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Property and Casualty Insurance Producer Exam

Property policies: practice questions

Our Property & Casualty Insurance bank has 99 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

For a residential condominium building insured under an RCBAP, the NFIP building limit is:

  1. $250,000 for the whole building
  2. $500,000 for the whole building
  3. $100,000 per unit
  4. $250,000 times the number of units
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D. $250,000 times the number of units — The limit is $250,000 times the number of units in the building.

Question 2

According to NAIC, most commercial property and general liability policies:

  1. Do not cover cyber risks
  2. Fully cover data breaches
  3. Cover ransomware but not lawsuits
  4. Cover cyber losses only for small businesses
Show the answer

A. Do not cover cyber risks — NAIC says most commercial property and general liability policies do not cover cyber risks.

Question 3

In the standard homeowners policy, Section I provides ________ and Section II provides ________.

  1. Property coverages; liability coverages
  2. Liability coverages; property coverages
  3. Dwelling only; contents only
  4. Mandatory coverages; optional coverages
Show the answer

A. Property coverages; liability coverages — Section I contains property coverages A to D; Section II contains liability coverages E and F.

Question 4

A flood-damaged building qualifies for Increased Cost of Compliance if repair costs equal or exceed what share of its market value?

  1. 50%
  2. 25%
  3. 40%
  4. 80%
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A. 50% — A substantially damaged building is one where the cost to repair equals or exceeds 50 percent of market value.

Question 5

The NFIP's 'base flood' is a flood with what chance of being equaled or exceeded in any year?

  1. 0.2%
  2. 5%
  3. 1%
  4. 10%
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C. 1% — A base flood has a one percent chance of being equaled or exceeded in any given year.

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