Pearson VUE: Property Insurance Practice Exam
QUESTIONS WITH MULTIPLE CHOICES |VERIFIED &
ANSWERS Newest Update 2025!!
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
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
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
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
QUESTIONS WITH MULTIPLE CHOICES |VERIFIED &
ANSWERS Newest Update 2025!!
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
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
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
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
