Fx-Property and Casualty Exam 2023 with complete
solution
To be considered an insurable risk, a loss may NOT be
catastrophic
Which of the following persons would be required to hold a producer license?
a nonresident agent who negotiates insurance contracts
Which of the following is the oldest known type of insurance?
ocean marine
The contents coverage on a homeowners policy would pay how much after the
loss of one of a pair of golden candlesticks?
the difference in the actual cash value as a pair and as a single
Which of the following additional perils is covered under both of the Basic and
Broad forms in dwelling policies?
internal explosion
When would a misrepresentation on the insurance application be considered
fraud?
If it is intentional and material
A bond is written for a set limit, and the surety will be liable only for this amount.
This limit is known as the
penalty
In insurance, an offer is usually made when
the application is submitted
All of the following actions by a producer may be grounds for license revocation
or non-renewal EXCEPT
participating in controlled business
In personal auto policies, the term "you" refers to
the named insured
Business personal property coverage form covers all of the following except:
automobiles held for sale
in dwelling policies, automatic increase in insurance is
coverage by endorsement
To be eligible for businessowners policy (BOP) coverage, an office building
CANNOT be higher than
6 stories
Elaborate homes with replacement costs greater than ACV or market value are
insured on the
HO-8 Form
Which of the following dwelling coverage forms would pay replacement cost for
the dwelling?
DP-2 and DP-3
Business personal property coverage insures property out in the open if it is
Within 100 feet of the described premises
A runaway shopping cart injures a customer in a supermarket's parking lot.
Coverage for this claim would be provided under
, premises and operations
Which of the following businesses would be eligible for a businessowners
policy?
Hill & Morton Funeral Home
The designation symbols used in commercial auto policies can be found in which
policy section?
covered auto
Which of the following is used in the formula for calculating the actual cash value
(ACV) of a property?
replacement cost
What type of bond guarantees that the principal will complete the contract as
agreed upon?
performance bond
Peril is most easily defined as
The cause of loss insured against
An insured building has had no residents for 10 years and it is empty of personal
belongings. From an insurance standpoint, the building is
vacant
Under a workers compensation policy, premiums will be determined when
the policy period ends
Which commercial property form is used to insure buildings while under
construction?
Builders risk
Which of the following information will be found in the Declarations page of the
commercial property policy?
description of the policy insured
An insured is injured while driving his own car. Which personal auto coverage
will pay for the loss?
Part B-Medical Payments
According to the BOP definitions, which of the following does NOT mean valuable
papers and records?
Securities
Supplementary payments under the personal auto policy include all of the
following EXCEPT?
unlimited cost of bail bonds
Items of property that would be difficult to appraise after a loss are best insured
with
stated-amount insurance
Which of the following is NOT consideration in an insurance policy?
the application given to a perspective insured
Who is considered a nonresident agent?
an agent who is licensed in another state, but is allowed to transact insurance in this
state
Events or conditions that increase the chances of an insured loss occurring are
called?
hazards
solution
To be considered an insurable risk, a loss may NOT be
catastrophic
Which of the following persons would be required to hold a producer license?
a nonresident agent who negotiates insurance contracts
Which of the following is the oldest known type of insurance?
ocean marine
The contents coverage on a homeowners policy would pay how much after the
loss of one of a pair of golden candlesticks?
the difference in the actual cash value as a pair and as a single
Which of the following additional perils is covered under both of the Basic and
Broad forms in dwelling policies?
internal explosion
When would a misrepresentation on the insurance application be considered
fraud?
If it is intentional and material
A bond is written for a set limit, and the surety will be liable only for this amount.
This limit is known as the
penalty
In insurance, an offer is usually made when
the application is submitted
All of the following actions by a producer may be grounds for license revocation
or non-renewal EXCEPT
participating in controlled business
In personal auto policies, the term "you" refers to
the named insured
Business personal property coverage form covers all of the following except:
automobiles held for sale
in dwelling policies, automatic increase in insurance is
coverage by endorsement
To be eligible for businessowners policy (BOP) coverage, an office building
CANNOT be higher than
6 stories
Elaborate homes with replacement costs greater than ACV or market value are
insured on the
HO-8 Form
Which of the following dwelling coverage forms would pay replacement cost for
the dwelling?
DP-2 and DP-3
Business personal property coverage insures property out in the open if it is
Within 100 feet of the described premises
A runaway shopping cart injures a customer in a supermarket's parking lot.
Coverage for this claim would be provided under
, premises and operations
Which of the following businesses would be eligible for a businessowners
policy?
Hill & Morton Funeral Home
The designation symbols used in commercial auto policies can be found in which
policy section?
covered auto
Which of the following is used in the formula for calculating the actual cash value
(ACV) of a property?
replacement cost
What type of bond guarantees that the principal will complete the contract as
agreed upon?
performance bond
Peril is most easily defined as
The cause of loss insured against
An insured building has had no residents for 10 years and it is empty of personal
belongings. From an insurance standpoint, the building is
vacant
Under a workers compensation policy, premiums will be determined when
the policy period ends
Which commercial property form is used to insure buildings while under
construction?
Builders risk
Which of the following information will be found in the Declarations page of the
commercial property policy?
description of the policy insured
An insured is injured while driving his own car. Which personal auto coverage
will pay for the loss?
Part B-Medical Payments
According to the BOP definitions, which of the following does NOT mean valuable
papers and records?
Securities
Supplementary payments under the personal auto policy include all of the
following EXCEPT?
unlimited cost of bail bonds
Items of property that would be difficult to appraise after a loss are best insured
with
stated-amount insurance
Which of the following is NOT consideration in an insurance policy?
the application given to a perspective insured
Who is considered a nonresident agent?
an agent who is licensed in another state, but is allowed to transact insurance in this
state
Events or conditions that increase the chances of an insured loss occurring are
called?
hazards
