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Pearson VUE: Property Insurance Practice Exam TEST FINAL
EXAM AND PRACTICE EXAM 20262027 BANK 2 VERSIONS
QUESTIONS WITH DETAILED VERIFIED ANSWERS EXAM
QUESTIONS WILL COME FROM HERE (100% CORRECT
ANSWERS A+ GRADED
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:
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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:
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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:
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A. fire
B. collapse of the wall
C. tornado
D. smoke - ANSWER--C
A fire in an insured's restaurant burns the kitchen walls and causes
smoke damage to the entire interior. Water used to extinguish the fire
causes extensive damage to floors and furnishings. The water damage
is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ANSWER--C
Which of the following terms is defined as the uncertainty of future
outcome?
Pearson VUE: Property Insurance Practice Exam TEST FINAL
EXAM AND PRACTICE EXAM 20262027 BANK 2 VERSIONS
QUESTIONS WITH DETAILED VERIFIED ANSWERS EXAM
QUESTIONS WILL COME FROM HERE (100% CORRECT
ANSWERS A+ GRADED
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:
,2|Page
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:
,3|Page
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:
, 4|Page
A. fire
B. collapse of the wall
C. tornado
D. smoke - ANSWER--C
A fire in an insured's restaurant burns the kitchen walls and causes
smoke damage to the entire interior. Water used to extinguish the fire
causes extensive damage to floors and furnishings. The water damage
is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ANSWER--C
Which of the following terms is defined as the uncertainty of future
outcome?
