1
Exam FX Insurance Practice Exam Questions with
Answers (100% Correct Answers)
The causes of loss insured against in an insurance policy are known
as— Answer: Perils
Before an insurer will pay any loss under a policy, what is usually
required from the insured?— Answer: 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?— Answer:
All of the expense up to the Coverage D limit
All of the following statements concerning coinsurance are true
EXCEPT— Answer: The coinsurance formula will also be applied to
total losses.
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,2
What insurance policy provision defines how the policy will respond if
there is more than one insurance policy written on the same risk?—
Answer: Other insurance
What is the purpose of the coinsurance clause found in property
insurance policies?— Answer: Encourage the insured to insure the
property closer to its full value
With respect to the business of insurance, a hazard is— Answer: 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— Answer: 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— Answer: Larger
The businessowners policy liability coverage will pay for necessary
medical expenses of others incurred within what maximum time
period?— Answer: 1 year
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, 3
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?— Answer: This loss is not covered
Which of the following coverages in dwelling and homeowners
policies is for indirect losses?— Answer: Loss of use
Which of the following types of valuation works best for property
whose value does not fluctuate much?— Answer: 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?— Answer: 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— Answer: 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—
Answer: Malpractice coverage.
© 2025 All rights reserved
Exam FX Insurance Practice Exam Questions with
Answers (100% Correct Answers)
The causes of loss insured against in an insurance policy are known
as— Answer: Perils
Before an insurer will pay any loss under a policy, what is usually
required from the insured?— Answer: 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?— Answer:
All of the expense up to the Coverage D limit
All of the following statements concerning coinsurance are true
EXCEPT— Answer: The coinsurance formula will also be applied to
total losses.
© 2025 All rights reserved
,2
What insurance policy provision defines how the policy will respond if
there is more than one insurance policy written on the same risk?—
Answer: Other insurance
What is the purpose of the coinsurance clause found in property
insurance policies?— Answer: Encourage the insured to insure the
property closer to its full value
With respect to the business of insurance, a hazard is— Answer: 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— Answer: 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— Answer: Larger
The businessowners policy liability coverage will pay for necessary
medical expenses of others incurred within what maximum time
period?— Answer: 1 year
© 2025 All rights reserved
, 3
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?— Answer: This loss is not covered
Which of the following coverages in dwelling and homeowners
policies is for indirect losses?— Answer: Loss of use
Which of the following types of valuation works best for property
whose value does not fluctuate much?— Answer: 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?— Answer: 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— Answer: 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—
Answer: Malpractice coverage.
© 2025 All rights reserved
