FX INSURANCE STUDY GUIDE 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Which of the following statements would be correct if an insured failed to maintain
the underlying limits as required by a personal umbrella policy? - ✔✔The insured would
be responsible for the amount required as underlying limits in the event of a claim.
✔✔The occurrence form trigger is based on which of the following? - ✔✔The date when
injury or damage occurs
✔✔A sworn written statement that must be furnished by the insured to the insurer
before any loss under a policy can be paid is called - ✔✔Proof of loss.
✔✔Which of the following would qualify as a competent party in an insurance contract?
- ✔✔The applicant has a prior felony conviction.
✔✔The insured with a claims-made commercial general liability (CGL) policy may
request in writing claim and occurrence information from the insurer at any time up to 60
days after the policy period ends. The insurer must provide the information - ✔✔Within
45 days.
✔✔Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated? - ✔✔Law of large numbers
✔✔In which type of commercial crime policy coverage is triggered by a loss that
happens during the policy period but is not necessarily discovered during the policy
period? - ✔✔Loss sustained form
✔✔Which of the following IS considered a work-related injury/occupational disease
under Workers Compensation law? - ✔✔Tom works as a painter in an auto body shop.
The chemicals from the paint aggravate Tom's asthma to the point that he must be
hospitalized for several days.
✔✔If more than one person has an insurable interest in the property covered under a
dwelling policy, - ✔✔The insurer will be liable for only the insured's interest in the
damaged property.
✔✔In forming an insurance contract, when does acceptance usually occur? - ✔✔When
an insurer's underwriter approves coverage
✔✔The type of insurance used to cover goods for one specific trip is called - ✔✔Trip
transit.
, ✔✔Robbery is - ✔✔Taking of property by use of force, violence, or fear.
✔✔Under the coverage of which of the following liability policies may an insured require
the insurer to defend a claim? - ✔✔Professional liability
✔✔Which of the following is NOT an essential element of an insurance contract? -
✔✔Counteroffer
✔✔What are common carriers required to issue to every shipper that it transports goods
for? - ✔✔A uniform bill of lading
✔✔Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy period? -
✔✔Discovery form
✔✔Insurance is the transfer of - ✔✔Risk
✔✔According to the appraisal condition of a homeowners policy, what procedure may
be followed if the insurer and insured do not agree as to the size of a loss? - ✔✔Either
party may make a written request for an appraisal.
✔✔The bankruptcy provision found in the personal auto policy states that bankruptcy of
the insured - ✔✔Will not relieve the insurer of its policy obligations.
✔✔Peril is most easily defined as - ✔✔The cause of loss insured against.
✔✔In the personal auto policy, owned trailers being towed by an insured auto are
automatically covered for - ✔✔Uninsured motorist coverage.
✔✔Insurance is a contract by which one seeks to protect another from - ✔✔Loss
✔✔In liability insurance policies, supplementary payments are made - ✔✔In addition to
the limit of liability.
✔✔When would a misrepresentation on the insurance application be considered fraud?
- ✔✔If it is intentional and material
✔✔A bond is written for a set limit, and the surety will be liable only for this amount of
the limit. This limit is known as the - ✔✔Penalty
✔✔Which of the following definitions best defines the term "accident"? - ✔✔A sudden,
unplanned and unexpected event, not under the control of the insured, resulting in injury
or damage neither expected nor intended
ANSWERS GUARANTEE A+
✔✔Which of the following statements would be correct if an insured failed to maintain
the underlying limits as required by a personal umbrella policy? - ✔✔The insured would
be responsible for the amount required as underlying limits in the event of a claim.
✔✔The occurrence form trigger is based on which of the following? - ✔✔The date when
injury or damage occurs
✔✔A sworn written statement that must be furnished by the insured to the insurer
before any loss under a policy can be paid is called - ✔✔Proof of loss.
✔✔Which of the following would qualify as a competent party in an insurance contract?
- ✔✔The applicant has a prior felony conviction.
✔✔The insured with a claims-made commercial general liability (CGL) policy may
request in writing claim and occurrence information from the insurer at any time up to 60
days after the policy period ends. The insurer must provide the information - ✔✔Within
45 days.
✔✔Which law is the foundation of the statistical prediction of loss upon which rates for
insurance are calculated? - ✔✔Law of large numbers
✔✔In which type of commercial crime policy coverage is triggered by a loss that
happens during the policy period but is not necessarily discovered during the policy
period? - ✔✔Loss sustained form
✔✔Which of the following IS considered a work-related injury/occupational disease
under Workers Compensation law? - ✔✔Tom works as a painter in an auto body shop.
The chemicals from the paint aggravate Tom's asthma to the point that he must be
hospitalized for several days.
✔✔If more than one person has an insurable interest in the property covered under a
dwelling policy, - ✔✔The insurer will be liable for only the insured's interest in the
damaged property.
✔✔In forming an insurance contract, when does acceptance usually occur? - ✔✔When
an insurer's underwriter approves coverage
✔✔The type of insurance used to cover goods for one specific trip is called - ✔✔Trip
transit.
, ✔✔Robbery is - ✔✔Taking of property by use of force, violence, or fear.
✔✔Under the coverage of which of the following liability policies may an insured require
the insurer to defend a claim? - ✔✔Professional liability
✔✔Which of the following is NOT an essential element of an insurance contract? -
✔✔Counteroffer
✔✔What are common carriers required to issue to every shipper that it transports goods
for? - ✔✔A uniform bill of lading
✔✔Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy period? -
✔✔Discovery form
✔✔Insurance is the transfer of - ✔✔Risk
✔✔According to the appraisal condition of a homeowners policy, what procedure may
be followed if the insurer and insured do not agree as to the size of a loss? - ✔✔Either
party may make a written request for an appraisal.
✔✔The bankruptcy provision found in the personal auto policy states that bankruptcy of
the insured - ✔✔Will not relieve the insurer of its policy obligations.
✔✔Peril is most easily defined as - ✔✔The cause of loss insured against.
✔✔In the personal auto policy, owned trailers being towed by an insured auto are
automatically covered for - ✔✔Uninsured motorist coverage.
✔✔Insurance is a contract by which one seeks to protect another from - ✔✔Loss
✔✔In liability insurance policies, supplementary payments are made - ✔✔In addition to
the limit of liability.
✔✔When would a misrepresentation on the insurance application be considered fraud?
- ✔✔If it is intentional and material
✔✔A bond is written for a set limit, and the surety will be liable only for this amount of
the limit. This limit is known as the - ✔✔Penalty
✔✔Which of the following definitions best defines the term "accident"? - ✔✔A sudden,
unplanned and unexpected event, not under the control of the insured, resulting in injury
or damage neither expected nor intended
