Pearson VUE: Property Insurance Practice
Exam/ Q&A.
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause - Answer: A
The Personal Liability section of a Homeowners policy covers which of the
following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
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,C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - Answer: D
An insured owns an antique marble statue valued at $3,000, which is covered
under a Personal Articles Floater. Damage to the statue would be covered in all of
the following situations EXCEPT:
A. it was accidentally damaged by a housekeeper
B. it was damaged in a flood
C. a guest of the insured maliciously damaged it
D. the insured threw it - Answer: D
Which of the following sources may be used to provide property insurability
information?
A. Police records
B. Physical inspections
C. Checking account statements
D. Lie detector tests - Answer: B
All of the following perils are covered under a Building and Business Personal
Property Coverage Form with a Causes of Loss-Basic Form attached EXCEPT:
A. smoke
B. sprinkler leakage
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, C. sinkhole collapse
D. earth movement - Answer: D
S is purchasing a Commercial Property policy to cover a commercial building with
a replacement cost of $100,000. The policy includes an 80 percent Coinsurance
clause. To avoid a coinsurance penalty in the event of a partial loss, S should
purchase a policy with minimum limits of AT LEAST which of the following
amounts?
A. $100,000
B. $90,000
C. $80,000
D. $20,000 - Answer: C
The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return - Answer: C
The National Flood Insurance Program provides coverage for losses caused by all
of the following occurrences EXCEPT:
A. mudslides
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Exam/ Q&A.
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause - Answer: A
The Personal Liability section of a Homeowners policy covers which of the
following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
Page 1 of 18
,C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - Answer: D
An insured owns an antique marble statue valued at $3,000, which is covered
under a Personal Articles Floater. Damage to the statue would be covered in all of
the following situations EXCEPT:
A. it was accidentally damaged by a housekeeper
B. it was damaged in a flood
C. a guest of the insured maliciously damaged it
D. the insured threw it - Answer: D
Which of the following sources may be used to provide property insurability
information?
A. Police records
B. Physical inspections
C. Checking account statements
D. Lie detector tests - Answer: B
All of the following perils are covered under a Building and Business Personal
Property Coverage Form with a Causes of Loss-Basic Form attached EXCEPT:
A. smoke
B. sprinkler leakage
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, C. sinkhole collapse
D. earth movement - Answer: D
S is purchasing a Commercial Property policy to cover a commercial building with
a replacement cost of $100,000. The policy includes an 80 percent Coinsurance
clause. To avoid a coinsurance penalty in the event of a partial loss, S should
purchase a policy with minimum limits of AT LEAST which of the following
amounts?
A. $100,000
B. $90,000
C. $80,000
D. $20,000 - Answer: C
The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return - Answer: C
The National Flood Insurance Program provides coverage for losses caused by all
of the following occurrences EXCEPT:
A. mudslides
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