Pearson VUE: Casualty Insurance/ Property Insurance
Verified Multiple Choice and Conceptual Actual
Emended Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. A homeowners policy excludes earthquake damage. To be covered, the
insured must purchase a(n):
A) Rider
B) Endorsement
C) Blanket coverage
D) Binder
Answer: B) Endorsement
2. Which homeowners form provides the broadest coverage?
A) HO-1
B) HO-2
C) HO-3
D) HO-8
Answer: C) HO-3
3. In a standard homeowners policy, coverage for personal property is
typically:
A) Named peril
B) Open peril
C) Only theft coverage
D) Replacement cost only
Answer: A) Named peril
4. Replacement cost means:
A) Payment for the depreciated value of property
B) Payment for the actual cost to replace property with no deduction for
, depreciation
C) Payment up to the policy limit regardless of value
D) Market value coverage only
Answer: B) Payment for the actual cost to replace property with no
deduction for depreciation
5. Which type of construction receives the lowest property insurance
premium?
A) Frame
B) Masonry veneer
C) Masonry noncombustible
D) Superior construction (fire resistive)
Answer: D) Superior construction (fire resistive)
6. A homeowners policy provides coverage for medical payments to others
for:
A) The insured’s family only
B) Guests injured accidentally on the insured’s property
C) Any person injured in the home regardless of fault
D) Only injuries caused by intentional acts
Answer: B) Guests injured accidentally on the insured’s property
7. The standard deductible for flood insurance under the NFIP is:
A) $100
B) $500
C) $1,000
D) $5,000
Answer: C) $1,000
8. Under a homeowners policy, loss of use coverage applies when:
A) The insured intentionally leaves the property vacant
B) The home is uninhabitable due to a covered loss
C) The insured sells the home
D) A flood occurs
Answer: B) The home is uninhabitable due to a covered loss
, 9. Which clause allows the insurer to repair or replace the damaged property
instead of paying cash?
A) Coinsurance clause
B) Appraisal clause
C) Loss settlement clause
D) Other insurance clause
Answer: C) Loss settlement clause
10.The declarations page of a property policy lists all EXCEPT:
A) Named insured
B) Coverage limits
C) Perils covered
D) Premium amount
Answer: C) Perils covered
Section 3: Casualty / Liability Insurance (10 Questions)
21.An occurrence is best defined as:
A) An intentional act causing harm
B) Continuous or repeated exposure to harmful conditions
C) A single accident only
D) A claim denied by the insurer
Answer: B) Continuous or repeated exposure to harmful conditions
22.Which section of a casualty policy contains the insurer’s promise to pay
claims?
A) Conditions
B) Declarations
C) Insuring Agreement
D) Exclusions
Answer: C) Insuring Agreement
23.Products liability coverage protects against:
A) Claims from defective products sold or manufactured
, B) Injuries occurring on the insured’s premises
C) Injuries to employees while working
D) Damage to the insured’s own product
Answer: A) Claims from defective products sold or manufactured
24.The General Aggregate limit in a CGL policy applies to:
A) All claims during the policy period except products and completed
operations
B) Each occurrence of bodily injury only
C) Medical payments coverage only
D) All auto liability claims
Answer: A) All claims during the policy period except products and
completed operations
25.The coverage territory of a CGL policy typically includes:
A) Worldwide without restrictions
B) U.S., Canada, Puerto Rico, and U.S. territories
C) Only the state where the policy was issued
D) U.S. only
Answer: B) U.S., Canada, Puerto Rico, and U.S. territories
26.An insured negligently injures a visitor. The liability portion of the
homeowners policy will pay for:
A) Punitive damages
B) Compensatory damages
C) Criminal fines
D) Pain and suffering only
Answer: B) Compensatory damages
27.Which type of liability covers damage caused by a business’s operations
away from its premises?
A) Premises liability
B) Operations liability
C) Contractual liability
Verified Multiple Choice and Conceptual Actual
Emended Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update
1. A homeowners policy excludes earthquake damage. To be covered, the
insured must purchase a(n):
A) Rider
B) Endorsement
C) Blanket coverage
D) Binder
Answer: B) Endorsement
2. Which homeowners form provides the broadest coverage?
A) HO-1
B) HO-2
C) HO-3
D) HO-8
Answer: C) HO-3
3. In a standard homeowners policy, coverage for personal property is
typically:
A) Named peril
B) Open peril
C) Only theft coverage
D) Replacement cost only
Answer: A) Named peril
4. Replacement cost means:
A) Payment for the depreciated value of property
B) Payment for the actual cost to replace property with no deduction for
, depreciation
C) Payment up to the policy limit regardless of value
D) Market value coverage only
Answer: B) Payment for the actual cost to replace property with no
deduction for depreciation
5. Which type of construction receives the lowest property insurance
premium?
A) Frame
B) Masonry veneer
C) Masonry noncombustible
D) Superior construction (fire resistive)
Answer: D) Superior construction (fire resistive)
6. A homeowners policy provides coverage for medical payments to others
for:
A) The insured’s family only
B) Guests injured accidentally on the insured’s property
C) Any person injured in the home regardless of fault
D) Only injuries caused by intentional acts
Answer: B) Guests injured accidentally on the insured’s property
7. The standard deductible for flood insurance under the NFIP is:
A) $100
B) $500
C) $1,000
D) $5,000
Answer: C) $1,000
8. Under a homeowners policy, loss of use coverage applies when:
A) The insured intentionally leaves the property vacant
B) The home is uninhabitable due to a covered loss
C) The insured sells the home
D) A flood occurs
Answer: B) The home is uninhabitable due to a covered loss
, 9. Which clause allows the insurer to repair or replace the damaged property
instead of paying cash?
A) Coinsurance clause
B) Appraisal clause
C) Loss settlement clause
D) Other insurance clause
Answer: C) Loss settlement clause
10.The declarations page of a property policy lists all EXCEPT:
A) Named insured
B) Coverage limits
C) Perils covered
D) Premium amount
Answer: C) Perils covered
Section 3: Casualty / Liability Insurance (10 Questions)
21.An occurrence is best defined as:
A) An intentional act causing harm
B) Continuous or repeated exposure to harmful conditions
C) A single accident only
D) A claim denied by the insurer
Answer: B) Continuous or repeated exposure to harmful conditions
22.Which section of a casualty policy contains the insurer’s promise to pay
claims?
A) Conditions
B) Declarations
C) Insuring Agreement
D) Exclusions
Answer: C) Insuring Agreement
23.Products liability coverage protects against:
A) Claims from defective products sold or manufactured
, B) Injuries occurring on the insured’s premises
C) Injuries to employees while working
D) Damage to the insured’s own product
Answer: A) Claims from defective products sold or manufactured
24.The General Aggregate limit in a CGL policy applies to:
A) All claims during the policy period except products and completed
operations
B) Each occurrence of bodily injury only
C) Medical payments coverage only
D) All auto liability claims
Answer: A) All claims during the policy period except products and
completed operations
25.The coverage territory of a CGL policy typically includes:
A) Worldwide without restrictions
B) U.S., Canada, Puerto Rico, and U.S. territories
C) Only the state where the policy was issued
D) U.S. only
Answer: B) U.S., Canada, Puerto Rico, and U.S. territories
26.An insured negligently injures a visitor. The liability portion of the
homeowners policy will pay for:
A) Punitive damages
B) Compensatory damages
C) Criminal fines
D) Pain and suffering only
Answer: B) Compensatory damages
27.Which type of liability covers damage caused by a business’s operations
away from its premises?
A) Premises liability
B) Operations liability
C) Contractual liability
