Free Property Insurance Basics Practice Questions
Michigan Property exam (series 16-67) — 138 practice questions.
Subtopics: Minimum valuation, Minimum perils, Removal coverage, Insured cancellation, Fire policy cancellation, Unearned premium on cancellation, Mortgagee cancellation, Mortgagee proof of loss, Mortgagee subrogation, Other insurance, Appraisal demand, Appraiser selection, Umpire selection, Appraisal award, Appraisal costs, Abandonment, Insurer options, Loss payment, Suit limitation, Policy period time, Subrogation provision, Void for fraud, Breach of warranty, Fire withholding, Withholding notice, Withholding release, 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, 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, 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. Every fire policy issued in Michigan must, at a minimum, cover the property for its:
Actual cash value at the time of loss
Section 2833(1)(a) requires coverage, at a minimum, for the actual cash value of the property at the time of the loss.
2. At a minimum, a Michigan fire policy must cover direct loss by:
Fire and lightning
Section 2833(1)(b) requires, at a minimum, coverage for direct loss by fire and lightning.
3. Property moved to another location to protect it from a covered peril is covered under a Michigan fire policy, on a pro rata basis, for:
5 days
Section 2833(1)(b) requires pro rata coverage for 5 days for insured property removed to another location to preserve it from damage by a covered peril.
4. When a Michigan insured cancels a fire policy, the minimum earned premium the insurer may keep is the greater of the pro rata premium for the expired time or:
$25
Section 2833(1)(h) sets the minimum earned premium at the greater of the pro rata premium for the expired time or $25.
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.
