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EXAM FX, VA PROPERTY & CASUALTY
INSURANCE EXAM 2024 LATEST
ACTUAL EXAM 250 QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) | ALREADY GRADED A+ |
BRAND NEW VERSION (JUST
RELEASED)
Which of the following may be covered by Electronic Data Processing coverage from under and Inland Marine policy? A. Computer hardware that is specifically scheduled B. Extra expense the insured incurs to continue the business following a loss C. Data processing media, including magnetic tapes or paper tapes, punch cards, and discs D. All of these are covered ------CORRECT ANSWER---------------D What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of an inland marine policy? A. $15,000 all expenses incurred during a 12-month period B. $20,000 all expenses incurred during a 12-month period C. $5,000 for all expenses during a 12-month period D. $10,000 for all expenses incurred during a 12-month period ------CORRECT ANSWER---------------D An insured owns a large dog. The first day he has to leave the dog home alone to go to work, the insured comes back to find his $400 couch torn apart, his $100 coffee table chewed up, his $50 window curtain shredded, and a $200 window pane shattered where his dog jumped through. The insured has personal property coverage under a special form of dwelling policy. How much of this loss will the policy cover? A. $ B. $ C. $ D. $750 ------CORRECT ANSWER---------------A
Which of the following would NOT be considered an insured under a homeowners policy? A. Residents of the household that are blood relatives of the insured B. An individual, under 21, in the care of but not related to the insured C. Individuals named in the policy declarations D. A divorced spouse living in another state ------CORRECT ANSWER---------------D Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports? A. By the 15th of each month B. 20 days after the report is due C. Within 30 days after the end of each month D. Within the first 10 days of each month ------CORRECT ANSWER---------------C Which common policy condition prohibits the insured from changing the rights or duties as defined under the policy to any other person or entity without the written consent of the insurance company? A. Subrogation B. Reassignment and modification C. Changes D. Transfer of rights and duties under the policy ------CORRECT ANSWER---------------D Which of the following would NOT be considered a flood? A. Overflow of tidal waves B. Mudslides C. Runoff of surface waters D. Sewer backup ------CORRECT ANSWER---------------D Builder's risk is most often written on which form? A. Scheduled form B. Reporting form C. Specific value form D. Completed value form ------CORRECT ANSWER---------------D
A. Extra money for an insured whose accounts receivable records have been damaged B. Additional money to pay for property damage losses at a covered location C. Payment for unforeseen expenses an insured may incur while the business is shut down following a property damage loss D. Coverage that will permit the insured to continue in business without interruption following a property damage loss ------CORRECT ANSWER---------------D An endorsement is available for hired and nonowned auto on BOP liability... A. Only if the insured does not have commercial auto coverage B. In addition to commercial auto coverage C. Only if the insured has 4 or more employees D. Never ------CORRECT ANSWER---------------A The Mail Coverage Form is always written on a reporting form basis; after the end of each reporting period shown in the declarations, reports are due within... A. 45 days B. 15 days C. 30 days D. 31 days ------CORRECT ANSWER---------------C The inland marine coverage form for outdoor signs provides "open peril" coverage and excludes coverage for breakage only during... A. Transportation B. Repairing C. Installation or dismantling D. All of the above ------CORRECT ANSWER---------------D Which of the following is covered under the Mail floater of a Commercial Inland Marine policy ONLY if is sent by registered mail? A. Currency and unsold travelers checks B. Postage and revenue stamps C. Money orders, checks, drafts, notes D. Bonds, stocks, stock certificates, coupon attached bonds ------CORRECT ANSWER-- -------------A Which of the following other coverages is NOT included in the basic form dwelling policy?
