with the primary policy

It replaces the primary policy entirely

It pays nothing once a judgment issues

Question 50: A delivery driver employed by a wholesale grocer causes an accident while making a route stop in a company truck. Her name appears nowhere on the policy, yet the liability coverage protects her. Which explanation accounts for her protection?

She is the first named insured

She purchased an additional insured endorsement

Employees are never covered while driving

She is an insured by definition

Congratulations!

You have completed all 5 question sets. Good job!

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