Pearson Vue Property Insurance
Practice Test Questions With 100%
Complete Solution
1. Which of the following perils is covered under the Commercial Property Basic Cause
of Loss form?
1. A. Collapse
2. B. Sinkhole collapse
3. C. Falling objects
4. D. Breakage of glass - CORRECT ANSWER-Answer: B Sinkhole Collapse
The National Flood Insurance Program provides coverage for losses caused by all of
the following occurrences EXCEPT:
A.
mudslides
B.
runoff from heavy rain
C.
overflow of tidal waters
D.
water-main breakage - CORRECT ANSWER-Answer: D Water-Main Breakage
Which of the following statements about a mortgagee's rights under the Dwelling
Property Basic Form (DP-1) is INCORRECT?
A.
,No act by the insured will jeopardize the mortgagee's rights.
B.
The mortgagee may file a Proof of Loss if the insured fails to do so.
C.
The mortgagee is entitled to receive prior notice of a policy's cancellation.
D.
The mortgagee may abandon the insured property to the insurer. - CORRECT
ANSWER-Answer: D The mortgagee may abandon the insured property to the insurer.
Which of the following Homeowners coverages does NOT generally contain a
deductible?
A.
Personal property
B.
Other structures
C.
Liability
D.
Dwelling - CORRECT ANSWER-Answer: C Liability
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
A.
automobiles
B.
stamps
C.
, camera equipment
D.
jewelry - CORRECT ANSWER-Answer: A Automobiles
Information provided by the insured in a Proof of Loss is considered:
A. a warranty
B.
a representation
C.
an assignment
D.
an agreement - CORRECT ANSWER-Answer: B a representation
The principle of indemnity is designed to avoid:
A.
two policies sharing payment for a loss
B.
overpayment of a claim
C.
the return of earned premiums
D.
a Coinsurance clause of less than 80 percent - CORRECT ANSWER-Answer: B the
return of earned premiums
Practice Test Questions With 100%
Complete Solution
1. Which of the following perils is covered under the Commercial Property Basic Cause
of Loss form?
1. A. Collapse
2. B. Sinkhole collapse
3. C. Falling objects
4. D. Breakage of glass - CORRECT ANSWER-Answer: B Sinkhole Collapse
The National Flood Insurance Program provides coverage for losses caused by all of
the following occurrences EXCEPT:
A.
mudslides
B.
runoff from heavy rain
C.
overflow of tidal waters
D.
water-main breakage - CORRECT ANSWER-Answer: D Water-Main Breakage
Which of the following statements about a mortgagee's rights under the Dwelling
Property Basic Form (DP-1) is INCORRECT?
A.
,No act by the insured will jeopardize the mortgagee's rights.
B.
The mortgagee may file a Proof of Loss if the insured fails to do so.
C.
The mortgagee is entitled to receive prior notice of a policy's cancellation.
D.
The mortgagee may abandon the insured property to the insurer. - CORRECT
ANSWER-Answer: D The mortgagee may abandon the insured property to the insurer.
Which of the following Homeowners coverages does NOT generally contain a
deductible?
A.
Personal property
B.
Other structures
C.
Liability
D.
Dwelling - CORRECT ANSWER-Answer: C Liability
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
A.
automobiles
B.
stamps
C.
, camera equipment
D.
jewelry - CORRECT ANSWER-Answer: A Automobiles
Information provided by the insured in a Proof of Loss is considered:
A. a warranty
B.
a representation
C.
an assignment
D.
an agreement - CORRECT ANSWER-Answer: B a representation
The principle of indemnity is designed to avoid:
A.
two policies sharing payment for a loss
B.
overpayment of a claim
C.
the return of earned premiums
D.
a Coinsurance clause of less than 80 percent - CORRECT ANSWER-Answer: B the
return of earned premiums
