Free Property Insurance Basics Practice Questions
Wisconsin Property exam (series 22-05) — 123 practice questions.
Subtopics: Replacement cost, Lender insurance requirement, Mortgage clause $500, Choice of law, Domestic abuse - innocent insured, Domestic abuse information, Standard fire policy, Required property clauses, Traditional fire policy perils, Lender requirement calculation, Mortgagee as named insured, Insurable interest, Actual cash value, 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. Wisconsin law permits a property policy to pay the cost to repair, rebuild or replace damaged property with new materials of like size, kind and quality. This basis is called:
Replacement cost
Section 632.05(1) authorizes replacement cost coverage using new materials of like size, kind and quality.
2. A Wisconsin lender making a mortgage loan may NOT require the borrower to insure the home’s improvements for more than:
The greater of replacement value or market value
Section 632.07 bars requiring coverage exceeding the replacement value or market value of the improvements, whichever is greater.
3. A Wisconsin homeowners policy has a mortgage clause added by endorsement, and the mortgagee is not a named insured. A covered loss to the dwelling of $400 must be paid:
To the insured mortgagor
For real property, losses not exceeding $500 are paid to the insured mortgagor despite the mortgage provision unless the mortgagee is a named insured.
4. Insurance on property located in Wisconsin is governed by:
Wisconsin law
Section 632.09 provides that insurance on property in Wisconsin, or its use or income, is governed by Wisconsin law.
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.
