Pearson VUE: Property Insurance
Practice Exam, Study questions
insurance, Casualty FL Exam 2025
Questions and Answers
S is purchasing a Commercial Property policy to cover a commercial building with
a replacement cost of $100,000. The policy includes an 80 percent Coinsurance
clause. To avoid a coinsurance penalty in the event of a partial loss, S should
purchase a policy with minimum limits of AT LEAST which of the following
amounts?
A. $100,000
B. $90,000
C. $80,000
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,D. $20,000 - --ANSWER--C
The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return - --ANSWER--C
The National Flood Insurance Program provides coverage for losses caused by all
of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,C. overflow of tidal waters
D. water-main breakage - --ANSWER--D
Special Form or Open Perils coverage:
A. Provides coverage against the named perils
B. Provides coverage against scheduled risks
C. Is limited by the named exclusions
D. Includes no exclusions - --ANSWER--C
Which of the following businesses would be eligible for a Businessowners policy?
A. Auto body shop
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, B. Theater
C. Branch bank
D. Barber shop - --ANSWER--D
During a tornado, a barn is destroyed when a section of its wall is blown down,
knocking over a lantern, which sets the barn on fire. The proximate cause of loss is
the:
A. fire
B. collapse of the wall
C. tornado
D. smoke - --ANSWER--C
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Practice Exam, Study questions
insurance, Casualty FL Exam 2025
Questions and Answers
S is purchasing a Commercial Property policy to cover a commercial building with
a replacement cost of $100,000. The policy includes an 80 percent Coinsurance
clause. To avoid a coinsurance penalty in the event of a partial loss, S should
purchase a policy with minimum limits of AT LEAST which of the following
amounts?
A. $100,000
B. $90,000
C. $80,000
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,D. $20,000 - --ANSWER--C
The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return - --ANSWER--C
The National Flood Insurance Program provides coverage for losses caused by all
of the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,C. overflow of tidal waters
D. water-main breakage - --ANSWER--D
Special Form or Open Perils coverage:
A. Provides coverage against the named perils
B. Provides coverage against scheduled risks
C. Is limited by the named exclusions
D. Includes no exclusions - --ANSWER--C
Which of the following businesses would be eligible for a Businessowners policy?
A. Auto body shop
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, B. Theater
C. Branch bank
D. Barber shop - --ANSWER--D
During a tornado, a barn is destroyed when a section of its wall is blown down,
knocking over a lantern, which sets the barn on fire. The proximate cause of loss is
the:
A. fire
B. collapse of the wall
C. tornado
D. smoke - --ANSWER--C
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
