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PROPERTY EXAM QUESTIONS
1. A building contractor constructs a rental property home using "straw-blue" construction
that does not conform to standard building codes. The contractor, who is also the owner,
does not want insurance on the building but wants coverage on as many other things as he
can get. What coverage plan should be a producer recommend?
A: HO-2
B: HO-4
C: HO-5
D: Coverage cannot be extended on this structure
Answer: D
2. What organization is responsible for administering the plan that ensures access to
property insurance for beach properties?
A: Division of Insurance
B: Post-Assessment Guaranty Association
C: North Carolina Insurance Underwriting Association
D: FAIR Plan
Answer: C
3. Which type of losses are covered by the standard policy?
A: Indirect Losses
B: Direct Losses
PROPERTY EXAM QUESTIONS
1. A building contractor constructs a rental property home using "straw-blue" construction
that does not conform to standard building codes. The contractor, who is also the owner,
does not want insurance on the building but wants coverage on as many other things as he
can get. What coverage plan should be a producer recommend?
A: HO-2
B: HO-4
C: HO-5
D: Coverage cannot be extended on this structure
Answer: D
2. What organization is responsible for administering the plan that ensures access to
property insurance for beach properties?
A: Division of Insurance
B: Post-Assessment Guaranty Association
C: North Carolina Insurance Underwriting Association
D: FAIR Plan
Answer: C
3. Which type of losses are covered by the standard policy?
A: Indirect Losses
B: Direct Losses
