EXAM FX- Simulated Test Questions

Which of the following policies does NOT contain an automatic reinstatement provision? a) Business automobile liability b) Personal automobile liability with split limits c) Homeowners d) General liability written with an aggregate limit - Answer- General Liability written with an aggregate limit The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a $24,000 loss occurs and the pro rata method is used, how much will each insurer pay? a) Company A will pay $24,000; Company B will pay $0. b) Company A will pay $16,000; Company B will pay $8,000. c) Company A will pay $20,000; Company B will pay $4,000. d) Company A will pay $12,000; Company B will pay $12,000. - Answer- Company A will pay $16,000; Company B will pay $8,000. Farm fences (except field and pasture fences) are covered by which farm coverage form? a) Coverage A b) Coverage B c) Coverage E d) Coverage G - Answer- Coverage G What type of coverage does a homeowners policy include that a dwelling policy does not? a) Personal property b) Other structures c) Broad form d) Liability - Answer- Liability Which of the following is NOT one of the 3 requirements for property to be eligible for FAIR plan coverage? a) Coverage could not be purchased through the normal insurance market b) It must be valued at an amount under the maximum value amount set by the state c) It must be located in a specific area defined by the state d) It must be considered insurable based on reasonable underwriting standards - Answer- It must be valued at an amount under the maximum value amount set by the state Which of the following liability exposures is most likely for a small specialty clothing retail boutique? a) Operations liability exposure b) Product liability exposure