Exam Fx-Property and Casualty Exam | 90 Questions with 100% Correct Answers

Exam Fx-Property and Casualty Exam

To be considered an insurable risk, a loss may NOT be - ✔✔catastrophic

Which of the following persons would be required to hold a producer license? - ✔✔a

nonresident agent who negotiates insurance contracts

Which of the following is the oldest known type of insurance? - ✔✔ocean marine

The contents coverage on a homeowners policy would pay how much after the loss of

one of a pair of golden candlesticks? - ✔✔the difference in the actual cash value as a

pair and as a single

Which of the following additional perils is covered under both of the Basic and Broad

forms in dwelling policies? - ✔✔internal explosion

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. This

limit is known as the - ✔✔penalty

In insurance, an offer is usually made when - ✔✔the application is submitted

All of the following actions by a producer may be grounds for license revocation or nonrenewal EXCEPT - ✔✔participating in controlled business

In personal auto policies, the term "you" refers to - ✔✔the named insured

Business personal property coverage form covers all of the following except: -

✔✔automobiles held for sale

in dwelling policies, automatic increase in insurance is - ✔✔coverage by endorsement

To be eligible for businessowners policy (BOP) coverage, an office building CANNOT

be higher than - ✔✔6 stories

Elaborate homes with replacement costs greater than ACV or market value are insured

on the - ✔✔HO-8 Form

Which of the following dwelling coverage forms would pay replacement cost for the

dwelling? - ✔✔DP-2 and DP-3

Business personal property coverage insures property out in the open if it is - ✔✔Within

100 feet of the described premises

A runaway shopping cart injures a customer in a supermarket's parking lot. Coverage

for this claim would be provided under - ✔✔premises and operations

Which of the following businesses would be eligible for a businessowners policy? -

✔✔Hill & Morton Funeral Home

The designation symbols used in commercial auto policies can be found in which policy

section? - ✔✔covered auto

Which of the following is used in the formula for calculating the actual cash value (ACV)

of a property? - ✔✔replacement cost

What type of bond guarantees that the principal will complete the contract as agreed

upon? - ✔✔performance bond

Peril is most easily defined as - ✔✔The cause of loss insured against

An insured building has had no residents for 10 years and it is empty of personal

belongings. From an insurance standpoint, the building is - ✔✔vacant

Under a workers compensation policy, premiums will be determined when - ✔✔the

policy period ends

Which commercial property form is used to insure buildings while under construction? -

✔✔Builders risk

Which of the following information will be found in the Declarations page of the

commercial property policy? - ✔✔description of the policy insured

An insured is injured while driving his own car. Which personal auto coverage will pay

for the loss? - ✔✔Part B-Medical Payments

According to the BOP definitions, which of the following does NOT mean valuable

papers and records? - ✔✔Securities

Supplementary payments under the personal auto policy include all of the following

EXCEPT? - ✔✔unlimited cost of bail bonds

Items of property that would be difficult to appraise after a loss are best insured with -

✔✔stated-amount insurance