Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
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 - ANSWER---C
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
D. pro rata return - ANSWER---C
The National Flood Insurance Program provides coverage for losses caused by all of the following
occurrences EXCEPT:
A. mudslides
, Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
B. runoff from heavy rain
C. overflow of tidal waters
D. water-main breakage - 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 - ANSWER---C
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
, Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
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
D. smoke - ANSWER---C
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire
interior. Water used to extinguish the fire causes extensive damage to floors and furnishings. The
water damage is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ANSWER---C
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
, Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
C. Peril
D. Cause - ANSWER---A
The Personal Liability section of a Homeowners policy covers which of the following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - ANSWER---D
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:
A. it was accidentally damaged by a housekeeper
B. it was damaged in a flood
C. a guest of the insured maliciously damaged it
D. the insured threw it - ANSWER---D
Which of the following sources may be used to provide property insurability information?
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
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 - ANSWER---C
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
D. pro rata return - ANSWER---C
The National Flood Insurance Program provides coverage for losses caused by all of the following
occurrences EXCEPT:
A. mudslides
, Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
B. runoff from heavy rain
C. overflow of tidal waters
D. water-main breakage - 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 - ANSWER---C
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
, Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
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
D. smoke - ANSWER---C
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to the entire
interior. Water used to extinguish the fire causes extensive damage to floors and furnishings. The
water damage is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ANSWER---C
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
, Pearson VUE: Property Insurance, Study questions
insurance, Casualty FL. Exam Questions And Answers
|Latest 2025 | Guaranteed Pass.
C. Peril
D. Cause - ANSWER---A
The Personal Liability section of a Homeowners policy covers which of the following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - ANSWER---D
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:
A. it was accidentally damaged by a housekeeper
B. it was damaged in a flood
C. a guest of the insured maliciously damaged it
D. the insured threw it - ANSWER---D
Which of the following sources may be used to provide property insurability information?
