FX INSURANCE CORE EXAM SET 2025/2026 QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔What are the 2 types of compensatory damages? - ✔✔Special and general
✔✔What part of a policy shows the amount of insurance, premium, and policy terms? -
✔✔Declarations
✔✔Where is the policy period stated in an insurance policy? - ✔✔On the declaration
page
✔✔Information about changes to the policy or return of premium can be found in what
section of a policy? - ✔✔Conditions
✔✔What process is used to settle a casualty claim when the insured and the insurer
cannot agree? - ✔✔Arbitration
✔✔Persons who are not named on the declaration page of a policy but who are
protected by the policy are known as what type of insured? - ✔✔Additional insured
✔✔What section 'personalizes' an insurance policy? - ✔✔Declarations
✔✔Who is an insured in property and casualty insurance? - ✔✔Anyone covered under
the policy, even if not specifically named
✔✔What does the term unilateral contract mean? - ✔✔A unilateral contract is a one-
sided contract. This means only one party makes an enforceable promise.
✔✔What does the exclusion section of a policy specify? - ✔✔What perils are not
insured against, or what persons are not covered in a policy
✔✔What part of an insurance policy contains the insurer's promise to pay a claim? -
✔✔Insuring agreement
✔✔What is consideration on the part of the insurer? - ✔✔A promise to pay in the event
of a loss
✔✔In commercial property policies, who has control of the policy, and who can cancel
it? - ✔✔First named insured
✔✔What are an insured's duties after loss? - ✔✔Protect the damaged property from
further damage, prepare an inventory of damaged property, cooperate with the insurer
in settling a loss, notify police in case of theft; and submit proof of loss
, ✔✔What part of an insurance policy sets forth the rules of conduct, duties, and
obligations of the parties to the contract? - ✔✔Conditions
✔✔What are the four elements of an insurance contract? - ✔✔Agreement (offer and
acceptance), consideration, competent parties, and legal purpose
✔✔What insurance principle does pro rata liability protect? - ✔✔Indemnity
✔✔What is a binder? - ✔✔A temporary insurance contract that goes in effect prior to the
policy issue
✔✔When does pro rata liability apply? - ✔✔When an insured has more than one policy
covering a loss
✔✔In insurance contracts, when is the offer usually made? - ✔✔When the insurance
application is submitted
✔✔What provision defines how a policy will respond if there is more than one insurance
policy written on the same risk? - ✔✔Other insurance
✔✔What is proof of loss? - ✔✔A sworn statement from an insured notifying the insurer
about a loss
✔✔What does an endorsement do to an insurance contract? - ✔✔It modifies the
policy's original terms.
✔✔What is additional coverage in an insurance policy? - ✔✔A provision that adds more
coverage for a specific loss at no additional premium
✔✔When is an appraisal needed and how can it be requested? - ✔✔If an insured and
an insurer disagree about the value of a property loss, either party can make a written
demand for an appraisal
✔✔In property and casualty policies, what is required for an assignment to be valid? -
✔✔A written consent of the insurer
✔✔What is the difference between cancellation and nonrenewal? - ✔✔Cancellation is
the termination of an insurance policy by either party prior to the policy's expiration date.
Nonrenewal is the termination of a policy at its expiration date by not offering a
continuation of the existing policy.
✔✔Which method of loss valuation is contrary to the principle of indemnity? -
✔✔Replacement cost
AND ANSWERS GUARANTEE A+
✔✔What are the 2 types of compensatory damages? - ✔✔Special and general
✔✔What part of a policy shows the amount of insurance, premium, and policy terms? -
✔✔Declarations
✔✔Where is the policy period stated in an insurance policy? - ✔✔On the declaration
page
✔✔Information about changes to the policy or return of premium can be found in what
section of a policy? - ✔✔Conditions
✔✔What process is used to settle a casualty claim when the insured and the insurer
cannot agree? - ✔✔Arbitration
✔✔Persons who are not named on the declaration page of a policy but who are
protected by the policy are known as what type of insured? - ✔✔Additional insured
✔✔What section 'personalizes' an insurance policy? - ✔✔Declarations
✔✔Who is an insured in property and casualty insurance? - ✔✔Anyone covered under
the policy, even if not specifically named
✔✔What does the term unilateral contract mean? - ✔✔A unilateral contract is a one-
sided contract. This means only one party makes an enforceable promise.
✔✔What does the exclusion section of a policy specify? - ✔✔What perils are not
insured against, or what persons are not covered in a policy
✔✔What part of an insurance policy contains the insurer's promise to pay a claim? -
✔✔Insuring agreement
✔✔What is consideration on the part of the insurer? - ✔✔A promise to pay in the event
of a loss
✔✔In commercial property policies, who has control of the policy, and who can cancel
it? - ✔✔First named insured
✔✔What are an insured's duties after loss? - ✔✔Protect the damaged property from
further damage, prepare an inventory of damaged property, cooperate with the insurer
in settling a loss, notify police in case of theft; and submit proof of loss
, ✔✔What part of an insurance policy sets forth the rules of conduct, duties, and
obligations of the parties to the contract? - ✔✔Conditions
✔✔What are the four elements of an insurance contract? - ✔✔Agreement (offer and
acceptance), consideration, competent parties, and legal purpose
✔✔What insurance principle does pro rata liability protect? - ✔✔Indemnity
✔✔What is a binder? - ✔✔A temporary insurance contract that goes in effect prior to the
policy issue
✔✔When does pro rata liability apply? - ✔✔When an insured has more than one policy
covering a loss
✔✔In insurance contracts, when is the offer usually made? - ✔✔When the insurance
application is submitted
✔✔What provision defines how a policy will respond if there is more than one insurance
policy written on the same risk? - ✔✔Other insurance
✔✔What is proof of loss? - ✔✔A sworn statement from an insured notifying the insurer
about a loss
✔✔What does an endorsement do to an insurance contract? - ✔✔It modifies the
policy's original terms.
✔✔What is additional coverage in an insurance policy? - ✔✔A provision that adds more
coverage for a specific loss at no additional premium
✔✔When is an appraisal needed and how can it be requested? - ✔✔If an insured and
an insurer disagree about the value of a property loss, either party can make a written
demand for an appraisal
✔✔In property and casualty policies, what is required for an assignment to be valid? -
✔✔A written consent of the insurer
✔✔What is the difference between cancellation and nonrenewal? - ✔✔Cancellation is
the termination of an insurance policy by either party prior to the policy's expiration date.
Nonrenewal is the termination of a policy at its expiration date by not offering a
continuation of the existing policy.
✔✔Which method of loss valuation is contrary to the principle of indemnity? -
✔✔Replacement cost
