Pearson VUE Property Insurance Practice
Test 2025-2026 Questions and Correct
Answers/ 2026 updated.
A deer jumps through the window of an insured's home, damaging the interior
and exterior walls. Which of the following Homeowners Forms listed below is
the LEAST comprehensive form that will still provide coverage for this loss?
A. HO-1 Form
B. HO-2 Form
C. HO-3 Form
D. HO-5 Form - .....ANS...C
G insures G's television repair shop under a Building and Personal Property
Coverage Form with limits of $100,000 on the building and $50,000 on
business personal property. A fire causes $10,000 in damage to the building
and $20,000 in losses to the contents. G also has to pay $1,000 for debris
removal. If the policy has a deductible of $250, G will receive a MAXIMUM of
which of the following amounts from the insurer?
A. $29,750
B. $30,000
C. $30,750
,D. $31,000 - .....ANS...C
N's next door neighbor, S, dumps hot ashes in N's trash dumpster, starting a
fire and causing severe damage to N's home. N's company pays the loss and
then goes after S for payment. This is an example of:
A. pro rata liability
B. assignment
C. appraisal
D. subrogation - .....ANS...D
Health insurance policies are offered on a "take it or leave it" basis and
referred to as which of the following types of contracts? - .....ANS...Contracts of
Adhesion
Under the Claims Forms provision of a health policy, if the insurance company
fails to send claim forms within the time period required, the insured should: -
.....ANS...Submit the claim in any form, which must be accepted by the company
as adequate proof of loss
In an Accidental Death and Dismemberment (AD&D) policy, capital sum refers
to: - .....ANS...A lump sum payment made for an accidental dismemberment
The Coordination of Benefits clause found in group health master contracts is
used to: - .....ANS...Avoid double payment of benefits to an insured who has
duplicate group coverages
,Which of the following definitions MOST accurately describes the
Probationary Period? - .....ANS...The waiting period a new hire must satisfy
prior to becoming eligible for group health coverage
A Health Maintenance Organization (HMO) differs from a traditional insurer
in that an HMO: - .....ANS...Emphasizes preventive medicine
A married insured has an Accidental Death and Dismemberment (AD&D)
policy that names their sibling as the primary beneficiary and their child as
the contingent beneficiary. If the insured and their sibling are both killed
instantly in a train accident, the policy proceeds would be paid to which of the
following? - .....ANS...The insured's child
The Social Security program provides all of the following benefits EXCEPT: -
.....ANS...Workers compensation
Under a Guaranteed Renewable Accident & Health policy, an insurer retains
the right to: - .....ANS...Increase the premium rate for an entire class of insureds
A Disability Income policy may provide benefits for which of the following
losses? - .....ANS...Residual Disability
Which of the following statements about the Medicare program is CORRECT? -
.....ANS...It is a federally sponsored program.
A child has a physical impairment, attends school, and is incapable of self-
sustaining employment and/or self care. Which of the following statements is
CORRECT about the child's medical coverage under their parent's group plan?
- .....ANS...The child's coverage continues as long as they are continually
incapacitated and financially dependent on their parent.
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in
which of the following policy features? - .....ANS...Exclusions
, The PRIMARY purpose of Medicaid is to: - .....ANS...Provide Medical Expense
coverage to persons below certain minimum income requirements
Which of the following provisions designates to whom claim payments are
made? - .....ANS...Payment of Claims
Under an Accidental Death and Dismemberment (AD&D) policy, insurable
interest must exist at which of the following times? - .....ANS...At the inception
of the policy
When periodic claim payments are required under a long-term disability
income policy, an insurer MUST make payments to an insured at least once
every: - .....ANS...Month
A 68 year-old employee that is covered by a group medical insurance plan has
medical expenses. The employee's company health plan is the: -
.....ANS...Secondary payor
An insured whose Disability Income policy contains a Change of Occupation
clause takes a new job in a more hazardous occupation and fails to notify the
insurer of the change. One year later, the insured becomes disabled. The
insurer will most likely take which of the following actions? - .....ANS...Settle
the claim according to what the premiums would have purchased under the
more hazardous occupation
The purpose of the Medical Information Bureau (MIB) is to: - .....ANS...Share
medical data among member companies
Which of the following laws requires an insurer to notify an applicant in
writing that an investigative consumer report may be made on the applicant? -
.....ANS...D. Fair Credit Reporting Act (Insurance Information and Privacy
Protection Act)
Test 2025-2026 Questions and Correct
Answers/ 2026 updated.
