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Louisiana Property & Casualty Insurance Course Exam Already Passed!!
Question: Which one of the following is NOT a possible
defense against negligence?
- Statute of Limitations
- Doctrine of Reasonable Expectation
- Intervening Cause
- Comparative Negligence
Correct Answer: Doctrine of Reasonable Expectation
Question: What is a hazard?
Correct Answer: An increase in the possibility that a loss
might occur
Question: What is the purpose of insurance?
Correct Answer: Transfer risk from a person, business or
organization to an insurance company
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Question: What is the type of insurance company in
which the policyholder is considered an owner, with the right to vote and share profits?
Correct Answer: Mutual Company
Question: What is the renewal fee for a Louisiana
Producer License?
Correct Answer: $50
Question: What is the federal law that says the federal
government can only regulate insurance companies to the extent they are not regulated by state law?
Correct Answer: McCarran-Ferguson Act
Question: An insurance policy is prepared by the
insurance company, with little or no input from the insured. This means that an insurance policy is a/an
________
Correct Answer: Adhesion Contract
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Question: An individual who owns and lives in a
condominium can obtain broad coverage for personal property in the condo under which homeowners form?
Correct Answer: HO-6
Question: What rating method involves modifying the
premium based on the insured's loss experience over a specific period of time?
Correct Answer: Experience Rating
Question: Which one of the following types of benefits is
generally not provided by a state's workers compensation law?
Correct Answer: Pain & Suffering
Question: Which of the following describes an insurance
company doing business in a state other than the one where it is incorporated?
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Correct Answer: Foreign
Question: What type of insurance policy insures against
all risk of loss that are not specifically excluded by the policy?
Correct Answer: Open Peril Policy
Question: Which of the following describes actual cash
value?
Correct Answer: Replacement Cost-Depreciation
Question: An insured purchased new furniture for $6,000.
At the time of a fire loss, it had depreciated $2,000. The same furniture will cost $7,000 to replace. What is the actual cash value of the destroyed furniture?
