Free Homeowners Policy Concepts Practice Questions
Michigan Property exam (series 16-67) — 162 practice questions.
Subtopics: Replacement cost policy, Repair cost policy, Repair cost cash option, Repair cost example, Eligible person - home, Tenant eligibility, Arson ineligibility, Minimum amount - replacement, Minimum amount - repair, Renters minimum, Delinquent taxes, Nonpayment history, Hazardous use, Age of home, Home underwriting rules, Paid claims nonrenewal, Unoccupied dwelling, Certificate of compliance, Repair cost premium cap, Home termination notice, New policy termination, Termination reasons, Inspection criteria, Senior home discount, Home rate filing, Home insurance defined, Fire location rating, Insurance not mandatory, Force-placed insurance, Flood exclusion, Sewer backup, Eligibility, HO-3 special, HO-4 renters, HO-6 condo, HO-8 modified, Coverage C limit, Coverage B limit, Loss of use, Coverage E liability, Coverage F medical payments, Replacement cost requirement, Special limits, Standard mortgage clause, Vacant vs unoccupied, Open vs named perils, Loss assessment, Debris removal, Trees and shrubs, Ordinance or law, Appraisal condition, Business pursuits, Home day care, Personal injury, Watercraft endorsement, Fungi limitation, Permitted incidental occupancies, Identity fraud, Earthquake endorsement, Scheduled personal property, Water and sewer backup, HO-2 broad form, HO-5 comprehensive form, Coverage A dwelling, Section I vs Section II, Medical payments exclusions, Credit card and forgery coverage, Collapse additional coverage, Glass or safety glazing, Landlords furnishings, Fire department service charge, Reasonable repairs, Property removed coverage, Damage to property of others, Money special limit, Volcanic eruption, Firearms theft limit, Business property on-premises limit, Personal property replacement cost, Grave markers, Refrigerated food spoilage, Concealment or fraud condition, Intentional loss exclusion, Neglect exclusion, Power failure exclusion, Nuclear hazard exclusion, Motor vehicle liability exclusion, Aircraft liability exclusion, Severability of insurance, Loss payment condition, Our option to repair or replace, Definition of insured, Full-time student, Residence premises, HO civil authority, HO-4 Coverage C, HO-4 additions and alterations, HO-6 Coverage A, HO-3 Coverage C perils, Theft from dwelling under construction, Theft - rented to others, Watercraft property limit, Securities limit, Jewelry theft limit, Silverware theft limit, Business property off premises, Property not covered, Coverage C worldwide, Personal property at other residence, Debris removal additional amount, Tree removal, Trees perils, Loss assessment limit, Ordinance or law limit, Grave markers limit, Landlord furnishings limit, Property removed duration, Replacement cost holdback, HO underinsured RC calc, Loss settlement - contents, Medical payments time limit, Section II additional - claim expenses, First aid expenses, Watercraft liability exclusion, Business exclusion, Coverage E exclusion - insured injury, Rented property liability, Expected or intended, Section II other insurance, Section I other insurance, HO cancellation - new policy, HO nonrenewal notice, Death of named insured, Mold exclusion HO-3, Animals owned exclusion, Vacancy - vandalism HO, Inflation guard HO, Additional living expense example, Section II, HO-5 vs HO-3, HO-5 special limits, HO-8 loss settlement, HO-8 theft, HO-8 perils, Water backup, Identity fraud expense
Read the Homeowners Policy Concepts study guide
Sample questions & answers
1. Under section 2826, a Michigan replacement cost fire policy may provide that the insurer owes more than actual value only if the property is:
Actually repaired, rebuilt, or replaced
Section 2826 lets the policy provide that the replacement amount is not owed unless the damaged property is actually repaired, rebuilt, or replaced at the same or another site.
2. A Michigan "repair cost" home policy settles real property losses using:
Conventional materials and current methods
Sections 2104(2) and 2827(1) describe repair cost coverage that restores property to a similar condition using conventional materials and construction methods currently available.
3. Under a Michigan repair cost policy (section 2827), the insured may always choose instead a cash settlement based on:
Actual cash value at the time of loss
Section 2827(2) provides that the contract shall not preclude the insured from selecting a cash settlement based on actual cash value at the time of loss.
4. DIFS explains that under repair cost coverage, a damaged plaster wall might be replaced with:
Drywall
The DIFS homeowners guide describes repair cost as using contemporary materials, giving the example that plaster walls may be replaced with drywall.
Practice: Homeowners Policy Concepts
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.
