Pearson VUE Property Insurance
Practice Test 2026 with 200 Questions
and Correct Answers/ 2026 Pearson VUE
Property & Casualty Practice exam
All of the following perils are covered under a Building and Business Personal
Property Coverage Form with a Causes of Loss-Basic Form attached EXCEPT:
A. smoke
B. sprinkler leakage
C. sinkhole collapse
D. earth movement - ANSWER-D
During a tornado, a barn is destroyed when a section of its wall is blown down,
knocking over a lantern, which sets the barn on fire. The proximate cause of loss is
the:
A. fire
B. collapse of the wall
C. tornado
pg. 1
,D. smoke - ANSWER-C
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage
to the entire interior. Water used to extinguish the fire causes extensive damage to
floors and furnishings. The water damage is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ANSWER-C
Due to the homeowner's disability exemption, property taxes of $4,000 are reduced
to $3,000 in a transaction. However, the listing licensee fails to disclose to the
buyer the difference in the amount of property taxes to be paid by the buyer.
Failing to disclose this material fact is an example of:
A.
exemption
B.
misrepresentation
C.
misappropriation
pg. 2
,D.
mutual regression - ANSWER-B
The final decision in establishing the listing price is made by the:
A.
salesperson
B.
broker
C.
appraiser
D.
owner - ANSWER-D
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
pg. 3
, D. Cause - ANSWER-A
The Personal Liability section of a Homeowners policy covers which of the
following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - ANSWER-D
An insured owns an antique marble statue valued at $3,000, which is covered
under a Personal Articles Floater. Damage to the statue would be covered in all of
the following situations EXCEPT:
A. it was accidentally damaged by a housekeeper
B. it was damaged in a flood
C. a guest of the insured maliciously damaged it
D. the insured threw it - ANSWER-D
pg. 4
Practice Test 2026 with 200 Questions
and Correct Answers/ 2026 Pearson VUE
Property & Casualty Practice exam
All of the following perils are covered under a Building and Business Personal
Property Coverage Form with a Causes of Loss-Basic Form attached EXCEPT:
A. smoke
B. sprinkler leakage
C. sinkhole collapse
D. earth movement - ANSWER-D
During a tornado, a barn is destroyed when a section of its wall is blown down,
knocking over a lantern, which sets the barn on fire. The proximate cause of loss is
the:
A. fire
B. collapse of the wall
C. tornado
pg. 1
,D. smoke - ANSWER-C
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage
to the entire interior. Water used to extinguish the fire causes extensive damage to
floors and furnishings. The water damage is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - ANSWER-C
Due to the homeowner's disability exemption, property taxes of $4,000 are reduced
to $3,000 in a transaction. However, the listing licensee fails to disclose to the
buyer the difference in the amount of property taxes to be paid by the buyer.
Failing to disclose this material fact is an example of:
A.
exemption
B.
misrepresentation
C.
misappropriation
pg. 2
,D.
mutual regression - ANSWER-B
The final decision in establishing the listing price is made by the:
A.
salesperson
B.
broker
C.
appraiser
D.
owner - ANSWER-D
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
C. Peril
pg. 3
, D. Cause - ANSWER-A
The Personal Liability section of a Homeowners policy covers which of the
following options?
A. Damage to an insured's property caused by a visitor
B. Bodily injury to a resident caused by a neighbor's dog
C. Property damage caused by war
D. Bodily injury caused by the personal activities of an insured - ANSWER-D
An insured owns an antique marble statue valued at $3,000, which is covered
under a Personal Articles Floater. Damage to the statue would be covered in all of
the following situations EXCEPT:
A. it was accidentally damaged by a housekeeper
B. it was damaged in a flood
C. a guest of the insured maliciously damaged it
D. the insured threw it - ANSWER-D
pg. 4
