Pearson VUE Property Insurance Practice Exam Questions with
Verified Answers |2026/2027 Update | A+ Graded
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
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,A company's promise to pay for damage caused by or resulting from any covered Cause of Loss
would be found in which of the following sections of a Commercial Property policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - Answer -B
All of the following options are examples of insurable interest EXCEPT:
A. a person's interest in property she is buying on contract
B. a tenant's interest in improvements she has made to a leased building
C. a TV repairman's interest in a customer's TV which has been repaired but is still on premises
D. an individual's interest in property her parents will someday leave to her - Answer -D
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, A family takes their 50 horsepower outboard motor boat to the lake on a trailer towed behind
their personal auto. The pleasure boat is appropriately covered for physical damage under
which of the following policies?
A. Dwelling
B. Homeowners
C. Boatowners
D. Yacht - Answer -C
Which of the following policy forms would BEST protect a business that must keep operating
after a loss?
A. Extra Expense
B. Business Income
C. Gross Earnings
D. Contingent Business Interruption - Answer -A
Which of the following perils is covered by Broad Form perils but is not covered by the Basic
Form?
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Verified Answers |2026/2027 Update | A+ Graded
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
1|Page
,A company's promise to pay for damage caused by or resulting from any covered Cause of Loss
would be found in which of the following sections of a Commercial Property policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions - Answer -B
All of the following options are examples of insurable interest EXCEPT:
A. a person's interest in property she is buying on contract
B. a tenant's interest in improvements she has made to a leased building
C. a TV repairman's interest in a customer's TV which has been repaired but is still on premises
D. an individual's interest in property her parents will someday leave to her - Answer -D
2|Page
, A family takes their 50 horsepower outboard motor boat to the lake on a trailer towed behind
their personal auto. The pleasure boat is appropriately covered for physical damage under
which of the following policies?
A. Dwelling
B. Homeowners
C. Boatowners
D. Yacht - Answer -C
Which of the following policy forms would BEST protect a business that must keep operating
after a loss?
A. Extra Expense
B. Business Income
C. Gross Earnings
D. Contingent Business Interruption - Answer -A
Which of the following perils is covered by Broad Form perils but is not covered by the Basic
Form?
3|Page
