Exam FX Insurance Practice Exam Questions
property and casualty Latest Update 2024-2025
Actual Exam 120 Questions and 100% Verified
Correct Answers Guaranteed A+
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan
but only if the customer purchases a life insurance policy from the bank in the amount of
the loan. This is an example of - CORRECT ANSWER: Coercion.
A bond is written for a set limit, and the surety will be liable only for this amount of the
limit. This limit is known as the - CORRECT ANSWER: Penalty
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 - CORRECT ANSWER: Vacant
A commercial package policy (CPP) allows the insured to select the coverage needed
and customize the policy to meet the needs of the insured's business. In a CPP, the
business owner may select from all of the following types of coverage EXCEPT -
CORRECT ANSWER: Workers compensation coverage
A dwelling policy has a standard deductible that applies to all property coverage, except
fair rental value, additional living expense, and the fire department service charge. How
much is this deductible? - CORRECT ANSWER: $250
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler
explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's
building, and $30,000 of expediting expenses, how much will the insured collect under
the policy? - CORRECT ANSWER: $175,000
A professional liability policy will provide coverage for loss in all of the following cases,
except, when the insured doctor was shown to be - CORRECT ANSWER: Criminally
negligent.
, A small restaurant was forced to close for 10 days in August when the power company's
transformer was destroyed by lightning, and the restaurant was without electricity.
Which of the following endorsements could be added to the businessowners policy that
would provide protection against loss of income from such events? - CORRECT
ANSWER: Utility services - time element endorsement
A specific coverage part is listed on the commercial package policy declarations page,
but there is no premium shown. What does that mean? - CORRECT ANSWER: There is
no coverage.
A sworn written statement that must be furnished by the insured to the insurer before
any loss under a policy can be paid is called - CORRECT ANSWER: Proof of loss.
A used car dealer takes a car in trade as partial payment for a car on its car lot. The
customer promises to bring in the car's title but does not. Another customer takes the
trade-in for a test drive and has an accident. In regard to the dealership's business auto
physical damage coverage, which of the following it true? - CORRECT ANSWER: There
is no coverage.
According to the appraisal condition of a homeowners policy, what procedure may be
followed if the insurer and insured do not agree as to the size of a loss? - CORRECT
ANSWER: Either party may make a written request for an appraisal.
All of the following are requirements for applicants for a Risk Manager license in Texas
EXCEPT - CORRECT ANSWER: Have at least 2 years of insurance experience
All of the following are true regarding rebates EXCEPT - CORRECT ANSWER: Rebates
are allowed if it's in the best interest of the client.
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 - CORRECT ANSWER: The injury or damage must occur within 90 days after
the insured's work is completed.
property and casualty Latest Update 2024-2025
Actual Exam 120 Questions and 100% Verified
Correct Answers Guaranteed A+
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan
but only if the customer purchases a life insurance policy from the bank in the amount of
the loan. This is an example of - CORRECT ANSWER: Coercion.
A bond is written for a set limit, and the surety will be liable only for this amount of the
limit. This limit is known as the - CORRECT ANSWER: Penalty
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 - CORRECT ANSWER: Vacant
A commercial package policy (CPP) allows the insured to select the coverage needed
and customize the policy to meet the needs of the insured's business. In a CPP, the
business owner may select from all of the following types of coverage EXCEPT -
CORRECT ANSWER: Workers compensation coverage
A dwelling policy has a standard deductible that applies to all property coverage, except
fair rental value, additional living expense, and the fire department service charge. How
much is this deductible? - CORRECT ANSWER: $250
A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler
explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's
building, and $30,000 of expediting expenses, how much will the insured collect under
the policy? - CORRECT ANSWER: $175,000
A professional liability policy will provide coverage for loss in all of the following cases,
except, when the insured doctor was shown to be - CORRECT ANSWER: Criminally
negligent.
, A small restaurant was forced to close for 10 days in August when the power company's
transformer was destroyed by lightning, and the restaurant was without electricity.
Which of the following endorsements could be added to the businessowners policy that
would provide protection against loss of income from such events? - CORRECT
ANSWER: Utility services - time element endorsement
A specific coverage part is listed on the commercial package policy declarations page,
but there is no premium shown. What does that mean? - CORRECT ANSWER: There is
no coverage.
A sworn written statement that must be furnished by the insured to the insurer before
any loss under a policy can be paid is called - CORRECT ANSWER: Proof of loss.
A used car dealer takes a car in trade as partial payment for a car on its car lot. The
customer promises to bring in the car's title but does not. Another customer takes the
trade-in for a test drive and has an accident. In regard to the dealership's business auto
physical damage coverage, which of the following it true? - CORRECT ANSWER: There
is no coverage.
According to the appraisal condition of a homeowners policy, what procedure may be
followed if the insurer and insured do not agree as to the size of a loss? - CORRECT
ANSWER: Either party may make a written request for an appraisal.
All of the following are requirements for applicants for a Risk Manager license in Texas
EXCEPT - CORRECT ANSWER: Have at least 2 years of insurance experience
All of the following are true regarding rebates EXCEPT - CORRECT ANSWER: Rebates
are allowed if it's in the best interest of the client.
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 - CORRECT ANSWER: The injury or damage must occur within 90 days after
the insured's work is completed.
