EXAM FX- Simulated Test Questions with
correct answers
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
- ...,.🔹VERIFIED 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.
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.
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,d) Company A will pay $12,000; Company B will pay $12,000.
- ...,.🔹VERIFIED 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 - ...,.🔹VERIFIED 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 - ...,.🔹VERIFIED ANSWER **✔✔Liability
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
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, 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 - ...,.🔹VERIFIED 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 - ...,.🔹VERIFIED ANSWER
**✔✔Premises Liability Exposure
All of the following types of property are covered by a standard
builders risk form EXCEPT
a) Tools 50 feet away from the building.
b) The building itself.
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correct answers
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
- ...,.🔹VERIFIED 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.
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.
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,d) Company A will pay $12,000; Company B will pay $12,000.
- ...,.🔹VERIFIED 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 - ...,.🔹VERIFIED 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 - ...,.🔹VERIFIED ANSWER **✔✔Liability
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
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26
, 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 - ...,.🔹VERIFIED 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 - ...,.🔹VERIFIED ANSWER
**✔✔Premises Liability Exposure
All of the following types of property are covered by a standard
builders risk form EXCEPT
a) Tools 50 feet away from the building.
b) The building itself.
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