Exam Fx-Property and Casualty Exam | 90 Questions with 100% Correct Answers To be considered an insurable risk, a loss may NOT be - Correct Answer catastrophic Which of the following persons would be required to hold a producer license? - Correct Answer a nonresident agent who negotiates insurance contracts Which of the following is the oldest known type of insurance? - Correct Answer ocean marine 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 Which of the following additional perils is covered under both of the Basic and Broad forms in dwelling policies? - Correct Answer internal explosion When would a misrepresentation on the insurance application be considered fraud? - Correct Answer 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 - Correct Answer penalty In insurance, an offer is usually made when - Correct Answer the application is submitted All of the following actions by a producer may be grounds for license revocation or non- renewal EXCEPT - Correct Answer participating in controlled business In personal auto policies, the term "you" refers to - Correct Answer the named insured Business personal property coverage form covers all of the following except: - Correct Answer automobiles held for sale in dwelling policies, automatic increase in insurance is - Correct Answer coverage by endorsement To be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than - Correct Answer 6 stories Elaborate homes with replacement costs greater than ACV or market value are insured on the - Correct Answer HO-8 Form Which of the following dwelling coverage forms would pay replacement cost for the dwelling? - Correct Answer DP-2 and DP-3 1 / 2
Business personal property coverage insures property out in the open if it is - Correct Answer 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 - Correct Answer premises and operations Which of the following businesses would be eligible for a businessowners policy? - Correct Answer Hill & Morton Funeral Home The designation symbols used in commercial auto policies can be found in which policy section? - Correct Answer covered auto Which of the following is used in the formula for calculating the actual cash value (ACV) of a property? - Correct Answer replacement cost What type of bond guarantees that the principal will complete the contract as agreed upon? - Correct Answer performance bond Peril is most easily defined as - Correct Answer 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 - Correct Answer vacant Under a workers compensation policy, premiums will be determined when - Correct Answer the policy period ends Which commercial property form is used to insure buildings while under construction? - Correct Answer Builders risk Which of the following information will be found in the Declarations page of the commercial property policy? - Correct Answer description of the policy insured An insured is injured while driving his own car. Which personal auto coverage will pay for the loss? - Correct Answer Part B-Medical Payments According to the BOP definitions, which of the following does NOT mean valuable papers and records? - Correct Answer Securities Supplementary payments under the personal auto policy include all of the following EXCEPT? - Correct Answer unlimited cost of bail bonds Items of property that would be difficult to appraise after a loss are best insured with - Correct Answer stated-amount insurance
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