EXAM FX- Simulated Test Questions
2024/2025 Exam All Answers and
Illustrations Given
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 - 🧠 ANSWER ✔✔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.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,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, - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Liability
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
, 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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Premises Liability Exposure
All of the following types of property are covered by a standard builders risk
form EXCEPT
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
2024/2025 Exam All Answers and
Illustrations Given
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 - 🧠 ANSWER ✔✔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.
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,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, - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Liability
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
, 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 - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔Premises Liability Exposure
All of the following types of property are covered by a standard builders risk
form EXCEPT
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
