South Dakota Property and Casualty Practice Exam

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• What is the goal of joint reinsurance plans established by insurers?
• What is the best explanation of liability insurance?
• Which of the following is not considered an Additional Coverage under the Businessowners Coverage Form?
• What type of insurance provides coverage for bodily injury and property damage arising from the use of vehicles?
• Which type of coverage is written with a per occurrence limit?
• How many days before the effective cancellation date must a cancellation notice be mailed or delivered to the named insured if the policy has been in force for 60 or more days?
• Which form of auto insurance coverage protects against damages caused by an uninsured driver?
• Which source of liability would a trucker be liable for under a Motor Carrier Coverage Form?
• Which party may assign a standard property policy?
• Risk is defined as what?
• Upon which principle is insurance based that protects against financial loss?
• How is Actual Cash Value defined in property insurance?
• Which order can restrict a person from violating a competition act in insurance?
• In the case where Z's activities led to an explosion due to negligence of B, what legal principle applies?
• When is a person likely to purchase a value reporting form?
• Which of the following statements is true regarding the certification of insurance producers?
• Structures separated by clear space from the dwelling are covered under which part of the Homeowners Policy?
• What must a producer do to act as an agent of an insurer?
• Which type of injury is not covered under a Workers' Compensation policy?
• If M and C both have Personal Auto policies with liability limits of 20/30/10, which policy provides coverage if M borrows C's car and injures a pedestrian?
• What is the primary purpose of the Businessowners Policy?
• A notice of nonrenewal of a commercial policy must be delivered at least how many days before the expiration of the policy?
• What is the purpose of an insurance underwriting process?
• Which method establishes how insurance companies will pay when other insurance also applies?
• What must be provided in writing when using Nonoriginal Equipment Manufacturer (Non-OEM) aftermarket parts in vehicle repairs?
• Which of the following is not covered by the CGL's general aggregate limit?
• Which type of coverage is included in most property insurance policies to include new acquisitions?
• How often must each licensee furnish evidence of completed continuing education requirements?
• How many days does a producer have to report a felony criminal prosecution to the Director after the initial hearing?
• What determines the coverage for personal property under a standard homeowners policy?
• Which consequence may result from falsifying material information on insurance documentation?
• Which of the following claims would not be covered under Workers' Compensation Insurance?
• Which of these best describes the primary function of insurance?
• Which one of the following is not an unfair claims settlement practice?
• A mandatory deductible of what amount applies to completed operations claims under Section II of the Garage Coverage Form?
• What term describes rates after an insurance company files for approval and implements them?
• What is the term for offering any return of premiums or valuable consideration not specified in the policy?
• Which factor is most important when determining an individual’s life insurance premium?
• What is the purpose of the FAIR Plan?
• Which part of an insurance claim process typically involves mitigation of damages?
• All of the following are common law defenses against negligence, except?
• What information is typically included in the common policy declarations of the Commercial Package Policy (CPP)?
• Which section of the Commercial General Liability (CGL) policy deals specifically with body injury/property damage?
• Which section of the Garage Coverage Form provides physical damage coverage for the insured's covered autos?
• Which clause would you find in the conditions section of an insurance policy?
• What must insurers provide to mitigate claims issues?
• What is the term used for proof of ability to respond in liability damages required under South Dakota laws?
• What type of damages compensates for non-economic losses such as pain and suffering?
• What does the Personal Liability Supplement to the Dwelling policy provide?
• Which statement is NOT true of liability policies?
• The South Dakota Insurance Guaranty Association provides what type of protection?
• What action can lead to a Class 1 misdemeanor charge for insurance agents?
• Which of the following is classified as a hostile fire?
• What term describes the equal sharing of a loss by multiple insurers until the loss is entirely paid?
• What is the term for the provision that outlines how coverage will be affected when multiple insurances are applicable to a loss?
• What can the Director issue if a violation is charged and not discontinued?
• How many days must a notice of cancellation be mailed before the effective cancellation date?
• How many days does an insurer have to file a notice of appointment for an insurance producer after executing the agency contract?
• How long after a loss does the Period of Restoration begin for Business Income coverage?
• Which of the following statements regarding Multi-Peril Crop Insurance is correct?
• Which coverage would provide compensation for injuries sustained while an insured is volunteering at a community event?
• What is an example of vicarious liability?
• Under which condition may a policyholder's coverage be voided?
• Structures attached to the dwelling are included under which coverage?
