Pearson VUE: Property Insurance Practice Exam, Study
questions insurance, Casualty FL Exam Questions and Answers
|Fall 2025/2026 Update | 100% Correct
Question 1
Which of the following phrases BEST defines a hazard?
A. A condition that increases the chance of a loss
B. The uncertainty of a loss
C. The cause of a loss
D. An unexpected loss
Correct Answer
A
Page 1 of 104
,Question 2
The principle of indemnity is designed to avoid:
A. two policies sharing payment for a loss
B. overpayment of a claim
C. the return of earned premiums
D. a Coinsurance clause of less than 80 percent
Correct Answer
B
Page 2 of 104
,Question 3
The act of intentionally withholding from an insurance application a fact that would affect issuance of the policy is referred
to as:
A.concealment
A.
concealment
B.misrepresentation
B.
misrepresentation
C.defamation
C.
defamation
D.twisting
D.
twisting
Correct Answer
a
Page 3 of 104
, Question 4
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a $50,000 Personal Property limit with the
standard deductible. If a sailboat valued at $1,500 is stolen from the insured's premises, the insured will collect a
MAXIMUM of which of the following amounts?
A. $1,000
B. $1,250
C. $1,400
D. $1,500
Correct Answer
B
Question 5
All of the following options are examples of insurable interest EXCEPT:
A. a person's interest in property she is buying on contract
B. a tenant's interest in improvements she has made to a leased building
C. a TV repairman's interest in a customer's TV which has been repaired but is still on premises
D. an individual's interest in property her parents will someday leave to her
Correct Answer
D
Page 4 of 104
questions insurance, Casualty FL Exam Questions and Answers
|Fall 2025/2026 Update | 100% Correct
Question 1
Which of the following phrases BEST defines a hazard?
A. A condition that increases the chance of a loss
B. The uncertainty of a loss
C. The cause of a loss
D. An unexpected loss
Correct Answer
A
Page 1 of 104
,Question 2
The principle of indemnity is designed to avoid:
A. two policies sharing payment for a loss
B. overpayment of a claim
C. the return of earned premiums
D. a Coinsurance clause of less than 80 percent
Correct Answer
B
Page 2 of 104
,Question 3
The act of intentionally withholding from an insurance application a fact that would affect issuance of the policy is referred
to as:
A.concealment
A.
concealment
B.misrepresentation
B.
misrepresentation
C.defamation
C.
defamation
D.twisting
D.
twisting
Correct Answer
a
Page 3 of 104
, Question 4
An insured's HO-2 Form has a $100,000 coverage limit on the dwelling and a $50,000 Personal Property limit with the
standard deductible. If a sailboat valued at $1,500 is stolen from the insured's premises, the insured will collect a
MAXIMUM of which of the following amounts?
A. $1,000
B. $1,250
C. $1,400
D. $1,500
Correct Answer
B
Question 5
All of the following options are examples of insurable interest EXCEPT:
A. a person's interest in property she is buying on contract
B. a tenant's interest in improvements she has made to a leased building
C. a TV repairman's interest in a customer's TV which has been repaired but is still on premises
D. an individual's interest in property her parents will someday leave to her
Correct Answer
D
Page 4 of 104
