PEARSON VUE PROPERTY INSURANCE PRACTICE TEST Exam | Questions & 100% Correct Answers (Verified) | Latest Update | Grade A+

1. Which of the following perils is covered under the Commercial Property Basic Cause of Loss form? 1. A. Collapse 2. B. Sinkhole collapse 3. C. Falling objects 4. D. Breakage of glass Correct Answer: Answer: B Sinkhole Collapse The National Flood Insurance Program provides coverage for losses caused by all of the following occurrences EXCEPT: A. mudslides B. runoff from heavy rain 2 C. overflow of tidal waters D. water-main breakage Correct Answer: Answer: D Water-Main Breakage Which of the following statements about a mortgagee's rights under the Dwelling Property Basic Form (DP-1) is INCORRECT? A. No act by the insured will jeopardize the mortgagee's rights. B. The mortgagee may file a Proof of Loss if the insured fails to do so. C. The mortgagee is entitled to receive prior notice of a policy's cancellation. D. The mortgagee may abandon the insured property to the insurer. Correct Answer: Answer: D The mortgagee may abandon the insured property to the insurer. Which of the following Homeowners coverages does NOT generally contain a deductible? A. Personal property 3 B. Other structures C. Liability D. Dwelling Correct Answer: Answer: C Liability Inland Marine insurance is commonly used to insure all of the following items EXCEPT: A. automobiles B. stamps C. camera equipment D. jewelry Correct Answer: Answer: A Automobiles Information provided by the insured in a Proof of Loss is considered: A. a warranty B. a representation 4 C. an assignment D. an agreement Correct Answer: Answer: B a representation The principle of indemnity is designed to avoid: A. two policies sharing payment for a loss B. overpayment of a claim C. the return of earned premiums D. a Coinsurance clause of less than 80 percent Correct Answer: Answer: B the return of earned premiums X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a flood causes $1,000 in damage to the home's contents, which of the following MAXIMUM amounts will X's insurer pay? A. $0 B