PEARSON VUE: PROPERTY INSURANCE PRACTICE EXAM QUESTIONS AND ANSWERS

PEARSON VUE: PROPERTY INSURANCE PRACTICE EXAM QUESTIONS AND ANSWERS
Question : S is purchasing a Commercial Property policy
to cover a commercial building with a replacement cost of
$100,000. The policy includes an 80 percent Coinsurance
clause. To avoid a coinsurance penalty in the event of a
partial loss, S should purchase a policy with minimum
limits of AT LEAST which of the following amounts?
A. $100,000
B. $90,000
C. $80,000
D. $20,000
CORRECT ANSWER: C
Question : The MAXIMUM amount a policy will pay in
the event of a loss is called the:
A. coinsurance amount
B. deductible
C. limit of liability

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