EXAMFX Property and Casualty Insurance 2

Question 1

Under a standard homeowners policy, which of the following losses would typically be EXCLUDED?

Accepted Answer

Flood damage from a river overflow

Answer

Standard homeowners policies exclude flood damage; separate flood insurance through the NFIP is required.

Question 2

The 'other structures' coverage in a homeowners policy typically provides what percentage of the dwelling coverage limit?

Accepted Answer

10%

Answer

Coverage B (other structures) is automatically set at 10% of the Coverage A dwelling limit.

Question 3

Which auto insurance coverage pays for damage to the insured's own vehicle when the at-fault driver has no insurance?

Accepted Answer

Uninsured motorist property damage

Answer

Uninsured motorist property damage (UMPD) covers damage to the insured's vehicle caused by an uninsured at-fault driver.

Question 4

A business owner's policy (BOP) is LEAST suitable for which type of business?

Accepted Answer

A large manufacturing plant

Answer

BOPs are designed for small-to-medium businesses; large manufacturers with complex exposures require individually rated commercial policies.

Question 5

In property insurance, 'coinsurance' requires the insured to carry coverage equal to at least what percentage of the property's value to receive full loss payment?

Accepted Answer

80%

Answer

The standard coinsurance clause requires the insured to carry at least 80% of the property's replacement cost value.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Property and Casualty Insurance 2