SCPCIP - South Carolina Property and Casualty Insurance Producer Exam

Question 21: A family plans a driving vacation and wants to know where the personal auto policy will follow their covered auto. They intend to cross a national border on the trip. Which of the following correctly states the policy territory of the standard form?

The United States and Mexico only

Anywhere in the world without restriction

Only the state shown in the declarations

The United States, its territories and Canada

Question 22: Liability an insured assumes under a contract is generally excluded by Coverage A, but a short list of agreements survives the exclusion. A business signs an elevator maintenance agreement. Which term describes agreements that escape the contractual liability exclusion?

Named perils agreements

Insured contracts

Supplementary agreements

Additional insured endorsements

Question 23: An insurer decides not to renew a commercial general liability policy at the end of its term. The policy's nonrenewal condition sets out what the insurer must do and whom it must notify. Which of the following describes that requirement?

Verbal notice to any insured before expiration

Written notice to every listed insured immediately

Notice to the mortgagee ten days ahead

Written notice to the first named insured

Question 24: Coal miners who spend decades underground frequently develop black lung, a condition traced directly to the type of work they perform rather than to any single accident. Which workers compensation term describes a medical condition caused by a specific type of employment?

A noncompensable injury

An occupational disease

An exempt classification

A common law defense

Question 25: While backing a covered auto out of a rented storage bay, the named insured crushes the bay's overhead door. Part A of his personal auto policy will not respond to the damage claim from the storage company. Which of the following explains that result?

Property rented to the insured is excluded

Property damage is never covered under liability

The auto was a temporary substitute

Backing accidents fall outside the policy territory

Question 26: Four employees report mishaps to the same employer: one hurt driving to work, one who fell at home, one who choked on gum in the lunchroom, and one who fractured an arm on the assembly line while working overtime. Which claim is compensable?

The daily commute injury

The fall at the employee's home

The lunchroom choking incident

The assembly line fracture during overtime

Question 27: A restaurant wants coverage for cash and checks stolen from the register area, and also for the deposit a manager carries to the bank at the end of each night. Which pair of crime coverages addresses money and securities in both of these places?

Inside the premises and outside the premises

Employee theft and forgery or alteration

Computer fraud and funds transfer fraud

Guests' property and extortion coverage

Question 28: Damage occurs in May while a contractor's claims-made policy is in force. That policy expires, and the replacement claims-made policy is written with its retroactive date set at the original effective date of the prior policy. A claim arrives four months later. Which policy responds?

The expiring policy covers the claim

Neither policy provides any coverage

The replacement policy covers the claim

The claim is split between both policies

Question 29: A covered auto swerves to avoid a deer, strikes a utility pole and rolls onto its side in a ditch. The owner asks which physical damage coverage on the business auto form pays for the wrecked vehicle. Which coverage applies to this loss?

Other than collision

Collision

Towing and labor costs

Specified causes of loss

Question 30: A manufacturer's employee runs an errand for the company in his own car and injures a pedestrian. The employer's business auto form covers nonowned autos, and other insurance on the vehicle also applies. How does the business auto form respond to this loss?

It is excess over the other insurance

It is primary over the other insurance

It pays nothing at all

It pays the entire loss first

Question 31: A single explosion injures six employees of one insured, and each brings an employers liability claim against the employer. The insured asks how Part Two of the workers compensation policy caps what the insurer will pay. Which limit governs?

Bodily injury by disease, policy limit

Bodily injury by disease, each employee

Bodily injury by accident, each accident

A separate limit for each employee

Question 32: A warehouse worker injured on the job asks a producer to list everything the workers compensation system will provide. The producer names medical care, wage replacement, survivor payments, burial expense and rehabilitation. Which item below is not a workers compensation benefit?

Vocational retraining for another occupation

Damages for pain and suffering

Weekly payments to a surviving spouse

Physical therapy after a back injury

Question 33: A producer explains that one liability limit option gives the insured a single pot of money that responds to bodily injury and property damage together, without separating the two or dividing the money per person. Which of the following describes that arrangement?

Split limits

An aggregate limit

A per-person sublimit

A combined single limit

Question 34: A warehouse fire injures a visitor in November of one year while ABC Mutual insures the business on an occurrence form. The injured visitor first files a claim two years later, after the policy has expired. Which insurer responds to the claim?

ABC Mutual, the insurer at the time

The insurer on the risk when reported

Neither insurer, since the policy expired

Both insurers share the loss equally

Question 35: A loss occurs on May thirtieth while a claims-made policy is in force. That policy expires and a new claims-made policy takes effect July first with its retroactive date equal to its own effective date. A claim is filed September thirtieth. What is the result?

The expiring policy pays the claim

Neither policy covers the claim

The new policy pays the claim

Both policies contribute by equal shares

Question 36: Thieves entered an office through an unlocked door, could not open the bolted floor safe, and instead hauled the entire safe away with its contents. Which commercial crime definition covers both this taking and a forced entry into a locked safe?

Safe burglary

Burglary of the described premises

Robbery of a watchperson

Forgery or alteration of instruments

Question 37: An architect, a consulting engineer, and a stockbroker each want protection against claims that the work they performed for clients fell short of accepted professional standards. Which form of professional liability insurance is written for nonmedical professionals such as these three?

Medical malpractice insurance

Fiduciary liability insurance

Directors and officers liability insurance

Errors and omissions insurance

Question 38: Split liability limits are printed as three numbers on the declarations page of a personal auto policy. The second of those three numbers controls one specific thing. Which of the following does that middle figure represent under Part A of the policy?

The most paid for all bodily injury

The most paid to one injured person

The most paid for property damage

The deductible applied to each liability claim

Question 39: A commercial general liability policy names a limited liability company as the named insured. The producer must explain which additional persons qualify as insureds and the limits on their status. Which of the following correctly describes who is an insured?

Stockholders and directors of the company

Partners and their spouses only

The named insured's spouse in all activities

Members conducting business and managers performing duties

Question 40: A driver who caused a serious crash carries liability insurance, but his limits run out well before the insured's medical bills are paid in full. The insured has purchased every optional auto coverage available. Which of the following coverages closes that gap?

Underinsured motorists coverage

Uninsured motorists coverage

Other than collision coverage

Medical payments coverage

SCPCIP South Carolina Property and Casualty Insurance Producer Exam - Set 4 - Part 2