final property exam Perfectly solved 2024
Which of the following best defines the term risk?
a. Causes a loss
b. Brings loss about
c. Increases chances of a loss
d. Uncertainty of loss - CORRECT ANS-d. Uncertainty of loss
An owner-occupied home has a replacement cost of $500,000 and an actual cash value of $400,000. To
assure that the replacement cost provision in the policy applies, what is the minimum the home must be
insured for?
a. 75% of the RC
b. $320,000
c. 75% of the ACV
d. $400,000 - CORRECT ANS-d. $400,000
You have a car accident and you and the insurance company disagree as to the amount of the loss, you
have a right to use which of the following clauses under your policy?
a. Appraisal
b. Pro-rata liability
c. Subrogation
d. Proof of loss - CORRECT ANS-a. Appraisal
Under your liability section of your homeowner's policy, all of the following losses would be covered
except...:
a. Your dog bites the mailman
b. A friend falls in your shower and sues you for a broken back
,c. Your son falls down your stairs
d. A child crawls under your fence, falls into your in-ground pool and is injured - CORRECT ANS-c. Your
son falls down your stairs
All of the following items can be found on a Declaration Page except
a. Name of insured
b. Perils covered
c. Location of property insured
d. Name of mortgagee - CORRECT ANS-b. Perils covered
All of the following terms support the concept of indemnity except...
a. Subrogation
b. ACV
c. Replacement cost
d. Insurable interest - CORRECT ANS-c. Replacement cost
A Scheduled Personal Property Floater offers all of the following unique benefits to the policyholder
except...
a. property is insured for "all risks"
b. policy has "world-wide" coverage
c. no deductible applies
d. no dollar amount needs to be listed - CORRECT ANS-d. no dollar amount needs to be listed
Your owner-occupied home is insured for $500,000 under an HO-3. A fire totally destroys your property.
At the time of the loss the insurance company determines the value of your property to be $150,000.
This is an example of...
, a. physical hazard
b. morale hazard
c. moral hazard
d. legal hazard - CORRECT ANS-c. moral hazard
Using the above scenario, how much will the insurance company pay?
a. $150,000
b. nothing, you breached the contract by tremendously over insuring
c. $500,000
d. 80% of $500,000 - CORRECT ANS-c. $500,000
All of the following describe the DP-1 except...
a. contains the fewest perils
b. provides coverage for all types of loss to property
c. provides coverage for fire losses - CORRECT ANS-b. provides coverage for all types of loss to property
The weather person reports that the Wisconsin River is going to crest within the next three days. You
decide its time to pick up that Flood Insurance your agent has been telling you about, however, your
Flood Policy contains a waiting period of _________ from the date of postmark or digital submission.
a. 7 days
b. 21 days
c. 5 days
d. 30 days - CORRECT ANS-d. 30 days
All earthquake shocks and volcanic eruptions, on commercial property, done within ____________ are
considered a single occurrence.
Which of the following best defines the term risk?
a. Causes a loss
b. Brings loss about
c. Increases chances of a loss
d. Uncertainty of loss - CORRECT ANS-d. Uncertainty of loss
An owner-occupied home has a replacement cost of $500,000 and an actual cash value of $400,000. To
assure that the replacement cost provision in the policy applies, what is the minimum the home must be
insured for?
a. 75% of the RC
b. $320,000
c. 75% of the ACV
d. $400,000 - CORRECT ANS-d. $400,000
You have a car accident and you and the insurance company disagree as to the amount of the loss, you
have a right to use which of the following clauses under your policy?
a. Appraisal
b. Pro-rata liability
c. Subrogation
d. Proof of loss - CORRECT ANS-a. Appraisal
Under your liability section of your homeowner's policy, all of the following losses would be covered
except...:
a. Your dog bites the mailman
b. A friend falls in your shower and sues you for a broken back
,c. Your son falls down your stairs
d. A child crawls under your fence, falls into your in-ground pool and is injured - CORRECT ANS-c. Your
son falls down your stairs
All of the following items can be found on a Declaration Page except
a. Name of insured
b. Perils covered
c. Location of property insured
d. Name of mortgagee - CORRECT ANS-b. Perils covered
All of the following terms support the concept of indemnity except...
a. Subrogation
b. ACV
c. Replacement cost
d. Insurable interest - CORRECT ANS-c. Replacement cost
A Scheduled Personal Property Floater offers all of the following unique benefits to the policyholder
except...
a. property is insured for "all risks"
b. policy has "world-wide" coverage
c. no deductible applies
d. no dollar amount needs to be listed - CORRECT ANS-d. no dollar amount needs to be listed
Your owner-occupied home is insured for $500,000 under an HO-3. A fire totally destroys your property.
At the time of the loss the insurance company determines the value of your property to be $150,000.
This is an example of...
, a. physical hazard
b. morale hazard
c. moral hazard
d. legal hazard - CORRECT ANS-c. moral hazard
Using the above scenario, how much will the insurance company pay?
a. $150,000
b. nothing, you breached the contract by tremendously over insuring
c. $500,000
d. 80% of $500,000 - CORRECT ANS-c. $500,000
All of the following describe the DP-1 except...
a. contains the fewest perils
b. provides coverage for all types of loss to property
c. provides coverage for fire losses - CORRECT ANS-b. provides coverage for all types of loss to property
The weather person reports that the Wisconsin River is going to crest within the next three days. You
decide its time to pick up that Flood Insurance your agent has been telling you about, however, your
Flood Policy contains a waiting period of _________ from the date of postmark or digital submission.
a. 7 days
b. 21 days
c. 5 days
d. 30 days - CORRECT ANS-d. 30 days
All earthquake shocks and volcanic eruptions, on commercial property, done within ____________ are
considered a single occurrence.
