1|Page
ACA EXAM PRACTICE WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS
(DETAILED ANSWERS) ALREADY GRADED A+
100% GUARANTEED TO PASS CONCEPTS!!!
A property policy covers "fire" as a peril. A small fire
starts, fortunately, the fire department quickly arrives
and puts out the fire. Unfortunately, there is water
damage due to the water from the fire hoses. This water
damage would be covered because - ....ANSWER
....✔✔ Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the
care, custody, or control of the insured while the plane is
in for storage or service is: - ....ANSWER ....✔✔
Hangarkeepers liability
Under the commercial property form, what length of
time must expire before a building is considered
"vacant" -- thereby suspending some coverages, while
reducing payment on others? - ....ANSWER ....✔✔ 60
days
,2|Page
A florist wanted coverage on business contents, which
vary in amount over the course of a year. Which form
best covers this situation? - ....ANSWER ....✔✔ The
value reporting endorsement
A community applied to be part of the National Flood
Insurance Program. Until they are approved, what is the
status of the community of the community? - ....ANSWER
....✔✔ They are in the emergency program
Both commercial property and liability were combined
into one policy, thus saving money on underwriting
expense. What is this combination called? - ....ANSWER
....✔✔ A package policy
What is the smallest amount of liability insurance under
the business-owners policy (BOP)? - ....ANSWER
....✔✔ $300,000
Which of the following would be excluded under a
personal articles floater on an "all risks" basis? -
....ANSWER ....✔✔ Insects destroy a valuable
postage stamp worth $500
,3|Page
A ship loaded with lumber encountered a terrible storm,
and some of the lumber was thrown overboard to save
the ship - this action is called: - ....ANSWER ....✔✔
Jettison
A contracted was concerned some of his tools, such as a
welder, could be stolen from the job site. What inland
marine form is best suited for this exposure? -
....ANSWER ....✔✔ The contractors equipment floater
All of the following are exclusions under the Personal
Inland Marine Policy EXCEPT: - ....ANSWER ....✔✔
Theft from and "off site" location
An Umbrella Policy may be broader than the underlying
policies and respond as primary coverage. When the
Umbrella is primary, there is an amount to be paid by
the insured - this is called: - ....ANSWER ....✔✔ The
self-insured retention
If a person does not own an auto, but must provide Auto
Liability, for what would he ask his agent? - ....ANSWER
....✔✔ A named non-owned policy
, 4|Page
Which of the following is false concerning flood
insurance? - ....ANSWER ....✔✔ To be insured for
flood, a new building must be 25% complete, have the
walls up - roof not required to qualify
Vacancy of more than days suspends coverage on all
the following EXCEPT: - ....ANSWER ....✔✔ Weight of
ice and snow
If a homeowner lives in a home 80% or more of the
time, Flood coverage will respond to a loss in what
manner? - ....ANSWER ....✔✔ Replacement cost on
primary residence, actual cash value on others structures
All of the following are optional limits for the liability
section of a BOP EXCEPT: - ....ANSWER ....✔✔
$250,000
Under Equipment Breakdown Protection, also called
Boiler and Machinery Coverage, the following are true
statements: - ....ANSWER ....✔✔ -Minimum limit for
liability is $500,000
-"Accident" is defined as sudden and accidental
breakdowns
-Exclusions include wear & tear and deterioration
ACA EXAM PRACTICE WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS
(DETAILED ANSWERS) ALREADY GRADED A+
100% GUARANTEED TO PASS CONCEPTS!!!
A property policy covers "fire" as a peril. A small fire
starts, fortunately, the fire department quickly arrives
and puts out the fire. Unfortunately, there is water
damage due to the water from the fire hoses. This water
damage would be covered because - ....ANSWER
....✔✔ Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the
care, custody, or control of the insured while the plane is
in for storage or service is: - ....ANSWER ....✔✔
Hangarkeepers liability
Under the commercial property form, what length of
time must expire before a building is considered
"vacant" -- thereby suspending some coverages, while
reducing payment on others? - ....ANSWER ....✔✔ 60
days
,2|Page
A florist wanted coverage on business contents, which
vary in amount over the course of a year. Which form
best covers this situation? - ....ANSWER ....✔✔ The
value reporting endorsement
A community applied to be part of the National Flood
Insurance Program. Until they are approved, what is the
status of the community of the community? - ....ANSWER
....✔✔ They are in the emergency program
Both commercial property and liability were combined
into one policy, thus saving money on underwriting
expense. What is this combination called? - ....ANSWER
....✔✔ A package policy
What is the smallest amount of liability insurance under
the business-owners policy (BOP)? - ....ANSWER
....✔✔ $300,000
Which of the following would be excluded under a
personal articles floater on an "all risks" basis? -
....ANSWER ....✔✔ Insects destroy a valuable
postage stamp worth $500
,3|Page
A ship loaded with lumber encountered a terrible storm,
and some of the lumber was thrown overboard to save
the ship - this action is called: - ....ANSWER ....✔✔
Jettison
A contracted was concerned some of his tools, such as a
welder, could be stolen from the job site. What inland
marine form is best suited for this exposure? -
....ANSWER ....✔✔ The contractors equipment floater
All of the following are exclusions under the Personal
Inland Marine Policy EXCEPT: - ....ANSWER ....✔✔
Theft from and "off site" location
An Umbrella Policy may be broader than the underlying
policies and respond as primary coverage. When the
Umbrella is primary, there is an amount to be paid by
the insured - this is called: - ....ANSWER ....✔✔ The
self-insured retention
If a person does not own an auto, but must provide Auto
Liability, for what would he ask his agent? - ....ANSWER
....✔✔ A named non-owned policy
, 4|Page
Which of the following is false concerning flood
insurance? - ....ANSWER ....✔✔ To be insured for
flood, a new building must be 25% complete, have the
walls up - roof not required to qualify
Vacancy of more than days suspends coverage on all
the following EXCEPT: - ....ANSWER ....✔✔ Weight of
ice and snow
If a homeowner lives in a home 80% or more of the
time, Flood coverage will respond to a loss in what
manner? - ....ANSWER ....✔✔ Replacement cost on
primary residence, actual cash value on others structures
All of the following are optional limits for the liability
section of a BOP EXCEPT: - ....ANSWER ....✔✔
$250,000
Under Equipment Breakdown Protection, also called
Boiler and Machinery Coverage, the following are true
statements: - ....ANSWER ....✔✔ -Minimum limit for
liability is $500,000
-"Accident" is defined as sudden and accidental
breakdowns
-Exclusions include wear & tear and deterioration
