NC Property Insurance Practice
Exam Questions with Accurate
Answers
A homeowner has sufficient fire insurance coverage. If lightning causes $1,000
damage, a resulting fire causes $1,000 damage, and water used to put out the fire
causes $2,000 additional damage, how much would the insured collect?
A)$1,000.B)$2,000C)$3,000.D)$4,000. correct answer D
A policy which specifically states the amount of insurance for each type of
property at a given location is known as?
A)Named peril form.B)Special form.C)Blanket coverage.D)Specific coverage.
correct answer D
A thief breaks into John's home and steals his wife's $10,000 diamond earrings,
$15,000 mink coat and $1,000 out of John's locked safe. How much is John's
unendorsed Homeowners' policy going to pay for the loss?A)$1,700.B)$3,000.C)
$25,000 since the safe was locked the money was not insured.D)$26,000. correct
answer A
All of the following are FALSE about the Postassessment Insurance Guarantee
Association EXCEPT?
A)They assist policyowners to assess the value of their property after an
accident.B)They help avoid financial loss to claimants because of the insolvency of
an insurer.C)They assess the validity of an insurer after a negative claim has been
filed.D)They guarantee to the Department of Insurance a true assessment about
the value of claims after they have been made. correct answer B
, All of the following losses would NOT be covered in a Dwelling policy if there is a
vacancy for 30 or more days EXCEPT?
A)Damage caused by burglars.B)Accidental discharge of water or
steam.C)Windstorm.D)Theft, if endorsed. correct answer C
All of the following policies are eligible to pay on a replacement cost basis for a
Dwelling and Homeowners policy EXCEPT?
A)Basic.B)Broad.C)Special.D)HO-2. correct answer A
An agent must hold which of the following licenses in order to sell Accident and
Health insurance?
A)Property and Liability.B)Credit Life, Accident and Health.C)Travel
Accident.D)Accident, Sickness and Health insurance. correct answer D
An individual who rents an apartment can obtain broad coverage for personal
property in the apartment under which Homeowner's form?
A)HO-15.B)HO-6.C)HO-4.D)HO-2. correct answer C
An insured that needs coverage for her home and its contents against loss caused
by earthquake can obtain it with:
A)An unendorsed Dwelling policy.B)Either a separate Earthquake policy or a
DP/HO with an Earthquake endorsement attached.C)An unendorsed Homeowners
policy.D)A Commercial Property coverage form. correct answer B
Assume the following items were stolen from the insured's home. Which one of
these losses would be fully covered under Coverage C of the Homeowners policy,
assuming the loss was for the full value of the property described?
Exam Questions with Accurate
Answers
A homeowner has sufficient fire insurance coverage. If lightning causes $1,000
damage, a resulting fire causes $1,000 damage, and water used to put out the fire
causes $2,000 additional damage, how much would the insured collect?
A)$1,000.B)$2,000C)$3,000.D)$4,000. correct answer D
A policy which specifically states the amount of insurance for each type of
property at a given location is known as?
A)Named peril form.B)Special form.C)Blanket coverage.D)Specific coverage.
correct answer D
A thief breaks into John's home and steals his wife's $10,000 diamond earrings,
$15,000 mink coat and $1,000 out of John's locked safe. How much is John's
unendorsed Homeowners' policy going to pay for the loss?A)$1,700.B)$3,000.C)
$25,000 since the safe was locked the money was not insured.D)$26,000. correct
answer A
All of the following are FALSE about the Postassessment Insurance Guarantee
Association EXCEPT?
A)They assist policyowners to assess the value of their property after an
accident.B)They help avoid financial loss to claimants because of the insolvency of
an insurer.C)They assess the validity of an insurer after a negative claim has been
filed.D)They guarantee to the Department of Insurance a true assessment about
the value of claims after they have been made. correct answer B
, All of the following losses would NOT be covered in a Dwelling policy if there is a
vacancy for 30 or more days EXCEPT?
A)Damage caused by burglars.B)Accidental discharge of water or
steam.C)Windstorm.D)Theft, if endorsed. correct answer C
All of the following policies are eligible to pay on a replacement cost basis for a
Dwelling and Homeowners policy EXCEPT?
A)Basic.B)Broad.C)Special.D)HO-2. correct answer A
An agent must hold which of the following licenses in order to sell Accident and
Health insurance?
A)Property and Liability.B)Credit Life, Accident and Health.C)Travel
Accident.D)Accident, Sickness and Health insurance. correct answer D
An individual who rents an apartment can obtain broad coverage for personal
property in the apartment under which Homeowner's form?
A)HO-15.B)HO-6.C)HO-4.D)HO-2. correct answer C
An insured that needs coverage for her home and its contents against loss caused
by earthquake can obtain it with:
A)An unendorsed Dwelling policy.B)Either a separate Earthquake policy or a
DP/HO with an Earthquake endorsement attached.C)An unendorsed Homeowners
policy.D)A Commercial Property coverage form. correct answer B
Assume the following items were stolen from the insured's home. Which one of
these losses would be fully covered under Coverage C of the Homeowners policy,
assuming the loss was for the full value of the property described?
