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Pearson Vue Property Insurance Exam
Practice Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 80 multichoice Questions with Answers
- One of the following policies covers Mobile Homes: a. Dp- b. Dp- c. Dp- d. Ho- Answer Dp-
- On a dwelling policy, personal property would be covered at: a. ACV b. Replacement Cost
2 / c. Not covered d. 80% of Value Answer ACV
- DP-1 would cover all of the following without endorsement except: a. other structures b. personal property c. rental value d. additional living expense Answer additional living expense
- One of the following would be covered on a dwelling policy without an endorsement: a. Theft b. Earthquake c. Personal Liability d. Mobile Home Answer Mobile Home
- Coverage C on the dwelling policy would be:
4 / Answerho-4 (tenant)
- When the insured is needed to help defend a claim, a homeowners policy would pay the insured daily for attending court: a.$25 b. $ 50 c. $ d.$ 100 Answer$
- all of the following businesses are excluded on a business owners policy except: a. retail store b.garage c.liquor store d.service station
5 / Answer retail store
- Business risk coverage will cease for the following reasons except: a.builder sells property b. day after construction is complete c.policy is cancelled d. builder abandons and will not complete Answer day after construction is complete
- to purchase flood insurance you must live in: a. flood prone area b.proximity of water c.mobile home d.none of theses Answer flood prone area
- who pays the claims for flood insurance:
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- Who sets the rates for flood insurance: a. F.I.A (federal insurance administration) b. N.A.I.C (national association of insurance commissioners) c.Private Insurance c. I.S.O (insurance service office) Answer F.I.A (federal insurance administration)
- coverage for boiler & machinery policies are at: a. ACV b.replacement cost c.0 % of value d. 80% of value Answerreplacement cost
- Actual cash value means: a. price paid for property b.replacement cost c.replacement cost less depreciation d. none of these Answerreplacement cost less depreciation
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- under a standard fire policy, vacant or unoccupied buildings are covered for: a.10 days b.30 days c.60 days d.90 days Answer 60 days
- under standard fire policy, vandalism would be covered on vacant or unoccupied buildings for: a.10 days b.30 days c. 60 days d.90 days Answer 30 days
- Settlement on a standard fire policy is made by: a. ACV b. replacement cost c.arbitration d.appraisal
10 / d.exclusions Answerinsuring agreement
- the only kind of risk that is insurable: a.certain b.pure c.speculative d.catastrophic Answerpure
- the chance of a loss or uncertainty is: a.risk b.hazard c.peril d.loss Answerrisk
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- anything that increases the likelihood of an event occurring: a.risk b.hazard c.peril d.loss Answerhazard
- the cause of a loss a.risk b.hazard c.peril d.loss Answerperil (example: fire)
- insurable interest must exist: a.at policy issue date b.at the time of loss c.both a&b d.never Answerat the time of loss
13 / d.growing crops or livestock Answerinland or tidal waters and runoff of surface water
- a 55 ft long sailboat would be considered under a:
14 / a.homeowners policy b.outboard policy c.yacht policy d.o cean marine policy Answeryacht policy
- placing a gasoline can near a heater is what kind of hazard: a.moral b.legal c.morale d.p hysical Answermorale
- Under the pairs and set clause if the value of the set (6 plates) is $60,000. If one of the insured plates is destroyed making the remaining 5 plates worth only $5000 each, what would the policy pay if an exact duplicate plate could not be found: a. $10, b. $25,
16 / company or the insured is called: a.nonrenewal b.cancellation
17 / c.extension d.b reach of contract Answercancellation
- property insurance provides major coverage, but also provides insurance for debris removal, trees etc. and these are: a.extensions or additional coverages b.endorsements c.additional mini-policies d.none of the above Answerextensions or additional coverages
- inland marine insurance covers all the following except: a:leased facilities b.cargo c.exports d.imports: a:leased facilities
- the insurer may satisfy its obligations by sending a cancellation notice to: a.first names
19 / d.commercial floaters AnswerPAF
- property value is $300,000. Insurance carried is $200,000. if 80% coinsur- ance is required, what would the policy pay if there was a $60,000 loss and the
20 / deductible was $250: a. $49, b. $59, c. $60, d.$50, Answer$49, IC/IR(80% x property value)x amount loss=Insurer pays- deductible (IR=.80 x 300,000) $200,000/$240,000 x $60,000=$50,000-$250=$49,
- a commercial property standard deductible: a. $ b. $ c.$ d.$
