Insurance Property & Casualty: Key Concepts and
Coverage Types Exam | Questions with 100%
Correct Answers | Verified | Latest Update 2026
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Practice questions for this set
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Net income + continuing expenses
Choose an answer
1 ACV vs Replacement Cost 2 Business Income definition
3 Property NOT covered examples 4 Blanket vs Scheduled
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Terms in this set (58)
, ACV vs Replacement Cost ACV = Replacement Cost minus depreciation; RC =
no depreciation. Exam tip: if depreciation is
mentioned → ACV
Coinsurance trigger Applies when insured carries LESS than required
insurance; penalty reduces claim payment
Coinsurance requirement Property value × coinsurance % = amount you
SHOULD carry
Agreed Value Suspends coinsurance if Statement of Values is
submitted and accepted
Blanket vs Scheduled Blanket = one shared limit across properties;
Scheduled = separate limits per property
Margin Clause Limits payout per location even under blanket
coverage
Peak Season vs Value Reporting Peak Season = predictable increases; Value
Reporting = fluctuating values requiring reporting
Value Reporting penalty Underreporting reduces claim payment
proportionally
Building vs BPP test Building = attached or services building; BPP =
movable business items
Property used to maintain premises Classified as Building (example: lawn tractor)
Leased equipment classification Usually BPP if insured is required to cover it
Coverage Types Exam | Questions with 100%
Correct Answers | Verified | Latest Update 2026
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Net income + continuing expenses
Choose an answer
1 ACV vs Replacement Cost 2 Business Income definition
3 Property NOT covered examples 4 Blanket vs Scheduled
Don't know?
Terms in this set (58)
, ACV vs Replacement Cost ACV = Replacement Cost minus depreciation; RC =
no depreciation. Exam tip: if depreciation is
mentioned → ACV
Coinsurance trigger Applies when insured carries LESS than required
insurance; penalty reduces claim payment
Coinsurance requirement Property value × coinsurance % = amount you
SHOULD carry
Agreed Value Suspends coinsurance if Statement of Values is
submitted and accepted
Blanket vs Scheduled Blanket = one shared limit across properties;
Scheduled = separate limits per property
Margin Clause Limits payout per location even under blanket
coverage
Peak Season vs Value Reporting Peak Season = predictable increases; Value
Reporting = fluctuating values requiring reporting
Value Reporting penalty Underreporting reduces claim payment
proportionally
Building vs BPP test Building = attached or services building; BPP =
movable business items
Property used to maintain premises Classified as Building (example: lawn tractor)
Leased equipment classification Usually BPP if insured is required to cover it
