PPCI - Pennsylvania Property and Casualty Insurance Exam

Question 21: An underwriter compares two Pennsylvania commercial buildings. One has wood exterior walls and a wood roof, and the other has a concrete frame with a fire resistive rating. Which statement correctly describes how construction class affects the rating of these two risks?

Fire resistive construction rates higher than frame

Construction class does not affect rating

Frame construction rates higher than fire resistive

Both classes carry identical rates

Question 22: A Pennsylvania store owner leaves a spill on the floor for hours despite knowing about it, a customer slips and breaks a wrist, and the customer sues. To win the negligence claim, which set of elements must the injured customer establish against the store?

Duty, breach, proximate cause and damages

Intent, malice, damages and causation

Offer, acceptance, consideration and capacity

Peril, hazard, exposure and loss

Question 23: A pedestrian in Pittsburgh steps into traffic while looking at her phone and is struck by a driver who was speeding. The driver's attorney argues that the pedestrian's own carelessness should reduce her recovery. Which defense against negligence is the attorney raising?

Assumption of risk

Comparative negligence

Intervening cause

Last clear chance

Question 24: A delivery driver employed by a Lehigh Valley bakery runs a stop sign while making a scheduled delivery and injures another motorist. The injured motorist sues the bakery itself rather than only the driver. Which liability concept supports the claim against the employer?

Strict liability

Contractual liability

Vicarious liability

Contributory negligence

Question 25: Every fire insurance policy written on property located in Pennsylvania must conform to the Commonwealth's standard fire policy. Which statement correctly describes the loss settlement basis that the standard fire policy itself provides for the covered property after a loss?

Actual cash value at the loss

Replacement cost without depreciation

Market value at the time of sale

An amount agreed before issuance

Question 26: A Pennsylvania producer takes an application for fire coverage on a commercial building and tells the applicant by telephone that coverage is in effect while the underwriter reviews the file. Which statement correctly describes binders under the standard fire policy provisions?

Written only, up to ninety days

Approved by the Department first

Void unless premium is paid first

Oral or written, up to thirty days

Question 27: The named insured on a Pennsylvania basic property insurance policy dies, and the family needs time to settle the estate and decide whether to sell the house. Assuming premiums continue to be paid, how long does coverage continue after the named insured's death?

Until the next renewal date

One hundred eighty days, or until sale

Ninety days, with no exceptions

Coverage ends on the date of death

Question 28: A Pennsylvania commercial property policy has been in force for two years when the insurer decides not to renew it at expiration. On a second commercial account the insurer plans a renewal premium increase. Which notice periods apply, nonrenewal first?

Thirty days, then fifteen days

Fifteen days for both actions

Sixty days, then thirty days

Ninety days, then sixty days

Question 29: A producer in Chester County reviews four properties for possible dwelling policy coverage: a rented single-family house, a seasonal cabin, a four-unit building with boarders, and a working farm dwelling. Which of these properties is not eligible for a dwelling policy?

The rented single-family house

The seasonal cabin

The four-unit building with boarders

The working farm dwelling

Question 30: A Pennsylvania rental house is insured under a dwelling policy basic form with no optional perils added. Lightning splits a tree that falls on the roof, and separately a windstorm tears off siding. Which of these losses does the unendorsed basic form cover?

Only the lightning damage

Only the windstorm damage

Both losses in full

Neither loss

Question 31: An insured upgrades her rental property from the dwelling basic form to the broad form. Which group of causes of loss does the broad form add that the basic form, even with extended coverage and vandalism, does not provide?

Flood, earthquake and mine subsidence

Theft, mysterious disappearance and forgery

War, nuclear hazard and government seizure

Falling objects, ice weight, water discharge

Question 32: A Pennsylvania landlord buys a dwelling special form on a house he rents to a tenant, and he also keeps his own appliances and lawn equipment at the location. Which peril treatment applies to that personal property under the special form?

Open perils

Broad form perils

Basic form perils

No personal property coverage

Question 33: A dwelling policy on a Bucks County rental house shows two hundred thousand dollars of Coverage A. A detached garage on the same lot burns and the insured asks how much coverage applies to it. Which statement describes the Coverage B limit?

Ten percent of the Coverage A limit

The same as the Coverage A limit

Only what the insured schedules separately

No dollar limit applies

Question 34: A fire makes a Pennsylvania rental duplex uninhabitable. The owner loses the rent his tenant had been paying, and the owner's own family, who lived in the other unit, must stay in a hotel. Which two dwelling coverages respond to these separate losses?

Coverage A and Coverage B

Coverage B and Coverage C

Coverage D and Coverage E

Coverage C and Coverage D

Question 35: A Pennsylvania owner of a rented house wants coverage if a burglar takes the appliances and furnishings she supplied with the unit. Her producer reviews the unendorsed dwelling policy. Which statement correctly describes theft coverage under the dwelling program?

Covered in broad and special forms

Not automatic, added by endorsement

Covered in all dwelling forms

Excluded and cannot be added

Question 36: An insurer issues a dwelling policy on a Pennsylvania rental property and attaches the Special Provisions Pennsylvania endorsement to the contract. A candidate asks what that endorsement actually accomplishes. Which statement gives the best general description of its function?

It adds theft coverage free

It converts the form to open perils

It conforms the policy to Pennsylvania law

It removes the coinsurance requirement

Question 37: A producer reviews four applicants for homeowners coverage: an owner living in a single-family house, a renter in an apartment, an owner of a working farm with a farmhouse, and a condominium unit owner. Which applicant is ineligible for the homeowners program?