• Which term refers to both the premium paid by the insured and the insurer's promise to pay a covered loss?
• Which one of the following is not a violation of the state's producer regulations?
• To which scenario would CGL Medical Payments apply?
• Which of the following coverages would be provided under a standard auto policy?
• When a property insurance policy states that damaged property will be replaced with functionally similar property, what is this called?
• Which types of damages are awarded to cover medical expenses and loss of earnings?
• The Running Down Clause would cover which of the following claims?
• What usually happens if a replacement cost basis is applied to an insured property during a claim?
• What coverage can be found in Section I of a Commercial General Liability (CGL) policy?
• For nonpayment, how much notice is required for cancellation under the South Dakota dwelling endorsement?
• What is NOT a supplemental automobile insurance coverage that must be offered to insureds?
• Under the Businessowner Policy (BOP), what is the insurer's obligation after a loss when other insurance is written on the same basis?
• What term describes the situation when two policies covering the same property have different policy periods?
• What type of property insurance do Fair Access to Insurance Requirements (FAIR) Plans provide access to in urban areas?
• What endorsement covers the loss of money, securities, or property resulting from a threat to the insured?
• Which of the following is attached to a property and casualty insurance policy to amend policy provisions or conditions?
• Which of the following describes a hostile fire?
• Exclusive remedy means that:
• In a Commercial Property policy, which coverage would apply to stock held by the insured?
• What is the purpose of requiring financial responsibility for vehicle registration under South Dakota law?
• The general term for incidents involving property theft is:
• Which type of policy typically covers personal property while it's being transported?
• Who is not considered an insured under a Businessowners Policy (BOP)?
• Which of the following information is included in a certificate of insurance?
• What type of insurance policy provides coverage for rental income after a property is damaged?
• What does CGL stand for in insurance terminology?
• Which of the following best defines short-rate cancellation?
• What is the classification for a producer or surplus lines broker who knowingly makes a false or fraudulent material statement on an insurance document?
• Which statement is true regarding Dwelling policies?
• How is the coverage limit for signs attached to a building typically expressed in the Businessowners Policy?
• All of the following are considered uninsured motor vehicles, except:
• Which of the following definitions best represents "coverage" in an insurance context?
• Which is a benefit of joint reinsurance for insurers?
• Which of the following is not an element of a temporary total disability?
• Which of the following losses would be covered under all Dwelling forms?
• What principle refers to the sharing of the financial burden between multiple insurances for the same loss?
• Which statement is not true about Uninsured Motorist coverage?
• Which of the following is not true about an insurance policy?
• In property insurance, what principle allows the insurer to take possession of damaged property after paying the loss?
• Which of the following is an example of coverage for structures attached to a building?
• What is the generally accepted valuation method for property insurance?
• What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail storm?
• Which of the following describes the policy liability limits that may be applied to either bodily injury or property damage, in any combination?
• Which of the following is automatically covered under the Businessowners Policy?
• In South Dakota, what happens if a policyholder fails to pay the renewal fee on their license?
• What type of claims are covered under Aircraft Liability Insurance?
• Which Homeowner Policy Form should a tenant purchase?
• What signifies the maximum amount an insurance company will pay for a covered loss?
• When damages are reduced in proportion to the degree of negligence, this concept is referred to as:
• What type of damage is covered by a liability policy?
• Under Part F of the Personal Auto Policy, what happens when two or more auto policies are issued by the same insurer for the same auto?
• Which of the following statements about medical payments is true?
• What section is NOT typically part of the standard policy structure for insurance policies?
• What constitutes a clear definition of financial responsibility within South Dakota's vehicle registration laws?
• Which of the following is covered under a standard homeowners insurance policy?
• What can broaden the coverage found in an insurance policy?
• What type of plans or associations are formed by insurers to provide for the equal distribution of risks?
• Choose the statement that is false regarding the Business Auto Coverage Form.
• Which of the following is considered a valid defense against unfair claims practices?
• Which component is not included in supplemental automobile insurance coverages?
• Which of the Dwelling Policy forms does not cover damage by burglars?
• Which of the following scenarios typically requires a surety bond?
• What is the formal statement called that verifies details for the insurer to determine liability?
• What type of risk does liability insurance primarily cover?
• Short-rate cancellation occurs when:
• Which of the following can trigger coverage under a liability insurance policy?
• What type of coverage applies to personal property while being transported?
• The Personal Articles Floater specifically covers which type of items?
• K gets a horrible rash after using wrinkle-prevention cream for 2 months. How is this situation classified?
