Pearson VUE: Property Insurance, Study
questions insurance, Casualty FL. Exam Questions
And Answers |Latest 2025 |Verified 100% Correct
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a
flood causes $1,000 in damage to the home's contents, which of the following
MAXIMUM amounts will X's insurer pay?
A. $0
B. $800
C. $900
D. $1,000 - ANSWER -A
In order to issue a written binder for a commercial property policy, what is the
MINIMUM consideration a producer must secure from an applicant?
A. A promise to pay the premium
B. A signature on a premium finance agreement
C. Payment of six months' premium
D. Payment of twelve months' premium - ANSWER -A
An insured owns a set of six drawing pens designed and used by Benjamin
Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is
destroyed by a covered peril. Under the Pair and Set clause, the insurer will pay a
MAXIMUM of which of the following amounts?
A. $1,000
,B. $2,000
C. $7,000
D. $12,000 - ANSWER -C
Pro-rata cancellation occurs when:
A. a policy is nonrenewed
B. a mortgage has been satisfied
C. an insured cancels a policy at inception
D. an insurer cancels a policy at any time - ANSWER -D
Inland Marine insurance is commonly used to insure all of the following items
EXCEPT:
A. automobiles
B. stamps
C. camera equipment
D. jewelry - ANSWER -A
A primary obligation of an insurer is to:
A. pay the claims covered under the policy
B. provide a financial statement with each policy
C. make inspections and surveys of insured property
,D. prepare an inventory after a loss - ANSWER -A
An applicant's statement included in the insurance contract that the property to be
insured has an operable sprinkler system is:
A. agency binding authority
B. a warranty
C. a representation
D. an affidavit - ANSWER -B
Which of the following terms BEST describes continuous and repeated exposure
to conditions that are neither expected nor intended by the insured?
A. Negligence
B. Liability
C. Accident
D. Occurrence - ANSWER -D
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. - ANSWER -D
, A Commercial Property policy specifies which of the following responsibilities as
a duty of the insured?
A. To return the policy if it is canceled by the insurer
B. To provide a sworn Proof of Loss statement if requested by the company
C. To pay the mortgagee in full in the event of a total loss
D. To pay premiums within thirty days after receiving an invoice - ANSWER -B
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a
$50,000 Personal Property limit with the standard deductible. If a sailboat valued
at $1,500 is stolen from the insured's premises, the insured will collect a
MAXIMUM of which of the following amounts?
A. $1,000
B. $1,250
C. $1,400
D. $1,500 - ANSWER -B
Under a Homeowners policy, an insured is required to take all of the following
actions when a covered loss occurs EXCEPT:
A. give prompt notice to the insurer or its producer
B. hire an appraiser to determine the amount of loss
C. notify the police if the loss is the result of theft
D. protect the property from further loss - ANSWER -B
questions insurance, Casualty FL. Exam Questions
And Answers |Latest 2025 |Verified 100% Correct
X insures a home for $100,000 under a Dwelling Property Broad Form (DP-2). If a
flood causes $1,000 in damage to the home's contents, which of the following
MAXIMUM amounts will X's insurer pay?
A. $0
B. $800
C. $900
D. $1,000 - ANSWER -A
In order to issue a written binder for a commercial property policy, what is the
MINIMUM consideration a producer must secure from an applicant?
A. A promise to pay the premium
B. A signature on a premium finance agreement
C. Payment of six months' premium
D. Payment of twelve months' premium - ANSWER -A
An insured owns a set of six drawing pens designed and used by Benjamin
Franklin. Each pen is worth $1,000 alone, but the set is worth $12,000. One pen is
destroyed by a covered peril. Under the Pair and Set clause, the insurer will pay a
MAXIMUM of which of the following amounts?
A. $1,000
,B. $2,000
C. $7,000
D. $12,000 - ANSWER -C
Pro-rata cancellation occurs when:
A. a policy is nonrenewed
B. a mortgage has been satisfied
C. an insured cancels a policy at inception
D. an insurer cancels a policy at any time - ANSWER -D
Inland Marine insurance is commonly used to insure all of the following items
EXCEPT:
A. automobiles
B. stamps
C. camera equipment
D. jewelry - ANSWER -A
A primary obligation of an insurer is to:
A. pay the claims covered under the policy
B. provide a financial statement with each policy
C. make inspections and surveys of insured property
,D. prepare an inventory after a loss - ANSWER -A
An applicant's statement included in the insurance contract that the property to be
insured has an operable sprinkler system is:
A. agency binding authority
B. a warranty
C. a representation
D. an affidavit - ANSWER -B
Which of the following terms BEST describes continuous and repeated exposure
to conditions that are neither expected nor intended by the insured?
A. Negligence
B. Liability
C. Accident
D. Occurrence - ANSWER -D
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. - ANSWER -D
, A Commercial Property policy specifies which of the following responsibilities as
a duty of the insured?
A. To return the policy if it is canceled by the insurer
B. To provide a sworn Proof of Loss statement if requested by the company
C. To pay the mortgagee in full in the event of a total loss
D. To pay premiums within thirty days after receiving an invoice - ANSWER -B
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a
$50,000 Personal Property limit with the standard deductible. If a sailboat valued
at $1,500 is stolen from the insured's premises, the insured will collect a
MAXIMUM of which of the following amounts?
A. $1,000
B. $1,250
C. $1,400
D. $1,500 - ANSWER -B
Under a Homeowners policy, an insured is required to take all of the following
actions when a covered loss occurs EXCEPT:
A. give prompt notice to the insurer or its producer
B. hire an appraiser to determine the amount of loss
C. notify the police if the loss is the result of theft
D. protect the property from further loss - ANSWER -B
