Exam FX Property and Casualty Insurance
Practice Exam | 100% Correct Answers | Verified
| Latest 2024 Version
The causes of loss insured against in an insurance policy are known as - ✔✔Perils
Before an insurer will pay any loss under a policy, what is usually required from the insured? - ✔✔Proof
of loss
An insured works outside the home. The insured's sister lives with him and cares for his four children.
When the insured's home is severely damaged by fire, the family moves into an apartment while repairs
are being made. The largest apartment available in the area has two bedrooms, so the insured's sister
has to stay at a motel. How much will the HO-3 form pay for these additional living expense? - ✔✔All of
the expense up to the Coverage D limit
All of the following statements concerning coinsurance are true EXCEPT - ✔✔The coinsurance formula
will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is more than one insurance
policy written on the same risk? - ✔✔Other insurance
What is the purpose of the coinsurance clause found in property insurance policies? - ✔✔Encourage the
insured to insure the property closer to its full value
With respect to the business of insurance, a hazard is - ✔✔Any condition or exposure that increases the
possibility of loss.
A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty
of any furniture or personal belongings. From an insurance standpoint, the building is considered -
✔✔Vacant
, For the reported losses of an insured group to become more likely to equal the statistical probability of
loss for that particular class, the insured group must become - ✔✔Larger
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred
within what maximum time period? - ✔✔1 year
An insured is driving her auto and strikes a large pothole, causing a flat tire. Which coverage of the
insured's personal auto policy will pay for the repair? - ✔✔This loss is not covered
Which of the following coverages in dwelling and homeowners policies is for indirect losses? - ✔✔Loss of
use
Which of the following types of valuation works best for property whose value does not fluctuate much?
- ✔✔Agreed value
Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial
Auto policy, how much will an insurer pay to repair or replace a covered auto? - ✔✔The lesser of the
actual cash value or the cost to repair or replace a covered auto
All of the following conditions must exist for injury or damage to be included in the products and
completed operations hazard of a commercial general liability policy EXCEPT - ✔✔The injury or damage
must occur within 90 days after the insured's work is completed.
The type of professional liability coverage a medical doctor needs is - ✔✔Malpractice coverage.
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit
card? - ✔✔$500
Burglary is defined as - ✔✔Taking of property from within the premises leaving visible signs of forced
entry.
Practice Exam | 100% Correct Answers | Verified
| Latest 2024 Version
The causes of loss insured against in an insurance policy are known as - ✔✔Perils
Before an insurer will pay any loss under a policy, what is usually required from the insured? - ✔✔Proof
of loss
An insured works outside the home. The insured's sister lives with him and cares for his four children.
When the insured's home is severely damaged by fire, the family moves into an apartment while repairs
are being made. The largest apartment available in the area has two bedrooms, so the insured's sister
has to stay at a motel. How much will the HO-3 form pay for these additional living expense? - ✔✔All of
the expense up to the Coverage D limit
All of the following statements concerning coinsurance are true EXCEPT - ✔✔The coinsurance formula
will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is more than one insurance
policy written on the same risk? - ✔✔Other insurance
What is the purpose of the coinsurance clause found in property insurance policies? - ✔✔Encourage the
insured to insure the property closer to its full value
With respect to the business of insurance, a hazard is - ✔✔Any condition or exposure that increases the
possibility of loss.
A building is insured, but no one has lived or worked in it for 10 years. The building is completely empty
of any furniture or personal belongings. From an insurance standpoint, the building is considered -
✔✔Vacant
, For the reported losses of an insured group to become more likely to equal the statistical probability of
loss for that particular class, the insured group must become - ✔✔Larger
The businessowners policy liability coverage will pay for necessary medical expenses of others incurred
within what maximum time period? - ✔✔1 year
An insured is driving her auto and strikes a large pothole, causing a flat tire. Which coverage of the
insured's personal auto policy will pay for the repair? - ✔✔This loss is not covered
Which of the following coverages in dwelling and homeowners policies is for indirect losses? - ✔✔Loss of
use
Which of the following types of valuation works best for property whose value does not fluctuate much?
- ✔✔Agreed value
Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial
Auto policy, how much will an insurer pay to repair or replace a covered auto? - ✔✔The lesser of the
actual cash value or the cost to repair or replace a covered auto
All of the following conditions must exist for injury or damage to be included in the products and
completed operations hazard of a commercial general liability policy EXCEPT - ✔✔The injury or damage
must occur within 90 days after the insured's work is completed.
The type of professional liability coverage a medical doctor needs is - ✔✔Malpractice coverage.
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit
card? - ✔✔$500
Burglary is defined as - ✔✔Taking of property from within the premises leaving visible signs of forced
entry.
