FUNDAMENTALS OF INSURANCE - PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS 2025

FUNDAMENTALS OF INSURANCE - PRACTICE
EXAM QUESTIONS WITH CORRECT ANSWERS
2025
ThreeFMainFCategoriesFofFRiskF-FCORRECTFANSWERF-1)FPersonalFRisk

2)PropertyFRisk

3)LiabilityFRisk



WhatFareFtheFFIVEFelementsFofFaFcontract?



A)FAgreement,FRisk,FLoss,FConsideration,FLegality



B)FLegalFCapacity,FLegalityFofFObject,FConsideration,FAgreement,FGenuineFIntention



C)FAgreement,FLegalFCapacity,FRisk,FLoss,FConsideration.



D)FNoneFofFtheFaboveF-FCORRECTFANSWERF-
B)FLegalFCapacity,FLegalityFofFObject,FConsideration,FAgreement,FGenuineFIntention



WhatFisFneededFforFanFagreementFtoFexist?F-FCORRECTFANSWERF-
AnFofferFmade;FANDFanFunconditionalFacceptanceFofFtheFtermsFofFthatFoffer



WhatFdoFtheseFabbreviationsFstandFfor?



1)FT/a



2)D/b/a



3)O/aF-FCORRECTFANSWERF-1)FTradingFas

,2)FDoingFBusinessFas



3)FOperatingFas



HowFlongFareFinsuranceFcontractsFusuallyFwrittenFfor?



A)F6FMonths



B)F3FYears



C)F1FYear



D)FForFlifeFunlessFcancelledFandFreissuedF-FCORRECTFANSWERF-C)F1FYear



AnFinsurerFisFnotFrequiredFtoFprovideFcoverageFwhenFlossesFareFcausedFby:



A)FApplicationFofFheat



B)FLighteningF/FElectricalFsurgesFthatFcauseFdamageFtoFelectricalFdevices



C)FContaminationFbyFradioactiveFmaterial



D)FAllFofFtheFAbove



E)FAFandFCF-FCORRECTFANSWERF-D)FAllFofFtheFAbove



TheFonusFtoFproveFMisrepresentationFrestsFwith:



A)FTheFInsured

,B)FTheFInsurer



C)FTheFPolice



D)FAFBaileeFforFhireF-FCORRECTFANSWERF-B)FTheFInsurer



MaterialFFactsFcanFinclude:



A)FDetailsFconcerningFpreviousFclaims



B)FDetailsFregardingFpreviousFcancellationForFrefusalFofFInsuranceF



C)FDetailsFconcerningFexistingFpropertyFprotectionFsystems



D)FAllFofFtheFAbove



E)FAFandFBF-FCORRECTFANSWERF-D)FAllFofFtheFAbove



TheFfollowingFareFexamplesFofFtheFStatutoryFConditionFRequirementsFAfterFLossFEXCEPT:



A)FRequiredFtoFgiveFaFcompleteFinventoryFofFdestroyedForFdamagedFproperty



B)FStatingFwhenFandFhowFtheFlossFoccurred



C)FStatingFtheFlossFdidFnotFoccurFdueFtoFaFnegligentForFwillingFactF



D)FAllFofFtheFaboveF-FCORRECTFANSWERF-D)FAllFofFtheFabove

, WhichFofFtheFfollowingFisFNOTFaFStatutoryFConditionFofFInsuringFtheFperilFofFfire?



A)FTermination



B)FFraud



C)FSalvage



D)FRiskFSummaryF-FCORRECTFANSWERF-D)FRiskFSummary



WhenFtheFinsuredFandFinsurerFcannotFagreeFonFtheFvalueFofFtheFpropertyFafterFaFloss,FwhatFStatutoryFcond
itionFisFinFplaceFtoFsettleFthisFmatter?



A)FTermination



B)FAction



C)FAppraisal



D)FWhenFlossFisFpayableF-FCORRECTFANSWERF-C)FAppraisal



UnderFStatutoryFConditionFWhenFLossFisFPayableFwhatFisFtheFtimeFframeFtheFlossFisFpayableFwithin?



A)F60FdaysFafterFcompletionFofFproofFofFloss



B)FLessFthanF60FdaysFafterFproofFofFlossFifFstatedFinFcontract



C)F90FdaysFafterFcompletionFofFproofFofFlossF