PEARSON VUE: PROPERTY INSURANCE PRACTICE EXAM
NEWEST 2025 ACTUAL EXAM WITH COMPLETE 50 QUESTIONS
AN CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED PASS
A fire in an insured's restaurant burns the kitchen walls and causes
smoke damage to the entire interior. Water used to extinguish the fire
causes extensive damage to floors and furnishings. The water damage is
best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ✔✔✔ Correct Answer > C
S is purchasing a Commercial Property policy to cover a commercial
building 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 - ✔✔✔ Correct Answer > C
The owner-operator of a computer store often leaves expensive
computers balanced negligently on the edges of tables, believing that
any damage to the computers will be paid by the insurance policy. This
situation is BEST described as a:
A. moral hazard
B. morale hazard
C. catastrophic hazard
, D. psychological hazard - ✔✔✔ Correct Answer > B
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 - ✔✔✔ Correct Answer > C
The National Flood Insurance Program provides coverage for losses
caused by all of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
NEWEST 2025 ACTUAL EXAM WITH COMPLETE 50 QUESTIONS
AN CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
ALREADY GRADED A+ | GUARANTEED PASS
A fire in an insured's restaurant burns the kitchen walls and causes
smoke damage to the entire interior. Water used to extinguish the fire
causes extensive damage to floors and furnishings. The water damage is
best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ✔✔✔ Correct Answer > C
S is purchasing a Commercial Property policy to cover a commercial
building 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 - ✔✔✔ Correct Answer > C
The owner-operator of a computer store often leaves expensive
computers balanced negligently on the edges of tables, believing that
any damage to the computers will be paid by the insurance policy. This
situation is BEST described as a:
A. moral hazard
B. morale hazard
C. catastrophic hazard
, D. psychological hazard - ✔✔✔ Correct Answer > B
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 - ✔✔✔ Correct Answer > C
The National Flood Insurance Program provides coverage for losses
caused by all of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
