EXAM FX- Simulated Test Questions & Answers. 100% accurate. Latest Update.

EXAM FX- Simulated Test Questions & Answers. 100% accurate. Latest Update. Which of the following policies does NOT contain an automatic reinstatement provision? a) Business automobile liability b) Personal automobile liability with split limits c) Homeowners d) General liability written with an aggregate limit - -General Liability written with an aggregate limit The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay? a) Company A will pay $24,000; Company B will pay $0. b) Company A will pay $16,000; Company B will pay $8,000. c) Company A will pay $20,000; Company B will pay $4,000. d) Company A will pay $12,000; Company B will pay $12,000. - -Company A will pay $16,000; Company B will pay $8,000. Farm fences (except field and pasture fences) are covered by which farm coverage form? a) Coverage A b) Coverage B c) Coverage E d) Coverage G - -Coverage G What type of coverage does a homeowners policy include that a dwelling policy does not? a) Personal property b) Other structures c) Broad form d) Liability - -Liability Which of the following is NOT one of the 3 requirements for property to be eligible for FAIR plan coverage? a) Coverage could not be purchased through the normal insurance market b) It must be valued at an amount under the maximum value amount set by the state c) It must be located in a specific area defined by the state d) It must be considered insurable based on reasonable underwriting standards - -It must be valued at an amount under the maximum value amount set by the state Which of the following liability exposures is most likely for a small specialty clothing retail boutique? a) Operations liability exposure b) Product liability exposure c) Completed operations liability exposure d) Premises liability exposure - -Premises Liability Exposure All of the following types of property are covered by a standard builders risk form EXCEPT a) Tools 50 feet away from the building. b) The building itself. c) Temporary structures. d) Machinery that will be permanently attached to the building. - -Tools 50 feet away from the building If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 10 days b) 3 days c) 5 days d) 7 days - -5 days Which of the following would be named on the declarations page of a property or liability policy? a) Beneficiaries b) All insureds c) Additional insureds d) First named insured - -First Named insured When is a hired and nonowned auto liability endorsement available in a businessowners policy (BOP)? a) Only if the insured has 4 or more employees. b) Never c) Only if the insured does not have commercial auto coverage d) Only in addition to commercial auto coverage. - -Only if the insured does not have commercial auto coverage Which of the following persons may be covered under farm Coverage J? a) Resident employees b) First named insured c) Additional insureds d) Farm employees - -Resident employees A tornado that destroys property would be an example of which of the following? a) A peril b) A pure risk c) A loss d) A physical hazard - -A peril Which of the following could be covered by an HO policy? a) Property of a tenant not related to the insured b) An oriental rug in an on-premises apartment c) Birds, fish, and animals d) A sports car kept in an attached garage - -An oriental rug in an on-premises apartment The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000. Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for replacement cost coverage? a) $46,400 b) $48,000 c) $58,000 d) $60,000 - -48,000 Which of the following is NOT one of the available additional coverages in the builders risk form? a) Fire department service charge b) Pollutant cleanup c) Vandalism d) Debris removal - -Vandalism In addition to income benefits, how much will a dependent survivor receive as a funeral benefit for a deceased employee covered under Workers Compensation? a) Reasonable and necessary b) $1,000 c) $3,000 d) $5,000 - -3000 Under the Motor Vehicle Financial Responsibility Law, First Party Benefits would NOT be denied for which of the following injuries? a) Injury that was intentionally self-inflicted b) Injury incurred while the person was under the influence of drugs or alcohol c) Injury incurred while attempting to elude apprehension by a law enforcement official d) Injury incurred during the commission of a felony - -Injury incurred while the person was under the influence of drugs or alcohol All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT a) Stocks, securities, or bonds. b) An offer to share in commissions generated by the sale. c) Dividends from a mutual insurer. d) An offer of employment. - -Dividends from a mutual insurer Which of the following is a unit of measurement an underwriter uses when determining the premium rates for insurance? a) Exposure b) Loss c) Hazard d) Risk - -Exposure A liability policy that provides coverage for a claim for injury or damage if the claim is first reported or filed against the insured during the policy period is called a) Bodily injury/property damage form. b) Occurrence form. c) Premises coverage. d) Claims-made form. - -Claims-made form What is the civil penalty for violating a cease and desist order of the Commissioner? a) $1,000 b) $5,000 c) $10,000 d) $50,000 - -10,000 An insured is driving above the posted speed limit. As he rounds a curve, he crashes into an illegally parked car. This is an example of a) Comparative negligence. b) Vicarious liability. c) No-fault liability. d) Contributory negligence. - -d) Contributory negligence. Which of the following symbols