PEARSON VUE: CASUALTY INSURANCE PRACTICE
EXAM LATEST UPDATE 2025\2026 WITH ACTUAL
QUESTIONS AND CORRECT VERIFIED ANSWERS/WELL
ANALYSED/ ALREADY GRADED A+
An insured may cancel a Personal Auto Policy by taking which of the following
actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone - CORRECT ANSWER-C
D. Definitions - CORRECT ANSWER-C
A policyholder would expect to find which of the following information in the
Insuring Agreement section of an auto policy?
A. Bodily Injury limits of liability
,B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss - CORRECT ANSWER-B
Products Liability coverage would insure damages that arise from which of the
following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store
demonstration.
D. A bicycle rider is injured when a wheel malfunctions. - CORRECT ANSWER-D
Which of the following sections of an insurance policy would explain the term
"auto" ?
A. Declarations
B. Definitions
C. Insuring agreement
, D. Obligations of the insurance company - CORRECT ANSWER-B
A business insured under a Commercial General Liability policy has a General
Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured
party is awarded $100,000. What limits will remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 - CORRECT ANSWER-B
In insurance, all of the following losses are examples of pure risk EXCEPT:
A. auto accident
B. flood damage to a home
C. decline of stock values on the stock market
D. fire damage to a building - CORRECT ANSWER-C
In an application for marine insurance, a yacht owner states that the yacht will
only be sailed on inland waters. If the insured subsequently sails the yacht on
the seas, coverage may be denied because the insured has breached:
EXAM LATEST UPDATE 2025\2026 WITH ACTUAL
QUESTIONS AND CORRECT VERIFIED ANSWERS/WELL
ANALYSED/ ALREADY GRADED A+
An insured may cancel a Personal Auto Policy by taking which of the following
actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone - CORRECT ANSWER-C
D. Definitions - CORRECT ANSWER-C
A policyholder would expect to find which of the following information in the
Insuring Agreement section of an auto policy?
A. Bodily Injury limits of liability
,B. The insurance company's promise to pay on the behalf of the insured
C. Exclusions regarding certain uses of the auto
D. The obligations of the insured in the event of a loss - CORRECT ANSWER-B
Products Liability coverage would insure damages that arise from which of the
following situations?
A. A manufacturer is required to recall a defective product.
B. A contractor installs inferior-grade siding on a building.
C. A customer receives an electrical shock from a curling iron during an in-store
demonstration.
D. A bicycle rider is injured when a wheel malfunctions. - CORRECT ANSWER-D
Which of the following sections of an insurance policy would explain the term
"auto" ?
A. Declarations
B. Definitions
C. Insuring agreement
, D. Obligations of the insurance company - CORRECT ANSWER-B
A business insured under a Commercial General Liability policy has a General
Aggregate limit of $1,000,000 and an Occurrence limit of $100,000. An injured
party is awarded $100,000. What limits will remain available to the insured?
A. General Aggregate of $1,000,000; Occurrence limit of $100,000
B. General Aggregate of $900,000; Occurrence limit of $100,000
C. General Aggregate of $1,000,000; Occurrence limit of $0
D. General Aggregate of $900,000; Occurrence limit of $0 - CORRECT ANSWER-B
In insurance, all of the following losses are examples of pure risk EXCEPT:
A. auto accident
B. flood damage to a home
C. decline of stock values on the stock market
D. fire damage to a building - CORRECT ANSWER-C
In an application for marine insurance, a yacht owner states that the yacht will
only be sailed on inland waters. If the insured subsequently sails the yacht on
the seas, coverage may be denied because the insured has breached:
