Pearson VUE: Property Insurance, Study
questions insurance, Casualty FL. Exam Questions
And Answers |Latest 2025 |Verified 100% Correct
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a
$50,000 Personal Property limit with the standard deductible. If a sailboat valued
at $1,500 is stolen from the insured's premises, the insured will collect a
MAXIMUM of which of the following amounts?
A. $1,000
B. $1,250
C. $1,400
D. $1,500 - ANSWER -B
Under a Homeowners policy, an insured is required to take all of the following
actions when a covered loss occurs EXCEPT:
A. give prompt notice to the insurer or its producer
B. hire an appraiser to determine the amount of loss
C. notify the police if the loss is the result of theft
D. protect the property from further loss - ANSWER -B
A company's promise to pay for damage caused by or resulting from any covered
Cause of Loss would be found in which of the following sections of a Commercial
Property policy?
A. Declarations
,B. Insuring Agreement
C. Conditions
D. Exclusions - ANSWER -B
All of the following options are examples of insurable interest EXCEPT:
A. a person's interest in property she is buying on contract
B. a tenant's interest in improvements she has made to a leased building
C. a TV repairman's interest in a customer's TV which has been repaired but is still
on premises
D. an individual's interest in property her parents will someday leave to her -
ANSWER -D
A family takes their 50 horsepower outboard motor boat to the lake on a trailer
towed behind their personal auto. The pleasure boat is appropriately covered for
physical damage under which of the following policies?
A. Dwelling
B. Homeowners
C. Boatowners
D. Yacht - ANSWER -C
Which of the following policy forms would BEST protect a business that must
keep operating after a loss?
A. Extra Expense
,B. Business Income
C. Gross Earnings
D. Contingent Business Interruption - ANSWER -A
Which of the following perils is covered by Broad Form perils but is not covered
by the Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Windstorm - ANSWER -B
Which of the following phrases BEST defines a hazard?
A. A condition that increases the chance of a loss
B. The uncertainty of a loss
C. The cause of a loss
D. An unexpected loss - ANSWER -A
A building adjacent to an insured's business is severely damaged by fire. Because
of the nature of the damage to the adjoining property, the insured is denied access
to the business by the fire department. If the insured's property is covered under a
Business Income Coverage Form, the insurer will cover the loss of earnings for a
MAXIMUM of:
A. three weeks
, B. thirty days
C. sixty days
D. six months - ANSWER -A
Which of the following statements is CORRECT about the Fair Credit Reporting
Act?
A. It requires an insurer to send to an applicant a copy of the applicant's credit
report.
B. It requires an insurer to obtain a credit report on an applicant.
C. It allows an insurer to obtain a credit report without the applicant's permission.
D. It provides a method for an applicant to correct any incorrect information in the
credit
report. - ANSWER -D
The procedure for resolving a disagreement between an insured and an insurer
about a loss is described in which of the following parts of an insurance policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - ANSWER -C
Under a Personal Property Floater, a loss is covered when it occurs:
A. in the insured's home only
questions insurance, Casualty FL. Exam Questions
And Answers |Latest 2025 |Verified 100% Correct
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a
$50,000 Personal Property limit with the standard deductible. If a sailboat valued
at $1,500 is stolen from the insured's premises, the insured will collect a
MAXIMUM of which of the following amounts?
A. $1,000
B. $1,250
C. $1,400
D. $1,500 - ANSWER -B
Under a Homeowners policy, an insured is required to take all of the following
actions when a covered loss occurs EXCEPT:
A. give prompt notice to the insurer or its producer
B. hire an appraiser to determine the amount of loss
C. notify the police if the loss is the result of theft
D. protect the property from further loss - ANSWER -B
A company's promise to pay for damage caused by or resulting from any covered
Cause of Loss would be found in which of the following sections of a Commercial
Property policy?
A. Declarations
,B. Insuring Agreement
C. Conditions
D. Exclusions - ANSWER -B
All of the following options are examples of insurable interest EXCEPT:
A. a person's interest in property she is buying on contract
B. a tenant's interest in improvements she has made to a leased building
C. a TV repairman's interest in a customer's TV which has been repaired but is still
on premises
D. an individual's interest in property her parents will someday leave to her -
ANSWER -D
A family takes their 50 horsepower outboard motor boat to the lake on a trailer
towed behind their personal auto. The pleasure boat is appropriately covered for
physical damage under which of the following policies?
A. Dwelling
B. Homeowners
C. Boatowners
D. Yacht - ANSWER -C
Which of the following policy forms would BEST protect a business that must
keep operating after a loss?
A. Extra Expense
,B. Business Income
C. Gross Earnings
D. Contingent Business Interruption - ANSWER -A
Which of the following perils is covered by Broad Form perils but is not covered
by the Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Windstorm - ANSWER -B
Which of the following phrases BEST defines a hazard?
A. A condition that increases the chance of a loss
B. The uncertainty of a loss
C. The cause of a loss
D. An unexpected loss - ANSWER -A
A building adjacent to an insured's business is severely damaged by fire. Because
of the nature of the damage to the adjoining property, the insured is denied access
to the business by the fire department. If the insured's property is covered under a
Business Income Coverage Form, the insurer will cover the loss of earnings for a
MAXIMUM of:
A. three weeks
, B. thirty days
C. sixty days
D. six months - ANSWER -A
Which of the following statements is CORRECT about the Fair Credit Reporting
Act?
A. It requires an insurer to send to an applicant a copy of the applicant's credit
report.
B. It requires an insurer to obtain a credit report on an applicant.
C. It allows an insurer to obtain a credit report without the applicant's permission.
D. It provides a method for an applicant to correct any incorrect information in the
credit
report. - ANSWER -D
The procedure for resolving a disagreement between an insured and an insurer
about a loss is described in which of the following parts of an insurance policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - ANSWER -C
Under a Personal Property Floater, a loss is covered when it occurs:
A. in the insured's home only
