PearsonVue Practice Exam 1
Questions & Answers (Grade A+)
Which of the following persons may assign a Standard Fire Policy? -
correct answer ✅A Claims Adjuster
Under the standard flood insurance policy, all of the following loss
avoidance measures are covered up to $1,000 when damage to the
insured property due to flooding is imminent EXCEPT: -
correct answer ✅The value of work, at the federal minimum wage,
that a member of the household performs
The Insurance Commissioner is empowered to: -
correct answer ✅Enforce state laws relating to insurance
After an insurer receives a satisfactory proof of loss from an insured
on a fire loss, payment is due within a MAXIMUM of how many
days? -
correct answer ✅30 days
*Upon determining that a producer has violated the insurance law,
the Insurance Commissioner is required to take which of the
following actions? -
correct answer ✅Publish notice of the violation
,PearsonVue Practice Exam 1
Questions & Answers (Grade A+)
The Insurance Commissioner may suspend, revoke, or deny a
producer's license for all of the following reasons EXCEPT: -
correct answer ✅Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without
criminal fault on the part of the insured. The amount of the loss
covered by a property policy would be based on: -
correct answer ✅The market value of the dwelling
A candidate for licensure as a property insurance produce must
have completed a MINIMUM of how many hours of prelicensing
education? -
correct answer ✅50 hours
An insurer that permits different rate classifications for individuals
of the same class and same hazard may be guilty of: -
correct answer ✅Unfair discrimination
Making false or misleading statements about dividends or shares of
surplus previously paid on an insurance policy is known as: -
correct answer ✅Misrepresentation
, PearsonVue Practice Exam 1
Questions & Answers (Grade A+)
*The Insurance Company may issue a limited insurance
representative license to an individual who wants to sell which of
the following types of policies? -
correct answer ✅Automobile
In this state, a domestic insurer is defined as a company that: -
correct answer ✅Is headquarted in this state
*If a commercial insurer fails to meet the requirements of the forty-
five days Notice of Nonrenewal Rule prior to the expiration date of
the existing policy, the company MUST: -
correct answer ✅Provide a renewal policy that *matches* the
expiring policy's coverages and premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: -
correct answer ✅Basic Property insurance for which coverage is
not available in the regular market
XYZ Insurance Company recently received its certificate of authority
to sell property insurance in Illinois. XYZ is an Iowa insurer but will
sell its products through its licensed Illinois producers. Which of the
following statements is CORRECT about XYZ Company's
Questions & Answers (Grade A+)
Which of the following persons may assign a Standard Fire Policy? -
correct answer ✅A Claims Adjuster
Under the standard flood insurance policy, all of the following loss
avoidance measures are covered up to $1,000 when damage to the
insured property due to flooding is imminent EXCEPT: -
correct answer ✅The value of work, at the federal minimum wage,
that a member of the household performs
The Insurance Commissioner is empowered to: -
correct answer ✅Enforce state laws relating to insurance
After an insurer receives a satisfactory proof of loss from an insured
on a fire loss, payment is due within a MAXIMUM of how many
days? -
correct answer ✅30 days
*Upon determining that a producer has violated the insurance law,
the Insurance Commissioner is required to take which of the
following actions? -
correct answer ✅Publish notice of the violation
,PearsonVue Practice Exam 1
Questions & Answers (Grade A+)
The Insurance Commissioner may suspend, revoke, or deny a
producer's license for all of the following reasons EXCEPT: -
correct answer ✅Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without
criminal fault on the part of the insured. The amount of the loss
covered by a property policy would be based on: -
correct answer ✅The market value of the dwelling
A candidate for licensure as a property insurance produce must
have completed a MINIMUM of how many hours of prelicensing
education? -
correct answer ✅50 hours
An insurer that permits different rate classifications for individuals
of the same class and same hazard may be guilty of: -
correct answer ✅Unfair discrimination
Making false or misleading statements about dividends or shares of
surplus previously paid on an insurance policy is known as: -
correct answer ✅Misrepresentation
, PearsonVue Practice Exam 1
Questions & Answers (Grade A+)
*The Insurance Company may issue a limited insurance
representative license to an individual who wants to sell which of
the following types of policies? -
correct answer ✅Automobile
In this state, a domestic insurer is defined as a company that: -
correct answer ✅Is headquarted in this state
*If a commercial insurer fails to meet the requirements of the forty-
five days Notice of Nonrenewal Rule prior to the expiration date of
the existing policy, the company MUST: -
correct answer ✅Provide a renewal policy that *matches* the
expiring policy's coverages and premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: -
correct answer ✅Basic Property insurance for which coverage is
not available in the regular market
XYZ Insurance Company recently received its certificate of authority
to sell property insurance in Illinois. XYZ is an Iowa insurer but will
sell its products through its licensed Illinois producers. Which of the
following statements is CORRECT about XYZ Company's
