1 Exampromax - Stuvia US 2025/2026
EXAM FX Simulated Test Question and
Answers Already Graded A s
Which of the following policies does NOT contain an automatic
reinstatement provision?
a) Business automobile liability
b) Personal automobile liability with split limits
c) Homeowners
d) General liability written with an aggregate limit
✓✓ General Liability written with an aggregate limit
© 2025 Assignment Expert
The ABC Corporation has $100,000 of coverage on its building through
Exampromax - Stuvia US
insurance Company A, and $50,000 of identical coverage on the same
building through insurance Company B. Assuming coinsurance is not an
issue, when a $24,000 loss occurs and the pro rata method is used, how
much will each insurer pay?
a) Company A will pay $24,000; Company B will pay $0.
b) Company A will pay $16,000; Company B will pay $8,000.
c) Company A will pay $20,000; Company B will pay $4,000.
d) Company A will pay $12,
✓✓ Company A will pay $16,000; Company B will pay $8,000.
Farm fences (except field and pasture fences) are covered by which farm
coverage form?
a) Coverage A
b) Coverage B
c) Coverage E
d) Coverage G
✓✓ Coverage G
, 2 Exampromax - Stuvia US 2025/2026
What type of coverage does a homeowners policy include that a dwelling
policy does not?
a) Personal property
b) Other structures
c) Broad form
d) Liability
✓✓ Liability
Which of the following is NOT one of the 3 requirements for property to be
eligible for FAIR plan coverage?
a) Coverage could not be purchased through the normal insurance market
© 2025 Assignment Expert
b) It must be valued at an amount under the maximum value amount set by
Exampromax - Stuvia US
the state
c) It must be located in a specific area defined by the state
d) It must be considered insurable based on reasonable underwriting
standards
✓✓ It must be valued at an amount under the maximum value amount set by the
state
Which of the following liability exposures is most likely for a small
specialty clothing retail boutique?
a) Operations liability exposure
b) Product liability exposure
c) Completed operations liability exposure
d) Premises liability exposure
✓✓ Premises Liability Exposure
All of the following types of property are covered by a standard builders
risk form EXCEPT
a) Tools 50 feet away from the building.
b) The building itself.
c) Temporary structures.
, 3 Exampromax - Stuvia US 2025/2026
d) Machinery that will be permanently attached to the building.
✓✓ Tools 50 feet away from the building
If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to
comply?
a) 10 days
b) 3 days
c) 5 days
d) 7 days
✓✓ 5 days
© 2025 Assignment Expert
Exampromax - Stuvia US
Which of the following would be named on the declarations page of a
property or liability policy?
a) Beneficiaries
b) All insureds
c) Additional insureds
d) First named insured
✓✓ First Named insured
When is a hired and nonowned auto liability endorsement available in a
businessowners policy (BOP)?
a) Only if the insured has 4 or more employees.
b) Never
c) Only if the insured does not have commercial auto coverage
d) Only in addition to commercial auto coverage.
✓✓ Only if the insured does not have commercial auto coverage
Which of the following persons may be covered under farm Coverage J?
a) Resident employees
b) First named insured
EXAM FX Simulated Test Question and
Answers Already Graded A s
Which of the following policies does NOT contain an automatic
reinstatement provision?
a) Business automobile liability
b) Personal automobile liability with split limits
c) Homeowners
d) General liability written with an aggregate limit
✓✓ General Liability written with an aggregate limit
© 2025 Assignment Expert
The ABC Corporation has $100,000 of coverage on its building through
Exampromax - Stuvia US
insurance Company A, and $50,000 of identical coverage on the same
building through insurance Company B. Assuming coinsurance is not an
issue, when a $24,000 loss occurs and the pro rata method is used, how
much will each insurer pay?
a) Company A will pay $24,000; Company B will pay $0.
b) Company A will pay $16,000; Company B will pay $8,000.
c) Company A will pay $20,000; Company B will pay $4,000.
d) Company A will pay $12,
✓✓ Company A will pay $16,000; Company B will pay $8,000.
Farm fences (except field and pasture fences) are covered by which farm
coverage form?
a) Coverage A
b) Coverage B
c) Coverage E
d) Coverage G
✓✓ Coverage G
, 2 Exampromax - Stuvia US 2025/2026
What type of coverage does a homeowners policy include that a dwelling
policy does not?
a) Personal property
b) Other structures
c) Broad form
d) Liability
✓✓ Liability
Which of the following is NOT one of the 3 requirements for property to be
eligible for FAIR plan coverage?
a) Coverage could not be purchased through the normal insurance market
© 2025 Assignment Expert
b) It must be valued at an amount under the maximum value amount set by
Exampromax - Stuvia US
the state
c) It must be located in a specific area defined by the state
d) It must be considered insurable based on reasonable underwriting
standards
✓✓ It must be valued at an amount under the maximum value amount set by the
state
Which of the following liability exposures is most likely for a small
specialty clothing retail boutique?
a) Operations liability exposure
b) Product liability exposure
c) Completed operations liability exposure
d) Premises liability exposure
✓✓ Premises Liability Exposure
All of the following types of property are covered by a standard builders
risk form EXCEPT
a) Tools 50 feet away from the building.
b) The building itself.
c) Temporary structures.
, 3 Exampromax - Stuvia US 2025/2026
d) Machinery that will be permanently attached to the building.
✓✓ Tools 50 feet away from the building
If a consumer requests additional information concerning an investigative
consumer report, how long does the insurer or reporting agency have to
comply?
a) 10 days
b) 3 days
c) 5 days
d) 7 days
✓✓ 5 days
© 2025 Assignment Expert
Exampromax - Stuvia US
Which of the following would be named on the declarations page of a
property or liability policy?
a) Beneficiaries
b) All insureds
c) Additional insureds
d) First named insured
✓✓ First Named insured
When is a hired and nonowned auto liability endorsement available in a
businessowners policy (BOP)?
a) Only if the insured has 4 or more employees.
b) Never
c) Only if the insured does not have commercial auto coverage
d) Only in addition to commercial auto coverage.
✓✓ Only if the insured does not have commercial auto coverage
Which of the following persons may be covered under farm Coverage J?
a) Resident employees
b) First named insured
