EXAM FX 3 ACTUAL TEST PAPER QUESTIONS CORRECT ANSWERS GRADED A PLUS
Question:
Wish respect to auto insurance, the term owned autos includes all of the following EXCEPT
Answer:
A pickup or van titled to and used in the named insured's business
Question:
A binder is effective for a period of
Answer:
90 days
Question:
Negligence is defined as
Answer:
The failure to do what a reasonable prudent person would do under given circumstances
Question:
Under the professional liability loss settlement provision, what must an insurer do before offering to
pay a claimant to settle a claim?
Answer:
Get the insured's consent
Question:
,The at-fault driver in an insured's auto crash had the state required minimums for auto liability
coverage, but not enough to pay for all the damage done to the insured. The driver is
Answer:
Considered underinsured
Question:
Which of the following statements is true concerning a bonded contractor who defaults on a
construction performance contract?
Answer:
The obligee may engage another contractor and then seek reimbursement from the surety
Question:
A business using its own trucks to move its own cargo would insure the cargo using
Answer:
Motor truck cargo - owners form
Question:
A specific coverage part is listed on the commercial package policy declaractions page, but there is
no premium shown. What does that mean?
Answer:
There is no coverage
Question:
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by
Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its
own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general
liability policy cover the claim?
Answer:
, No, because the claim results from copyright infringement and is not in an advertisement The type
of insurance used to cover goods for one specific trip is called
Question:
Answer:
Trip transit
Question:
Events or conditions that increase the chances of an insured loss occurring are referred to as
Answer:
Hazards
Question:
A premium discount is the term that describes when an insured owes a total standard premium
greater than
Answer:
$5,000
Question:
The transfer of an insured's right to seek damages from a negligent party to the insurer is found in
which of the following clauses?
Answer:
Subrogation
Question:
The crime of forced entry into the premises of another by a person or persons with felonious intent is
defined as a
Question:
Wish respect to auto insurance, the term owned autos includes all of the following EXCEPT
Answer:
A pickup or van titled to and used in the named insured's business
Question:
A binder is effective for a period of
Answer:
90 days
Question:
Negligence is defined as
Answer:
The failure to do what a reasonable prudent person would do under given circumstances
Question:
Under the professional liability loss settlement provision, what must an insurer do before offering to
pay a claimant to settle a claim?
Answer:
Get the insured's consent
Question:
,The at-fault driver in an insured's auto crash had the state required minimums for auto liability
coverage, but not enough to pay for all the damage done to the insured. The driver is
Answer:
Considered underinsured
Question:
Which of the following statements is true concerning a bonded contractor who defaults on a
construction performance contract?
Answer:
The obligee may engage another contractor and then seek reimbursement from the surety
Question:
A business using its own trucks to move its own cargo would insure the cargo using
Answer:
Motor truck cargo - owners form
Question:
A specific coverage part is listed on the commercial package policy declaractions page, but there is
no premium shown. What does that mean?
Answer:
There is no coverage
Question:
Erroneous Publishing copied all the material from Angels Inc.'s book. The only changes made by
Erroneous were to rename the title and chapters, put a different cover on it, and distribute it as its
own. Angels Inc. files a claim against Erroneous and seeks damages. Will a commercial general
liability policy cover the claim?
Answer:
, No, because the claim results from copyright infringement and is not in an advertisement The type
of insurance used to cover goods for one specific trip is called
Question:
Answer:
Trip transit
Question:
Events or conditions that increase the chances of an insured loss occurring are referred to as
Answer:
Hazards
Question:
A premium discount is the term that describes when an insured owes a total standard premium
greater than
Answer:
$5,000
Question:
The transfer of an insured's right to seek damages from a negligent party to the insurer is found in
which of the following clauses?
Answer:
Subrogation
Question:
The crime of forced entry into the premises of another by a person or persons with felonious intent is
defined as a
