Pearson Vue Property Insurance Practice Test
Pearson Vue Property Insurance Practice
Test Questions and Answers
Question 1
Which of the following perils is covered under the Commercial Property Basic Cause
of Loss form?
1. A. Collapse
2. B. Sinkhole collapse
3. C. Falling objects
4. D. Breakage of glass
Correct Answer
Answer: B Sinkhole Collapse
Question 2
The National Flood Insurance Program provides coverage for losses caused by all of
the following occurrences EXCEPT:
A.
mudslides
B.
runoff from heavy rain
C.
overflow of tidal waters
D.
water-main breakage
Correct Answer
Answer: D Water-Main Breakage
Page 1 of 25
, Pearson Vue Property Insurance Practice Test
Question 3
Which of the following statements about a mortgagee's rights under the Dwelling
Property Basic Form (DP-1) is INCORRECT?
A.
No act by the insured will jeopardize the mortgagee's rights.
B.
The mortgagee may file a Proof of Loss if the insured fails to do so.
C.
The mortgagee is entitled to receive prior notice of a policy's cancellation.
D.
The mortgagee may abandon the insured property to the insurer.
Correct Answer
Answer: D The mortgagee may abandon the insured property to the insurer.
Question 4
Which of the following Homeowners coverages does NOT generally contain a
deductible?
A.
Personal property
B.
Other structures
C.
Liability
D.
Dwelling
Correct Answer
Answer: C Liability
Page 2 of 25
, Pearson Vue Property Insurance Practice Test
Question 5
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
A.
automobiles
B.
stamps
C.
camera equipment
D.
jewelry
Correct Answer
Answer: A Automobiles
Question 6
Information provided by the insured in a Proof of Loss is considered:
A. a warranty
B.
a representation
C.
an assignment
D.
an agreement
Correct Answer
Answer: B a representation
Question 7
The principle of indemnity is designed to avoid:
A.
two policies sharing payment for a loss
B.
overpayment of a claim
C.
the return of earned premiums
D.
a Coinsurance clause of less than 80 percent
Correct Answer
Answer: B the return of earned premiums
Page 3 of 25
Pearson Vue Property Insurance Practice
Test Questions and Answers
Question 1
Which of the following perils is covered under the Commercial Property Basic Cause
of Loss form?
1. A. Collapse
2. B. Sinkhole collapse
3. C. Falling objects
4. D. Breakage of glass
Correct Answer
Answer: B Sinkhole Collapse
Question 2
The National Flood Insurance Program provides coverage for losses caused by all of
the following occurrences EXCEPT:
A.
mudslides
B.
runoff from heavy rain
C.
overflow of tidal waters
D.
water-main breakage
Correct Answer
Answer: D Water-Main Breakage
Page 1 of 25
, Pearson Vue Property Insurance Practice Test
Question 3
Which of the following statements about a mortgagee's rights under the Dwelling
Property Basic Form (DP-1) is INCORRECT?
A.
No act by the insured will jeopardize the mortgagee's rights.
B.
The mortgagee may file a Proof of Loss if the insured fails to do so.
C.
The mortgagee is entitled to receive prior notice of a policy's cancellation.
D.
The mortgagee may abandon the insured property to the insurer.
Correct Answer
Answer: D The mortgagee may abandon the insured property to the insurer.
Question 4
Which of the following Homeowners coverages does NOT generally contain a
deductible?
A.
Personal property
B.
Other structures
C.
Liability
D.
Dwelling
Correct Answer
Answer: C Liability
Page 2 of 25
, Pearson Vue Property Insurance Practice Test
Question 5
Inland Marine insurance is commonly used to insure all of the following items EXCEPT:
A.
automobiles
B.
stamps
C.
camera equipment
D.
jewelry
Correct Answer
Answer: A Automobiles
Question 6
Information provided by the insured in a Proof of Loss is considered:
A. a warranty
B.
a representation
C.
an assignment
D.
an agreement
Correct Answer
Answer: B a representation
Question 7
The principle of indemnity is designed to avoid:
A.
two policies sharing payment for a loss
B.
overpayment of a claim
C.
the return of earned premiums
D.
a Coinsurance clause of less than 80 percent
Correct Answer
Answer: B the return of earned premiums
Page 3 of 25
