Pearson VUE: Property Insurance Practice Exam
Questions and Answers (100%Verified).
1. S is purchasing a Commercial Property policy to cover a commercial build
ing with a replacement cost of $100,000. The policy includes an 80 percent
Coinsurance clause. To avoid a coinsurance penalty in the event of a partial
loss, S should purchase a policy with minimum limits of AT LEAST which of
the following amounts?
A. $100,000
B. $90,000
C. $80,000
D. $20,000: answer- C
2. The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
,B. deductible
C. limit of liability
D. pro rata return: answer- C
3. The National Flood Insurance Program provides coverage for losses cause
by all of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
D. water-main breakage: answer- D
4. Special Form or Open Perils coverage:
A. Provides coverage against the named perils
B. Provides coverage against scheduled risks
, C. Is limited by the named exclusions
Questions and Answers (100%Verified).
1. S is purchasing a Commercial Property policy to cover a commercial build
ing with a replacement cost of $100,000. The policy includes an 80 percent
Coinsurance clause. To avoid a coinsurance penalty in the event of a partial
loss, S should purchase a policy with minimum limits of AT LEAST which of
the following amounts?
A. $100,000
B. $90,000
C. $80,000
D. $20,000: answer- C
2. The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
,B. deductible
C. limit of liability
D. pro rata return: answer- C
3. The National Flood Insurance Program provides coverage for losses cause
by all of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
D. water-main breakage: answer- D
4. Special Form or Open Perils coverage:
A. Provides coverage against the named perils
B. Provides coverage against scheduled risks
, C. Is limited by the named exclusions