The owner of the working farm

The owner occupying a single-family house

The renter in an apartment

The condominium unit owner

Question 38: A tenant renting an apartment in Philadelphia wants coverage for her furniture, clothing and electronics, plus liability protection if a guest is hurt in her unit. She has no interest in insuring the building. Which homeowners form fits her situation?

The broad form

The special form

The unit-owners form

The contents broad form

Question 39: A Pennsylvania condominium owner needs coverage for her personal property along with the built-in cabinets, interior walls and floor coverings inside her unit, while the association insures the building itself. Which homeowners form is designed for her situation?

The contents broad form

The unit-owners form

The modified form

The comprehensive form

Question 40: An older stone house in a Pennsylvania river town would cost far more to rebuild with matching materials than it would ever sell for. The owner wants insurance that reflects that reality. Which homeowners form was designed for this circumstance?

The broad form

The special form

The unit-owners form

The modified coverage form

PPCI Pennsylvania Property and Casualty Insurance Exam - Set 2 - Part 2

Question 21: An underwriter compares two Pennsylvania commercial buildings. One has wood exterior walls and a wood roof, and the other has a concrete frame with a fire resistive rating. Which statement correctly describes how construction class affects the rating of these two risks?

Question 22: A Pennsylvania store owner leaves a spill on the floor for hours despite knowing about it, a customer slips and breaks a wrist, and the customer sues. To win the negligence claim, which set of elements must the injured customer establish against the store?

Question 23: A pedestrian in Pittsburgh steps into traffic while looking at her phone and is struck by a driver who was speeding. The driver's attorney argues that the pedestrian's own carelessness should reduce her recovery. Which defense against negligence is the attorney raising?

Question 24: A delivery driver employed by a Lehigh Valley bakery runs a stop sign while making a scheduled delivery and injures another motorist. The injured motorist sues the bakery itself rather than only the driver. Which liability concept supports the claim against the employer?

Question 25: Every fire insurance policy written on property located in Pennsylvania must conform to the Commonwealth's standard fire policy. Which statement correctly describes the loss settlement basis that the standard fire policy itself provides for the covered property after a loss?

Question 26: A Pennsylvania producer takes an application for fire coverage on a commercial building and tells the applicant by telephone that coverage is in effect while the underwriter reviews the file. Which statement correctly describes binders under the standard fire policy provisions?

Question 27: The named insured on a Pennsylvania basic property insurance policy dies, and the family needs time to settle the estate and decide whether to sell the house. Assuming premiums continue to be paid, how long does coverage continue after the named insured's death?

Question 28: A Pennsylvania commercial property policy has been in force for two years when the insurer decides not to renew it at expiration. On a second commercial account the insurer plans a renewal premium increase. Which notice periods apply, nonrenewal first?

Question 29: A producer in Chester County reviews four properties for possible dwelling policy coverage: a rented single-family house, a seasonal cabin, a four-unit building with boarders, and a working farm dwelling. Which of these properties is not eligible for a dwelling policy?

Question 30: A Pennsylvania rental house is insured under a dwelling policy basic form with no optional perils added. Lightning splits a tree that falls on the roof, and separately a windstorm tears off siding. Which of these losses does the unendorsed basic form cover?

Question 31: An insured upgrades her rental property from the dwelling basic form to the broad form. Which group of causes of loss does the broad form add that the basic form, even with extended coverage and vandalism, does not provide?

Question 32: A Pennsylvania landlord buys a dwelling special form on a house he rents to a tenant, and he also keeps his own appliances and lawn equipment at the location. Which peril treatment applies to that personal property under the special form?

Question 33: A dwelling policy on a Bucks County rental house shows two hundred thousand dollars of Coverage A. A detached garage on the same lot burns and the insured asks how much coverage applies to it. Which statement describes the Coverage B limit?

Question 34: A fire makes a Pennsylvania rental duplex uninhabitable. The owner loses the rent his tenant had been paying, and the owner's own family, who lived in the other unit, must stay in a hotel. Which two dwelling coverages respond to these separate losses?

Question 35: A Pennsylvania owner of a rented house wants coverage if a burglar takes the appliances and furnishings she supplied with the unit. Her producer reviews the unendorsed dwelling policy. Which statement correctly describes theft coverage under the dwelling program?

Question 36: An insurer issues a dwelling policy on a Pennsylvania rental property and attaches the Special Provisions Pennsylvania endorsement to the contract. A candidate asks what that endorsement actually accomplishes. Which statement gives the best general description of its function?

Question 37: A producer reviews four applicants for homeowners coverage: an owner living in a single-family house, a renter in an apartment, an owner of a working farm with a farmhouse, and a condominium unit owner. Which applicant is ineligible for the homeowners program?

Question 38: A tenant renting an apartment in Philadelphia wants coverage for her furniture, clothing and electronics, plus liability protection if a guest is hurt in her unit. She has no interest in insuring the building. Which homeowners form fits her situation?

Question 39: A Pennsylvania condominium owner needs coverage for her personal property along with the built-in cabinets, interior walls and floor coverings inside her unit, while the association insures the building itself. Which homeowners form is designed for her situation?

Question 40: An older stone house in a Pennsylvania river town would cost far more to rebuild with matching materials than it would ever sell for. The owner wants insurance that reflects that reality. Which homeowners form was designed for this circumstance?

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