Ohio Property & Casualty Practice Test

Answer choices

1. A. Insurance is conditional: the insurer's performance can depend on the insured satisfying stated policy conditions.
2. B. Insurance is a contract of adhesion: therefore the insured may disregard clear conditions.
3. C. Insurance is a wagering contract: therefore compliance matters only when a loss is intentional.
4. D. Insurance is aleatory: therefore duties after loss are optional if the loss was accidental.

Wrong-answer review

• B. Insurance is a contract of adhesion: therefore the insured may disregard clear conditions.: Incorrect. Adhesion does not make unambiguous policy conditions optional.
• C. Insurance is a wagering contract: therefore compliance matters only when a loss is intentional.: Incorrect. Insurance requires insurable interest and is not treated as a wagering agreement.
• D. Insurance is aleatory: therefore duties after loss are optional if the loss was accidental.: Incorrect. Aleatory concerns uncertain exchange, not whether contractual duties are enforceable.

Answer choices

1. A. Complete twenty-four hours of continuing education, including three hours of ethics.
2. B. Work for an appointed insurer for at least six months before scheduling the examination.
3. C. Complete twenty hours of approved prelicensing study for each requested line of authority.
4. D. Submit proof that he has already sold property and casualty insurance under supervision.

Answer choices

1. A. Spoilage (CP 04 40), because demolition is treated as spoiled property.
2. B. Ordinance or Law (CP 04 05).
3. C. Value Reporting Form (CP 13 10), because reporting values automatically pays demolition costs.
4. D. Peak Season Limit of Insurance (CP 12 30), because code enforcement temporarily raises property values.

Answer choices

1. A. Building property coverage is implicated because the accident happened inside the insured building.
2. B. Business liability coverage for bodily injury is implicated because the claim alleges accidental bodily injury arising from the insured's premises operations.
3. C. Employee dishonesty coverage is implicated because an employee may have failed to place the warning sign.
4. D. Business income coverage is implicated because the accident may temporarily disrupt store operations.

Answer choices

1. A. The standard mortgage clause, which can preserve the mortgagee's separate protection when the mortgagee satisfies its own policy obligations.
2. B. The vacancy condition, which automatically transfers coverage to the lender.
3. C. The pro rata other-insurance clause, which assigns ownership of the building to the lender.
4. D. The no-benefit-to-bailee clause, which protects a bailee from liability for damaged property.

Answer choices

1. A. Drive Other Car coverage, because the shop employee operated a non-owned vehicle.
2. B. Business auto medical payments, because the damaged vehicle is treated as an injured person.
3. C. Trailer interchange coverage, because the customer temporarily transferred possession of a vehicle.
4. D. Garagekeepers coverage, which addresses covered loss to a customer's auto while it is in the repair shop's care, custody, or control.

Answer choices

1. A. NFIP building coverage automatically includes the full value of household personal property because contents are treated as part of the insured residential building rather than separately limited coverage.
2. B. NFIP coverage is unlimited once the community participates in the program, so policy limits need not be selected.
3. C. NFIP coverage is subject to federal maximum limits and separate limits for building and contents; it is not unlimited coverage.
4. D. NFIP limits are set solely by each Ohio insurer because FEMA does not establish policy limits.

Answer choices

1. A. $50,000 bodily injury per person, $100,000 per accident, and $50,000 property damage.
2. B. $100,000 bodily injury per person, $300,000 per accident, and $50,000 property damage.
3. C. $15,000 bodily injury per person, $30,000 per accident, and $10,000 property damage.
4. D. $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage per accident.

Answer choices

1. A. The condition is treated as accidental bodily injury rather than occupational disease because workers' compensation requires a single identifiable traumatic event before a disease claim is compensable.
2. B. The claim may involve an occupational disease because the condition is alleged to arise from employment-related exposure rather than a single accident.
3. C. Workers' compensation addresses traumatic injuries, while long-term employment disease is handled through employers liability instead.
4. D. The claim is a general-liability exposure because a disease that develops gradually is outside the workers' compensation system.

Answer choices

1. A. Commercial umbrella insurance is first-party cargo coverage when shipment value exceeds the property limit because the umbrella supplies additional limits over all scheduled commercial policies.
2. B. Homeowners Coverage C is the primary commercial form for overseas cargo owned by an importing business.
3. C. Ocean marine cargo insurance is designed to cover qualifying goods in international marine transit, subject to the policy terms.
4. D. Workers' compensation covers cargo because employees ultimately handle the goods after arrival.