Pearson VUE: Property Insurance
Practice Exam / Complete Study Guide /
Actual Exam Questions & Correct
Answers (Verified Detailed Answers) A
Grade.
_____________Quiz____________?
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 -
Answer✓✓
C
_____________Quiz____________?
The MAXIMUM amount a policy will pay in the event of a loss is called the:
1
, A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return -
Answer✓✓
C
_____________Quiz____________?
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
D. water-main breakage -
Answer✓✓
D
_____________Quiz____________?
Special Form or Open Perils coverage:
A. Provides coverage against the named perils
2
, B. Provides coverage against scheduled risks
C. Is limited by the named exclusions
D. Includes no exclusions -
Answer✓✓
C
_____________Quiz____________?
Which of the following businesses would be eligible for a Businessowners policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop -
Answer✓✓
D
_____________Quiz____________?
During a tornado, a barn is destroyed when a section of its wall is blown down, knocking
over a lantern, which sets the barn on fire. The proximate cause of loss is the:
A. fire
3
Practice Exam / Complete Study Guide /
Actual Exam Questions & Correct
Answers (Verified Detailed Answers) A
Grade.
_____________Quiz____________?
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 -
Answer✓✓
C
_____________Quiz____________?
The MAXIMUM amount a policy will pay in the event of a loss is called the:
1
, A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return -
Answer✓✓
C
_____________Quiz____________?
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
D. water-main breakage -
Answer✓✓
D
_____________Quiz____________?
Special Form or Open Perils coverage:
A. Provides coverage against the named perils
2
, B. Provides coverage against scheduled risks
C. Is limited by the named exclusions
D. Includes no exclusions -
Answer✓✓
C
_____________Quiz____________?
Which of the following businesses would be eligible for a Businessowners policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop -
Answer✓✓
D
_____________Quiz____________?
During a tornado, a barn is destroyed when a section of its wall is blown down, knocking
over a lantern, which sets the barn on fire. The proximate cause of loss is the:
A. fire
3
