Free Property Insurance Basics Practice Questions
Washington Property exam — 116 practice questions.
Subtopics: Overinsurance, Replacement insurance, 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. Under RCW 48.27.010, overinsurance exists when property is insured against the same hazard for more than its:
Fair value, meaning replacement cost less depreciation
RCW 48.27.010 defines overinsurance as insurance exceeding fair value, defined as the cost of replacement less properly applicable depreciation.
2. A Washington mortgage lender requires a borrower to insure a home for more than could reasonably be paid under the policy in the event of loss. Under RCW 48.27.010, this is:
Prohibited
RCW 48.27.010(4) prohibits compelling an insured to buy property insurance in excess of what could reasonably be expected to be paid in a loss, whether in connection with a loan or otherwise.
3. Washington's overinsurance law does not prevent an insurer, by special provision or endorsement, from insuring property for:
The cost of repair or replacement without deduction for depreciation
RCW 48.27.020 permits replacement insurance covering repair or replacement cost without deduction of depreciation, by special provision or endorsement.
4. Under RCW 48.27.010, which person may NOT knowingly procure or accept a contract that results in overinsurance?
Any person, including the producer, insurer, or insured
RCW 48.27.010(3) states no person shall knowingly require, request, issue, place, procure, or accept a contract that would result in overinsurance.
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.
