Real Estate Law Final 3 Exam 2026/2027 –
Complete Practice Test & Study Guide
Which of the following defines the insurance relationship? - correct answer-The
insured pays premiums to the insurer
In an insurance relationship, the insured is responsible for: - correct answer-
Losses in excess of the policy limit
Third-party coverage insurance is also known as: - correct answer-Liability
insurance
An insurance policy provides for an aggregate limit of $300,000. The per
occurrence limit is $100,000. The insurer has already paid out $250,000 during
the policy period. What is the maximum the insurer will pay out for any
subsequent claims on the policy? - correct answer-$50,000
What is underwriting? - correct answer-The process by which an insurer
calculates the premium for a policy
A deductible is: - correct answer-The sum an insured must pay before insurance-
policy benefits become payable
, When interpreting a particularly ambiguous and difficult insurance policy, which
party will the courts most often favor? - correct answer-The insured.
Individuals may take out a valid insurance policy on a property without an
insurable interest in that property. - correct answer-false
Which of the following individuals do not have an insurable interest? - correct
answer-- Owners of real property.
- Easement holders.
- Tenants.
- Owners of common-interest real property.
A lease agreement designates the tenant as the party responsible for insuring the
premises. Which of the following statements is true? - correct answer-The tenant
has an insurable interest in the property.
A building next to Elaine's cake shop is condemned. As a result, the business in
Elaine's cake shop slows significantly even though her facility suffers from no
health issues. Elaine would be able to make an insurance claim for her business
loss if: - correct answer-Elaine could not make a claim
Assigning an insurance contract requires the insurers consent. - correct answer-
True
Insurance policies are most commonly sold: - correct answer-Through insurance
agents or brokers.
Complete Practice Test & Study Guide
Which of the following defines the insurance relationship? - correct answer-The
insured pays premiums to the insurer
In an insurance relationship, the insured is responsible for: - correct answer-
Losses in excess of the policy limit
Third-party coverage insurance is also known as: - correct answer-Liability
insurance
An insurance policy provides for an aggregate limit of $300,000. The per
occurrence limit is $100,000. The insurer has already paid out $250,000 during
the policy period. What is the maximum the insurer will pay out for any
subsequent claims on the policy? - correct answer-$50,000
What is underwriting? - correct answer-The process by which an insurer
calculates the premium for a policy
A deductible is: - correct answer-The sum an insured must pay before insurance-
policy benefits become payable
, When interpreting a particularly ambiguous and difficult insurance policy, which
party will the courts most often favor? - correct answer-The insured.
Individuals may take out a valid insurance policy on a property without an
insurable interest in that property. - correct answer-false
Which of the following individuals do not have an insurable interest? - correct
answer-- Owners of real property.
- Easement holders.
- Tenants.
- Owners of common-interest real property.
A lease agreement designates the tenant as the party responsible for insuring the
premises. Which of the following statements is true? - correct answer-The tenant
has an insurable interest in the property.
A building next to Elaine's cake shop is condemned. As a result, the business in
Elaine's cake shop slows significantly even though her facility suffers from no
health issues. Elaine would be able to make an insurance claim for her business
loss if: - correct answer-Elaine could not make a claim
Assigning an insurance contract requires the insurers consent. - correct answer-
True
Insurance policies are most commonly sold: - correct answer-Through insurance
agents or brokers.
