Free Commercial Property Policies Practice Questions
Arkansas Property & Casualty exam — 66 practice questions.
Subtopics: Valued policy law, Commercial nonrenewal, Premium increase notice, Restrictive endorsements, Multi-year policies, Commercial standards scope, Building and personal property, Causes of loss forms, Business income, Commercial package, Equipment breakdown, Coinsurance, Builders risk, Extra expense, Ordinance or law, Inland marine, Reporting form, Causes of loss special form, Agreed value, Peak season endorsement, Spoilage coverage, Causes of loss basic form, Newly acquired property, Functional valuation, Causes of loss broad form, Debris removal, Brands and labels, Pollutant cleanup, Legal liability coverage form, Tenant improvements, Earthquake coverage, Additional coverages, Coverage extensions, Vacancy, Valuation, Optional coverages, Functional building valuation
Read the Commercial Property Policies study guide
Sample questions & answers
1. When the Arkansas valued policy law applies to a total loss under a commercial property policy, the payment is:
Reduced by the policy's deductible or retention
Ark. Code 23-88-101(a)(2): for commercial policies, the payment is reduced by the retention or deductible.
2. The Arkansas valued policy law does not apply to a building whose completed value is insured under a:
Builder's risk policy
Ark. Code 23-88-101(b)(2) excludes buildings whose completed value is insured under a builder's risk policy.
3. When a building insured under a blanket policy covering several buildings is totally destroyed, Arkansas law requires an initial payment equal to:
The value assigned to that building for rating
Ark. Code 23-88-101(b)(3): the valued policy law does not apply to blanket policies; instead an initial payment equals the value assigned for rating to each affected building.
4. Except for nonpayment of premium, an Arkansas insurer that will not renew a commercial property policy must mail written notice of nonrenewal at least:
60 days before expiration
Ark. Code 23-79-307(a)(7): an insurer must renew unless written notice of nonrenewal is mailed at least sixty days before the expiration date. The subchapter sets standards for commercial lines property and casualty policies (23-79-301).
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Practice: Commercial Property Policies
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
