PPCI - Pennsylvania Property and Casualty Insurance Exam

Question 1: A Pennsylvania manufacturer wants its property and general liability coverages issued together under a single contract with one set of declarations and one set of shared conditions. Which arrangement does the producer recommend to package those coverages that way?

A monoline property policy

A businessowners policy

A commercial package policy

A difference in conditions policy

Question 2: A Pennsylvania warehouse suffers direct physical loss on a Tuesday in March. The insured disputes the settlement and considers filing suit against the insurer. Under the commercial property conditions form, how long does the insured have to bring that action?

Sixty days from the loss

One year from the loss

Eighteen months from the loss

Two years from the loss

Question 3: An insurer broadens its commercial property form during a policy term and charges no additional premium for the improvement. Under the liberalization condition, within what period of the policy's effective date must that revision be adopted for the insured to receive the benefit?

Fifteen days

Ninety days

Forty-five days

One hundred eighty days

Question 4: A Pennsylvania insured buys building coverage under the building and personal property coverage form and asks what that limit actually protects. Which of the following items does the form treat as part of the building rather than as business personal property?

Inventory held for sale to customers

Office furniture and file cabinets

A tenant's improvements and betterments

Permanently installed machinery and equipment

Question 5: A Pennsylvania auto dealership carries the building and personal property coverage form on its showroom and its inventory. Which of the following would the insurer decline to pay for because the form lists it among property not covered?

Vehicles held for sale on the lot

Shelving installed by the insured

A copier the insured leases and insures

Fire extinguishers on the premises

Question 6: A tornado damages a Pennsylvania insured's building, and the cleanup contractor's invoice for hauling away wreckage exceeds what the base debris removal allowance will fund. What additional amount does the building and personal property coverage form make available per occurrence?

Ten thousand dollars

Five thousand dollars

Twenty-five thousand dollars

No additional amount is available

Question 7: A volunteer fire company responds to a covered fire at a Pennsylvania insured's plant and later bills the insured a service charge under its agreement with the township. How does the building and personal property coverage form treat that charge?

It is paid subject to the deductible

It is excluded as a governmental charge

It is paid only for total fires

It is paid with no deductible

Question 8: A Pennsylvania insured meeting the coinsurance requirement buys a second building at a new location and also acquires business personal property there. Which pair of limits does the newly acquired or constructed property coverage extension make available before the policy is endorsed?

One hundred thousand and fifty thousand

Five hundred thousand and two hundred thousand

Two hundred fifty and one hundred thousand

Fifty thousand and twenty-five thousand

Question 9: A Pennsylvania insured's building sits empty with no tenant and no contents for well over two months before vandals break in and cause damage. Under the vacancy condition of the building and personal property coverage form, how does the insurer respond?

It pays the loss in full

It voids the policy from inception

It pays after a premium surcharge

It declines the vandalism loss

Question 10: A Pennsylvania contractor insures a building under the builders risk coverage form. Construction finishes in June, and the owner takes occupancy of the whole building in July. Which pair of periods marks the outer limits of when builders risk coverage ends, completion first?

Ninety days and sixty days

Thirty days and thirty days

Sixty days and ninety days

One year and six months

Question 11: A fire shuts down a Pennsylvania printing plant for four months while the building is repaired. The insured's business income coverage pays for the net income lost and continuing expenses. Which policy concept defines the length of time the coverage responds?

The extended period of indemnity

The maximum period of indemnity

The monthly limit of indemnity

The period of restoration

Question 12: A Pennsylvania hospital must keep operating after a covered loss and spends heavily on temporary space, rented equipment and overtime so that patient care never stops. Which commercial property coverage reimburses those costs incurred to avoid a shutdown?

Extra expense coverage

Business income coverage

Legal liability coverage

Builders risk coverage

Question 13: A Pennsylvania insured selects the narrowest of the three commercial property causes of loss forms in order to keep the premium down. Which of the following perils appears on that form's named list of covered causes of loss?

Weight of snow on a roof

Sprinkler leakage

Accidental discharge of water

Breakage of building glass

Question 14: A Pennsylvania insured wants the widest available protection on a commercial building, covering any direct physical loss unless the form specifically takes it away. Which causes of loss form should the producer attach to the commercial property coverage part?

The basic form

The broad form

The special form

The reporting form

Question 15: A Pennsylvania borough enacts a code requiring any building damaged beyond a set threshold to be demolished and rebuilt to current standards. The insured's plant is damaged and now faces those extra costs. Which endorsement responds to that exposure?

Peak season limit of insurance

Ordinance or law coverage

Spoilage coverage

Value reporting form

Question 16: A Pennsylvania retailer's inventory triples every autumn as it stocks for the holidays and then falls back after the new year. The owner wants higher business personal property limits only during that stretch. Which endorsement addresses this pattern?

Value reporting form

Ordinance or law coverage

Peak season limit of insurance

Spoilage coverage

Question 17: A Pennsylvania contractor wants coverage that follows his excavation equipment from job site to job site, and a jeweler wants coverage that follows a salesperson's samples across several states. Which class of insurance is designed for property of this kind?

Ocean marine insurance

Commercial general liability insurance

Equipment breakdown insurance

Commercial inland marine insurance

Question 18: A steam boiler at a Pennsylvania bakery cracks and bulges, damaging the vessel and shutting production for a week. The bakery's commercial property policy excludes explosion of steam boilers. Which coverage form was designed to respond to this loss?

Equipment breakdown protection coverage form

Business income coverage form

Legal liability coverage form

Builders risk coverage form

Question 19: A Pennsylvania farm owner reviews his farm coverage part and asks which coverage letter responds when a visitor is injured on the property and needs medical treatment without any finding of fault. Which farm coverage letter answers that question?

Coverage F

Coverage G

Coverage J

Coverage H

Question 20: A customer at a Pennsylvania hardware store trips over merchandise left in an aisle and breaks her hip, then sues the store for her injuries. Which coverage of the commercial general liability policy responds to the bodily injury she claims?

Coverage B

Coverage C

Supplementary payments

Coverage A

PPCI Pennsylvania Property and Casualty Insurance Exam - Set 4 - Part 1