2024|25 PEARSON VUE: PROPERTY INSURANCE PRACTICE EXAM | QUESTIONS WITH CORRECT ANSWERS | GRADED A+
8 views 0 purchase
Course
Pearson VUE: Casualty Insurance Practice.
Institution
Pearson VUE: Casualty Insurance Practice.
2024|25 PEARSON VUE: PROPERTY INSURANCE PRACTICE EXAM | QUESTIONS WITH CORRECT ANSWERS | GRADED A+
S is purchasing a Commercial Property policy to cover a commercial building with a replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause. To avoid a coinsurance p...
2024|25 PEARSON VUE: PROPERTY INSURANCE
PRACTICE EXAM | QUESTIONS WITH CORRECT
ANSWERS | GRADED A+
S is purchasing a Commercial Property policy to cover a commercial building with a
replacement cost of $100,000. The policy includes an 80 percent Coinsurance clause.
To avoid a coinsurance penalty in the event of a partial loss, S should purchase a policy
with minimum limits of AT LEAST which of the following amounts?
A. $100,000
B. $90,000
C. $80,000
D. $20,000 - C
The MAXIMUM amount a policy will pay in the event of a loss is called the:
A. coinsurance amount
B. deductible
C. limit of liability
D. pro rata return - C
The National Flood Insurance Program provides coverage for losses caused by all of
the following occurrences EXCEPT:
A. mudslides
B. runoff from heavy rain
C. overflow of tidal waters
D. water-main breakage - D
Special Form or Open Perils coverage:
A. Provides coverage against the named perils
, B. Provides coverage against scheduled risks
C. Is limited by the named exclusions
D. Includes no exclusions - C
Which of the following businesses would be eligible for a Businessowners policy?
A. Auto body shop
B. Theater
C. Branch bank
D. Barber shop - D
During a tornado, a barn is destroyed when a section of its wall is blown down, knocking
over a lantern, which sets the barn on fire. The proximate cause of loss is the:
A. fire
B. collapse of the wall
C. tornado
D. smoke - C
A fire in an insured's restaurant burns the kitchen walls and causes smoke damage to
the entire interior. Water used to extinguish the fire causes extensive damage to floors
and furnishings. The water damage is best described as:
A. a time element loss
B. a consequential loss
C. a direct loss
D. an indirect loss - C
Which of the following terms is defined as the uncertainty of future outcome?
A. Risk
B. Hazard
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Mboffin. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
