Pearson Vue Property Insurance Exam
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 50 multichoice Questions with Answers
1. S is purchasing a Commercial Property policy to cover a commercial build-
ing 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
2. 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
3. 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
, 4. 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
5. 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
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 50 multichoice Questions with Answers
1. S is purchasing a Commercial Property policy to cover a commercial build-
ing 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
2. 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
3. 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
, 4. 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
5. 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
