Free Property Insurance Basics Practice Questions
Arkansas Property exam — 124 practice questions.
Subtopics: Property insurance defined, Marine insurance defined, Valued policy law, Proof of loss, Exhibiting damaged property, Settling coverages separately, Arson exception, Payment responsibility, Insurable interest, Actual cash value, Replacement cost, Agreed value, Functional replacement cost, Direct vs indirect loss, Coinsurance purpose, Coinsurance calculation, Deductible, Declarations, Insuring agreement, Exclusions, Conditions, First named insured, Duties after loss, Subrogation condition, Liberalization, Other insurance pro rata, Blanket insurance, Loss payable clause, Construction class, Rate components, Underwriting purpose, Valued policy, Market value, Cancellation short rate, Policy territory, Assignment property, No benefit to bailee, Claim settlement options, Pair and set clause, Vacancy, Specific insurance, Terrorism program, Indirect loss time element, Hazard reduction underwriting, Named perils form, Open perils form, Burden of proof, Proximate cause, Concurrent causation, Anti-concurrent causation clause, Pro rata cancellation, Flat cancellation, Nonrenewal notice, Policy period, Salvage rights, No abandonment clause, Appraisal provision, Notice of loss, Depreciation, Recoverable depreciation, Percentage deductible, Period of restoration, Business income waiting period, Contribution by equal shares, Excess other insurance, Margin clause, Waiver of subrogation, Mysterious disappearance, Inherent vice exclusion, Wear and tear exclusion, Earth movement exclusion, Flood exclusion, Ensuing loss, Ordinance or law exclusion, Sue and labor, Ingress and egress, Reinstatement of limit, Coverage extension, Stated amount, Actual cash value calculation, Deductible application, Coinsurance - adequate insurance, Coinsurance with deductible, Coinsurance - limit cap, Coinsurance - value at time of loss, Coinsurance - who bears shortfall, ACV calculation - contents, Pro rata other insurance calc, Pro rata return premium calc, Pair and set calc, Proximate cause example, Direct loss example, Endorsements, Definitions section, Limits - sublimits, Mortgagee - proof of loss, Mortgagee - premium, Mortgagee - cancellation notice, Subrogation example, Appraisal procedure, Appraisal costs, Proof of loss timing, Suit against insurer, Burglary definition, Robbery definition, Theft definition, Water damage vs flood, Liberalization timing, Occurrence, Named insured, Salvage value, Unearned premium, Settlement of claims - deductible, Additional coverages vs extensions, Policy conditions - concealment, Valuation
Read the Property Insurance Basics study guide
Sample questions & answers
1. The Arkansas Insurance Code defines property insurance as insurance on real or personal property against loss or damage from any hazard, and against consequential loss, but NOT against:
Noncontractual legal liability for the loss
Ark. Code 23-62-104 defines property insurance to include consequential loss but excludes noncontractual legal liability for the loss or damage.
2. Under the Arkansas Insurance Code, marine insurance covers loss or damage from the perils of:
Navigation, transit, or transportation, including war risks
Ark. Code 23-62-107 defines marine insurance as covering any and all risks or perils of navigation, transit, or transportation, including war risks.
3. Under the Arkansas valued policy law, when insured real property is totally destroyed by fire or natural disaster, the insurer owes:
The full amount stated in the policy
Ark. Code 23-88-101(a)(1): the policy is a liquidated demand for the full amount stated in the policy (or on which the premium is charged) after a total loss by fire or natural disaster.
4. Which policy is NOT subject to the Arkansas valued policy law?
A flood or earthquake policy
Ark. Code 23-88-101(a)(1) applies to property policies other than flood and earthquake coverage.
Practice: Property Insurance Basics
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.
