Free Property Insurance Basics Practice Questions
North Carolina Property exam — 165 practice questions.
Subtopics: SFP scope, SFP inception time, SFP valuation, SFP ordinance or law, SFP perils, SFP removal, SFP assignment, SFP concealment fraud, SFP uninsurable property, SFP manuscripts, SFP excluded perils, SFP neglect, SFP vacancy, SFP increased hazard, SFP explosion, SFP waiver, SFP insurer cancellation, SFP refund methods, SFP mortgagee notice, SFP mortgagee proof, SFP pro rata liability, SFP duties after loss, SFP proof of loss, SFP examination under oath, SFP appraisal timing, SFP umpire, SFP appraisal award, SFP appraisal costs, SFP company options, SFP abandonment, SFP when payable, SFP suit limitation, SFP subrogation, SFP other insurance, Binder duration, Binder terms, Lender binder, Notice to agent, Coinsurance contract stamp, Coinsurance rates, Overinsurance and term, Functional replacement, Total loss limit, Mortgagee payment timing, Undisclosed mortgage, Late proof of loss defense, Perils warning notice, Ice snow sleet, Mediation scope, Mediation threshold, Mediation request, Mediation fees, Mediation notice, 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, 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 North Carolina, the provisions of the standard fire insurance policy must be followed by every fire policy on property in the state EXCEPT policies covering:
Auto physical damage and marine or inland marine
G.S. 58-44-16(b) exempts auto fire, theft, comprehensive and collision, and marine and inland marine policies.
2. Under the North Carolina standard fire policy, coverage begins and ends at what time on the dates shown in the declarations?
12:01 A.M. at the location of the property
The general provisions run coverage from inception at 12:01 A.M. to expiration at 12:01 A.M. at the location of the covered property.
3. The North Carolina standard fire policy insures the property to the extent of its:
Actual cash value, capped at repair or replacement cost
The insuring clause covers actual cash value at the time of loss but not more than the cost to repair or replace with like kind and quality.
4. Under the standard fire policy's insuring agreement, which cost is NOT paid when a building is damaged by fire?
Increased cost of repair due to a building ordinance
The insuring clause excludes any increased cost of repair or reconstruction caused by an ordinance or law regulating construction or repair.
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.
