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PEARSON VUE PROPERTY INSURANCE EXAM
UPDATED 2025-2026 WITH ALL NEW
QUESTIONS AND EXACTLY RIGHT ANSWERS |
A+ QUALITY GUARANTEE
Commercial and Homeowners Insurance Exam – 50 Questions
1. S is purchasing a Commercial Property policy for a building valued at
$100,000 with an 80% Coinsurance clause. To avoid a penalty for partial
loss, what is the minimum coverage S should purchase?
A. $100,000
B. $90,000
C. $80,000
D. $20,000
ANSWER: C. $80,000
2. The maximum amount a policy will pay in case of a loss is called the:
A. Coinsurance amount
B. Deductible
C. Limit of liability
D. Pro rata return
ANSWER: C. Limit of liability
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3. The National Flood Insurance Program provides coverage for all the
following EXCEPT:
A. Mudslides
B. Runoff from heavy rain
C. Overflow of tidal waters
D. Water-main breakage
ANSWER: D. Water-main breakage
4. Special Form or Open Perils coverage:
A. Provides coverage against named perils
B. Provides coverage against scheduled risks
C. Is limited by named exclusions
D. Includes no exclusions
ANSWER: C. Is limited by named exclusions
5. Which business is eligible for a Businessowners policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop
ANSWER: D. Barber shop
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6. During a tornado, a barn wall collapses, causing a lantern to fall and start a
fire. The proximate cause of loss is:
A. Fire
B. Collapse of the wall
C. Tornado
D. Smoke
ANSWER: C. Tornado
7. Fire in a restaurant damages walls and smoke damages interiors; water used
for extinguishing causes additional damage. Water damage is:
A. Time element loss
B. Consequential loss
C. Direct loss
D. Indirect loss
ANSWER: C. Direct loss
8. Which term is defined as the uncertainty of a future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause
ANSWER: A. Risk
PEARSON VUE PROPERTY INSURANCE EXAM
UPDATED 2025-2026 WITH ALL NEW
QUESTIONS AND EXACTLY RIGHT ANSWERS |
A+ QUALITY GUARANTEE
Commercial and Homeowners Insurance Exam – 50 Questions
1. S is purchasing a Commercial Property policy for a building valued at
$100,000 with an 80% Coinsurance clause. To avoid a penalty for partial
loss, what is the minimum coverage S should purchase?
A. $100,000
B. $90,000
C. $80,000
D. $20,000
ANSWER: C. $80,000
2. The maximum amount a policy will pay in case of a loss is called the:
A. Coinsurance amount
B. Deductible
C. Limit of liability
D. Pro rata return
ANSWER: C. Limit of liability
,2|Page
3. The National Flood Insurance Program provides coverage for all the
following EXCEPT:
A. Mudslides
B. Runoff from heavy rain
C. Overflow of tidal waters
D. Water-main breakage
ANSWER: D. Water-main breakage
4. Special Form or Open Perils coverage:
A. Provides coverage against named perils
B. Provides coverage against scheduled risks
C. Is limited by named exclusions
D. Includes no exclusions
ANSWER: C. Is limited by named exclusions
5. Which business is eligible for a Businessowners policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop
ANSWER: D. Barber shop
, 3|Page
6. During a tornado, a barn wall collapses, causing a lantern to fall and start a
fire. The proximate cause of loss is:
A. Fire
B. Collapse of the wall
C. Tornado
D. Smoke
ANSWER: C. Tornado
7. Fire in a restaurant damages walls and smoke damages interiors; water used
for extinguishing causes additional damage. Water damage is:
A. Time element loss
B. Consequential loss
C. Direct loss
D. Indirect loss
ANSWER: C. Direct loss
8. Which term is defined as the uncertainty of a future outcome?
A. Risk
B. Hazard
C. Peril
D. Cause
ANSWER: A. Risk
