EXAM FX, VA PROPERTY CASUALTY INSURANCE

EXAM FX, VA PROPERTY & CASUALTY INSURANCE

EXAM LATEST ACTUAL EXAM 250 QUESTIONS

AND CORRECT DETAILED ANSWERS WITH

RATIONALES (VERIFIED ANSWERS) |ALREADY

GRADED A+

A business using its own trucks to move its own cargo would insure the cargo using... A. Motor carrier form

• Trip transit coverage
• Motor truck cargo - owners form
• Motor truck cargo - truckers form - ANSWER- C

The extra expense coverage form provides...

• Extra money for an insured whose accounts receivable records

have been damaged

• Additional money to pay for property damage losses at a covered

location

• Payment for unforeseen expenses an insured may incur while the

business is shut down following a property damage loss

• Coverage that will permit the insured to continue in business

without interruption following a property damage loss - ANSWER- D

Under the HO4 and HO6 homeowners policy forms, property is insured against...

• Special form perils
• Comprehensive form perils

• Broad form perils
• Basic form perils - ANSWER- C

Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT A. Computer software

• Canoes
• Animals and birds
• Hobby aircrafts - ANSWER- C

The most the insurer will pay for a loss under a business owners policy is...

• 80% of the loss
• 20% of the loss
• The limit of insurance after the deductible is paid
• The amount of the loss minus the deductible - ANSWER- C

Under the provisions of the business income coverage form, all of the following are true EXCEPT...

• The insured is reimbursed for payroll that continues after the loss

begins

• The insured is reimbursed for the loss from the date of loss to date

of restoration or policy expiration date, whichever comes first

• If the insured and insurer are unable to come to agreements as to

the value of the loss, either party may make a written demand for an appraisal

• The insured agrees to resume all of part of operations as quickly

as possible - ANSWER- B

A grave marker was damaged by vandals. It would cost $3000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay?

A. $1000

B. $3000

• $0

D. $500 - ANSWER- B

Under the Commercial Property Coverage program, the Basic Causes of Loss form insures against loss caused by...

• Power failure off the premises
• Sprinkler leakage
• Earth movement
• Nuclear hazard - ANSWER- B

In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer?

• Beneficiary
• Insurer
• First named insured
• Last named insured - ANSWER- C

Uncle Billy's Burger Bar was forced to close for 10 days in August when the power company's transformer was destroyed by lightning, and Uncle Billy was without electricity. Which of the following endorsements could be added to Billy's business owners policy that would provide protection against loss of income from such events?

• Utility services - time element endorsement

• Utility services - direct damage endorsement
• Personal injury endorsement
• Protective safeguard endorsement - ANSWER- A

Individuals in the business of selling construction equipment and mobile equipment should insure with... A. A contractor's equipment floater

• An installation floater

C. A PFF

• Equipment dealers coverage form - ANSWER- D

How long is the waiting period after the application has been accepted before flood coverage goes into effect?

• 30 days

An endorsement is available for hired and nonowned auto on BOP liability...

• Only if the insured does not have commercial auto coverage
• In addition to commercial auto coverage
• Only if the insured has 4 or more employees
• Never

A

The Mail Coverage Form is always written on a reporting form basis; after the end of each reporting period shown in the declarations, reports are due within...

• 45 days
• 15 days
• 30 days
• 31 days

C