Pearson VUE: Property Insurance/Casualty FL Verified
Multiple Choice and Conceptual Actual Emended Exam
Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. A deer jumps through the window of an insured's home, damaging the
interior and exterior walls. Which of the following Homeowners Forms
listed below is the LEAST comprehensive form that will still provide
coverage for this loss?
A. HO-1 Form
B. HO-2 Form
C. HO-3 Form
D. HO-5 Form - ANSWER C
2. The HO-1 form provides:
A) Basic named-peril coverage
B) Broad named-peril coverage
C) Special (all-risk) coverage
D) Comprehensive coverage on all property
Answer: A) Basic named-peril coverage
3. Which HO form provides broad coverage for both dwelling and personal
property?
A) HO-1
B) HO-2
C) HO-3
D) HO-5
Answer: B) HO-2
4. The HO-3 form covers the dwelling on a(n):
A) Named-peril basis
B) Replacement-cost basis
, C) Open-peril basis
D) Stated-value basis
Answer: C) Open-peril basis
5. The HO-5 form is best described as:
A) Basic coverage for dwelling only
B) Broad coverage for personal property only
C) Comprehensive open-peril coverage for both dwelling and personal
property
D) Liability-only coverage
Answer: C) Comprehensive open-peril coverage for both dwelling and
personal property
6. Which form is LEAST comprehensive but would still cover damage from a
deer crashing through a window?
A) HO-1
B) HO-2
C) HO-3
D) HO-5
Answer: C) HO-3
7. True or False: The HO-1 form is rarely sold today because it provides limited
coverage.
Answer: True
8. Under which form is theft of personal property typically covered?
Answer: HO-2, HO-3, HO-5
9. An insured has an HO-3 form. Which section would cover damage to a
detached garage?
Answer: Coverage B – Other Structures
10.Which HO form requires the fewest endorsements to provide broad
protection for jewelry?
Answer: HO-5
,11.True or False: All HO policies automatically include liability coverage.
Answer: True
11.The Building and Personal Property Coverage Form covers all EXCEPT:
A) The insured’s building
B) Business personal property
C) Personal autos of employees
D) Property of others in the insured’s care
Answer: C) Personal autos of employees
12.Coverage A in the BPP form applies to:
A) The building structure
B) Business income
C) Furniture and fixtures only
D) Signs not attached to the building
Answer: A) The building structure
13.Business personal property owned by the insured is covered when:
A) At the insured’s premises
B) Anywhere in the world
C) Only in storage
D) Only during transit
Answer: A) At the insured’s premises
14.Coverage C of the BPP form applies to:
A) Loss of use
B) Personal property of others in the insured’s care
C) Earthquake losses
D) Outdoor plants and shrubs
Answer: B) Personal property of others in the insured’s care
15.Which of the following would NOT be covered under the BPP form?
A) Building fixtures
B) Stock (inventory)
C) Accounts receivable records
, D) Furniture owned by the insured
Answer: C) Accounts receivable records
16.True or False: Debris removal expenses may be covered under the BPP
form, subject to limits.
Answer: True
17.If the insured has $100,000 on the building and $50,000 on business
personal property, and a fire causes $10,000 building damage and $20,000
contents damage, with a $250 deductible, the insurer pays:
Answer: $29,750
18.Which clause requires the insured to maintain coverage equal to at least
80% of the property’s value?
Answer: Coinsurance clause
19.Which BPP coverage option applies when the insured moves to a new
location and needs temporary coverage?
Answer: Newly acquired property extension
20.True or False: The BPP automatically covers earthquake damage.
Answer: False
21.Subrogation allows the insurer to:
A) Recover from a negligent third party after paying a claim
B) Cancel a policy mid-term
C) Transfer the risk to a reinsurer
D) Refuse coverage for intentional acts
Answer: A) Recover from a negligent third party after paying a claim
22.True or False: The insured must cooperate with the insurer in a subrogation
claim.
