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ACA Exam Practice Questions and
Answers 100% Pass
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire department quickly
arrives and puts out the fire. Unfortunately, there is water damage due to the water from the fire hoses.
This water damage would be covered because - ✔✔Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of the insured while the
plane is in for storage or service is: - ✔✔Hangarkeepers liability
Under the commercial property form, what length of time must expire before a building is considered
"vacant" -- thereby suspending some coverages, while reducing payment on others? - ✔✔60 days
A florist wanted coverage on business contents, which vary in amount over the course of a year. Which
form best covers this situation? - ✔✔The value reporting endorsement
A community applied to be part of the National Flood Insurance Program. Until they are approved, what
is the status of the community of the community? - ✔✔They are in the emergency program
Both commercial property and liability were combined into one policy, thus saving money on
underwriting expense. What is this combination called? - ✔✔A package policy
What is the smallest amount of liability insurance under the business-owners policy (BOP)? - ✔✔$300,000
Which of the following would be excluded under a personal articles floater on an "all risks" basis? -
✔✔Insects destroy a valuable postage stamp worth $500
Author. Emily Charlene, ©2025 All Rights Reserved.
, 2|Page
A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard
to save the ship - this action is called: - ✔✔Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen from the job site. What
inland marine form is best suited for this exposure? - ✔✔The contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy EXCEPT: - ✔✔Theft from and
"off site" location
An Umbrella Policy may be broader than the underlying policies and respond as primary coverage.
When the Umbrella is primary, there is an amount to be paid by the insured - this is called: - ✔✔The self-
insured retention
If a person does not own an auto, but must provide Auto Liability, for what would he ask his agent? -
✔✔A named non-owned policy
Which of the following is false concerning flood insurance? - ✔✔To be insured for flood, a new building
must be 25% complete, have the walls up - roof not required to qualify
Vacancy of more than days suspends coverage on all the following EXCEPT: - ✔✔Weight of ice and snow
If a homeowner lives in a home 80% or more of the time, Flood coverage will respond to a loss in what
manner? - ✔✔Replacement cost on primary residence, actual cash value on others structures
All of the following are optional limits for the liability section of a BOP EXCEPT: - ✔✔$250,000
Under Equipment Breakdown Protection, also called Boiler and Machinery Coverage, the following are
true statements: - ✔✔-Minimum limit for liability is $500,000
-"Accident" is defined as sudden and accidental breakdowns
-Exclusions include wear & tear and deterioration
Author. Emily Charlene, ©2025 All Rights Reserved.
ACA Exam Practice Questions and
Answers 100% Pass
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire department quickly
arrives and puts out the fire. Unfortunately, there is water damage due to the water from the fire hoses.
This water damage would be covered because - ✔✔Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of the insured while the
plane is in for storage or service is: - ✔✔Hangarkeepers liability
Under the commercial property form, what length of time must expire before a building is considered
"vacant" -- thereby suspending some coverages, while reducing payment on others? - ✔✔60 days
A florist wanted coverage on business contents, which vary in amount over the course of a year. Which
form best covers this situation? - ✔✔The value reporting endorsement
A community applied to be part of the National Flood Insurance Program. Until they are approved, what
is the status of the community of the community? - ✔✔They are in the emergency program
Both commercial property and liability were combined into one policy, thus saving money on
underwriting expense. What is this combination called? - ✔✔A package policy
What is the smallest amount of liability insurance under the business-owners policy (BOP)? - ✔✔$300,000
Which of the following would be excluded under a personal articles floater on an "all risks" basis? -
✔✔Insects destroy a valuable postage stamp worth $500
Author. Emily Charlene, ©2025 All Rights Reserved.
, 2|Page
A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard
to save the ship - this action is called: - ✔✔Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen from the job site. What
inland marine form is best suited for this exposure? - ✔✔The contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy EXCEPT: - ✔✔Theft from and
"off site" location
An Umbrella Policy may be broader than the underlying policies and respond as primary coverage.
When the Umbrella is primary, there is an amount to be paid by the insured - this is called: - ✔✔The self-
insured retention
If a person does not own an auto, but must provide Auto Liability, for what would he ask his agent? -
✔✔A named non-owned policy
Which of the following is false concerning flood insurance? - ✔✔To be insured for flood, a new building
must be 25% complete, have the walls up - roof not required to qualify
Vacancy of more than days suspends coverage on all the following EXCEPT: - ✔✔Weight of ice and snow
If a homeowner lives in a home 80% or more of the time, Flood coverage will respond to a loss in what
manner? - ✔✔Replacement cost on primary residence, actual cash value on others structures
All of the following are optional limits for the liability section of a BOP EXCEPT: - ✔✔$250,000
Under Equipment Breakdown Protection, also called Boiler and Machinery Coverage, the following are
true statements: - ✔✔-Minimum limit for liability is $500,000
-"Accident" is defined as sudden and accidental breakdowns
-Exclusions include wear & tear and deterioration
Author. Emily Charlene, ©2025 All Rights Reserved.
