Property Insurance Exam Practice Test
"The chance that a person or business entity will suffer a financial loss" defines:
A.gambling
B.loss exposure
C.risk
D.speculative risk - ANSC
"Actual physical destruction of insured property" defines
A.direct loss
B.indirect loss
C.peril
D.vandalism - ANSA
Loose tiles hanging from the ceiling are an example of a ______ hazard.
A.mental
B.moral
C.morale
D.physical - ANSD
Insurable interest in a Property Insurance policy must be demonstrated
A.at time of a loss
B.at time of application
C.at time of first payment
D.all of the above - ANSA
The primary purpose of the co-insurance condition in a Property Insurance policy is to
encourage
A.buying multiple policies
B.insurance to value
C.over-insuring
D.self-insurance - ANSB
All are incompetent to contract EXCEPT
A.illegal aliens
B.mentally challenged citizens
C.minors
D.senior citizens - ANSD
All are major cause of loss forms in Commercial Property Insurance EXCEPT
A.basic
B.broad
"The chance that a person or business entity will suffer a financial loss" defines:
A.gambling
B.loss exposure
C.risk
D.speculative risk - ANSC
"Actual physical destruction of insured property" defines
A.direct loss
B.indirect loss
C.peril
D.vandalism - ANSA
Loose tiles hanging from the ceiling are an example of a ______ hazard.
A.mental
B.moral
C.morale
D.physical - ANSD
Insurable interest in a Property Insurance policy must be demonstrated
A.at time of a loss
B.at time of application
C.at time of first payment
D.all of the above - ANSA
The primary purpose of the co-insurance condition in a Property Insurance policy is to
encourage
A.buying multiple policies
B.insurance to value
C.over-insuring
D.self-insurance - ANSB
All are incompetent to contract EXCEPT
A.illegal aliens
B.mentally challenged citizens
C.minors
D.senior citizens - ANSD
All are major cause of loss forms in Commercial Property Insurance EXCEPT
A.basic
B.broad
