ExamFx: Property Exam Questions with Verified
Answers Graded A+
The main difference between an HO-4 and HO-6
is? A: 20 days
B: 30 days
A: HO-6 does not cover additional living C: 45 days
expenses D: 10 days - ANSWER -A
B: HO-4 provides limited dwelling coverage as
well as contents coverage
C: HO-6 provides limited dwelling coverage as
well as contents coverage All of the following help determine flood
D: HO-4 does not cover additional living insurance rates EXCEPT?
expenses - ANSWER -C
A: zone classifications
B: Simple flood definitions
C: Pre-FIRM rates
The most the insurer will pay for a loss under a D: Post-FIRM rates - ANSWER -B
business policy is?
A: The amount of the loss minus the deductible
B: 80% of the loss All of the following are exclusions that apply in all
C: 20% of the loss three types of Dwelling Policies EXCEPT?
D: The limit of insurance after the deductible is
paid - ANSWER -D A: Earth movement
B: Fire or lightening
C: Government action
D: water damage - ANSWER -B
An individuals construction company leaves
mobile equipment and construction machinery on
the job site until the project is completed. What
could this individual use to insure it? All of the following are other coverages under the
dwelling policy EXCEPT?
A: Bailee's customers form
B: Builders Risk form A: Improvements, altercations, and additions
C: General property form B: Earth Movement
D: Contractors equipment floater - C: Other structures
ANSWER -D D: Debris removal - ANSWER -B
The appraisal clause of the standard fire policy Maps that indicate which areas in the community
allows for the process of setting disputes over are subject to serve flooding are called?
the ACV of the property or the property or the
amount of loss. When disputes arise, each party A: Flood Susceptibility Maps
(insurer and the insured) must select an impartial B: Topographical Representations
appraisal within? C: Flood Hazard Boundary Maps
, ExamFx: Property Exam Questions with Verified
Answers Graded A+
D: Flood Insurance Rate Maps -
ANSWER -C Replacement cost coverage is provided in both
the broad and special form dwelling policies
when?
An agent in Ohio wants to become an agent in A: The amount of insurance on the dwelling is at
North Carolina. The Commissioner will waive least 90% of its replacement cost when the policy
certain examination requirements, provides that is written
Ohio would waive these same requirements if a B: The dwelling is insured for 100% of its
North Carolina agent sought licensure in Ohio. replacement cost at the time of a loss
What term does this describe? C: The amount of insurance on the dwelling is at
least 80% of its replacement cost at the time of
A: Rebating loss
B: Indemnity D: The amount of insurance on both the dwelling
C: Reciprocity and personal property is at least 80% of its
D: Residency - ANSWER -C replacement cost when the policy is written -
ANSWER -C
All of the following are duties of the insured
following a loss in a standard fire policy When a mortgagee is named in a mortgagee
EXCEPT? clause attached to a fire or other direct damage
policy?
A: Submit a signed proof of loss within 30 days
B: Furnish a complete, detailed inventory A: The loss reimbursement is paid to the insured
including values B: The loss reimbursement is not awarded if
C: Notify the insurer in writing immediately damages arose from the insureds negligence
following the loss C: The loss reimbursement is paid to the
D: Protect the property from further damage - mortgagee
ANSWER -A D: The mortgagee is prohibited from bringing a
suit against the insurer - ANSWER -C
Which of the following other coverages is NOT
included in the basic form dwelling policy? An installation floater is used to insure?
A: Breakage of glass A: Dams, power plants, water plants, and other
B: Removal Coverage such installations
C: Personal property temporarily away from the B: Appliances intended to become a permanent
insured premises part of the building
D: Tenant's improvements, altercations, and C: Buildings under construction
additions - ANSWER -A D: All types of for-sale merchandise -
ANSWER -B
, ExamFx: Property Exam Questions with Verified
Answers Graded A+
A: Property at risk must be owner occupied
B: Risk must be insurable
The term "essential insurance coverage" as C: The applicant must have made an
defined by the North Carolina Insurance unsuccessful effort to obtain coverage in the
Association refers to? normal market
D: Risk must be located in a specific area -
A: Insurance against direct loss to property as ANSWER -A
defined in the standard statutory fire policy and
extended coverage, vandalism and malicious
mischief endorsements
B: All risk coverage to include business owners An ocean marine loss that occurs through the
policies, commercial general liability policies, and voluntary sacrifice of a part of the vessel or cargo
business income policies to save the ship, crew, or other cargo is known
C: Catastrophic losses, as determined by the as?
Association and approved by the Commissioner,
that are covered under the windstorm and hail A: Particular average
coverage in the beach and coastal area B: Inchmaree clause
D: Policies of windstorm and hail insurance that C: Protection and indemnity
are available only for risks in the beach and D: General average - ANSWER -D
coastal areas - ANSWER -A
If a claim under a commercial property policy is
On behalf and on request of an insurer by which disputed, what is the maximum time period an
an agent or limited representative is appointed, insured may bring legal action against an
the agent or limited representative may from time insurer?
to time act as an adjuster and investigate and
report upon claims: however he may do so? A: 2 years from a loss
B: 6 years From a Loss
A: Only on an emergency basis while in a C: 5 years from the initial application
nonresident status D: 10 years from the initial application -
B: After completion of 16 hours of continuing ANSWER -C
education credit toward an adjuster license
C: Without being licensed as an adjuster
D: Only after being certified to be competent for
such services by the Commissioner - A company has a business owners policy on a
ANSWER -C 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?
