semplr.

Exams · Certifications · Licensing

Property and Casualty Insurance Producer Exam

Policy provisions and contract law: practice questions

Our Property & Casualty Insurance bank has 98 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

Start the free mock exam

Question 1

Under the NFIP, the insured can claim on an actual cash value basis first and still claim replacement cost later if they notify the insurer within:

  1. 30 days
  2. 60 days
  3. 1 year
  4. 180 days after the loss
Show the answer

D. 180 days after the loss — The insured must notify the insurer of intent to claim the additional replacement cost within 180 days after the loss.

Question 2

An 'examination under oath' after a loss means the insured:

  1. Takes a lie detector test
  2. Testifies in front of a jury before any payment is made
  3. Answers questions under oath, apart from other insureds
  4. Signs a blank proof of loss
Show the answer

C. Answers questions under oath, apart from other insureds — The SFIP lets the insurer require the insured to submit to examination under oath, not in the presence of another insured.

Question 3

The appraisal provision is used to settle disagreements about:

  1. Whether the policy covers the loss
  2. The amount of the loss
  3. Whether the premium was paid
  4. Who the named insured is
Show the answer

B. The amount of the loss — Appraisal resolves disputes about the amount of a claim, not whether the policy covers a loss.

Question 4

NFIP disputes over policy issuance and claims are governed by:

  1. The law of the state where the insured property is located
  2. Federal law: FEMA rules and the National Flood Insurance Act
  3. The WYO company's home-state law
  4. The agent's state of license
Show the answer

B. Federal law: FEMA rules and the National Flood Insurance Act — The SFIP is governed exclusively by FEMA regulations, the National Flood Insurance Act and federal common law.

Question 5

Under the NFIP Standard Flood Insurance Policy, if an insured conceals or misrepresents a material fact, the policy is:

  1. Reduced by 50%
  2. Still valid for the mortgagee only
  3. Converted to actual cash value
  4. Void as of the date of the act
Show the answer

D. Void as of the date of the act — With fraud, concealment or false statements, the policy is void as of the date the acts were committed.

More Property & Casualty Insurance topics