PearsonVue Practice Exam 1
Which of the following persons may assign a Standard Fire Policy? - CORRECT ANS A Claims Adjuster
Under the standard flood insurance policy, all of the following loss avoidance measures are covered up
to $1,000 when damage to the insured property due to flooding is imminent EXCEPT: - CORRECT ANS
The value of work, at the federal minimum wage, that a member of the household performs
The Insurance Commissioner is empowered to: - CORRECT ANS Enforce state laws relating to insurance
After an insurer receives a satisfactory proof of loss from an insured on a fire loss, payment is due within
a MAXIMUM of how many days? - CORRECT ANS 30 days
*Upon determining that a producer has violated the insurance law, the Insurance Commissioner is
required to take which of the following actions? - CORRECT ANS Publish notice of the violation
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all of the following
reasons EXCEPT: - CORRECT ANS Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without criminal fault on the part of the insured. The
amount of the loss covered by a property policy would be based on: - CORRECT ANS The market value of
the dwelling
A candidate for licensure as a property insurance produce must have completed a MINIMUM of how
many hours of prelicensing education? - CORRECT ANS 50 hours
An insurer that permits different rate classifications for individuals of the same class and same hazard
may be guilty of: - CORRECT ANS Unfair discrimination
, Making false or misleading statements about dividends or shares of surplus previously paid on an
insurance policy is known as: - CORRECT ANS Misrepresentation
*The Insurance Company may issue a limited insurance representative license to an individual who
wants to sell which of the following types of policies? - CORRECT ANS Automobile
In this state, a domestic insurer is defined as a company that: - CORRECT ANS Is headquarted in this
state
*If a commercial insurer fails to meet the requirements of the forty-five days Notice of Nonrenewal Rule
prior to the expiration date of the existing policy, the company MUST: - CORRECT ANS Provide a renewal
policy that *matches* the expiring policy's coverages and premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: - CORRECT ANS Basic Property insurance for which
coverage is not available in the regular market
XYZ Insurance Company recently received its certificate of authority to sell property insurance in Illinois.
XYZ is an Iowa insurer but will sell its products through its licensed Illinois producers. Which of the
following statements is CORRECT about XYZ Company's involvement in the FAIR Plan? - CORRECT ANS
Membership in the FAIR Plan is optional for XYZ
*All of the following items continued in a basement are covered under the standard flood insurance
policy EXCEPT: - CORRECT ANS Drywall for walls and ceilings and the cost of labor to nail it, unfinished
and unfloated and not taped, to the framing
*An incorporated insurer with capital divided into shares and owned by its shareholders is known as: -
CORRECT ANS A stock company
*An insurer that intends to nonrenew a Homeownwers policy MUST take which of the following
actions? - CORRECT ANS Send a notice stating the reason for nonrenewal to the insured
Which of the following persons may assign a Standard Fire Policy? - CORRECT ANS A Claims Adjuster
Under the standard flood insurance policy, all of the following loss avoidance measures are covered up
to $1,000 when damage to the insured property due to flooding is imminent EXCEPT: - CORRECT ANS
The value of work, at the federal minimum wage, that a member of the household performs
The Insurance Commissioner is empowered to: - CORRECT ANS Enforce state laws relating to insurance
After an insurer receives a satisfactory proof of loss from an insured on a fire loss, payment is due within
a MAXIMUM of how many days? - CORRECT ANS 30 days
*Upon determining that a producer has violated the insurance law, the Insurance Commissioner is
required to take which of the following actions? - CORRECT ANS Publish notice of the violation
The Insurance Commissioner may suspend, revoke, or deny a producer's license for all of the following
reasons EXCEPT: - CORRECT ANS Conviction of a misdemeanor
*If an owner-occupied dwelling is totally destroyed without criminal fault on the part of the insured. The
amount of the loss covered by a property policy would be based on: - CORRECT ANS The market value of
the dwelling
A candidate for licensure as a property insurance produce must have completed a MINIMUM of how
many hours of prelicensing education? - CORRECT ANS 50 hours
An insurer that permits different rate classifications for individuals of the same class and same hazard
may be guilty of: - CORRECT ANS Unfair discrimination
, Making false or misleading statements about dividends or shares of surplus previously paid on an
insurance policy is known as: - CORRECT ANS Misrepresentation
*The Insurance Company may issue a limited insurance representative license to an individual who
wants to sell which of the following types of policies? - CORRECT ANS Automobile
In this state, a domestic insurer is defined as a company that: - CORRECT ANS Is headquarted in this
state
*If a commercial insurer fails to meet the requirements of the forty-five days Notice of Nonrenewal Rule
prior to the expiration date of the existing policy, the company MUST: - CORRECT ANS Provide a renewal
policy that *matches* the expiring policy's coverages and premium
(key word- matches)
*The purpose of the FAIR Plan is to provide: - CORRECT ANS Basic Property insurance for which
coverage is not available in the regular market
XYZ Insurance Company recently received its certificate of authority to sell property insurance in Illinois.
XYZ is an Iowa insurer but will sell its products through its licensed Illinois producers. Which of the
following statements is CORRECT about XYZ Company's involvement in the FAIR Plan? - CORRECT ANS
Membership in the FAIR Plan is optional for XYZ
*All of the following items continued in a basement are covered under the standard flood insurance
policy EXCEPT: - CORRECT ANS Drywall for walls and ceilings and the cost of labor to nail it, unfinished
and unfloated and not taped, to the framing
*An incorporated insurer with capital divided into shares and owned by its shareholders is known as: -
CORRECT ANS A stock company
*An insurer that intends to nonrenew a Homeownwers policy MUST take which of the following
actions? - CORRECT ANS Send a notice stating the reason for nonrenewal to the insured