• Within how many days of the initial pretrial hearing date must a producer report any felony criminal prosecution to the Director?
• What is the minimum age required for a resident individual applying for an insurance producer license?
• Making any false oral or written statement that intends to injure someone in the insurance business is known as what?
• The Commercial Property Basic Cause of Loss Form will cover losses caused by which of the following?
• What principle prevents all recovery for injuries if the claimant was also considered partially negligent?
• Under the Businessowners Policy, how will the policy respond if there is other insurance covering the same loss?
• Under what circumstance can the Director impose a monetary penalty on an insurance producer?
• What is the primary purpose of the Businessowners Policy (BOP)?
• Which provision specifies that coverage does not extend to parties storing or moving insured items for a fee?
• Which of the following is true regarding the Business Auto Coverage Form?
• Which of the following conditions would not be found in Section IV of the CGL?
• What is the term for the provision that prohibits transferring an insured's interest in a property insurance policy without consent from the insurance company?
• What is true regarding an aggregate limit in an insurance policy?
• Which option is not classified as a type of Personal and Advertising Injury under the Comprehensive General Liability (CGL) policy?
• Which person is typically not considered an insured under a Homeowners Policy?
• What best describes damage from artificially generated electrical current?
• What is the definition of consideration in relation to contracts?
• What can the Director NOT do regarding an insurance producer's license?
• Insurance is an example of which type of risk management technique?
• Which legal term describes the limit on claims that an insurer will pay during a policy period?
• Which of the following is true regarding the Earthquake Cause of Loss Form?
• How often must all licenses and appointments be renewed to remain in force?
• Who operates an Insurance Fraud Division in South Dakota?
• When an insured acquires a building under a Businessowners policy, how long is it automatically covered?
• Which of the following is NOT covered under the Specified Causes of Loss in the Physical Damage Coverage of the Business Auto Coverage Form?
• When property is valued on a replacement cost basis, how will losses be paid?
• What must the insured do for the loss to be covered under a standard property policy?
• Which of the following is typically excluded from a standard homeowners policy?
• In how many years must licensees report their continuing education accomplishments?
• The taking of property from inside the premises by a person committing forcible entry defines a:
• Which of the following accurately describes the application of 'absolute liability' in insurance?
• What does Part D of the Personal Auto Policy cover?
• A binder is valid for up to how many days from its effective date or until the policy issuance?
• All of the following are excluded from the Workers' Compensation Law, except:
• What process is used to settle disputes between an insurer and an insured?
• Endorsements that coordinate Commercial Package Policy (CPP) coverages to avoid duplication are known as:
• What is the limit for the South Dakota Insurance Guaranty Association's obligation to claimants for covered claims, excluding Workers' Compensation?
• What is the legal term for the document that outlines the terms and conditions of an insurance policy?
• What happens under the Other Insurance condition when two property policies cover the same loss?
• Which clause protects the interests of the loss payee?
• What type of liability does a company hold when engaged in inherently dangerous activities, such as connecting gas lines?
• What percentage of Coverage A is typically provided for personal property under a Homeowners Policy?
• Which statement is false regarding the completed operations exposure?
• Coverage B of a dwelling policy will not apply to a detached garage if which of the following is being stored?
• Which term best defines the absence of coverage for an individual or entity that has taken possession of insured property for a fee?
• Which of the following is covered under a Personal Auto Policy?
• What type of insurance insures against losses arising from employee negligence?
• In order for liability insurance to respond, which condition must be met?
• How is property damage due to negligence usually interpreted in liability coverage?
• Which of the following is NOT a consequence of negligence in the legal framework of liability?
• What type of crime is property stolen from inside the premises by someone forcibly entering or leaving?
• Which of the following practices is illegal in the context of claims handling?
• What is the standard coverage option for property damage in the Commercial General Liability (CGL) policy?
• What type of property must be insured in South Dakota against loss by fire, tornado, or lightning?
• According to South Dakota Workers' Compensation Law, compensation is allowed for injury or death due to which of the following?
• Which of the following is true regarding an unendorsed HO-4?
• What term describes the situation that occurs when two policies covering the same property contain different policy periods?
• What is typically required before an insurance company can cancel a policy?
• The Workers' Compensation Policy Conditions Section includes which of the following?
• How long must a producer keep records of transactions under their license after completion?
• When a person causes an accident by running a stop sign, what legal term describes their action?
• Which of the following is true about workers' compensation coverage in South Dakota?