EXAM FX- Simulated Test /68 Questions
with answers
Which of the following policies does NOT contain an automatic reinstatement
provision?
a) Business automobile liability
b) Personal automobile liability with split limits
c) Homeowners
d) General liability written with an aggregate limit - - General Liability
written with an aggregate limit
- The ABC Corporation has $100,000 of coverage on its building through
insurance Company A, and $50,000 of identical coverage on the same
building through insurance Company B. Assuming coinsurance is not an
issue, when a $24,000 loss occurs and the pro rata method is used, how
much will each insurer pay?
a) Company A will pay $24,000; Company B will pay $0.
b) Company A will pay $16,000; Company B will pay $8,000.
c) Company A will pay $20,000; Company B will pay $4,000.
d) Company A will pay $12, - - Company A will pay $16,000; Company B will
pay $8,000.
- Farm fences (except field and pasture fences) are covered by which farm
coverage form?
a) Coverage A
b) Coverage B
c) Coverage E
d) Coverage G - - Coverage G
- What type of coverage does a homeowners policy include that a dwelling
policy does not?
a) Personal property
b) Other structures
c) Broad form
d) Liability - - Liability
- Which of the following is NOT one of the 3 requirements for property to be
eligible for FAIR plan coverage?
a) Coverage could not be purchased through the normal insurance market
b) It must be valued at an amount under the maximum value amount set by
the state
c) It must be located in a specific area defined by the state
, d) It must be considered insurable based on reasonable underwriting
standards - - It must be valued at an amount under the maximum value
amount set by the state
- Which of the following liability exposures is most likely for a small specialty
clothing retail boutique?
a) Operations liability exposure
b) Product liability exposure
c) Completed operations liability exposure
d) Premises liability exposure - - Premises Liability Exposure
- All of the following types of property are covered by a standard builders
risk form EXCEPT
a) Tools 50 feet away from the building.
b) The building itself.
c) Temporary structures.
d) Machinery that will be permanently attached to the building. - - Tools 50
feet away from the building
- If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to
comply?
a) 10 days
b) 3 days
c) 5 days
d) 7 days - - 5 days
- Which of the following would be named on the declarations page of a
property or liability policy?
a) Beneficiaries
b) All insureds
c) Additional insureds
d) First named insured - - First Named insured
- When is a hired and nonowned auto liability endorsement available in a
businessowners policy (BOP)?
a) Only if the insured has 4 or more employees.
b) Never
c) Only if the insured does not have commercial auto coverage
d) Only in addition to commercial auto coverage. - - Only if the insured does
not have commercial auto coverage
- Which of the following persons may be covered under farm Coverage J?
a) Resident employees
b) First named insured
c) Additional insureds
with answers
Which of the following policies does NOT contain an automatic reinstatement
provision?
a) Business automobile liability
b) Personal automobile liability with split limits
c) Homeowners
d) General liability written with an aggregate limit - - General Liability
written with an aggregate limit
- The ABC Corporation has $100,000 of coverage on its building through
insurance Company A, and $50,000 of identical coverage on the same
building through insurance Company B. Assuming coinsurance is not an
issue, when a $24,000 loss occurs and the pro rata method is used, how
much will each insurer pay?
a) Company A will pay $24,000; Company B will pay $0.
b) Company A will pay $16,000; Company B will pay $8,000.
c) Company A will pay $20,000; Company B will pay $4,000.
d) Company A will pay $12, - - Company A will pay $16,000; Company B will
pay $8,000.
- Farm fences (except field and pasture fences) are covered by which farm
coverage form?
a) Coverage A
b) Coverage B
c) Coverage E
d) Coverage G - - Coverage G
- What type of coverage does a homeowners policy include that a dwelling
policy does not?
a) Personal property
b) Other structures
c) Broad form
d) Liability - - Liability
- Which of the following is NOT one of the 3 requirements for property to be
eligible for FAIR plan coverage?
a) Coverage could not be purchased through the normal insurance market
b) It must be valued at an amount under the maximum value amount set by
the state
c) It must be located in a specific area defined by the state
, d) It must be considered insurable based on reasonable underwriting
standards - - It must be valued at an amount under the maximum value
amount set by the state
- Which of the following liability exposures is most likely for a small specialty
clothing retail boutique?
a) Operations liability exposure
b) Product liability exposure
c) Completed operations liability exposure
d) Premises liability exposure - - Premises Liability Exposure
- All of the following types of property are covered by a standard builders
risk form EXCEPT
a) Tools 50 feet away from the building.
b) The building itself.
c) Temporary structures.
d) Machinery that will be permanently attached to the building. - - Tools 50
feet away from the building
- If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to
comply?
a) 10 days
b) 3 days
c) 5 days
d) 7 days - - 5 days
- Which of the following would be named on the declarations page of a
property or liability policy?
a) Beneficiaries
b) All insureds
c) Additional insureds
d) First named insured - - First Named insured
- When is a hired and nonowned auto liability endorsement available in a
businessowners policy (BOP)?
a) Only if the insured has 4 or more employees.
b) Never
c) Only if the insured does not have commercial auto coverage
d) Only in addition to commercial auto coverage. - - Only if the insured does
not have commercial auto coverage
- Which of the following persons may be covered under farm Coverage J?
a) Resident employees
b) First named insured
c) Additional insureds
