Pearson VUE: Property Insurance Practice
Exam (Latest Updates)
Questions & Answers 100% Correct
{Grade A}
In order to issue a written binder for a commercial property policy, what is the
MINIMUM consideration a producer must secure from an applicant?
A. A promise to pay the premium
B. A signature on a premium finance agreement
C. Payment of six months' premium
D. Payment of twelve months' premium - correct answer A
An insured owns a set of six drawing pens designed and used by Benjamin Franklin.
Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a
covered peril. Under the Pair and Set clause, the insurer will pay a MAXIMUM of which
of the following amounts?
A. $1,000
,B. $2,000
C. $7,000
D. $12,000 - correct answer C
Pro-rata cancellation occurs when:
A. a policy is nonrenewed
B. a mortgage has been satisfied
C. an insured cancels a policy at inception
D. an insurer cancels a policy at any time - correct answer D
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
A. automobiles
B. stamps
, C. camera equipment
D. jewelry - correct answer A
A primary obligation of an insurer is to:
A. pay the claims covered under the policy
B. provide a financial statement with each policy
C. make inspections and surveys of insured property
D. prepare an inventory after a loss - correct answer A
An applicant's statement included in the insurance contract that the property to be
insured has an operable sprinkler system is:
A. agency binding authority
B. a warranty
Exam (Latest Updates)
Questions & Answers 100% Correct
{Grade A}
In order to issue a written binder for a commercial property policy, what is the
MINIMUM consideration a producer must secure from an applicant?
A. A promise to pay the premium
B. A signature on a premium finance agreement
C. Payment of six months' premium
D. Payment of twelve months' premium - correct answer A
An insured owns a set of six drawing pens designed and used by Benjamin Franklin.
Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is destroyed by a
covered peril. Under the Pair and Set clause, the insurer will pay a MAXIMUM of which
of the following amounts?
A. $1,000
,B. $2,000
C. $7,000
D. $12,000 - correct answer C
Pro-rata cancellation occurs when:
A. a policy is nonrenewed
B. a mortgage has been satisfied
C. an insured cancels a policy at inception
D. an insurer cancels a policy at any time - correct answer D
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
A. automobiles
B. stamps
, C. camera equipment
D. jewelry - correct answer A
A primary obligation of an insurer is to:
A. pay the claims covered under the policy
B. provide a financial statement with each policy
C. make inspections and surveys of insured property
D. prepare an inventory after a loss - correct answer A
An applicant's statement included in the insurance contract that the property to be
insured has an operable sprinkler system is:
A. agency binding authority
B. a warranty
