Pearson VUE Property Insurance Practice Exam
Questions with Correct Answers 100% Verified
Graded A+
1. S is purchasing a Commercial Property policy to cover a commercial build- ing 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
Answer: C ||
2. The MAXIMUM amount a policy will pay in the event of a loss is called the
|| || || || || || || || || || || || || || ||
A. coinsurance amount ||
B. deductible
1
||/
,C. limit of liability|| ||
D. pro rata return
|| ||
|| Answer: C ||
3. The NationalFlood Insurance Program provides coveragefor lossescaused by all of
|| || || || || || || || ||
the following occurrences EXCEPT
|| || || ||
A. mudslides
B. runoff from heavy rain || || ||
C. overflow of tidal waters || || ||
D. water-main breakage ||
Answer: D
|| |
4. Special Form or Open Perils coverage:
|| || || || ||
A. Provides coverage against the named perils
|| || || || ||
B. Provides coverage against scheduled risks
|| || || ||
C. Is limited by the named exclusions
|| || || || ||
2
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, D. Includes no exclusions || ||
Answer: C
|| |
5. Which of the following businesses would be eligible for a Businessowners policy?
|| || || || || || || || || || ||
A. Auto body shop || ||
B. Theater
C. Branch bank ||
D. Barber shop ||
Answer: D
|| ||
6. 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
A. fire
B. collapse of the wall || || ||
C. tornado
3
||/
Questions with Correct Answers 100% Verified
Graded A+
1. S is purchasing a Commercial Property policy to cover a commercial build- ing 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
Answer: C ||
2. The MAXIMUM amount a policy will pay in the event of a loss is called the
|| || || || || || || || || || || || || || ||
A. coinsurance amount ||
B. deductible
1
||/
,C. limit of liability|| ||
D. pro rata return
|| ||
|| Answer: C ||
3. The NationalFlood Insurance Program provides coveragefor lossescaused by all of
|| || || || || || || || ||
the following occurrences EXCEPT
|| || || ||
A. mudslides
B. runoff from heavy rain || || ||
C. overflow of tidal waters || || ||
D. water-main breakage ||
Answer: D
|| |
4. Special Form or Open Perils coverage:
|| || || || ||
A. Provides coverage against the named perils
|| || || || ||
B. Provides coverage against scheduled risks
|| || || ||
C. Is limited by the named exclusions
|| || || || ||
2
||/
, D. Includes no exclusions || ||
Answer: C
|| |
5. Which of the following businesses would be eligible for a Businessowners policy?
|| || || || || || || || || || ||
A. Auto body shop || ||
B. Theater
C. Branch bank ||
D. Barber shop ||
Answer: D
|| ||
6. 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
A. fire
B. collapse of the wall || || ||
C. tornado
3
||/
