EXAM FX- SIMULATED TEST
QUESTIONS
Which00of00the00following00policies00does00NOT00contain00an00automatic00reinstatement
00provision?
a)00Business00automobile00liability
b)00Personal00automobile00liability00with00split00limits
c)00Homeowners
d)00General00liability00written00with00an00aggregate00limit00-00ans--
✔✔General00Liability00written00with00an00aggregate00limit
The00ABC00Corporation00has00$100,00000of00coverage00on00its00building00through00insu
rance00Company00A,00and00$50,00000of00identical00coverage00on00the00same00building00
through00insurance00Company00B.00Assuming00coinsurance00is00not00an00issue,00when0
0a00$24,00000loss00occurs00and00the00pro00rata00method00is00used,00how00much00will00e
ach00insurer00pay?
a)00Company00A00will00pay00$24,000;00Company00B00will00pay00$0.
b)00Company00A00will00pay00$16,000;00Company00B00will00pay00$8,000.
c)00Company00A00will00pay00$20,000;00Company00B00will00pay00$4,000.
d)00Company00A00will00pay00$12,00-00ans--
✔✔Company00A00will00pay00$16,000;00Company00B00will00pay00$8,000.
Farm00fences00(except00field00and00pasture00fences)00are00covered00by00which00farm00c
overage00form?
a)00Coverage00A
b)00Coverage00B
c)00Coverage00E
d)00Coverage00G00-00ans--✔✔Coverage00G
What00type00of00coverage00does00a00homeowners00policy00include00that00a00dwelling00p
olicy00does00not?
a)00Personal00property
b)00Other00structures
c)00Broad00form
d)00Liability00-00ans--✔✔Liability
, Which00of00the00following00is00NOT00one00of00the00300requirements00for00property00to00b
e00eligible00for00FAIR00plan00coverage?
a)00Coverage00could00not00be00purchased00through00the00normal00insurance00market
b)00It00must00be00valued00at00an00amount00under00the00maximum00value00amount00set00
by00the00state
c)00It00must00be00located00in00a00specific00area00defined00by00the00state
d)00It00must00be00considered00insurable00based00on00reasonable00underwriting00standar
ds00-00ans--
✔✔It00must00be00valued00at00an00amount00under00the00maximum00value00amount00set00
by00the00state
Which00of00the00following00liability00exposures00is00most00likely00for00a00small00specialty0
0clothing00retail00boutique?
a)00Operations00liability00exposure
b)00Product00liability00exposure
c)00Completed00operations00liability00exposure
d)00Premises00liability00exposure00-00ans--✔✔Premises00Liability00Exposure
All00of00the00following00types00of00property00are00covered00by00a00standard00builders00ris
k00form00EXCEPT
a)00Tools005000feet00away00from00the00building.
b)00The00building00itself.
c)00Temporary00structures.
d)00Machinery00that00will00be00permanently00attached00to00the00building.00-00ans--
✔✔Tools005000feet00away00from00the00building
If00a00consumer00requests00additional00information00concerning00an00investigative00cons
umer00report,00how00long00does00the00insurer00or00reporting00agency00have00to00comply
?
a)001000days
b)00300days
c)00500days
d)00700days00-00ans--✔✔500days
Which00of00the00following00would00be00named00on00the00declarations00page00of00a00prop
erty00or00liability00policy?
a)00Beneficiaries
b)00All00insureds
c)00Additional00insureds
d)00First00named00insured00-00ans--✔✔First00Named00insured
When00is00a00hired00and00nonowned00auto00liability00endorsement00available00in00a00bus
inessowners00policy00(BOP)?
a)00Only00if00the00insured00has00400or00more00employees.
b)00Never
c)00Only00if00the00insured00does00not00have00commercial00auto00coverage
QUESTIONS
Which00of00the00following00policies00does00NOT00contain00an00automatic00reinstatement
00provision?
a)00Business00automobile00liability
b)00Personal00automobile00liability00with00split00limits
c)00Homeowners
d)00General00liability00written00with00an00aggregate00limit00-00ans--
✔✔General00Liability00written00with00an00aggregate00limit
The00ABC00Corporation00has00$100,00000of00coverage00on00its00building00through00insu
rance00Company00A,00and00$50,00000of00identical00coverage00on00the00same00building00
through00insurance00Company00B.00Assuming00coinsurance00is00not00an00issue,00when0
0a00$24,00000loss00occurs00and00the00pro00rata00method00is00used,00how00much00will00e
ach00insurer00pay?
a)00Company00A00will00pay00$24,000;00Company00B00will00pay00$0.
b)00Company00A00will00pay00$16,000;00Company00B00will00pay00$8,000.
c)00Company00A00will00pay00$20,000;00Company00B00will00pay00$4,000.
d)00Company00A00will00pay00$12,00-00ans--
✔✔Company00A00will00pay00$16,000;00Company00B00will00pay00$8,000.
Farm00fences00(except00field00and00pasture00fences)00are00covered00by00which00farm00c
overage00form?
a)00Coverage00A
b)00Coverage00B
c)00Coverage00E
d)00Coverage00G00-00ans--✔✔Coverage00G
What00type00of00coverage00does00a00homeowners00policy00include00that00a00dwelling00p
olicy00does00not?
a)00Personal00property
b)00Other00structures
c)00Broad00form
d)00Liability00-00ans--✔✔Liability
, Which00of00the00following00is00NOT00one00of00the00300requirements00for00property00to00b
e00eligible00for00FAIR00plan00coverage?
a)00Coverage00could00not00be00purchased00through00the00normal00insurance00market
b)00It00must00be00valued00at00an00amount00under00the00maximum00value00amount00set00
by00the00state
c)00It00must00be00located00in00a00specific00area00defined00by00the00state
d)00It00must00be00considered00insurable00based00on00reasonable00underwriting00standar
ds00-00ans--
✔✔It00must00be00valued00at00an00amount00under00the00maximum00value00amount00set00
by00the00state
Which00of00the00following00liability00exposures00is00most00likely00for00a00small00specialty0
0clothing00retail00boutique?
a)00Operations00liability00exposure
b)00Product00liability00exposure
c)00Completed00operations00liability00exposure
d)00Premises00liability00exposure00-00ans--✔✔Premises00Liability00Exposure
All00of00the00following00types00of00property00are00covered00by00a00standard00builders00ris
k00form00EXCEPT
a)00Tools005000feet00away00from00the00building.
b)00The00building00itself.
c)00Temporary00structures.
d)00Machinery00that00will00be00permanently00attached00to00the00building.00-00ans--
✔✔Tools005000feet00away00from00the00building
If00a00consumer00requests00additional00information00concerning00an00investigative00cons
umer00report,00how00long00does00the00insurer00or00reporting00agency00have00to00comply
?
a)001000days
b)00300days
c)00500days
d)00700days00-00ans--✔✔500days
Which00of00the00following00would00be00named00on00the00declarations00page00of00a00prop
erty00or00liability00policy?
a)00Beneficiaries
b)00All00insureds
c)00Additional00insureds
d)00First00named00insured00-00ans--✔✔First00Named00insured
When00is00a00hired00and00nonowned00auto00liability00endorsement00available00in00a00bus
inessowners00policy00(BOP)?
a)00Only00if00the00insured00has00400or00more00employees.
b)00Never
c)00Only00if00the00insured00does00not00have00commercial00auto00coverage