A. Breakage of glass B. Removal coverage C. Personal property temporarily away from the insured premises D. Tenant's improvements, alterations, and additions ------CORRECT ANSWER----------- ----A Under the conditions of a Film Coverage Form, how long must the insured maintain records of each production? A. 3 years after the policy expires B. 5 years after the policy expires C. 7 years after production completion D. 1 year after production completion ------CORRECT ANSWER---------------A Which of the following is true regarding single dwellings that are insured at least 80% of the replacement value? A. They are subject to a $1000 deductible B. They are automatically provided with replacement cost coverage C. They qualify for maximum compensation under the flood insurance program D. They are excluded from the flood insurance policy ------CORRECT ANSWER----------- ----B A BOP (business owners policy) is most similar to... A. Auto B. Umbrella C. Cargo D. Homeowners ------CORRECT ANSWER---------------D Under dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured within how many days of receiving proof of loss? A. 10 days B. 30 days C. 45 days D. 60 days ------CORRECT ANSWER---------------B
Professional photographers and musicians may insure their equipment with... A. A PAF B. A commercial articles form C. A theatrical property coverage form D. A block policy ------CORRECT ANSWER---------------B Which of the following statements concerning the builders risk coverage form is correct? A. It may be written on a reporting form or the completed value of the structure B. It usually continues in effect for 1 year after completion of the structure C. It covers the interest of the builder only, and cannot include coverage for the owner D. It may not be written for perils other than fire and extended coerage ------CORRECT ANSWER---------------A Which of the following dwelling coverage forms would pay replacement cost for the dwelling? A. DP2 and DP B. DP3 only C. All dwelling property coverage forms D. DP1 ------CORRECT ANSWER---------------A The type of insurance used to cover goods for one specific trip is called... A. Commercial property B. Bailee policy C. Motor truck cargo policy D. Trip transit ------CORRECT ANSWER---------------D Under the HO4 and HO6 homeowners policy forms, property is insured against... A. Special form perils B. Comprehensive form perils C. Broad form perils D. Basic form perils ------CORRECT ANSWER---------------C Dwelling policy Coverage C - Personal Property will cover all of the following EXCEPT A. Computer software B. Canoes C. Animals and birds
D. Hobby aircrafts ------CORRECT ANSWER---------------C The most the insurer will pay for a loss under a business owners policy is... A. 80% of the loss B. 20% of the loss C. The limit of insurance after the deductible is paid D. The amount of the loss minus the deductible ------CORRECT ANSWER---------------C Under the provisions of the business income coverage form, all of the following are true EXCEPT... A. The insured is reimbursed for payroll that continues after the loss begins B. The insured is reimbursed for the loss from the date of loss to date of restoration or policy expiration date, whichever comes first C. If the insured and insurer are unable to come to agreements as to the value of the loss, either party may make a written demand for an appraisal D. The insured agrees to resume all of part of operations as quickly as possible ------ CORRECT ANSWER---------------B A grave marker was damaged by vandals. It would cost $3000 to have the damage repaired. Under these circumstances, how much would a homeowners policy pay? A. $ B. $ C. $ D. $500 ------CORRECT ANSWER---------------B Under the Commercial Property Coverage program, the Basic Causes of Loss form insures against loss caused by... A. Power failure off the premises B. Sprinkler leakage C. Earth movement D. Nuclear hazard ------CORRECT ANSWER---------------B In a commercial package policy, who may cancel the policy in writing and make changes to the policy with the consent of the insurer? A. Beneficiary B. Insurer
A. Payment of claim B. Severability of insurance C. Appraisal D. Limit of liability ------CORRECT ANSWER---------------B All of the following types of property are covered by a standard builders risk form EXCEPT... A. Temporary structures B. Machinery that with be permanently attached to the building C. Tools 50 feet away from the building D. The building itself ------CORRECT ANSWER---------------C Which of the following best describes the amount of loss assessment coverage included under a homeowners policy liability coverage section? A. Up to $10,000 aggregate for the policy period B. Up to $5,000 aggregate for the policy period C. Up to $1,000 per occurrence D. Up to $2,500 per occurrence ------CORRECT ANSWER---------------C When does the coverage begin under the builders risk form? A. On the date the policy is issued B. On the date the policy is delivered C. On the date the premium is paid D. On the date construction starts ------CORRECT ANSWER---------------D To be eligible for business owners policy (BOP) coverage, an office building CANNOT be higher than... A. 2 stories B. 3 stories C. 6 stories D. 10 stories ------CORRECT ANSWER---------------C The removal coverage that is included in the broad form dwelling policy will cover property temporarily removed from the premises to protect it from damage for how long? A. 5 days
