Exam FX Insurance Practice Exam Questions 120 Questions with 100 Correct Answers Updated Verified
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Course
NU1426
Institution
NU1426
Exam FX Insurance Practice Exam Questions | 120 Questions with 100% Correct Answers | Updated & Verified
The causes of loss insured against in an insurance policy are known as
Before an insurer will pay any loss under a policy, what is usually required from the insured?
An insured works outside...
Exam FX Insurance Practice Exam Questions |
120 Questions with 100% Correct Answers |
Updated & Verified
1). The causes of loss insured against in an insurance policy are known as
Ans: Perils
2). Before an insurer will pay any loss under a policy, what is usually required from the
insured?
Ans: Proof of loss
3). An insured works outside the home. the insured's sister lives with him and cares for his
four children. when the insured's home is severely damaged by fire, the family moves into
an apartment while repairs are being made. the largest apartment available in the area has
two bedrooms, so the insured's sister has to stay at a motel. how much will the ho-3 form
pay for these additional living expense?
Ans: All of the expense up to the Coverage D limit
4). All of the following statements concerning coinsurance are true except
Ans: The coinsurance formula will also be applied to total losses.
5). What insurance policy provision defines how the policy will respond if there is more than
one insurance policy written on the same risk?
Ans: Other insurance
6). What is the purpose of the coinsurance clause found in property insurance policies?
Ans: Encourage the insured to insure the property closer to its full value
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, 7). With respect to the business of insurance, a hazard is
Ans: Any condition or exposure that increases the possibility of loss.
8). A building is insured, but no one has lived or worked in it for 10 years. the building is
completely empty of any furniture or personal belongings. from an insurance standpoint,
the building is considered
Ans: Vacant
9). For the reported losses of an insured group to become more likely to equal the statistical
probability of loss for that particular class, the insured group must become
Ans: Larger
10). The businessowners policy liability coverage will pay for necessary medical expenses of
others incurred within what maximum time period?
Ans: 1 year
11). An insured is driving her auto and strikes a large pothole, causing a flat tire. which
coverage of the insured's personal auto policy will pay for the repair?
Ans: This loss is not covered
12). Which of the following coverages in dwelling and homeowners policies is for indirect
losses?
Ans: Loss of use
13). Which of the following types of valuation works best for property whose value does not
fluctuate much?
Ans: Agreed value
14). Under the limits of insurance provision found in the physical damage coverage form in a
commercial auto policy, how much will an insurer pay to repair or replace a covered auto?
Ans: The lesser of the actual cash value or the cost to repair or replace a covered auto
15).
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, All of the following conditions must exist for injury or damage to be included in the
products and completed operations hazard of a commercial general liability policy except
Ans: The injury or damage must occur within 90 days after the insured's work is
completed.
16). The type of professional liability coverage a medical doctor needs is
Ans: Malpractice coverage.
17). How much coverage is provided under a homeowners policy for theft or unauthorized use
of a credit card?
Ans: $500
18). Burglary is defined as
Ans: Taking of property from within the premises leaving visible signs of forced entry.
19). When an insured makes truthful statements on the application for insurance and pays the
required premium, it is known as which of the following?
Ans: Consideration
20). Insurable interest in a property policy must be proven
Ans: At the time of loss.
21). The part of the policy that sets forth the rules of conduct, duties, and obligations of the
parties is called the
Ans: Conditions
22). The federal fair credit reporting act
Ans: Regulates consumer reports.
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