Free Property Insurance Basics Practice Questions
New Mexico Property exam (series 18-28) — 139 practice questions.
Subtopics: Cancellation for nonpayment, New policy cancellation, Midterm cancellation, Cancellation law scope, Binders, Insurable interest, Certificates of insurance, Guaranty association, Surplus lines, Rate standards, Credit-based insurance scores, Credit inquiries, Loss control, Proof of loss, Appraisal clause, Subrogation, Salvage, Pro rata cancellation, Concealment, Mortgagee rights, 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, Flat cancellation, Nonrenewal notice, Policy period, Salvage rights, No abandonment clause, Appraisal provision, 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. Under New Mexico law, when may an insurer cancel a property policy for nonpayment of premium?
At any time, with 10 days' written notice
Nonpayment cancellation may occur at any time with written notice of not less than ten days.
2. A New Mexico insurer discovers on day 40 that it does not want a newly issued policy. Under New Mexico law, it may:
Cancel without cause on 10 days' notice
Within the first sixty days the insurer may cancel without cause, giving at least ten days' notice with an effective date inside the sixty-day period.
3. After a New Mexico property or casualty policy has been in force more than 60 days, the insurer may cancel it midterm (other than for nonpayment) only:
For reasonable cause set by the superintendent's rules
After the sixty-day period, the insurer may not cancel except for reasonable cause and with the notice provided by the superintendent's rules.
4. New Mexico's statutory cancellation restrictions in 59A-18-29 do NOT apply to:
Inland marine insurance contracts
The section excludes life, annuity, health, title, inland marine and noncancellable policies.
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.
