Exam FX Insurance Practice Exam
Questions and Answers (property and
casualty)
The causes of loss insured against in an insurance policy are known as - -
Perils
- Before an insurer will pay any loss under a policy, what is usually required
from the insured? - -Proof of loss
- An insured works outside the home. The insured's sister lives with him and
cares for his four children. When the insured's home is severely damaged by
fire, the family moves into an apartment while repairs are being made. The
largest apartment available in the area has two bedrooms, so the insured's
sister has to stay at a motel. How much will the HO-3 form pay for these
additional living expense? - -All of the expense up to the Coverage D limit
- All of the following statements concerning coinsurance are true EXCEPT - -
The coinsurance formula will also be applied to total losses.
- What insurance policy provision defines how the policy will respond if there
is more than one insurance policy written on the same risk? - -Other
insurance
- What is the purpose of the coinsurance clause found in property insurance
policies? - -Encourage the insured to insure the property closer to its full
value
- With respect to the business of insurance, a hazard is - -Any condition or
exposure that increases the possibility of loss.
- A building is insured, but no one has lived or worked in it for 10 years. The
building is completely empty of any furniture or personal belongings. From
an insurance standpoint, the building is considered - -Vacant
- For the reported losses of an insured group to become more likely to equal
the statistical probability of loss for that particular class, the insured group
must become - -Larger
- The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period? - -1 year
, - An insured is driving her auto and strikes a large pothole, causing a flat
tire. Which coverage of the insured's personal auto policy will pay for the
repair? - -This loss is not covered
- Which of the following coverages in dwelling and homeowners policies is
for indirect losses? - -Loss of use
- Which of the following types of valuation works best for property whose
value does not fluctuate much? - -Agreed value
- Under the limits of insurance provision found in the Physical Damage
Coverage Form in a Commercial Auto policy, how much will an insurer pay to
repair or replace a covered auto? - -The lesser of the actual cash value or
the cost to repair or replace a covered auto
- All of the following conditions must exist for injury or damage to be
included in the products and completed operations hazard of a commercial
general liability policy EXCEPT - -The injury or damage must occur within 90
days after the insured's work is completed.
- The type of professional liability coverage a medical doctor needs is - -
Malpractice coverage.
- How much coverage is provided under a homeowners policy for theft or
unauthorized use of a credit card? - -$500
- Burglary is defined as - -Taking of property from within the premises
leaving visible signs of forced entry.
- When an insured makes truthful statements on the application for
insurance and pays the required premium, it is known as which of the
following? - -Consideration
- Insurable interest in a property policy must be proven - -At the time of
loss.
- The part of the policy that sets forth the rules of conduct, duties, and
obligations of the parties is called the - -Conditions
- The Federal Fair Credit Reporting Act - -Regulates consumer reports.
- The process of determining the premium charged and how much insurance
is required for a particular loss is called - -Loss valuation
Questions and Answers (property and
casualty)
The causes of loss insured against in an insurance policy are known as - -
Perils
- Before an insurer will pay any loss under a policy, what is usually required
from the insured? - -Proof of loss
- An insured works outside the home. The insured's sister lives with him and
cares for his four children. When the insured's home is severely damaged by
fire, the family moves into an apartment while repairs are being made. The
largest apartment available in the area has two bedrooms, so the insured's
sister has to stay at a motel. How much will the HO-3 form pay for these
additional living expense? - -All of the expense up to the Coverage D limit
- All of the following statements concerning coinsurance are true EXCEPT - -
The coinsurance formula will also be applied to total losses.
- What insurance policy provision defines how the policy will respond if there
is more than one insurance policy written on the same risk? - -Other
insurance
- What is the purpose of the coinsurance clause found in property insurance
policies? - -Encourage the insured to insure the property closer to its full
value
- With respect to the business of insurance, a hazard is - -Any condition or
exposure that increases the possibility of loss.
- A building is insured, but no one has lived or worked in it for 10 years. The
building is completely empty of any furniture or personal belongings. From
an insurance standpoint, the building is considered - -Vacant
- For the reported losses of an insured group to become more likely to equal
the statistical probability of loss for that particular class, the insured group
must become - -Larger
- The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period? - -1 year
, - An insured is driving her auto and strikes a large pothole, causing a flat
tire. Which coverage of the insured's personal auto policy will pay for the
repair? - -This loss is not covered
- Which of the following coverages in dwelling and homeowners policies is
for indirect losses? - -Loss of use
- Which of the following types of valuation works best for property whose
value does not fluctuate much? - -Agreed value
- Under the limits of insurance provision found in the Physical Damage
Coverage Form in a Commercial Auto policy, how much will an insurer pay to
repair or replace a covered auto? - -The lesser of the actual cash value or
the cost to repair or replace a covered auto
- All of the following conditions must exist for injury or damage to be
included in the products and completed operations hazard of a commercial
general liability policy EXCEPT - -The injury or damage must occur within 90
days after the insured's work is completed.
- The type of professional liability coverage a medical doctor needs is - -
Malpractice coverage.
- How much coverage is provided under a homeowners policy for theft or
unauthorized use of a credit card? - -$500
- Burglary is defined as - -Taking of property from within the premises
leaving visible signs of forced entry.
- When an insured makes truthful statements on the application for
insurance and pays the required premium, it is known as which of the
following? - -Consideration
- Insurable interest in a property policy must be proven - -At the time of
loss.
- The part of the policy that sets forth the rules of conduct, duties, and
obligations of the parties is called the - -Conditions
- The Federal Fair Credit Reporting Act - -Regulates consumer reports.
- The process of determining the premium charged and how much insurance
is required for a particular loss is called - -Loss valuation