B. 15 days C. 30 days D. 60 days ------CORRECT ANSWER---------------C Under the provisions of the business income coverage form, all of the following are true EXCEPT... A. The insured agrees to resume all or part of operations as quickly as possible B. The insured I s reimbursed for payroll that continues after the loss begins C. The insured is reimbursed for the loss from the date of loss to the date of restoration or policy expiration date, whichever comes first D. If the insured and insurer are unable to come to agreement as to the value of the loss, either part may make a written demand for an appraisal ------CORRECT ANSWER---------------C Which of the following is covered under the Camera and Musical Instruments Dealers floater? A. A musical instrument sold and delivered to a customer B. Furniture, fixtures, and office supplies in a music store C. Money kept on premises of a camera shop D. A customer's camera left at a camera shop ------CORRECT ANSWER---------------D Which of the following kind of property would be covered under a dwelling policy? A. Motor vehicles B. Aircraft C. Pontoon boats D. Rowboats ------CORRECT ANSWER---------------D An insured couple owns a pontoon boat. Which situation would NOT be covered by their watercraft endorsement under the homeowners policy? A. One of the insureds is taking the boat out and injures her grandson B. A friend rents their boat and runs it into a neighbor's dock C. The insured's granddaughter slips on the boar and needs stitches D. A friend borrows the boat and has an accident with another boat ------CORRECT ANSWER---------------B
B. Declarations page C. Policy conditions D. Valuations and/or settlement provisions ------CORRECT ANSWER---------------D The main difference between an HO4 and an HO6 is... A. HO6 provides limited dwelling coverage as well as contents coverage B. HO4 does not cover additional living expenses C. HO6 does not cover additional living expenses D. HO4 provides limited dwelling coverage as well as contents coverage ------ CORRECT ANSWER---------------A Which of the following is NOT true about earthquake coverage? A. Coverage may be added to property policies by endorsement B. Coverage may be written in a Difference of Conditions policy C. Coverage is commonly provided through a federally-funded program D. Coverage is excluded by most property forms ------CORRECT ANSWER--------------- C An insured's home is mortgaged by the local bank. The insured us required to carry insurance on the home, showing the bank as the mortgagee. If the home is damaged by a covered peril, which of the following is true? A. Losses will be paid to the mortgagee and the mortgagor as their interest appears B. Coverage is suspended if the building is mortgaged and the insurer is not told of his indebtedness C. The mortgagee must settle with the mortgagor in the even of a loss D. The additional premium required for the mortgage endorsement must be paid by the mortgage ------CORRECT ANSWER---------------A In a dwelling policy, which of the following other structures would be covered? A. A structure used as a part of a farming operation B. A structure used by the insured in which to operate a retail business C. A structure used by the insured to house a manufacturing operation D. A structure rented to a neighbor for use as a private garage ------CORRECT ANSWER---------------D
Your accounts receivable records have been destroyed or damaged. Your loss may be covered with... A. The valuable papers coverage form B. The accounts receivable coverage form C. Commercial property insurance D. The commercial articles coverage form ------CORRECT ANSWER---------------B An insured's house is damaged by a fire and is uninhabitable. As a result, the insured has to rent an apartment until repairs are made. A dwelling insurance policy will pay for the expense of renting the apartment. Which type of broad or special form coverage does the insured have? A. Coverage E - Additional Living Expense B. Coverage A - Dwelling C. Coverage B - Other Structures D. Coverage D - Fair Rental Value ------CORRECT ANSWER---------------A What is the minimum amount of coverage that should be carried on an HO2 on a home that was purchased four years ago for $75,000, which today has a replacement value of $100,000? A. $100, B. $60, C. $75, D. $80,000 ------CORRECT ANSWER---------------D A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean? A. Coverage is automatic B. There is no coverage C. Coverage applies without premium D. There must be a misprint on the form ------CORRECT ANSWER---------------B A business income coverage form would cover all of the following situations EXCEPT... A. A union strike of construction workers causes the repair of the insured's building to be delayed for a period of time B. A hurricane damages the insured's building; a temporary relocation to another building is necessary C. A replacement part for necessary equipment is ordered with overnight delivery charges
