Property Insurance Exam Practice Test All Answers Correct
1. What is defined as the chance that a person or business entity will suffer a financial loss?
A. Gambling
B. Loss exposure
C. Risk
D. Speculative risk
Correct answer: C. Risk
2. What is defined as actual physical destruction ...
Property Insurance Exam Practice Test All Answers Correct
1. What is defined as the chance that a person or business entity will suffer a financial loss?
A. Gambling
B. Loss exposure
C. Risk
D. Speculative risk
Correct answer: C. Risk
2. What is defined as actual physical destruction of insured property?
A. Direct loss
B. Indirect loss
C. Peril
D. Vandalism
Correct answer: A. Direct loss
3. Loose tiles hanging from the ceiling are an example of a ______ hazard.
A. Mental
B. Moral
C. Morale
D. Physical
Correct answer: D. Physical
, 4. In a Property Insurance policy, insurable interest must be demonstrated at what point in time?
A. At time of application
B. At time of first payment
C. At time of loss
D. All of the above
Correct answer: C. At time of loss
5. The primary purpose of the co-insurance condition in a Property Insurance policy is to encourage
______.
A. Buying multiple policies
B. Insurance to value
C. Over-insuring
D. Self-insurance
Correct answer: B. Insurance to value
6. Who are considered incompetent to contract?
A. Illegal aliens
B. Mentally challenged citizens
C. Minors
D. Senior citizens
Correct answer: A, B, C (all except D)
7. What are the major causes of loss forms in Commercial Property Insurance, except for?
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