PROPERTY INSURANCE EXAM

PDF Download

PROPERTY INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following statements is CORRECT about the Fair Credit

Reporting Act?

Answer:

It provides a method for an applicant to correct any incorrect information in the credit report.Question 2: 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?

Answer:

$80,000

Question 3: Which of the following terms BEST describes continuous and repeated exposure to conditions that are neither expected nor intended by the insured?

Answer:

Occurrence Question 4: X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a flood causes $1,000 in damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay?

Answer:

$0

Question 5: Which of the following perils is covered under the Commercial Property Basic Cause of Loss form?

Answer:

Sinkhole collapse Question 6: Actual cash value is most often defined as which of the following options?

Answer:

Replacement cost less depreciation Question 7: A company's promise to pay for damage caused by or resulting from any covered Cause of Loss would be found in which of the following sections of a Commercial Property policy?

Answer:

Insuring Agreement Question 8: Information provided by the insured in a Proof of Loss is considered:

Answer:

a representation Question 9: Which of the following businesses would be eligible for a Businessowners policy?

Answer:

Barber shop Question 10: Which of the following perils is covered by Broad Form perils but is not covered by the Basic Form?

Answer:

Weight of ice and snow Question 11: Special Form or Open Perils coverage:

Answer:

Is limited by the named exclusions Question 12: Which of the following sources may be used to provide property insurability information?

Answer:

Physical inspections

Question 13: A Commercial Building and Personal Property form provides coverage for:

Answer:

business personal property Question 14: All of the following perils are covered under a Building and Business Personal

Property Coverage Form with a Causes of Loss-Basic Form attached EXCEPT:

Answer:

earth movement Question 15: An insured owns an antique marble statue valued at $3,000, which is covered under a Personal Articles Floater. Damage to the statue would be covered in all of the following

situations EXCEPT:

Answer:

the insured threw it Question 16: Which of the following terms is defined as the uncertainty of future outcome?

Answer:

Risk Question 17: During a tornado, a barn is destroyed when a section of its wall is blown down, knocking over a lantern, which sets the barn on fire. The proximate cause of loss is the:

Answer:

tornado Question 18: Inland Marine insurance is commonly used to insure all of the following items

EXCEPT:

Answer:

automobiles Question 19: The Personal Liability section of a Homeowners policy covers which of the following options?

Answer:

Bodily injury caused by the personal activities of an insured

Question 20: In order to issue a written binder for a commercial property policy, what is the MINIMUM consideration a producer must secure from an applicant?

Answer:

A promise to pay the premium Question 21: N's next door neighbor, S, dumps hot ashes in N's trash dumpster, starting a fire and causing severe damage to N's home. N's company pays the loss and then goes after S for

payment. This is an example of:

Answer:

subrogation Question 22: A Commercial Package policy must include at least how many coverage parts?

Answer:

Two Question 23: Under a Personal Property Floater, a loss is covered when it occurs:

Answer:

anywhere in the world Question 24: All of the following options are examples of insurable interest EXCEPT:

Answer:

an individual's interest in property her parents will someday leave to her Question 25: An applicant's statement included in the insurance contract that the property to be

insured has an operable sprinkler system is:

Answer:

a warranty Question 26: Which of the following policy forms would BEST protect a business that must keep operating after a loss?

Answer:

Extra Expense