Free Commercial Property Policies Practice Questions
New Mexico Property & Casualty exam (series 18-31) — 74 practice questions.
Subtopics: BPP, Causes of loss, Coinsurance, Business income, Extra expense, Vacancy, Replacement cost, Builders risk, Flood, Equipment breakdown, Ordinance or law, Protective safeguards, Inland marine, Farm, Extended business income, Building and personal property, Causes of loss forms, Commercial package, Reporting form, Causes of loss special form, Agreed value, Peak season endorsement, Spoilage coverage, Causes of loss basic form, Newly acquired property, Functional valuation, Causes of loss broad form, Debris removal, Brands and labels, Pollutant cleanup, Legal liability coverage form, Tenant improvements, Earthquake coverage, Additional coverages, Coverage extensions, Valuation, Optional coverages, Functional building valuation
Read the Commercial Property Policies study guide
Sample questions & answers
1. Business personal property coverage on a New Mexico commercial property policy generally covers:
Business contents such as furniture, equipment, and stock
Business personal property covers contents such as furniture, fixtures, equipment, and stock used in the business.
2. The broadest standard ISO causes of loss form used on New Mexico commercial property is the:
Special form
The special causes of loss form provides the broadest coverage on an open-perils basis subject to exclusions.
3. A New Mexico commercial building worth $500,000 carries $300,000 of coverage with an 80% coinsurance clause. For a $50,000 loss the policy pays approximately (before deductible):
$37,500
Required coverage is 80% of $500,000 = $400,000; recovery = ($300,000/$400,000) x $50,000 = $37,500 before deductible.
4. Business income coverage on a New Mexico commercial policy pays for:
Lost net income and continuing expenses
Business income coverage replaces lost net income and pays continuing expenses during a covered interruption of operations.
All Property & Casualty topics
Practice: Commercial Property Policies
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.
