WEBCE Property and Casualty Insurance
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
real property includes land and the buildings and other
items
attached to it (trees, shrubs, patios)
personal property any tangible item other than real property;
appliances, jewelry, cameras
,4 types of construction frame: home with interior and exterior walls
of
combustible material including wood,
plaster
on wood, or aluminium or plastic **higher
premium for fire
masonry veneer: combustible frame and
interior walls but an outside veneer of brick
or
stone; this veneer is cosmetic and does
not
support the building besides fire protection
masonry construction: walls support the
house
and are constructed out of adobe, brick,
concrete, stone, or similar noncombustible
materials **hire premium for earthquake
superior construction: most durable and
fire
resistant including 3 main types:
noncombustible, masonry combustible,
and
fire resistive **mostly commercial buildings
direct loss loss to insured property
indirect loss refers to loss that are related to direct loss;
may
incur additional living expenses if house
burns
down
consequential loss losses related to equipment failure such as
food spoiling from fridge failing
, insurable interest Any financial interest in life or property
such
that, if the life or property were lost or
harmed,
the insured would suffer financially.
loss valuation methods (6) Replacement Cost
Functional Replacement
Actual Cash Value
Market Value
Agreed Value
Stated Value
replacement cost The cost to replace damaged property with
like kind and quality at current price,
without
any deduction for depreciation.
functional replacement cost used with older buildings that have
components no longer found in modern
buildings; cost to repair a damaged
building
with common (and less costly) construction
materials
actual cash value replacement cost minus depreciation
Exam Questions and Answers with Verified
Solutions | Latest Updated 2026
real property includes land and the buildings and other
items
attached to it (trees, shrubs, patios)
personal property any tangible item other than real property;
appliances, jewelry, cameras
,4 types of construction frame: home with interior and exterior walls
of
combustible material including wood,
plaster
on wood, or aluminium or plastic **higher
premium for fire
masonry veneer: combustible frame and
interior walls but an outside veneer of brick
or
stone; this veneer is cosmetic and does
not
support the building besides fire protection
masonry construction: walls support the
house
and are constructed out of adobe, brick,
concrete, stone, or similar noncombustible
materials **hire premium for earthquake
superior construction: most durable and
fire
resistant including 3 main types:
noncombustible, masonry combustible,
and
fire resistive **mostly commercial buildings
direct loss loss to insured property
indirect loss refers to loss that are related to direct loss;
may
incur additional living expenses if house
burns
down
consequential loss losses related to equipment failure such as
food spoiling from fridge failing
, insurable interest Any financial interest in life or property
such
that, if the life or property were lost or
harmed,
the insured would suffer financially.
loss valuation methods (6) Replacement Cost
Functional Replacement
Actual Cash Value
Market Value
Agreed Value
Stated Value
replacement cost The cost to replace damaged property with
like kind and quality at current price,
without
any deduction for depreciation.
functional replacement cost used with older buildings that have
components no longer found in modern
buildings; cost to repair a damaged
building
with common (and less costly) construction
materials
actual cash value replacement cost minus depreciation
