Free Property Insurance Basics Practice Questions
South Dakota Property exam — 126 practice questions.
Subtopics: Binders, Certificates of insurance, Suit against insurer, Rating, Rate filing, Return of premium, 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, 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 South Dakota, a property or casualty binder is valid until the policy is issued or for how many days from its effective date, whichever is shorter?
90 days
SDCL 58-11-30: no binder is valid beyond issuance of the policy or ninety days from its effective date, whichever is shorter.
2. A South Dakota binder is about to reach 90 days and the policy still has not been issued. The binder may be extended:
With the Director's written approval or under the Director's rules
SDCL 58-11-31 allows extension or renewal beyond ninety days with the written approval of the Director or in accordance with the Director's rules.
3. Under South Dakota law, a binder for property insurance is deemed to include:
All the usual terms of the policy for which it was given
SDCL 58-11-29 deems a binder to include all usual terms of the policy plus designated endorsements, except as superseded by the binder's clear terms.
4. A South Dakota producer knowingly puts a false material statement on a certificate of insurance. This is:
A Class 1 misdemeanor for each offense
SDCL 58-11-29 makes a knowingly false material statement on a binder, certificate of insurance, or other proof of insurance a Class 1 misdemeanor for each offense.
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.
