NHPCI - New Hampshire Property and Casualty Insurance

Question 21: Three property policies with different limits all cover the same building, and the other insurance provision requires each insurer to pay a share of the loss based on the proportion its own limit bears to the combined total limits carried across all three policies. What is this sharing method called?

contribution by equal shares

excess coverage

pro rata liability

primary and excess

Question 22: Two liability policies with identical limits both apply to the same covered claim, and rather than prorating by limit size, each insurer instead pays an equal portion of the loss in turn until the loss is fully paid or one policy's limit runs out first. What is this method called?

pro rata liability

excess insurance

nonconcurrency

contribution by equal shares

Question 23: A personal auto liability policy states a maximum dollar amount the insurer will pay for all bodily injury and property damage claims arising out of a single crash, regardless of how many people are hurt or how many vehicles are damaged in that one event. What is this maximum called?

the per accident limit

the per person limit

the aggregate limit

the combined single limit for all events

Question 24: A commercial general liability policy sets the most the insurer will pay for damages arising from bodily injury or property damage caused by a single covered event, even if that event results in multiple lawsuits or several injured claimants seeking damages from that same incident. What is this cap called?

the aggregate limit

the per occurrence limit

the per person limit

the deductible amount

Question 25: An auto liability policy states the maximum the insurer will pay to any one individual who is injured in a covered accident, a figure that is always equal to or smaller than the total available for the entire accident involving multiple injured people. What is this smaller cap called?

the per accident limit

the aggregate limit

the per person limit

the property damage limit

Question 26: A products liability policy states the absolute maximum the insurer will pay for all covered claims arising during the entire policy period, regardless of how many separate occurrences generate those claims across the full year of coverage. What type of limit is being described in this scenario?

the per occurrence limit

the split limit

the combined single limit

the aggregate limit

Question 27: An auto liability policy prints three separate dollar figures on the declarations page, one applying to bodily injury per person, a second applying to bodily injury per accident, and a third applying to property damage per accident, rather than one single blended figure. What is this three-figure structure called?

split limits

a combined single limit

an aggregate limit

a coinsurance requirement

Question 28: A commercial auto policy states one single dollar amount available for any combination of bodily injury and property damage arising from a covered accident, rather than dividing that protection into separate categories with their own individual sublimits. Which limit structure does this single blended figure represent?

split limits

a combined single limit

an aggregate limit

a per person limit

Question 29: A commercial property insurer includes a clause encouraging every insured to carry an amount of insurance reasonably close to the full property value, rather than purchasing only a small fraction of that value while still expecting full payment on every loss. What is the main purpose of this clause?

to guarantee full replacement cost always

to eliminate the need for a deductible

to encourage carrying adequate insurance to value

to shorten the claim reporting period

Question 30: A property policy provision requires the insured to maintain insurance equal to a stated percentage of the property's value at the time of loss, or else share proportionately in any loss alongside the insurer as an informal partner in the risk. What is this provision commonly called?

the deductible clause

the appraisal clause

the vacancy clause

the coinsurance clause

Question 31: An insured carries far less insurance than the coinsurance clause requires relative to the property's value, and after a covered loss the insurer pays only a reduced share of that loss instead of the full amount, leaving the insured to absorb the remainder personally. What does this reduced payment represent?

the coinsurance penalty

the deductible amount

the pro rata share

the salvage value

Question 32: A covered building suffers a total loss, and even though the insured carried less insurance than the coinsurance clause required, the insurer still pays the full face amount of the policy rather than applying any reduction for the earlier underinsurance. Why does the coinsurance penalty not apply here?

coinsurance never applies to any covered peril

the policy limit caps a total loss

the insured is exempt once underinsured

total losses always waive all conditions

Question 33: A policy insures one particular building at one particular address for one stated limit of liability, with that limit applying only to that single location and to no other property the insured might own anywhere else. What is this single-item, single-limit approach to insuring property called?

scheduled insurance

blanket insurance

specific insurance

excess insurance

Question 34: A commercial property policy lists several separate buildings, each identified individually with its own stated limit of liability, so that the amount available for one building cannot be used to cover a shortfall at a different listed building. What is this itemized approach to insuring several locations called?

specific insurance

blanket insurance

combined single limit insurance

scheduled insurance

Question 35: An insured owns several warehouses and purchases one policy limit that applies collectively across all of them, so that a single large loss at one warehouse can draw on more protection than that location's individual value might otherwise justify under a separately itemized approach. What is this shared-limit approach called?

blanket insurance

specific insurance

scheduled insurance

split limit insurance

Question 36: A commercial building sits completely empty of both people and the contents ordinarily kept there, with no furniture, fixtures, or stock remaining inside, and this condition can trigger a policy provision limiting or suspending certain coverage once it continues for a stated period. What condition is being described here?

unoccupancy

vacancy

abandonment

condemnation

Question 37: A homeowner moves out while the house is up for sale, but the furniture, appliances, and other customary contents remain inside exactly as before, even though no one is currently living there on a regular basis. Which term most precisely describes this building's condition under standard property insurance usage?

vacant

abandoned

unoccupied

condemned

Question 38: An underwriter explains that property forms treat these two conditions differently because one describes a building empty of both people and contents while the other describes a building empty only of people, and insurers view the first condition as carrying higher risk. Why does this distinction matter to coverage?

unoccupancy always voids the entire policy

the two terms trigger identical restrictions

only vacant buildings qualify for coverage

vacancy alone can suspend certain coverage

Question 39: A homeowners policy lists a married couple as insureds, but only one party appears first in the declarations. Under the standard named insured provisions, which insured alone holds the authority to cancel the policy, request coverage changes, and receive any return premium owed once cancellation takes effect?

The first named insured

Any resident relative living there

An additional insured named later

The mortgagee listed in declarations

Question 40: A homeowners policy defines insured to include the named insured and any relative who resides in the same household. A teenage son living at home damages a neighbor's fence while riding a dirt bike. Which statement best describes the son's status under the policy right now?

He is never covered at all

He already qualifies as an insured

He becomes the first named insured

He must be added by endorsement

NHPCI New Hampshire Property and Casualty Insurance - Set 5 - Part 2

Question 22: Two liability policies with identical limits both apply to the same covered claim, and rather than prorating by limit size, each insurer instead pays an equal portion of the loss in turn until the loss is fully paid or one policy's limit runs out first. What is this method called?

Question 23: A personal auto liability policy states a maximum dollar amount the insurer will pay for all bodily injury and property damage claims arising out of a single crash, regardless of how many people are hurt or how many vehicles are damaged in that one event. What is this maximum called?

Question 25: An auto liability policy states the maximum the insurer will pay to any one individual who is injured in a covered accident, a figure that is always equal to or smaller than the total available for the entire accident involving multiple injured people. What is this smaller cap called?

Question 30: A property policy provision requires the insured to maintain insurance equal to a stated percentage of the property's value at the time of loss, or else share proportionately in any loss alongside the insurer as an informal partner in the risk. What is this provision commonly called?

Question 40: A homeowners policy defines insured to include the named insured and any relative who resides in the same household. A teenage son living at home damages a neighbor's fence while riding a dirt bike. Which statement best describes the son's status under the policy right now?

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