Free Property Insurance Basics Practice Questions
Montana Property exam — 120 practice questions.
Subtopics: Property insurance defined, Consequential loss, Valued policy law, Valued policy law defense, Premium payer, Measure of indemnity, Fraudulent valuation, Tax lien on fire proceeds, 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, 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. Montana defines property insurance as insurance on real or personal property against loss or damage, and consequential loss, from any hazard, but NOT against:
noncontractual legal liability for the loss
Mont. Code Ann. 33-1-210 covers property on land, water, or in the air and consequential loss, other than noncontractual legal liability.
2. Under Montana's definition, property insurance may cover loss consequential upon direct damage, such as:
lost income after a fire closes a store
Mont. Code Ann. 33-1-210 includes insurance against loss consequential upon loss or damage to property.
3. Under Montana's valued policy law, when insured improvements to real property are a total loss without criminal fault of the insured, the amount of insurance in the policy is:
conclusively the true value and the measure of damages
Mont. Code Ann. 33-24-102 makes the amount of insurance written in the policy conclusively the true value and measure of damages for a total loss of insured improvements, absent criminal fault.
4. Montana's valued policy law still allows an insurer, in a suit on a total-loss building policy, to assert the defense of:
fraud in obtaining the policy
Mont. Code Ann. 33-24-102 provides that any insurer may assert fraud in obtaining the policy as a defense.
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.
