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FUNDAMENTALS OF INSURANCE FINAL
EXAM, PRACTICE EXAM AND
STUDYGUIDE NEWEST 2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|100% GUARANTEED PASS!!
FUNDAMENTALS O F INSURANCE EXAM
All Property Policies contain exclusions for both Perils and Property. Which of the following is NOT a type of "Property Excluded" ?
a) Automobiles
b) High Value fine art
c) Books of account
d) Evidence of debt or title - ANSWER-The answer is B
High Value Fine Art
All Property Policies contain exclusions for both Perils and Property. Which of the following is a "Peril Excluded"?
a) Water damage due to freezing
b) Sewer Back up 1 / 4
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c) Theft
d) Windstorm - ANSWER-The answer is B
Sewer Back up
A "Deductible" is generally applied to all Insurance Policies and is paid by the insured when they suffer a loss and make a claim.Which of the following is not a true statement about "Deductibles"?
a) They ensure insurance remains affordable
b) They are considered an insureds "retention"
c) An insured with a $1000 deductible will pay higher a
premium than an insured with a $500 deductible
d) An insured with a $500 deductible will pay higher a premium
than an insured with a $1000 deductible - ANSWER-The answer is C An insured with a $1000 deductible will pay higher a premium than an insured with a $500 deductible
Actual Cash Value (ACV) is used by Insurers to determine the amount to be paid in the event of a claim. What is the formula for calculating this? 2 / 4
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a) Did/Should x loss
b) Replacement Cost/Depreciation x Loss
c) Replacement Cost - Depreciation
d) Depreciation x Replacement Cost - ANSWER-The answer is
C Replacement Cost - Depreciation
The "Standard Mortgage Clause" is an important attribute of all Property Insurance policies that contain "guarantees" that protect mortgagees. When an insured breaches a policy condition and is denied coverage, the "Standard Mortgage
Clause" ensures the Mortgagee is paid:
a) The original amount of their investment
b) Their financial interest as the time of the loss
c) The deductible
d) The actual cash value of the insured property - ANSWER-The
answer is B Their financial interest as the time of the loss
An important definition in Habitational Insurance is "who is
insured: under a Homeowners Policy. Which of the following
would NOT be considered an "insured"? 3 / 4
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a) The insureds common-law partner who's been residing with
them for 2 years
b) Mother of the insured's spouse, living in the same household
c) The Insureds 28-year-old son, living in the same household
d) The insureds 20-year-old son who is a student, living in the
same household - ANSWER-The answer is A The insureds common-law partner who's been residing with them for 2 years
The "Freezer Food" Extension of Coverage will provide coverage fir the cost of lost freezer food due to power failure or mechanical breakdown. What is the limit of insurance provided by this "Extension of Coverage"?
- $5000
- $3000
- $1000
d)$2000 - ANSWER-The answer is D $2000
All homeowners policies contain the same 11 "Extensions of Coverage". These provide additional coverages to Insureds for
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