PPCI Pennsylvania Property and Casualty Insurance Exam - Set 2 - 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: A Pennsylvania family carries an unendorsed special form homeowners policy. A neighbor's car strikes their detached garage, and separately a thief takes a laptop from the living room. Which peril basis applies to the stolen laptop under this form?

Broad named perils, including theft

Open perils, excluding theft

Basic named perils only

No coverage for theft losses

Question 42: A burglar takes a Pennsylvania insured's diamond ring, a shotgun and a set of sterling silver flatware. The producer explains that the homeowners form applies a separate dollar cap to each of these classes. Which statement correctly describes how those special limits operate?

They apply to every cause of loss

They replace the policy deductible

They apply to theft of certain classes

They apply only away from home

Question 43: A guest trips on a Pennsylvania insured's porch step and needs stitches. The insured was not negligent, but he wants the medical bills paid to keep goodwill with his neighbor. Which homeowners coverage responds without any finding of fault?

Coverage F, medical payments to others

Coverage E, personal liability

Damage to property of others

Loss assessment coverage

Question 44: A Pennsylvania homeowner's dog bites a delivery driver on a public sidewalk two blocks from the house, and the driver sues for his injuries and lost wages. Which homeowners coverage responds to that suit, and where does it apply?

Coverage F, only at the residence premises

Coverage C, only on the insured location

Coverage D, only during displacement

Coverage E, anywhere in the world

Question 45: A Pennsylvania insured's teenage son throws a baseball through a neighbor's picture window. The neighbor is upset, and the insured wants the window fixed even though he doubts he is legally liable. Which homeowners additional coverage lets the insurer pay anyway?

Loss assessment coverage

Medical payments to others

Damage to property of others

Fire department service charge

Question 46: A homeowners association in a Pennsylvania development suffers an uninsured shortfall after a covered loss to a shared clubhouse and charges each unit owner a share of the cost. Which homeowners additional coverage responds to the charge levied against an insured member?

Damage to property of others

Loss assessment coverage

Ordinance or law coverage

Collapse coverage

Question 47: A Pennsylvania homeowner asks whether her policy would respond if a nearby creek overflowed into her basement or if ground shifting cracked her foundation. Which statement correctly describes how the homeowners forms treat those two causes of loss?

Both are covered by the special form

Flooding is covered, earth movement is not

Both are excluded in all homeowners forms

Earth movement is covered, flooding is not

Question 48: A Pennsylvania homeowner insures her dwelling for two hundred forty thousand dollars when its replacement cost is three hundred thousand dollars. A partial fire loss follows. Which statement correctly describes the loss settlement basis that applies to the damaged dwelling?

Replacement cost, because eighty percent is carried

Actual cash value, because coverage is short

Market value, because the home is older

Functional replacement cost, by insurer election

Question 49: A Pennsylvania insurer decides to cancel a homeowners policy that has been in force for three years, citing a substantial increase in hazard, and it sends the required written notice. How long does the insured have to request that the Commissioner review the action?

Twenty days from receipt

Ten days from receipt

Thirty days from receipt

Sixty days from receipt

Question 50: A Pennsylvania homeowners policy is issued with the Personal Property Replacement Cost Pennsylvania endorsement attached. A five-year-old sofa is destroyed by a covered fire. How does this endorsement change the settlement compared with the unendorsed policy?

It removes the policy deductible for contents

It raises the special limits on jewelry

It extends coverage to property of tenants

It pays without deducting depreciation

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