B. Professional liability endorsement C. Automatic sprinkler system D. Errors and omissions insurance ------CORRECT ANSWER---------------C Which of the following IS covered under the theatrical floater of an Inland Marine policy? A. Vehicles used on stage B. Admission tickets C. Animals D. Jewelry made with precious stones ------CORRECT ANSWER---------------A Which of the following would be covered under the Film Coverage Form? A. Deterioration of a film B. Exposure of a negative film to light C. Electrical erasure of a tape D. None of these are covered ------CORRECT ANSWER---------------D Which coverage form would provide coverage for all incoming and outgoing shipments? A. Trip transit B. Motor truck cargo C. Mail coverage D. Annual transit ------CORRECT ANSWER---------------D Another person has alleged that you are responsible for damage to their property. You notify your homeowners insurer. The insurer will... A. Proceed according to your request B. Defend with the hopes of not paying damage C. Either pay or defend as he decides D. Pay the alleged damages ------CORRECT ANSWER---------------C A contract for the transport of goods between the shipper and the carrier is called... A. A bailment B. A binder C. A bill of sale D. A bill of lading ------CORRECT ANSWER---------------D
In which of the following situations would the jewelers block extension cover a loss? A. Maurice's Jewelers fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged B. Jeana's Jewelry Concepts is robbed while displaying bracelets and necklaces at a public exhibition C. Diamond Fire Jewelry store agreed to exhibit a necklace and earring set in a showcase away from the premises. The case is broken into, and the set is stolen D. Julie, an employee of Antique Jewelers, is wearing a cameo brooch and ring to display to customers. During the day, she discovered the brooch has fallen off, and she can't find it ------CORRECT ANSWER---------------A All of the following statements are true regarding employee dishonest optional coverage under the business owners police (BOP) EXCEPT A. Coverage includes all property, including money and securities owned or held by the insured B. It provides coverage for all employees, even those who were terminated in the past 90 days C. It provides coverage for direct loss or damage to business personal property D. Losses result from dishonest acts of any of the insured's employees ------CORRECT ANSWER---------------B If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rate basis at both locations for... A. 30 days B. 60 days C. 90 days D. 5 days ------CORRECT ANSWER---------------A Under business owners policy Section I, if an insurer wants to nonrenew a policy, how many days before the expiration date must the insurer notify the mortgage holder? A. 10 days B. 15 days C. 20 days D. 30 days ------CORRECT ANSWER---------------A Under the commercial property coverage program, the basic causes of loss form insures against loss caused by
D: General property form ------CORRECT ANSWER---------------Contractors equipment floater Farm policy Coverage B - Structures would pay how much for loss of an outside antenna, tower or satellite dish? A: Full replacement cost B: Not more than $250 dollars C: Up to $1,000 dollars D: ACV on date of loss ------CORRECT ANSWER---------------Up to $1, Which of the following is NOT considered an insured contract under the Commercial General Liability policy? A: A written agreement which indemnifies a person for fire damage to the premises rented to the insured B: an elevator maintenance agreement C: An obligation as required by ordinance to indemnify a municipality, except for a work municipality D: A written lease agreement on the insured premises ------CORRECT ANSWER--------- ------A written agreement which indemnifies a person for fire damage to the premises rented to the insured Which coverage would a business owner need in a crime policy to cover money that may be stolen from a messenger? A: Outside premises B: Fidelity bond C: CGL D: Safe burglary ------CORRECT ANSWER---------------Outside the premises For insurance purposes, when an insured loses property to another because the person used violence or threat of violence to gain the property, this is defined as A: A burglary B: False pretense C: Robbery D: A theft ------CORRECT ANSWER---------------Robbery
In which of the following situations would the jewelers block extension cover a loss? A: Diamond store agrees to exhibit a necklace set in a showcase away from the premises. The case is broken into and the set is stolen B: Julie, an employee, is wearing a cameo broach set to display to customers. During the day she discovers it has fallen off and she cant find it C: Maurice's Jewelers fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged D: A jeweler is robbed while displaying bracelets at a public exhibition ------CORRECT ANSWER---------------Maurice's Jewelers fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged. Professional photographers and musicians may insure their equipment with A: A PAF B: A commercial articles form C: A theatrical property coverage form D: A block policy ------CORRECT ANSWER---------------A commercial articles form Which of the following statements is true regarding the commercial general liability policy's Coverage C - Medical payments? A: The coverage is liability insurance because it pays only if the insured is legally liable B: The coverage provides high limits of insurance for bodily injury losses C: The coverage is considered "good will" because payments are made without regard to fault D: The coverage applies to bodily injury to the named insured ------CORRECT ANSWER---------------The coverage is considered "good will" because payments are made without regard to fault Coverage F - Unscheduled Farm Personal Property is subject to a coinsurance clause of A: 50% B: 75% C: 80% D: 90% ------CORRECT ANSWER---------------80%
