NEW YORK LICENSE EXAM 2025
QUESTIONS AND ANSWERS
Which condition or provision of a property insurance policy applies when the insured and
insurer cannot agree on the amount of the loss? - ANS Appraisal
Which part or portion of a property insurance policy is it that specifies the causes of loss (perils)
that are not covered? - ANS Exclusions
When an insurer suffers a loss, they are required to prepare an inventory of the damaged
property at the _______ request. - ANS Insurers
Open Peril policies include losses caused by theft. True or False - ANS True
When an insured desires to add coverage to a policy, the insurer usually will _______ the policy.
- ANS Endorse
For replacement cost coverage to apply in Dwelling policies, the insured must carry insurance at
least equal to ______% of the cost of replacement of the building. - ANS 80%
Would a stated amount method of valuation likely be used when insuring gold bullion? Yes or
No - ANS No
In the event of a loss under a Homeowners policy, a proof of loss must be signed and sworn by
the ______. - ANS Insured
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,The _______ Clause allows insurers to automatically broaden coverage without endorsement
on existing policies with no increase in premium. - ANS Liberalization
Could an order to vacate the property possibly cause an insurer to cancel a commercial
property policy? Yes or No - ANS Yes
Does coverage under a property policy extend to include a legal representative of the named
insured's estate in the event of death of the named insured? Yes or No - ANS Yes
In a Homeowners policy, the term ______ ______ _____ is defined as the cost to repair or
replace teh damaged property less depreciation. - ANS Actual Cash Value
Which of the following is an example of a hostile fire?
A. A fire in a fireplace
B. A burning cigarette
C. A grass fire set intentionally by a rancher
D. An ember from a fireplace jumps out and burns a hole in the carpet - ANS D
When property is damaged by fire, the loss is said to be a(n) ______ loss. - ANS Direct
War is typically excluded in property policies. True or False - ANS True
The name of the insured is found on the Declarations Page of the policy. True or False -
ANS True
A building that has neither occupants nor personal property is ______. - ANS Vacant
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, When the insurer cancels a property policy, the unearned premium is returned _____ _____. -
ANS Pro Rata
The _______ part or portion of a property policy sets forth the rights, rules, duties, and
obligations of the insurer and insured to be followed throughout the policy period. -
ANS Conditions part
The ______ ______ Law requires an insurer to pay the full amount of insurance on an insured
structure in the event of a total loss. - ANS Valued Policy
When a property policy has been in effect less than 60 days and the insurer cancels for
nonpayment of premium, the insurer must give the insured _____ days written notice. -
ANS 10
The amount of the deductible is found in the ______ part or portion of a property policy. -
ANS Declarations
When more than 1 property policy covers the same loss, each policy pays no more than its
________ share of the loss. - ANS Proportionate
An insurer may nonrenew a Homeowners policy with oral notice to the insured. True or False -
ANS False
If a property owner does not desire any deduction for depreciation following a covered loss, he
/ she should purchase a(n) ________ ______ policy. - ANS replacement cost
A condition or defect that exists within property itself that causes the property to spoil, break,
become defective, or destroy itself, is known as ______ ______. - ANS Inherent Vice
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QUESTIONS AND ANSWERS
Which condition or provision of a property insurance policy applies when the insured and
insurer cannot agree on the amount of the loss? - ANS Appraisal
Which part or portion of a property insurance policy is it that specifies the causes of loss (perils)
that are not covered? - ANS Exclusions
When an insurer suffers a loss, they are required to prepare an inventory of the damaged
property at the _______ request. - ANS Insurers
Open Peril policies include losses caused by theft. True or False - ANS True
When an insured desires to add coverage to a policy, the insurer usually will _______ the policy.
- ANS Endorse
For replacement cost coverage to apply in Dwelling policies, the insured must carry insurance at
least equal to ______% of the cost of replacement of the building. - ANS 80%
Would a stated amount method of valuation likely be used when insuring gold bullion? Yes or
No - ANS No
In the event of a loss under a Homeowners policy, a proof of loss must be signed and sworn by
the ______. - ANS Insured
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,The _______ Clause allows insurers to automatically broaden coverage without endorsement
on existing policies with no increase in premium. - ANS Liberalization
Could an order to vacate the property possibly cause an insurer to cancel a commercial
property policy? Yes or No - ANS Yes
Does coverage under a property policy extend to include a legal representative of the named
insured's estate in the event of death of the named insured? Yes or No - ANS Yes
In a Homeowners policy, the term ______ ______ _____ is defined as the cost to repair or
replace teh damaged property less depreciation. - ANS Actual Cash Value
Which of the following is an example of a hostile fire?
A. A fire in a fireplace
B. A burning cigarette
C. A grass fire set intentionally by a rancher
D. An ember from a fireplace jumps out and burns a hole in the carpet - ANS D
When property is damaged by fire, the loss is said to be a(n) ______ loss. - ANS Direct
War is typically excluded in property policies. True or False - ANS True
The name of the insured is found on the Declarations Page of the policy. True or False -
ANS True
A building that has neither occupants nor personal property is ______. - ANS Vacant
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, When the insurer cancels a property policy, the unearned premium is returned _____ _____. -
ANS Pro Rata
The _______ part or portion of a property policy sets forth the rights, rules, duties, and
obligations of the insurer and insured to be followed throughout the policy period. -
ANS Conditions part
The ______ ______ Law requires an insurer to pay the full amount of insurance on an insured
structure in the event of a total loss. - ANS Valued Policy
When a property policy has been in effect less than 60 days and the insurer cancels for
nonpayment of premium, the insurer must give the insured _____ days written notice. -
ANS 10
The amount of the deductible is found in the ______ part or portion of a property policy. -
ANS Declarations
When more than 1 property policy covers the same loss, each policy pays no more than its
________ share of the loss. - ANS Proportionate
An insurer may nonrenew a Homeowners policy with oral notice to the insured. True or False -
ANS False
If a property owner does not desire any deduction for depreciation following a covered loss, he
/ she should purchase a(n) ________ ______ policy. - ANS replacement cost
A condition or defect that exists within property itself that causes the property to spoil, break,
become defective, or destroy itself, is known as ______ ______. - ANS Inherent Vice
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