Exam FX Insurance Updated
Exam With Accurate
Questions and Answers
2025/2026
The causes of loss insured against in an insurance policy are known as -
Correct Answers-Perils
Before an insurer will pay any loss under a policy, what is usually required
from the insured? - Correct Answers-Proof of loss
An insured works outside the home. The insured's sister lives with him and
cares for his four children. When the insured's home is severely damaged by
fire, the family moves into an apartment while repairs are being made. The
largest apartment available in the area has two bedrooms, so the insured's
sister has to stay at a motel. How much will the HO-3 form pay for these
additional living expense? - Correct Answers-All of the expense up to the
Coverage D limit
All of the following statements concerning coinsurance are true EXCEPT -
Correct Answers-The coinsurance formula will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is
more than one insurance policy written on the same risk? - Correct Answers-
Other insurance
What is the purpose of the coinsurance clause found in property insurance
policies? - Correct Answers-Encourage the insured to insure the property
closer to its full value
With respect to the business of insurance, a hazard is - Correct Answers-Any
condition or exposure that increases the possibility of loss.
A building is insured, but no one has lived or worked in it for 10 years. The
building is completely empty of any furniture or personal belongings. From an
insurance standpoint, the building is considered - Correct Answers-Vacant
, For the reported losses of an insured group to become more likely to equal the
statistical probability of loss for that particular class, the insured group must
become - Correct Answers-Larger
The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period? - Correct
Answers-1 year
An insured is driving her auto and strikes a large pothole, causing a flat tire.
Which coverage of the insured's personal auto policy will pay for the repair? -
Correct Answers-This loss is not covered
Which of the following coverages in dwelling and homeowners policies is for
indirect losses? - Correct Answers-Loss of use
Which of the following types of valuation works best for property whose value
does not fluctuate much? - Correct Answers-Agreed value
Under the limits of insurance provision found in the Physical Damage Coverage
Form in a Commercial Auto policy, how much will an insurer pay to repair or
replace a covered auto? - Correct Answers-The lesser of the actual cash value
or the cost to repair or replace a covered auto
All of the following conditions must exist for injury or damage to be included in
the products and completed operations hazard of a commercial general liability
policy EXCEPT - Correct Answers-The injury or damage must occur within 90
days after the insured's work is completed.
The type of professional liability coverage a medical doctor needs is - Correct
Answers-Malpractice coverage.
How much coverage is provided under a homeowners policy for theft or
unauthorized use of a credit card? - Correct Answers-$500
Burglary is defined as - Correct Answers-Taking of property from within the
premises leaving visible signs of forced entry.
When an insured makes truthful statements on the application for insurance
and pays the required premium, it is known as which of the following? -
Correct Answers-Consideration
Insurable interest in a property policy must be proven - Correct Answers-At the
time of loss.
The part of the policy that sets forth the rules of conduct, duties, and
obligations of the parties is called the - Correct Answers-Conditions
Exam With Accurate
Questions and Answers
2025/2026
The causes of loss insured against in an insurance policy are known as -
Correct Answers-Perils
Before an insurer will pay any loss under a policy, what is usually required
from the insured? - Correct Answers-Proof of loss
An insured works outside the home. The insured's sister lives with him and
cares for his four children. When the insured's home is severely damaged by
fire, the family moves into an apartment while repairs are being made. The
largest apartment available in the area has two bedrooms, so the insured's
sister has to stay at a motel. How much will the HO-3 form pay for these
additional living expense? - Correct Answers-All of the expense up to the
Coverage D limit
All of the following statements concerning coinsurance are true EXCEPT -
Correct Answers-The coinsurance formula will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is
more than one insurance policy written on the same risk? - Correct Answers-
Other insurance
What is the purpose of the coinsurance clause found in property insurance
policies? - Correct Answers-Encourage the insured to insure the property
closer to its full value
With respect to the business of insurance, a hazard is - Correct Answers-Any
condition or exposure that increases the possibility of loss.
A building is insured, but no one has lived or worked in it for 10 years. The
building is completely empty of any furniture or personal belongings. From an
insurance standpoint, the building is considered - Correct Answers-Vacant
, For the reported losses of an insured group to become more likely to equal the
statistical probability of loss for that particular class, the insured group must
become - Correct Answers-Larger
The businessowners policy liability coverage will pay for necessary medical
expenses of others incurred within what maximum time period? - Correct
Answers-1 year
An insured is driving her auto and strikes a large pothole, causing a flat tire.
Which coverage of the insured's personal auto policy will pay for the repair? -
Correct Answers-This loss is not covered
Which of the following coverages in dwelling and homeowners policies is for
indirect losses? - Correct Answers-Loss of use
Which of the following types of valuation works best for property whose value
does not fluctuate much? - Correct Answers-Agreed value
Under the limits of insurance provision found in the Physical Damage Coverage
Form in a Commercial Auto policy, how much will an insurer pay to repair or
replace a covered auto? - Correct Answers-The lesser of the actual cash value
or the cost to repair or replace a covered auto
All of the following conditions must exist for injury or damage to be included in
the products and completed operations hazard of a commercial general liability
policy EXCEPT - Correct Answers-The injury or damage must occur within 90
days after the insured's work is completed.
The type of professional liability coverage a medical doctor needs is - Correct
Answers-Malpractice coverage.
How much coverage is provided under a homeowners policy for theft or
unauthorized use of a credit card? - Correct Answers-$500
Burglary is defined as - Correct Answers-Taking of property from within the
premises leaving visible signs of forced entry.
When an insured makes truthful statements on the application for insurance
and pays the required premium, it is known as which of the following? -
Correct Answers-Consideration
Insurable interest in a property policy must be proven - Correct Answers-At the
time of loss.
The part of the policy that sets forth the rules of conduct, duties, and
obligations of the parties is called the - Correct Answers-Conditions
