Free Property Insurance Basics Practice Questions
Louisiana Property exam — 156 practice questions.
Subtopics: Valued policy law, Valued policy exceptions, Valued policy definition, Valued policy and fraud, Insurable interest limit, Standard fire policy perils, Removal coverage, Vacancy, Proof of loss, Suit against insurer, Theft exclusion, Uninsurable property, Concealment or fraud, Appraisal umpire, Company options, Abandonment, When loss payable, Mortgagee proof of loss, Assignment, Pro rata liability, Standard fire policy required, Fire binders, Hazard increase, Claim payment deadline, Initiating adjustment, Catastrophic loss adjustment, Field adjuster report, Late-payment penalty, Written settlement offer, Catastrophic residential claims, Catastrophic commercial claims, Cure period notice, Joint check statement, Contractor overhead and profit, Depreciation explanation, Replacement cost holdback, Preferred contractors, Residential appraisal clause, Appraisal expenses, Arson investigations, Producer notification, Good faith duty, Insured good faith, Claim check processing, 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, 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, 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. Under Louisiana's valued policy law, when immovable property insured under a fire policy is totally destroyed and the insurer used a valuation to set the premium, the insurer must pay:
That valuation, without deduction or offset
R.S. 22:1318(A) requires payment at the valuation used for the premium, without deduction or offset, unless the policy and application state a different loss computation in equal-size type.
2. Louisiana's valued policy law does NOT apply to a loss covered by:
A blanket-form policy
R.S. 22:1318(D) states the section does not apply to a loss covered by a blanket-form policy of insurance.
3. For purposes of Louisiana's valued policy law, a "fire insurance policy" is any property policy that covers fire EXCEPT:
A builders risk policy
R.S. 22:1318(D) defines fire insurance policy as any property policy covering the peril of fire, with the exception of builders risk policies.
4. Coverage under a Louisiana fire policy subject to the valued policy law may be voided if:
The insured is at criminal fault
R.S. 22:1318(A) provides that coverage may be voided in the event of criminal fault on the part of the insured or the insured's assigns.
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.
