Exam FX part 3 Questions And Answers Verified 100% Correct

Exam FX part 3 Questions And Answers Verified 100% Correct Which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company? A. Subrogation B. Reassignment and modification C. Changes D. Transfer of rights and duties under the policy - answers D Which of the following would NOT be considered a flood? A. Overflow of tidal waves B. Mudslides C. Runoff of surface waters D. Sewer backup - answers D Builder's risk is most often written on which form? A. Scheduled form B. Reporting form C. Specific value form D. Completed value form - answers D Which of the following is NOT found in a commercial package policy? A. Certificate of authority B. Common policy conditions C. Common policy declarations D. Interline endorsements - answers A The Physicians and Surgeons Equipment Floater is NOT intended for which of the following? A. Waiting room furniture in a doctor's office B. Office equipment located in a dentist's office C. Medical supplies located in a hospital D. Surgeon's supplies located in the surgeon's office - answers C Which of the following is true regarding the fire department service charge under the Builders Risk form? A. It is a high-deductible endorsement B. It is an additional coverage C. It is an automatic coverage for $500 D. It is not available in this form - answers B Business personal property coverage form covers all of the following EXCEPT... A. Machinery that is not permanently installed B. Stock C. Automobiles held for sale D. Furniture and fixtures - answers C A business using its own trucks to move its own cargo would insure the cargo using... A. Motor carrier form B. Trip transit coverage C. Motor truck cargo - owners form D. Motor truck cargo - truckers form - answers C The extra expense coverage form provides... A. Extra money for an insured whose accounts receivable records have been damaged B. Additional money to pay for property damage losses at a covered location C. Payment for unforeseen expenses an insured may incur while the business is shut down following a property damage loss D. Coverage that will permit the insured to continue in business without interruption following a property damage loss - answers D Under the HO4 and HO6 homeowners policy forms, property is insured against... A. Special form perils B. Comprehensive form perils C. Broad form perils D. Basic form perils - answers C Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT A. Computer software B. Canoes C. Animals and birds D. Hobby aircrafts - answers C The most the insurer will pay for a loss under a business owners policy is... A. 80% of the loss B. 20% of the loss C. The limit of insurance after the deductible is paid D. The amount of the loss minus the deductible - answers C Under the provisions of the business income coverage form, all of the following are true EXCEPT... A. The insured is reimbursed for payroll that continues after the loss begins B. The insured is reimbursed for the loss from the date of loss to date of restoration or policy expiration date, whichever comes first C. If the insured and insurer are unable to come to agreements as to the value of the loss, either party may make a written demand for an appraisal D. The insured agrees to resume all of part of operations as quickly as possible - answers B A grave marker was damaged by vandals. It would cost $3000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? A. $1000 B. $3000 C. $0 D. $500 - answers B Under the Commercial Property Coverage program, the Basic Causes of Loss form insures against loss caused by... A. Power failure off the premises B. Sprinkler leakage C. Earth movement D. Nuclear hazard - answers B In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer? A. Beneficiary B. Insurer C. First named insured D. Last named insured - answers C Uncle Billy's Burger Bar was forced to close for 10 days in August when the power company's transformer was destroyed by lightning, and Uncle Billy was without electricity. Which of the following endorsements could be added to Billy's business owners policy that would provide protection against loss of income from such events? A. Utility services - time element endorsement B. Utility services - direct damage endorsement C. Personal injury endorsement D. Protective safeguard endorsement - answers A Individuals in the business of selling construction equipment and mobile equipment should insure with... A. A contractor's equipment floater B. An installation floater C. A PFF D. Equipment dealers coverage form - answers D