Exam FX practice test Exam
Questions and Answers
Which of the following is NOT correct regarding false statements by a person
engaged in the business of insurance ? - -Only written statements can be
considered fraud
- An insured is driving her car through a residential area when she loses
control and crashes into a neighbor's front porch. The neighbor, who was
sitting on the porch, is injured. The insured's liability policy has a limit of
$500,000. This amount applies to the total of damages for any bodily injury
and property damage resulting from one accident. Which type of limit of
liability does the insured have? - -Combined single
- How long is the waiting period after the application has been accepted
before flood coverage goes into effect? - -30 days
- Which of the following circumstances would be EXCLUDED under medical
payments coverage of a personal auto policy? - -The insured is injured while
driving his motorcycle on his resident premises
- If an insurer advertises material that exaggerated the divided that a policy
pays ,what kinds of illegal act it's committing? - -Misrepresentation
- Which term describes an individual who is domiciled and Licensed as a
resident producer and than Washington ? - -Nonresident producer
- Which of the following is issued by the state Department of insurance to
show that the insurer as power to write insurance contacts in that state? - -
Certificate of Authority
- Following is NOT a valid reason to deny an insurance claim under a
Personal Injury Protection Endorsement? - -The injury claim was related to
an auto mobile accident
- In Washington , the FAIR Plan is administered by - -The Industry Placement
Facility
- A participating insurance policy may do which of the following? - -Pay
dividends to the policyowner
- Extended nonowned coverage endorsement in PAP broadens which of the
following coverages ? - -Liability and medical payments
, - Which of the following is NOT a goal of risk retention ? - -To minimize the
insured's level of liability in the event of loss
- Within how many days from Pre-trial hearing must insurance producers
report to the commissioner of any criminal prosecutions brought against
them - -30 days
- Replacement cost is defined as - -The market value of property at its
current cost , new and without reduction for depreciation.
- An insured is involved in an auto accident in another state. The state has a
financial responsibility law that specified limits of liability higher than the
limits shown in the declaration. What amount will the insureds policy pay . -
-Higher limits
- An insured covered under a Mobile Homeowners Policy wants to move the
location of the covered mobile home . Which of the following must the
insured obtain from the insurer ? - -Transportation/Permission to Move
Endorsement
- Which of the following liability coverages must be added by endorsement
to the homeowners policy in order to apply? - -personal injury
- All of the following are true regarding physical damaged coverage EXCEPT
- -The limit of liability is the greater of the actual cash value of the vehicle at
the time of loss or the amount necessary to repair or replace the vehicle .
- The insured owns an older home with lath plaster walls . Following a
kitchen fire, the insurance company pays to have the walls replaced with
drywall that is just as functional, but cost less than Lath plaster . Which loss
valuation allows the insurance company to have plaster replace with
drywall ? - -Functional replacement cost
- What is the legal defense that can be used in most states in which
proportionate damages may be awarded when both the plaintiff and
defendant were negligent ? - -comparative negligence
- An additional loss that results from a direct loss of property is called a/an -
-Indirect loss
- The Federal Fair Credit Reporting Act - -Regulates consumer reports
- I'm terms of parties to a contact , which of the following does NOT describe
a competent party ? - -The person must have at least completed secondary
education
Questions and Answers
Which of the following is NOT correct regarding false statements by a person
engaged in the business of insurance ? - -Only written statements can be
considered fraud
- An insured is driving her car through a residential area when she loses
control and crashes into a neighbor's front porch. The neighbor, who was
sitting on the porch, is injured. The insured's liability policy has a limit of
$500,000. This amount applies to the total of damages for any bodily injury
and property damage resulting from one accident. Which type of limit of
liability does the insured have? - -Combined single
- How long is the waiting period after the application has been accepted
before flood coverage goes into effect? - -30 days
- Which of the following circumstances would be EXCLUDED under medical
payments coverage of a personal auto policy? - -The insured is injured while
driving his motorcycle on his resident premises
- If an insurer advertises material that exaggerated the divided that a policy
pays ,what kinds of illegal act it's committing? - -Misrepresentation
- Which term describes an individual who is domiciled and Licensed as a
resident producer and than Washington ? - -Nonresident producer
- Which of the following is issued by the state Department of insurance to
show that the insurer as power to write insurance contacts in that state? - -
Certificate of Authority
- Following is NOT a valid reason to deny an insurance claim under a
Personal Injury Protection Endorsement? - -The injury claim was related to
an auto mobile accident
- In Washington , the FAIR Plan is administered by - -The Industry Placement
Facility
- A participating insurance policy may do which of the following? - -Pay
dividends to the policyowner
- Extended nonowned coverage endorsement in PAP broadens which of the
following coverages ? - -Liability and medical payments
, - Which of the following is NOT a goal of risk retention ? - -To minimize the
insured's level of liability in the event of loss
- Within how many days from Pre-trial hearing must insurance producers
report to the commissioner of any criminal prosecutions brought against
them - -30 days
- Replacement cost is defined as - -The market value of property at its
current cost , new and without reduction for depreciation.
- An insured is involved in an auto accident in another state. The state has a
financial responsibility law that specified limits of liability higher than the
limits shown in the declaration. What amount will the insureds policy pay . -
-Higher limits
- An insured covered under a Mobile Homeowners Policy wants to move the
location of the covered mobile home . Which of the following must the
insured obtain from the insurer ? - -Transportation/Permission to Move
Endorsement
- Which of the following liability coverages must be added by endorsement
to the homeowners policy in order to apply? - -personal injury
- All of the following are true regarding physical damaged coverage EXCEPT
- -The limit of liability is the greater of the actual cash value of the vehicle at
the time of loss or the amount necessary to repair or replace the vehicle .
- The insured owns an older home with lath plaster walls . Following a
kitchen fire, the insurance company pays to have the walls replaced with
drywall that is just as functional, but cost less than Lath plaster . Which loss
valuation allows the insurance company to have plaster replace with
drywall ? - -Functional replacement cost
- What is the legal defense that can be used in most states in which
proportionate damages may be awarded when both the plaintiff and
defendant were negligent ? - -comparative negligence
- An additional loss that results from a direct loss of property is called a/an -
-Indirect loss
- The Federal Fair Credit Reporting Act - -Regulates consumer reports
- I'm terms of parties to a contact , which of the following does NOT describe
a competent party ? - -The person must have at least completed secondary
education
