Free Property Insurance Basics Practice Questions
Arizona Property exam (series 13-42) — 150 practice questions.
Subtopics: Binders, Insurable interest, Policy contents, Electronic delivery, Electronic posting, Rate standards, Competitive rating, Rating classifications, Use and file, Policy form filing, Wildfire services, Guaranty fund accounts, Guaranty fund limits, Guaranty fund unearned premium, Guaranty fund members, Guaranty fund timing, Guaranty fund exhaustion, Personal lines scope, Homeowners cancellation, Coverage inquiries, Premises condition, Consumer reports, Homeowners nonrenewal, Late nonrenewal notice, Notice contents, Objection to Director, Affiliate transfer, Proof of notice, Commercial cancellation, Commercial nonpayment, Commercial grounds, Commercial nonrenewal, Late commercial nonrenewal, Renewal changes, Commercial scope, 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, Proof of loss, 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, Valued policy law, 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. In Arizona, a property or casualty binder is valid until the policy is issued or for no more than how many days from its effective date, whichever is shorter?
90 days
No binder is valid beyond issuance of the policy or beyond ninety days from its effective date, whichever is shorter, unless extended with the Director's approval.
2. Under Arizona law, a binder for temporary property or casualty insurance:
May be oral or written and includes the policy's usual terms
Binders may be made orally or in writing and are deemed to include all the usual terms of the policy for which they were given.
3. Arizona defines an insurable interest in property as:
An actual, lawful and substantial economic interest in it
Insurable interest means any actual, lawful and substantial economic interest in the safety or preservation of the subject of insurance; its measure is the extent of possible damage to the insured.
4. Under Arizona law, the measure of an insurable interest in property is:
The extent the insured would be damaged by its loss
The measure of an insurable interest in property is the extent to which the insured might be damaged by loss, injury or impairment of it.
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.
