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Personal Lines Insurance License Exam: Chapter 3 -
Property Basics Questions with 100% Verified Answers
2025 | 2026
Hostile Fire - ANSWER A fire that burns outside its intended
boundaries
Friendly fire - ANSWER A fire that stays within its intended
bounds, such as a fireplace
Inherent Vice - ANSWER A quality in property that causes it to
spoil, rot or become defective
Burglary - ANSWER The taking of property from inside the
premises or a locked safe/vault by a person who commits
forcible entry or exit while trespassing
Robbery - ANSWER The taking of property from the care and
custody of a person tho has been threatened with bodily harm
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Theft - ANSWER An act of stealing. Burglary and robbery are
examples of theft.
Mysterious disappearances - ANSWER Occurs when the cause
of loss of property is NOT KNOWN. This is not theft, burglary, or
robbery
Unoccupancy - ANSWER Has no occupants, but does have
contentd
Vacancy - ANSWER Building contains insufficient property or
furnishings to support its intended occupancy or use (typically
60-day period of time)
Bailee - ANSWER A person or organization taking into its
possession the property of another- usually for servicing, repair,
or storage
Bailor - ANSWER The owner of property held in the possession
of a bailee
Personal Lines Insurance License Exam: Chapter 3 -
Property Basics Questions with 100% Verified Answers
2025 | 2026
Hostile Fire - ANSWER A fire that burns outside its intended
boundaries
Friendly fire - ANSWER A fire that stays within its intended
bounds, such as a fireplace
Inherent Vice - ANSWER A quality in property that causes it to
spoil, rot or become defective
Burglary - ANSWER The taking of property from inside the
premises or a locked safe/vault by a person who commits
forcible entry or exit while trespassing
Robbery - ANSWER The taking of property from the care and
custody of a person tho has been threatened with bodily harm
, 2|Page
Theft - ANSWER An act of stealing. Burglary and robbery are
examples of theft.
Mysterious disappearances - ANSWER Occurs when the cause
of loss of property is NOT KNOWN. This is not theft, burglary, or
robbery
Unoccupancy - ANSWER Has no occupants, but does have
contentd
Vacancy - ANSWER Building contains insufficient property or
furnishings to support its intended occupancy or use (typically
60-day period of time)
Bailee - ANSWER A person or organization taking into its
possession the property of another- usually for servicing, repair,
or storage
Bailor - ANSWER The owner of property held in the possession
of a bailee
