Exam Fx-Property and Casualty Exam Questions and Answers with complete solutions

To be considered an insurable risk, a loss may NOT be - Answer-catastrophic Which of the following persons would be required to hold a producer license? - Answer-a nonresident agent who negotiates insurance contracts Which of the following is the oldest known type of insurance? - Answer-ocean marine The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of golden candlesticks? - Answer-the difference in the actual cash value as a pair and as a single Which of the following additional perils is covered under both of the Basic and Broad forms in dwelling policies? - Answer-internal explosion When would a misrepresentation on the insurance application be considered fraud? - Answer-If it is intentional and material A bond is written for a set limit, and the surety will be liable only for this amount. This limit is known as the - Answer-penalty In insurance, an offer is usually made when - Answer-the application is submitted All of the following actions by a producer may be grounds for license revocation or non-renewal EXCEPT - Answer-participating in controlled business In personal auto policies, the term "you" refers to - Answer-the named insured Business personal property coverage form covers all of the following except: - Answer-automobiles held for sale in dwelling policies, automatic increase in insurance is - Answer-coverage by endorsementTo be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than - Answer-6 stories Elaborate homes with replacement costs greater than ACV or market value are insured on the - Answer-HO-8 Form Which of the following dwelling coverage forms would pay replacement cost for the dwelling? - Answer-DP-2 and DP-3 Business personal property coverage insures property out in the open if it is - Answer-Within 100 feet of the described premises A runaway shopping cart injures a customer in a supermarket's parking lot. Coverage for this claim would be provided under - Answer-premises and operations Which of the following businesses would be eligible for a businessowners policy? - Answer-Hill & Morton Funeral Home The designation symbols used in commercial auto policies can be found in which policy section? - Answer-covered auto Which of the following is used in the formula for calculating the actual cash value (ACV) of a property? - Answer-replacement cost What type of bond guarantees that the principal will complete the contract as agreed upon? - Answer-performance bond Peril is most easily defined as - Answer-The cause of loss insured against An insured building has had no residents for 10 years and it is empty of personal belongings. From an insurance standpoint, the building is - Answer-vacant Under a workers compensation policy, premiums will be determined when - Answer-the policy period endsWhich commercial property form is used to insure buildings while under construction? - AnswerBuilders risk Which of the following information will be found in the Declarations page of the commercial property policy? - Answer-description of the policy insured