Pearson Vue Property Insurance Exam
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 50 multichoice Questions with Answers
1. In this state, a domestic insurer is defined as a company that:
A. Operates in this state but is incorporated in another state
B. operates in this state but is domiciled in another state
C. is headquartered in this state
D. is incorporated in this state
Answer is incorporated in this state
2. The Insurance Commissioner may issue a limited insurance representative
license to an individual who wants to sell which of the following types of
policies?
A. Fire
B. Automobile
C. Mortgage Guaranty
D. Health
, Answer Mortgage Guaranty
3. Upon determining that a producer has violated the insurance law, the Insur-
ance Commissioner is required to take which of the following actions?
A. Place the licensee on probation immediately
B. Publish notice of the violation
C. Hold a hearing on the infraction
D. Submit the infraction to the Department of Insurance for review
Answer Hold a hearing on the infraction
4. An insurer that intends to nonrenew a Homeowners policy MUST take which
of the following actions?
A. Obtain coverage for the policyholder from another insurer
B. Obtain coverage for the policyholder under the FAIR Plan
C. Send a nonrenewal notice to the Commissioner of Insurance thirty days
prior to the policy expiration date
D. Send a notice stating the reason for nonrenewal to the insured
Answer Send a notice stating the reason for nonrenewal to the insured
5. All of the following items contained in a basement are covered under the
standard flood insurance policy EXCEPT:
A. drywall for walls and ceilings and the cost of labor to nail it, unfinished and
unfloated and not taped to the framing
, B. functioning electrical outlets and switches
C. carpet permanently installed over unfinished flooring
D. fuel tanks, if installed in their functioning locations and connected to a
power sources
Answer carpet permanently installed over unfinished flooring
6. 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
A. extend the current policy for one year and waive the premium
B. reduce coverage to develop a new premium that does not exceed the
expiring policy's premium
C. provide a renewal policy that matches the expiring policy's coverages and
premium
D. pay a $3,000 fine per violation to the Division of Insurance
Answer provide a renewal policy that matches the expiring policy's coverages
and premium
7. Which of the following persons may assign a Standard Fire policy?
A. A claims adjuster
B. The Superintendent of Insurance
C. The insured with the permission of the insurance company
D. The insured only
Answer The insured with the permission of the insurance company
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 50 multichoice Questions with Answers
1. In this state, a domestic insurer is defined as a company that:
A. Operates in this state but is incorporated in another state
B. operates in this state but is domiciled in another state
C. is headquartered in this state
D. is incorporated in this state
Answer is incorporated in this state
2. The Insurance Commissioner may issue a limited insurance representative
license to an individual who wants to sell which of the following types of
policies?
A. Fire
B. Automobile
C. Mortgage Guaranty
D. Health
, Answer Mortgage Guaranty
3. Upon determining that a producer has violated the insurance law, the Insur-
ance Commissioner is required to take which of the following actions?
A. Place the licensee on probation immediately
B. Publish notice of the violation
C. Hold a hearing on the infraction
D. Submit the infraction to the Department of Insurance for review
Answer Hold a hearing on the infraction
4. An insurer that intends to nonrenew a Homeowners policy MUST take which
of the following actions?
A. Obtain coverage for the policyholder from another insurer
B. Obtain coverage for the policyholder under the FAIR Plan
C. Send a nonrenewal notice to the Commissioner of Insurance thirty days
prior to the policy expiration date
D. Send a notice stating the reason for nonrenewal to the insured
Answer Send a notice stating the reason for nonrenewal to the insured
5. All of the following items contained in a basement are covered under the
standard flood insurance policy EXCEPT:
A. drywall for walls and ceilings and the cost of labor to nail it, unfinished and
unfloated and not taped to the framing
, B. functioning electrical outlets and switches
C. carpet permanently installed over unfinished flooring
D. fuel tanks, if installed in their functioning locations and connected to a
power sources
Answer carpet permanently installed over unfinished flooring
6. 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
A. extend the current policy for one year and waive the premium
B. reduce coverage to develop a new premium that does not exceed the
expiring policy's premium
C. provide a renewal policy that matches the expiring policy's coverages and
premium
D. pay a $3,000 fine per violation to the Division of Insurance
Answer provide a renewal policy that matches the expiring policy's coverages
and premium
7. Which of the following persons may assign a Standard Fire policy?
A. A claims adjuster
B. The Superintendent of Insurance
C. The insured with the permission of the insurance company
D. The insured only
Answer The insured with the permission of the insurance company
