EXAMFX: PROPERTY & CASUALTY
NEWEST EXAM ACTUAL EXAM
QUESTIONS AND DETAILED CORRECT
ANSWERS | VERIFIED
An ocean marine loss that occurs through the voluntary
sacrifice of a part of the vessel or cargo to save the ship,
crew, or other cargo is known as?
A: Particular average
B: Inchmaree clause
C: Protection and indemnity
D: General average Correct Answer D
If a claim under a commercial property policy is disputed,
what is the maximum time period an insured may bring
legal action against an insurer?
A: 2 years from a loss
B: 6 years From a Loss
C: 5 years from the initial application
D: 10 years from the initial application Correct Answer C
A company has a business owners policy on a building
with an estimated replacement cost of $300,000. The
company carries $150,000 of insurance. If a loss occurs,
how much will the insured company be paid?
,A: Up to $300,000 for the loss
B: Up to $150,000 for the loss
C: The coinsurance formula would apply
D: Nothing because the company failed to carry the
required insurance amount Correct Answer C
The law of large numbers is best defined as a large
numbers of people with similar exposures to loss resulting
in actual losses being?
A: Less predictable
B: Smaller
C: Larger
D: More Predictable Correct Answer D
The basic dwelling (DP-1) provides all of the following
coverages without endorsement EXCEPT?
A: Additional Living Expenses
B: Fair Rental Value
C: Dwelling
D: Other structures Correct Answer A
Which of the following dwelling policies insures a structure
on an actual cash value basis?
A: DP-1
B: DP-2
C: DP-3
D: DP-6 Correct Answer A
,All of the following are characteristics of the dwelling policy
EXECPT?
A: Coverage includes the dwelling only, contents only, or
both
B: Incidental occupancy of limited service-type exposure is
permitted
C: Dwellings up to four family units are eligible
D: The dwelling must be owner-occupied Correct Answer
D
A building contractor constructs a rental property home
using "straw-blue" construction that does not conform to
standard building codes. The contractor, who is also the
owner, does not want insurance on the building but wants
coverage on as many other things as he can get. What
coverage plan should be a producer recommend?
A: HO-2
B: HO-4
C: HO-5
D: Coverage cannot be extended on this structure Correct
Answer D
What organization is responsible for administering the plan
that ensures access to property insurance for beach
properties?
A: Division of Insurance
B: Post-Assessment Guaranty Association
C: North Carolina Insurance Underwriting Association
, D: FAIR Plan Correct Answer C
Which type of losses are covered by the standard policy?
A: Indirect Losses
B: Direct Losses
C: Both
D: Neither Correct Answer B
If a licensee is convicted in any court for any offense,
other than a traffic violation, the licensee must notify the
Commissioner within how many days of the conviction
date?
A: 10 days
B: 30 days
C: 20 days
D: 15 days Correct Answer A
Which of the following commercial property causes of loss
forms explicitly covers damages from falling objects?
A: General Form
B: Basic form
C: Broad form
D: Special Form Correct Answer C
In order for a dwelling to be covered on a replacement
cost basis, the dwelling must be insured up to at least?
A: 20% of the replacement cost
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