PearsonVue Practice Exam 1 Actual
Questions With Actual Answers Already
Passed
Which of the following persons may assign a Standard Fire Policy? - CORRECT
ANSWER-A Claims Adjuster
Under the standard flood insurance policy, all of the following loss avoidance measures
are covered up to $1,000 when damage to the insured property due to flooding is
imminent EXCEPT: - CORRECT ANSWER-The value of work, at the federal minimum
wage, that a member of the household performs
The Insurance Commissioner is empowered to: - CORRECT ANSWER-Enforce state
laws relating to insurance
After an insurer receives a satisfactory proof of loss from an insured on a fire loss,
payment is due within a MAXIMUM of how many days? - CORRECT ANSWER-30 days
*Upon determining that a producer has violated the insurance law, the Insurance
Commissioner is required to take which of the following actions? - CORRECT
ANSWER-Publish notice of the violation
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all
of the following reasons EXCEPT: - CORRECT ANSWER-Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without criminal fault on the part of
the insured. The amount of the loss covered by a property policy would be based on: -
CORRECT ANSWER-The market value of the dwelling
, A candidate for licensure as a property insurance produce must have completed a
MINIMUM of how many hours of prelicensing education? - CORRECT ANSWER-50
hours
An insurer that permits different rate classifications for individuals of the same class and
same hazard may be guilty of: - CORRECT ANSWER-Unfair discrimination
Making false or misleading statements about dividends or shares of surplus previously
paid on an insurance policy is known as: - CORRECT ANSWER-Misrepresentation
*The Insurance Company may issue a limited insurance representative license to an
individual who wants to sell which of the following types of policies? - CORRECT
ANSWER-Automobile
In this state, a domestic insurer is defined as a company that: - CORRECT ANSWER-Is
headquarted in this state
*If a commercial insurer fails to meet the requirements of the forty-five days Notice of
Nonrenewal Rule prior to the expiration date of the existing policy, the company MUST:
- CORRECT ANSWER-Provide a renewal policy that *matches* the expiring policy's
coverages and premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: - CORRECT ANSWER-Basic Property
insurance for which coverage is not available in the regular market
XYZ Insurance Company recently received its certificate of authority to sell property
insurance in Illinois. XYZ is an Iowa insurer but will sell its products through its licensed
Illinois producers. Which of the following statements is CORRECT about XYZ
Company's involvement in the FAIR Plan? - CORRECT ANSWER-Membership in the
FAIR Plan is optional for XYZ
Questions With Actual Answers Already
Passed
Which of the following persons may assign a Standard Fire Policy? - CORRECT
ANSWER-A Claims Adjuster
Under the standard flood insurance policy, all of the following loss avoidance measures
are covered up to $1,000 when damage to the insured property due to flooding is
imminent EXCEPT: - CORRECT ANSWER-The value of work, at the federal minimum
wage, that a member of the household performs
The Insurance Commissioner is empowered to: - CORRECT ANSWER-Enforce state
laws relating to insurance
After an insurer receives a satisfactory proof of loss from an insured on a fire loss,
payment is due within a MAXIMUM of how many days? - CORRECT ANSWER-30 days
*Upon determining that a producer has violated the insurance law, the Insurance
Commissioner is required to take which of the following actions? - CORRECT
ANSWER-Publish notice of the violation
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all
of the following reasons EXCEPT: - CORRECT ANSWER-Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without criminal fault on the part of
the insured. The amount of the loss covered by a property policy would be based on: -
CORRECT ANSWER-The market value of the dwelling
, A candidate for licensure as a property insurance produce must have completed a
MINIMUM of how many hours of prelicensing education? - CORRECT ANSWER-50
hours
An insurer that permits different rate classifications for individuals of the same class and
same hazard may be guilty of: - CORRECT ANSWER-Unfair discrimination
Making false or misleading statements about dividends or shares of surplus previously
paid on an insurance policy is known as: - CORRECT ANSWER-Misrepresentation
*The Insurance Company may issue a limited insurance representative license to an
individual who wants to sell which of the following types of policies? - CORRECT
ANSWER-Automobile
In this state, a domestic insurer is defined as a company that: - CORRECT ANSWER-Is
headquarted in this state
*If a commercial insurer fails to meet the requirements of the forty-five days Notice of
Nonrenewal Rule prior to the expiration date of the existing policy, the company MUST:
- CORRECT ANSWER-Provide a renewal policy that *matches* the expiring policy's
coverages and premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: - CORRECT ANSWER-Basic Property
insurance for which coverage is not available in the regular market
XYZ Insurance Company recently received its certificate of authority to sell property
insurance in Illinois. XYZ is an Iowa insurer but will sell its products through its licensed
Illinois producers. Which of the following statements is CORRECT about XYZ
Company's involvement in the FAIR Plan? - CORRECT ANSWER-Membership in the
FAIR Plan is optional for XYZ