Answer: True
23.A neighbor’s negligence causes fire damage to an insured’s home. The
insurer pays the claim and sues the neighbor. This is an example of:
Answer: Subrogation
Multiple Choice and Conceptual Actual Emended Exam
Questions With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. A deer jumps through the window of an insured's home, damaging the
interior and exterior walls. Which of the following Homeowners Forms
listed below is the LEAST comprehensive form that will still provide
coverage for this loss?
A. HO-1 Form
B. HO-2 Form
C. HO-3 Form
D. HO-5 Form - ANSWER C
2. The HO-1 form provides:
A) Basic named-peril coverage
B) Broad named-peril coverage
C) Special (all-risk) coverage
D) Comprehensive coverage on all property
Answer: A) Basic named-peril coverage
3. Which HO form provides broad coverage for both dwelling and personal
property?
A) HO-1
B) HO-2
C) HO-3
D) HO-5
Answer: B) HO-2
4. The HO-3 form covers the dwelling on a(n):
A) Named-peril basis
B) Replacement-cost basis
, C) Open-peril basis
D) Stated-value basis
Answer: C) Open-peril basis
5. The HO-5 form is best described as:
A) Basic coverage for dwelling only
B) Broad coverage for personal property only
C) Comprehensive open-peril coverage for both dwelling and personal
property
D) Liability-only coverage
Answer: C) Comprehensive open-peril coverage for both dwelling and
personal property
6. Which form is LEAST comprehensive but would still cover damage from a
deer crashing through a window?
A) HO-1
B) HO-2
C) HO-3
D) HO-5
Answer: C) HO-3
7. True or False: The HO-1 form is rarely sold today because it provides limited
coverage.
Answer: True
8. Under which form is theft of personal property typically covered?
Answer: HO-2, HO-3, HO-5
9. An insured has an HO-3 form. Which section would cover damage to a
detached garage?
Answer: Coverage B – Other Structures
10.Which HO form requires the fewest endorsements to provide broad
protection for jewelry?
Answer: HO-5
,11.True or False: All HO policies automatically include liability coverage.
Answer: True
11.The Building and Personal Property Coverage Form covers all EXCEPT:
A) The insured’s building
B) Business personal property
C) Personal autos of employees
D) Property of others in the insured’s care
Answer: C) Personal autos of employees
12.Coverage A in the BPP form applies to:
A) The building structure
B) Business income
C) Furniture and fixtures only
D) Signs not attached to the building
Answer: A) The building structure
13.Business personal property owned by the insured is covered when:
A) At the insured’s premises
B) Anywhere in the world
C) Only in storage
D) Only during transit
Answer: A) At the insured’s premises
14.Coverage C of the BPP form applies to:
A) Loss of use
B) Personal property of others in the insured’s care
C) Earthquake losses
D) Outdoor plants and shrubs
Answer: B) Personal property of others in the insured’s care
15.Which of the following would NOT be covered under the BPP form?
A) Building fixtures
B) Stock (inventory)
C) Accounts receivable records
, D) Furniture owned by the insured
Answer: C) Accounts receivable records
16.True or False: Debris removal expenses may be covered under the BPP
form, subject to limits.
Answer: True
17.If the insured has $100,000 on the building and $50,000 on business
personal property, and a fire causes $10,000 building damage and $20,000
contents damage, with a $250 deductible, the insurer pays:
Answer: $29,750
18.Which clause requires the insured to maintain coverage equal to at least
80% of the property’s value?
Answer: Coinsurance clause
19.Which BPP coverage option applies when the insured moves to a new
location and needs temporary coverage?
Answer: Newly acquired property extension
20.True or False: The BPP automatically covers earthquake damage.
Answer: False
21.Subrogation allows the insurer to:
A) Recover from a negligent third party after paying a claim
B) Cancel a policy mid-term
C) Transfer the risk to a reinsurer
D) Refuse coverage for intentional acts
Answer: A) Recover from a negligent third party after paying a claim
22.True or False: The insured must cooperate with the insurer in a subrogation
claim.
Answer: True
23.A neighbor’s negligence causes fire damage to an insured’s home. The
insurer pays the claim and sues the neighbor. This is an example of:
Answer: Subrogation
