EXAM FX Simulated Test 100% Correct Answers Verified Latest 2024 Version

Which of the following policies does NOT contain an automatic reinstatement provision? a) Business automobile liability b) Personal automobile liability with split limits c) Homeowners d) General liability written with an aggregate limit - General Liability written with an aggregate limit The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay? a) Company A will pay $24,000; Company B will pay $0. b) Company A will pay $16,000; Company B will pay $8,000. c) Company A will pay $20,000; Company B will pay $4,000. d) Company A will pay $12,000; Company B will pay $12,000. - Company A will pay $16,000; Company B will pay $8,000. Farm fences (except field and pasture fences) are covered by which farm coverage form? a) Coverage A b) Coverage B c) Coverage E d) Coverage G - Coverage G What type of coverage does a homeowners policy include that a dwelling policy does not? a) Personal property b) Other structures c) Broad formd) Liability - Liability Which of the following is NOT one of the 3 requirements for property to be eligible for FAIR plan coverage? a) Coverage could not be purchased through the normal insurance market b) It must be valued at an amount under the maximum value amount set by the state c) It must be located in a specific area defined by the state d) It must be considered insurable based on reasonable underwriting standards - It must be valued at an amount under the maximum value amount set by the state Which of the following liability exposures is most likely for a small specialty clothing retail boutique? a) Operations liability exposure b) Product liability exposure c) Completed operations liability exposure d) Premises liability exposure - Premises Liability Exposure All of the following types of property are covered by a standard builders risk form EXCEPT a) Tools 50 feet away from the building. b) The building itself. c) Temporary structures. d) Machinery that will be permanently attached to the building. - Tools 50 feet away from the building If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 10 days b) 3 days c) 5 days d) 7 days - 5 daysWhich of the following would be named on the declarations page of a property or liability policy? a) Beneficiaries b) All insureds c) Additional insureds d) First named insured - First Named insured When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)? a) Only if the insured has 4 or more employees. b) Never c) Only if the insured does not have commercial auto coverage d) Only in addition to commercial auto coverage. - Only if the insured does not have commercial auto coverage Which of the following persons may be covered under farm Coverage J? a) Resident employees b) First named insured c) Additional insureds d) Farm employees - Resident employees A tornado that destroys property would be an example of which of the following? a) A peril b) A pure risk c) A loss d) A physical hazard - A peril Which of the following could be covered by an HO policy? a) Property of a tenant not related to the insured b) An oriental rug in an on-premises apartment c) Birds, fish, and animals