Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
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
The MAXIMUM amount a policy will pay in the event of a loss is
called the:
A. coinsurance amount
,Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
B. deductible
C. limit of liability
D. pro rata return -
correct answer ✅C
The National Flood Insurance Program provides coverage for losses
caused by all of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
,Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
D. water-main breakage -
correct answer ✅D
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
D. Includes no exclusions -
correct answer ✅C
Which of the following businesses would be eligible for a
Businessowners policy?
A. Auto body shop
, Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
B. Theater
C. Branch bank
D. Barber shop -
correct answer ✅D
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
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
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
The MAXIMUM amount a policy will pay in the event of a loss is
called the:
A. coinsurance amount
,Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
B. deductible
C. limit of liability
D. pro rata return -
correct answer ✅C
The National Flood Insurance Program provides coverage for losses
caused by all of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
,Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
D. water-main breakage -
correct answer ✅D
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
D. Includes no exclusions -
correct answer ✅C
Which of the following businesses would be eligible for a
Businessowners policy?
A. Auto body shop
, Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Questions &
Answers (Grade A+)
B. Theater
C. Branch bank
D. Barber shop -
correct answer ✅D
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
