FX Insurance;property and casualty Practice Exam
Questions and Answers 2022/2023
The causes of loss insured against in an insurance policy are known as
Perils
Before an insurer will pay any loss under a policy, what is usually required from
the insured?
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?
All of the expense up to the Coverage D limit
All of the following statements concerning coinsurance are true EXCEPT
The coinsurance formula will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is
more than one insurance policy written on the same risk?
Other insurance
What is the purpose of the coinsurance clause found in property insurance
policies?
Encourage the insured to insure the property closer to its full value
With respect to the business of insurance, a hazard is
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
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
Larger
The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period?
1 year
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?
This loss is not covered
Which of the following coverages in dwelling and homeowners policies is for
indirect losses?
Loss of use
Which of the following types of valuation works best for property whose value
does not fluctuate much?
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?
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
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
Malpractice coverage.
How much coverage is provided under a homeowners policy for theft or
unauthorized use of a credit card?
$500
Burglary is defined as
Taking of property from within the premises leaving visible signs of forced entry.
When an insured makes truthful statements on the application for insurance and
pays the required premium, it is known as which of the following?
Consideration
Insurable interest in a property policy must be proven
At the time of loss.
The part of the policy that sets forth the rules of conduct, duties, and obligations
of the parties is called the
Conditions
The Federal Fair Credit Reporting Act
Regulates consumer reports.
The process of determining the premium charged and how much insurance is
required for a particular loss is called
Loss valuation
When applying for an individual life insurance policy, an applicant states that he
went to the doctor for nausea, but fails to mention that he was also having severe
chest pains. This is an example of
Concealment
Which of the following personal auto coverages would pay for the insured's travel
expenses and loss of earnings while involved in the settlement process of a
covered loss?
Liability coverage
Which of the following is a statement that is guaranteed to be true, and if untrue,
may breach an insurance contract?
Warranty
Most insurance policies exclude losses by
Mysterious disappearance.
A commercial package policy (CPP) allows the insured to select the coverage
needed and customize the policy to meet the needs of the insured's business. In
a CPP, the business owner may select from all of the following types of coverage
EXCEPT
Workers compensation coverage
Questions and Answers 2022/2023
The causes of loss insured against in an insurance policy are known as
Perils
Before an insurer will pay any loss under a policy, what is usually required from
the insured?
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?
All of the expense up to the Coverage D limit
All of the following statements concerning coinsurance are true EXCEPT
The coinsurance formula will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is
more than one insurance policy written on the same risk?
Other insurance
What is the purpose of the coinsurance clause found in property insurance
policies?
Encourage the insured to insure the property closer to its full value
With respect to the business of insurance, a hazard is
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
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
Larger
The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period?
1 year
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?
This loss is not covered
Which of the following coverages in dwelling and homeowners policies is for
indirect losses?
Loss of use
Which of the following types of valuation works best for property whose value
does not fluctuate much?
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?
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
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
Malpractice coverage.
How much coverage is provided under a homeowners policy for theft or
unauthorized use of a credit card?
$500
Burglary is defined as
Taking of property from within the premises leaving visible signs of forced entry.
When an insured makes truthful statements on the application for insurance and
pays the required premium, it is known as which of the following?
Consideration
Insurable interest in a property policy must be proven
At the time of loss.
The part of the policy that sets forth the rules of conduct, duties, and obligations
of the parties is called the
Conditions
The Federal Fair Credit Reporting Act
Regulates consumer reports.
The process of determining the premium charged and how much insurance is
required for a particular loss is called
Loss valuation
When applying for an individual life insurance policy, an applicant states that he
went to the doctor for nausea, but fails to mention that he was also having severe
chest pains. This is an example of
Concealment
Which of the following personal auto coverages would pay for the insured's travel
expenses and loss of earnings while involved in the settlement process of a
covered loss?
Liability coverage
Which of the following is a statement that is guaranteed to be true, and if untrue,
may breach an insurance contract?
Warranty
Most insurance policies exclude losses by
Mysterious disappearance.
A commercial package policy (CPP) allows the insured to select the coverage
needed and customize the policy to meet the needs of the insured's business. In
a CPP, the business owner may select from all of the following types of coverage
EXCEPT
Workers compensation coverage