Eligibility requirements for obtaining property
coverage in the FAIR Plan include all of the A: Up to $300,000 for the loss
following EXCEPT? B: Up to $150,000 for the loss
C: The coinsurance formula would apply
Answers Graded A+
The main difference between an HO-4 and HO-6
is? A: 20 days
B: 30 days
A: HO-6 does not cover additional living C: 45 days
expenses D: 10 days - ANSWER -A
B: HO-4 provides limited dwelling coverage as
well as contents coverage
C: HO-6 provides limited dwelling coverage as
well as contents coverage All of the following help determine flood
D: HO-4 does not cover additional living insurance rates EXCEPT?
expenses - ANSWER -C
A: zone classifications
B: Simple flood definitions
C: Pre-FIRM rates
The most the insurer will pay for a loss under a D: Post-FIRM rates - ANSWER -B
business policy is?
A: The amount of the loss minus the deductible
B: 80% of the loss All of the following are exclusions that apply in all
C: 20% of the loss three types of Dwelling Policies EXCEPT?
D: The limit of insurance after the deductible is
paid - ANSWER -D A: Earth movement
B: Fire or lightening
C: Government action
D: water damage - ANSWER -B
An individuals construction company leaves
mobile equipment and construction machinery on
the job site until the project is completed. What
could this individual use to insure it? All of the following are other coverages under the
dwelling policy EXCEPT?
A: Bailee's customers form
B: Builders Risk form A: Improvements, altercations, and additions
C: General property form B: Earth Movement
D: Contractors equipment floater - C: Other structures
ANSWER -D D: Debris removal - ANSWER -B
The appraisal clause of the standard fire policy Maps that indicate which areas in the community
allows for the process of setting disputes over are subject to serve flooding are called?
the ACV of the property or the property or the
amount of loss. When disputes arise, each party A: Flood Susceptibility Maps
(insurer and the insured) must select an impartial B: Topographical Representations
appraisal within? C: Flood Hazard Boundary Maps
, ExamFx: Property Exam Questions with Verified
Answers Graded A+
D: Flood Insurance Rate Maps -
ANSWER -C Replacement cost coverage is provided in both
the broad and special form dwelling policies
when?
An agent in Ohio wants to become an agent in A: The amount of insurance on the dwelling is at
North Carolina. The Commissioner will waive least 90% of its replacement cost when the policy
certain examination requirements, provides that is written
Ohio would waive these same requirements if a B: The dwelling is insured for 100% of its
North Carolina agent sought licensure in Ohio. replacement cost at the time of a loss
What term does this describe? C: The amount of insurance on the dwelling is at
least 80% of its replacement cost at the time of
A: Rebating loss
B: Indemnity D: The amount of insurance on both the dwelling
C: Reciprocity and personal property is at least 80% of its
D: Residency - ANSWER -C replacement cost when the policy is written -
ANSWER -C
All of the following are duties of the insured
following a loss in a standard fire policy When a mortgagee is named in a mortgagee
EXCEPT? clause attached to a fire or other direct damage
policy?
A: Submit a signed proof of loss within 30 days
B: Furnish a complete, detailed inventory A: The loss reimbursement is paid to the insured
including values B: The loss reimbursement is not awarded if
C: Notify the insurer in writing immediately damages arose from the insureds negligence
following the loss C: The loss reimbursement is paid to the
D: Protect the property from further damage - mortgagee
ANSWER -A D: The mortgagee is prohibited from bringing a
suit against the insurer - ANSWER -C
Which of the following other coverages is NOT
included in the basic form dwelling policy? An installation floater is used to insure?
A: Breakage of glass A: Dams, power plants, water plants, and other
B: Removal Coverage such installations
C: Personal property temporarily away from the B: Appliances intended to become a permanent
insured premises part of the building
D: Tenant's improvements, altercations, and C: Buildings under construction
additions - ANSWER -A D: All types of for-sale merchandise -
ANSWER -B
, ExamFx: Property Exam Questions with Verified
Answers Graded A+
A: Property at risk must be owner occupied
B: Risk must be insurable
The term "essential insurance coverage" as C: The applicant must have made an
defined by the North Carolina Insurance unsuccessful effort to obtain coverage in the
Association refers to? normal market
D: Risk must be located in a specific area -
A: Insurance against direct loss to property as ANSWER -A
defined in the standard statutory fire policy and
extended coverage, vandalism and malicious
mischief endorsements
B: All risk coverage to include business owners An ocean marine loss that occurs through the
policies, commercial general liability policies, and voluntary sacrifice of a part of the vessel or cargo
business income policies to save the ship, crew, or other cargo is known
C: Catastrophic losses, as determined by the as?
Association and approved by the Commissioner,
that are covered under the windstorm and hail A: Particular average
coverage in the beach and coastal area B: Inchmaree clause
D: Policies of windstorm and hail insurance that C: Protection and indemnity
are available only for risks in the beach and D: General average - ANSWER -D
coastal areas - ANSWER -A
If a claim under a commercial property policy is
On behalf and on request of an insurer by which disputed, what is the maximum time period an
an agent or limited representative is appointed, insured may bring legal action against an
the agent or limited representative may from time insurer?
to time act as an adjuster and investigate and
report upon claims: however he may do so? A: 2 years from a loss
B: 6 years From a Loss
A: Only on an emergency basis while in a C: 5 years from the initial application
nonresident status D: 10 years from the initial application -
B: After completion of 16 hours of continuing ANSWER -C
education credit toward an adjuster license
C: Without being licensed as an adjuster
D: Only after being certified to be competent for
such services by the Commissioner - A company has a business owners policy on a
ANSWER -C 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?
Eligibility requirements for obtaining property
coverage in the FAIR Plan include all of the A: Up to $300,000 for the loss
following EXCEPT? B: Up to $150,000 for the loss
C: The coinsurance formula would apply
