Exam Fx-Property and Casualty Exam | 90 Questions with 100% CORRECT ANSWERs
Question : To be considered an insurable risk, a loss may
NOT be
CORRECT ANSWER : catastrophic
Question : Which of the following persons would be required
to hold a producer license?
CORRECT ANSWER: a nonresident agent who negotiates
insurance contracts
Question : Which of the following is the oldest known type of
insurance?
CORRECT ANSWER : ocean marine
Question : The contents coverage on a homeowners policy
would pay how much after the loss of one of a pair of golden candlesticks?
CORRECT ANSWER : the difference in the actual cash
value as a pair and as a single
Question : Which of the following additional perils is covered
under both of the Basic and Broad forms in dwelling policies?
CORRECT ANSWER: internal explosion
Question : When would a misrepresentation on the insurance
application be considered fraud?
CORRECT ANSWER : If it is intentional and material
Question : A bond is written for a set limit, and the surety will
be liable only for this amount. This limit is known as the
CORRECT ANSWER : penalty
Question : In insurance, an offer is usually made when
CORRECT ANSWER : the application is submitted
Question : All of the following actions by a producer may be
grounds for license revocation or non-renewal EXCEPT
CORRECT ANSWER : participating in controlled business
Question : In personal auto policies, the term "you" refers to
CORRECT ANSWER : the named insured
Question : Business personal property coverage form covers
all of the following except:
CORRECT ANSWER : automobiles held for sale
Question : in dwelling policies, automatic increase in
insurance is
CORRECT ANSWER : coverage by endorsement
Question : To be eligible for businessowners policy (BOP)
coverage, an office building CANNOT be higher than
CORRECT ANSWER : 6 stories
Question : Elaborate homes with replacement costs greater
than ACV or market value are insured on the
CORRECT ANSWER : HO-8 Form
Question : Which of the following dwelling coverage forms
would pay replacement cost for the dwelling?
CORRECT ANSWER : DP-2 and DP-3
Question : Business personal property coverage insures
property out in the open if it is
CORRECT ANSWER : Within 100 feet of the described
premises
Question : A runaway shopping cart injures a customer in a
supermarket's parking lot. Coverage for this claim would be provided under
CORRECT ANSWER : premises and operations
Question : Which of the following businesses would be
eligible for a businessowners policy?