A deer jumps through the window of an insured's home, damaging the interior
and exterior walls. Which of the following Homeowners Forms listed below is
the LEAST comprehensive form that will still provide coverage for this loss?
A. HO-1 Form
B. HO-2 Form
C. HO-3 Form
D. HO-5 Form - .....ANS...C
G insures G's television repair shop under a Building and Personal Property
Coverage Form with limits of $100,000 on the building and $50,000 on
business personal property. A fire causes $10,000 in damage to the building
and $20,000 in losses to the contents. G also has to pay $1,000 for debris
removal. If the policy has a deductible of $250, G will receive a MAXIMUM of
which of the following amounts from the insurer?
A. $29,750
B. $30,000
C. $30,750
,D. $31,000 - .....ANS...C
N's next door neighbor, S, dumps hot ashes in N's trash dumpster, starting a
fire and causing severe damage to N's home. N's company pays the loss and
then goes after S for payment. This is an example of:
A. pro rata liability
B. assignment
C. appraisal
D. subrogation - .....ANS...D
Health insurance policies are offered on a "take it or leave it" basis and
referred to as which of the following types of contracts? - .....ANS...Contracts of
Adhesion
Under the Claims Forms provision of a health policy, if the insurance company
fails to send claim forms within the time period required, the insured should: -
.....ANS...Submit the claim in any form, which must be accepted by the company
as adequate proof of loss
In an Accidental Death and Dismemberment (AD&D) policy, capital sum refers
to: - .....ANS...A lump sum payment made for an accidental dismemberment
The Coordination of Benefits clause found in group health master contracts is
used to: - .....ANS...Avoid double payment of benefits to an insured who has
duplicate group coverages
,Which of the following definitions MOST accurately describes the
Probationary Period? - .....ANS...The waiting period a new hire must satisfy
prior to becoming eligible for group health coverage
A Health Maintenance Organization (HMO) differs from a traditional insurer
in that an HMO: - .....ANS...Emphasizes preventive medicine
A married insured has an Accidental Death and Dismemberment (AD&D)
policy that names their sibling as the primary beneficiary and their child as
the contingent beneficiary. If the insured and their sibling are both killed
instantly in a train accident, the policy proceeds would be paid to which of the
following? - .....ANS...The insured's child
The Social Security program provides all of the following benefits EXCEPT: -
.....ANS...Workers compensation
Under a Guaranteed Renewable Accident & Health policy, an insurer retains
the right to: - .....ANS...Increase the premium rate for an entire class of insureds
A Disability Income policy may provide benefits for which of the following
losses? - .....ANS...Residual Disability
Which of the following statements about the Medicare program is CORRECT? -
.....ANS...It is a federally sponsored program.
A child has a physical impairment, attends school, and is incapable of self-
sustaining employment and/or self care. Which of the following statements is
CORRECT about the child's medical coverage under their parent's group plan?
- .....ANS...The child's coverage continues as long as they are continually
incapacitated and financially dependent on their parent.
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in
which of the following policy features? - .....ANS...Exclusions
, The PRIMARY purpose of Medicaid is to: - .....ANS...Provide Medical Expense
coverage to persons below certain minimum income requirements
Which of the following provisions designates to whom claim payments are
made? - .....ANS...Payment of Claims
Under an Accidental Death and Dismemberment (AD&D) policy, insurable
interest must exist at which of the following times? - .....ANS...At the inception
of the policy
When periodic claim payments are required under a long-term disability
income policy, an insurer MUST make payments to an insured at least once
every: - .....ANS...Month
A 68 year-old employee that is covered by a group medical insurance plan has
medical expenses. The employee's company health plan is the: -
.....ANS...Secondary payor
An insured whose Disability Income policy contains a Change of Occupation
clause takes a new job in a more hazardous occupation and fails to notify the
insurer of the change. One year later, the insured becomes disabled. The
insurer will most likely take which of the following actions? - .....ANS...Settle
the claim according to what the premiums would have purchased under the
more hazardous occupation
The purpose of the Medical Information Bureau (MIB) is to: - .....ANS...Share
medical data among member companies
Which of the following laws requires an insurer to notify an applicant in
writing that an investigative consumer report may be made on the applicant? -
.....ANS...D. Fair Credit Reporting Act (Insurance Information and Privacy
Protection Act)
