PearsonVue Practice Exam 1
Which of the following persons may assign a Standard Fire Policy? - ANS-A Claims
Adjuster
Under the standard flood insurance policy, all of the following loss avoidance measures
are covered up to $1,000 when damage to the insured property due to flooding is
imminent EXCEPT: - ANS-The value of work, at the federal minimum wage, that a
member of the household performs
The Insurance Commissioner is empowered to: - ANS-Enforce state laws relating to
insurance
After an insurer receives a satisfactory proof of loss from an insured on a fire loss,
payment is due within a MAXIMUM of how many days? - ANS-30 days
*Upon determining that a producer has violated the insurance law, the Insurance
Commissioner is required to take which of the following actions? - ANS-Publish notice
of the violation
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all
of the following reasons EXCEPT: - ANS-Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without criminal fault on the part of
the insured. The amount of the loss covered by a property policy would be based on: -
ANS-The market value of the dwelling
A candidate for licensure as a property insurance produce must have completed a
MINIMUM of how many hours of prelicensing education? - ANS-50 hours
An insurer that permits different rate classifications for individuals of the same class and
same hazard may be guilty of: - ANS-Unfair discrimination
Making false or misleading statements about dividends or shares of surplus previously
paid on an insurance policy is known as: - ANS-Misrepresentation
*The Insurance Company may issue a limited insurance representative license to an
individual who wants to sell which of the following types of policies? - ANS-Automobile
, In this state, a domestic insurer is defined as a company that: - ANS-Is headquarted in
this state
*If a commercial insurer fails to meet the requirements of the forty-five days Notice of
Nonrenewal Rule prior to the expiration date of the existing policy, the company MUST: -
ANS-Provide a renewal policy that *matches* the expiring policy's coverages and
premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: - ANS-Basic Property insurance for which
coverage is not available in the regular market
XYZ Insurance Company recently received its certificate of authority to sell property
insurance in Illinois. XYZ is an Iowa insurer but will sell its products through its licensed
Illinois producers. Which of the following statements is CORRECT about XYZ
Company's involvement in the FAIR Plan? - ANS-Membership in the FAIR Plan is
optional for XYZ
*All of the following items continued in a basement are covered under the standard flood
insurance policy EXCEPT: - ANS-Drywall for walls and ceilings and the cost of labor to
nail it, unfinished and unfloated and not taped, to the framing
*An incorporated insurer with capital divided into shares and owned by its shareholders
is known as: - ANS-A stock company
*An insurer that intends to nonrenew a Homeownwers policy MUST take which of the
following actions? - ANS-Send a notice stating the reason for nonrenewal to the insured
*An insurer that generally fails to affirm or deny coverage of claims with a reasonable
period of time after receiving Proof of Loss may be found guilty of: - ANS-An improper
claims practice
*In order to be reimbursed for a covered loss under a Standard Fire policy in this state,
and insured MUST: - ANS-Protect the property from future loss
*To obtain coverage from this state's FAIR plan, an applicant MUST: - ANS-Apply at
least thirty days prior to the desired effective date of coverage
Coverage for goods in transit is usually provided by which of the following types of
insurance? - ANS-Inland Marine
Which of the following persons may assign a Standard Fire Policy? - ANS-A Claims
Adjuster
Under the standard flood insurance policy, all of the following loss avoidance measures
are covered up to $1,000 when damage to the insured property due to flooding is
imminent EXCEPT: - ANS-The value of work, at the federal minimum wage, that a
member of the household performs
The Insurance Commissioner is empowered to: - ANS-Enforce state laws relating to
insurance
After an insurer receives a satisfactory proof of loss from an insured on a fire loss,
payment is due within a MAXIMUM of how many days? - ANS-30 days
*Upon determining that a producer has violated the insurance law, the Insurance
Commissioner is required to take which of the following actions? - ANS-Publish notice
of the violation
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all
of the following reasons EXCEPT: - ANS-Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without criminal fault on the part of
the insured. The amount of the loss covered by a property policy would be based on: -
ANS-The market value of the dwelling
A candidate for licensure as a property insurance produce must have completed a
MINIMUM of how many hours of prelicensing education? - ANS-50 hours
An insurer that permits different rate classifications for individuals of the same class and
same hazard may be guilty of: - ANS-Unfair discrimination
Making false or misleading statements about dividends or shares of surplus previously
paid on an insurance policy is known as: - ANS-Misrepresentation
*The Insurance Company may issue a limited insurance representative license to an
individual who wants to sell which of the following types of policies? - ANS-Automobile
, In this state, a domestic insurer is defined as a company that: - ANS-Is headquarted in
this state
*If a commercial insurer fails to meet the requirements of the forty-five days Notice of
Nonrenewal Rule prior to the expiration date of the existing policy, the company MUST: -
ANS-Provide a renewal policy that *matches* the expiring policy's coverages and
premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: - ANS-Basic Property insurance for which
coverage is not available in the regular market
XYZ Insurance Company recently received its certificate of authority to sell property
insurance in Illinois. XYZ is an Iowa insurer but will sell its products through its licensed
Illinois producers. Which of the following statements is CORRECT about XYZ
Company's involvement in the FAIR Plan? - ANS-Membership in the FAIR Plan is
optional for XYZ
*All of the following items continued in a basement are covered under the standard flood
insurance policy EXCEPT: - ANS-Drywall for walls and ceilings and the cost of labor to
nail it, unfinished and unfloated and not taped, to the framing
*An incorporated insurer with capital divided into shares and owned by its shareholders
is known as: - ANS-A stock company
*An insurer that intends to nonrenew a Homeownwers policy MUST take which of the
following actions? - ANS-Send a notice stating the reason for nonrenewal to the insured
*An insurer that generally fails to affirm or deny coverage of claims with a reasonable
period of time after receiving Proof of Loss may be found guilty of: - ANS-An improper
claims practice
*In order to be reimbursed for a covered loss under a Standard Fire policy in this state,
and insured MUST: - ANS-Protect the property from future loss
*To obtain coverage from this state's FAIR plan, an applicant MUST: - ANS-Apply at
least thirty days prior to the desired effective date of coverage
Coverage for goods in transit is usually provided by which of the following types of
insurance? - ANS-Inland Marine
