#1
Which of the following types of insurance typically covers damage to property resulting from fire, theft, or vandalism?
Health insurance
Life insurance
Property insurance
Liability insurance
#2
What does 'casualty insurance' primarily cover?
Injuries to individuals
Property damage
Loss of income
None of the above
#3
What is the purpose of a deductible in insurance policies?
To decrease the premium
To increase coverage limits
To reduce the insurer's risk exposure
To provide additional benefits
#4
In property insurance, what does the term 'endorsement' refer to?
An addition or amendment to the policy
The cancellation of coverage
The process of filing a claim
A type of property covered
#5
What is the purpose of coinsurance in property insurance?
To discourage fraudulent claims
To encourage policyholders to maintain adequate coverage
To calculate the premium based on the value of insured property
To limit the liability of the insurer
#6
Which coverage form covers damage caused by windstorms, hail, and other specified perils?
Basic Form (DP-1)
Broad Form (DP-2)
Special Form (DP-3)
Earthquake Form (EQ)
#7
In property insurance, what is 'actual cash value' (ACV)?
The current market value of the property
The replacement cost minus depreciation
The cost to repair or replace the property
The value of the property at the time of purchase
#8
Which type of insurance provides coverage for losses resulting from a lawsuit or legal claim against the insured?
Property insurance
Liability insurance
Health insurance
Life insurance
#9
What does 'named peril' mean in property insurance?
All perils are covered except those specifically excluded
Only the perils explicitly listed in the policy are covered
Coverage is provided for all potential perils
The policyholder can name the perils they want to be covered
#10
What is 'consequential loss' in property insurance?
A loss caused by a natural disaster
A loss resulting from direct physical damage to insured property
A loss of income or profit due to a covered peril
A loss covered under liability insurance
#11
Which of the following is not typically covered under a standard homeowners insurance policy?
Fire damage
Flood damage
Theft
Personal liability
#12
Which of the following is true about umbrella insurance policies?
They provide coverage for property damage only
They have lower coverage limits compared to standard policies
They offer additional liability coverage beyond the limits of underlying policies
They are specifically designed for high-risk individuals
#13
Which of the following perils is typically excluded from a standard homeowners insurance policy?
Fire
Theft
Windstorm
Earthquake
#14
What does 'umbrella liability insurance' typically provide coverage for?
Damage to the insured's property caused by a named peril
Legal expenses incurred by the insured in a lawsuit
Additional liability coverage beyond the limits of other insurance policies
Loss of income due to disability
#15
What is 'business interruption insurance' designed to cover?
Damage to the insured's property caused by a covered peril
Lost income and expenses during a period of interruption caused by a covered peril
Legal expenses incurred by the insured in a lawsuit
Liability arising from the insured's business operations