PEARSON VUE PROPERTY INSURANCE PRACTICE TEST
QUESTIONS WITH ANSWERS 2025/2026 GRADED A+
Which of the following policy forms would BEST protect a business that must keep
operating after a loss?
A. Extra Expense
B. Business Income
C. Gross Earnings
D. Contingent Business Interruption - A
Which of the following perils is covered by Broad Form perils but is not covered by the
Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Windstorm - B
Which of the following phrases BEST defines a hazard?
A. A condition that increases the chance of a loss
B. The uncertainty of a loss
C. The cause of a loss
D. An unexpected loss - A
A building adjacent to an insured's business is severely damaged by fire. Because of
the nature of the damage to the adjoining property, the insured is denied access to the
business by the fire department. If the insured's property is covered under a Business
Income Coverage Form, the insurer will cover the loss of earnings for a MAXIMUM of:
A. three weeks
B. thirty days
C. sixty days
, D. six months - A
Which of the following statements is CORRECT about the Fair Credit Reporting Act?
A. It requires an insurer to send to an applicant a copy of the applicant's credit report.
B. It requires an insurer to obtain a credit report on an applicant.
C. It allows an insurer to obtain a credit report without the applicant's permission.
D. It provides a method for an applicant to correct any incorrect information in the credit
report. - D
The procedure for resolving a disagreement between an insured and an insurer about a
loss is described in which of the following parts of an insurance policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - C
Under a Personal Property Floater, a loss is covered when it occurs:
A. in the insured's home only
B. in the United States only
C. in the United States or Canada only
D. anywhere in the world - C
Which of the following perils is covered under the Commercial Property Basic Cause of
Loss form?
A. Collapse
B. Sinkhole collapse
C. Falling objects
D. Breakage of glass - B
All of the following items are included in the Nationwide Marine definition EXCEPT:
QUESTIONS WITH ANSWERS 2025/2026 GRADED A+
Which of the following policy forms would BEST protect a business that must keep
operating after a loss?
A. Extra Expense
B. Business Income
C. Gross Earnings
D. Contingent Business Interruption - A
Which of the following perils is covered by Broad Form perils but is not covered by the
Basic Form?
A. Vandalism
B. Weight of ice and snow
C. Riot
D. Windstorm - B
Which of the following phrases BEST defines a hazard?
A. A condition that increases the chance of a loss
B. The uncertainty of a loss
C. The cause of a loss
D. An unexpected loss - A
A building adjacent to an insured's business is severely damaged by fire. Because of
the nature of the damage to the adjoining property, the insured is denied access to the
business by the fire department. If the insured's property is covered under a Business
Income Coverage Form, the insurer will cover the loss of earnings for a MAXIMUM of:
A. three weeks
B. thirty days
C. sixty days
, D. six months - A
Which of the following statements is CORRECT about the Fair Credit Reporting Act?
A. It requires an insurer to send to an applicant a copy of the applicant's credit report.
B. It requires an insurer to obtain a credit report on an applicant.
C. It allows an insurer to obtain a credit report without the applicant's permission.
D. It provides a method for an applicant to correct any incorrect information in the credit
report. - D
The procedure for resolving a disagreement between an insured and an insurer about a
loss is described in which of the following parts of an insurance policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - C
Under a Personal Property Floater, a loss is covered when it occurs:
A. in the insured's home only
B. in the United States only
C. in the United States or Canada only
D. anywhere in the world - C
Which of the following perils is covered under the Commercial Property Basic Cause of
Loss form?
A. Collapse
B. Sinkhole collapse
C. Falling objects
D. Breakage of glass - B
All of the following items are included in the Nationwide Marine definition EXCEPT:
