North Carolina Property Insurance Agent Practice Test

These questions are part of the practice quiz. Start practicing

• What type of coverage does an HO-4 policy provide?
• For how long must a complaint record be maintained?
• Which homeowners policy is known as the Contents Broad Form?
• Which aspect of an insurance policy outlines the covered perils?
• Under homeowners insurance policies, what type of loss does not fall under the common lost categories?
• What do standard fire policies specify regarding the coverage time?
• Under Coverage C of a homeowners policy, what percentage of Coverage A is provided for personal property?
• Which type of policy does NOT include an automatic reinstatement provision?
• Which of the following is not included as an additional cause of loss in the broad form of a commercial property policy?
• What type of loss is specifically mentioned in the context of coverage under the homeowners policy?
• All of the following are duties of the insured following a loss in a standard fire policy EXCEPT
• What is the term for temporary coverage before a new policy is issued?
• Which coverage protects against a loss resulting from the unexpected need to repair a vehicle?
• Within how many years of a loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?
• What does Coverage A typically refer to in property insurance?
• Removal coverage under a standard fire policy remains in effect for how many days?
• How many days before expiration must an insurer notify the mortgageholder if they intend to cancel a businessowners policy?
• What type of insurance policy is usually required when leasing commercial space?
• An ocean marine loss that occurs through the voluntary sacrifice of a part of the vessel or cargo to save the ship, crew, or other cargo is known as
• Which term describes the practice of charging different insurance rates based on insignficant factors among similar individuals?
• When would Johanna's National Flood Insurance policy coverage be effective if she purchased it 10 days after her community entered an emergency program?
• What is the focus of Coverage D in a property insurance policy?
• What will the insurer pay if the insured ship has been stranded?
• Which endorsement is considered optional for the standard equipment breakdown form?
• What is the purpose of personal liability coverage in property insurance?
• Which of the following is not typically included in a commercial package policy?
• In a rental policy, how is coverage typically structured for personal property?
• What can an individual use to insure mobile equipment and construction machinery on a job site?
• What does it indicate if there is no premium shown for a specific coverage part on the commercial package policy declarations page?
• What is the main focus of property insurance?
• How long does an insurer have to file with the Commissioner after appointing an agent?
• What type of homeowners policy provides the broadest coverage?
• What does an endorsement typically modify in an insurance policy?
• In insurance terms, an act of unfairly treating one individual differently from another based on risk carriers relates to which concept?
• What will the insurer NOT pay for while the ship is laid up for repairs?
• Which country is excluded from the coverage territory of the businessowners policy (BOP)?
• What is most likely to be specified by standard fire policies regarding the timing of coverage?
• Which of the following best describes "concealment" in the insurance context?
• Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?
• In insurance terminology, what does "unoccupied" refer to?
• What do additional coverages in the liability section of a homeowners policy not cover?
• Which of the following best describes "actual cash value" in insurance terms?
• In a commercial package policy, who has the authority to cancel and make changes?
• Which type of insurance is designed to protect against rental income loss?
• What term describes losses caused by continuous or repeated exposure to conditions?
• Which of the following coverages is included in an unendorsed homeowners policy?
• Coverage for equipment breakdown typically falls under which type of insurance?
• Which of the following losses would MOST LIKELY NOT be covered under Coverage A in the dwelling policy?
• If Harold purchased separate policies from three different companies with limits of $100,000 each, how much will each company pay for a loss according to the pro rata liability clause?
• Which of the following is NOT among the general powers and duties of the Commissioner of Insurance?
• Which of the following claims is excluded from liability coverage of a homeowners policy?
• What does the Business Personal Property Coverage Form NOT cover?
• In property insurance, what does the term "deductible" refer to?
• Which of the following is NOT an essential element of a commercial package policy (CPP)?
• Under a dwelling policy, how many days must an insurer inform the insured after receiving proof of loss if it chooses to repair or replace damaged property?
• If an insurance agent embezzles funds received from insurance transactions, what legal consequence do they face?
• Under business income coverage, what is the initial waiting period before the period of restoration begins after a loss?
• What type of policy covers damages to other people’s property caused by the insured?
• Which coverage is specifically designed to cover liability expenses a business may incur?
• Which of the following is considered a Modified Coverage Form?
• What information is typically found on the commercial property declarations page?
• What organization is responsible for administering the plan that ensures access to property insurance for beach properties?
• What does a businessowners policy typically cover?
• What type of loss is defined as unintended and unexpected damage to property?
• Maps that indicate which areas in the community are subject to severe flooding are called?
• Elaborate homes with replacement costs greater than actual cash value are typically insured under which homeowners policy?
• What is the primary purpose of the ordinance or law coverage endorsement?
• What is the Fair Rental Value coverage known as in the dwelling policy?
• If the actual values exceed the limit of insurance, the businessowners policy (BOP) contains a seasonal increase provision that automatically increases the limit of insurance for business personal property by
• Which type of liability covers a business against claims of bodily injury on its premises?
• Which situation would not be covered by the basic causes of loss form under a commercial property policy?
• What is the term for financial compensation provided by an insurer after a covered loss?
• When disputes arise regarding the appraisal of property or the amount of loss, how long do parties have to select an impartial appraiser?
• Which type of coverage offers financial protection for guests injured on an insured’s property?
• All of the following are excluded in the equipment breakdown basic policy EXCEPT
• What type of property is specifically excluded in most dwelling policies?
• Which type of losses are covered by the standard property insurance policy?
• The North Carolina Insurance Underwriters Association considers all of the following coverages essential for beach and coastal areas except:
• What is one purpose of the Insurance Information and Privacy Act?
• In homeowners policies, indirect losses are covered by:
• What does HO-2 stand for in property insurance terms?
• Who pays for the damage when a golfer accidentally breaks a window while teeing off?
• Which of the following coverages is NOT included in the basic form dwelling policy?
• When may an insurer charge a rate different from the one promulgated by the North Carolina Rate Bureau?
• What generally qualifies a property for coverage under the North Carolina FAIR Plan?
• Which of the following is an example of a condition that may void an insurance contract?
• In homeowners insurance, which coverage would include temporary housing for the insured after a loss?
• Which homeowners form provides open peril coverage for both dwelling and contents?
• What term describes the situation where a private investigator contacts an insurance applicant under false pretenses?
• Which of the following dwelling policies insured a structure on an actual cash value basis?
• Which entity oversees enforcement of insurance regulations in North Carolina?
• In cases where the Commissioner finds substantial evidence that any complaint against a company is justified, in addition to any penalties, the company shall?
• How is a peril most easily defined?
• Which coverage in a homeowners policy would cover personal injuries caused to guests?
• What type of coverage is typically included in the HO-5 homeowners policy?
• With regards to a homeowners policy, which coverage provides for indirect or consequential losses?
• What type of policy covers lost income due to interruption of business operations?
• After receiving proof of loss, how soon must an insurer notify the insured regarding the intent to repair or replace?
• Which BEST describes the perils covered under a standard fire policy?
• What does 'Coverage D' refer to in a dwelling policy?
• What type of property does Coverage E provide financial protection for?
• What duration does personal property coverage under the dwelling policy apply during a move to a new location?
• Under a businessowners policy, how many days prior to expiration must an insurer notify the mortgageholder if they intend to nonrenew the policy?
• The Business Personal Property Coverage Form excludes which of the following items?
• Which homeowners policy provides coverage specifically for condominium unit owners?
• Which of the following is not considered a part of consideration in an insurance policy?
• On a DP-3 dwelling property special form policy, how is personal property coverage characterized?
• What does Coverage A in a homeowners policy typically insure?
• What is the purpose of the dwelling policy's "hazard" provision?
• Which type of coverage is typically not included in a standard homeowners policy?
• What are the causes of loss insured against in an insurance policy known as?
• In standard fire policies, what type of losses are covered?
• What must an insurance policy provide regarding claim disputes?
• Which of the following is NOT a common exclusion found in homeowners insurance policies?
• First aid costs for others injured on the insured's premises are...
• An insured's Homeowners policy covers an antique dining set. After a water pipe bursts, the insured moves the set to a storage shed to protect it from water damage. What is the longest period of time the homeowners policy will extend coverage to the dining set?
• Which item is NOT required to be on a premium payment receipt?
• In a dwelling policy, how is personal liability coverage provided?
• Under a businessowners policy, what time limit applies to the loss of earnings?
• Provided that a loss did not result from negligence by the assured, the owners, or the managers of the vessel, additional perils are covered under the
• Which type of insurance is covered by the North Carolina Post-Assessment Insurance Guaranty Association?
• What does 'full replacement cost' mean in property insurance?
• Your home is insured on an HO-3. Your neighbor's tree fell into your house during a windstorm. How much will your policy pay toward the cost of removing the tree?
• An installations floater is used to insure what?
• What is typical coverage under the Hull Insurance policy?
• The perils covered by the beach area property plan include all of the following except?
• Which of the following is typically excluded from Coverage A under a dwelling policy?
• If a licensee is accused of misconduct, how long may their license be surrendered for, according to the Commissioner's approval?
• Property insurance typically does NOT cover which of the following?
• What is the primary purpose of the North Carolina Market Assistance Plan?
• How many days can the insured's premises be vacant before vandalism and malicious mischief coverage is voided?
• Which individual would not be considered an insured under the liability section of a homeowners policy?
• What are representations in the context of an insurance application?
• Which of the following is NOT a standard peril covered in a homeowners policy?
• What type of limit of liability does a policy have if it sets the amount for all claims arising from a single incident at $50,000?
• Which coverage provides for costs incurred due to loss of use of the dwelling?
• If a covered peril results in loss or damage to property, what must the insured provide to the insurer?
• Which of the following is NOT an available additional coverage in the builders risk form?
• What is the purpose of the indemnity provision in insurance policies?
• If a policyholder has an equipment breakdown policy with a $200,000 limit and suffers $100,000 damage to the boiler, $50,000 damage to the building, and $30,000 of expediting expenses, how much will they collect?
• Which type of coverage includes protection for farm-related risks?
• What action can an insurer take if they do not want to repair a damaged property after receiving proof of loss?
• When must insurance interest in a property be proven according to property insurance regulations?
• How much will the insured's homeowners policy cover for the loss of $2,500 worth of precious stones in a burglary?
• An insured member of a neighborhood association has been assessed a portion of a loss at $2,000. How much will the Loss Assessment additional coverage of the insured's homeowners liability policy pay?
• Under which condition might a dwelling policy not cover personal property?
• Fair rental value coverage in the dwelling policy is similar to which homeowners policy form?
• Which of the following property coverages would provide protection to contents damaged by fire?
• What is a common exclusion found in homeowners insurance policies?
• When two individuals in the same risk class are charged different rates due to their financial positions, what practice does this represent?
• What is the purpose of a policy exclusion?
• Which of the following describes a coverage that does not fall under the broad form of a commercial property policy?
• Which policy would provide the broadest coverage for personal property?
• Coverage B is defined as which of the following in property insurance?
• In a businessowners policy, what is the waiting period before the period of restoration may begin for business income additional coverage?
• Which insurance term refers to the maximum amount an insurance policy will pay for a claim?
• For a contract to be enforceable by law, what must be true about its purpose?
• What type of homeowners policy is known as the Special Form?
• What is the maximum amount a Mobile Homeowners Policy will pay if the insured moves the mobile home to protect it from a covered peril?
• Which of the following does NOT help determine flood insurance rates?
• Which policy provision would automatically broaden coverage without requiring additional premium?
• What modifies the original insurance contract by adding or removing coverage?
• What is the maximum number of roomers or boarders allowed for properties insured under the dwelling policy?
• A resident applicant for a single-line license has an educational training class prerequisite of how many hours?
• If a fire destroys part of an insured's property, which method must the insurer take to compensate the insured?
• Which of the following would be covered by a basic form of a dwelling property policy?
• All of the following are other coverages under the dwelling policy EXCEPT?
• All of the following are characteristics of the dwelling policy EXCEPT:
• Where can the obligations and duties of both the insurer and the insured be found?
• The insured's home is covered by an HO-3. If the replacement value is $60,000, how much Coverage A is needed for replacement cost coverage?
• Which document serves as evidence of the insurance contract?
• What is the initial binding period for new workers' compensation coverage issued by the North Carolina Rate Bureau?
• If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, how are the changes applied?
• Which homeowners form is specifically intended for individuals that own and reside in a condominium?
• According to common policy conditions for a commercial package policy, what happens to policy rights and duties if the insured dies?
• Under homeowners insurance, which of the following is typically excluded from coverage?
• In commercial policies, who generally has control of the policy?
• If a policy owner wants to know whether or not a specific loss is covered by an insurance policy, they should review which section of the policy?
• What does the extra expense coverage form provide?
• Which of the following best describes the coverage limits in a standard homeowners policy?
• What documentation typically outlines the risks covered by a property insurance policy?
• A Mobile Homeowners Policy is structured similarly to which type of policy?
• What term describes coverage for losses by theft specifically for firearms in a homeowners policy?
• What is the purpose of the SDIP?
• What is the main benefit of replacement cost coverage in property insurance?
• Which of the following is NOT an eligibility requirement for obtaining property coverage in the FAIR Plan?
• What is considered to be rebating in the context of unfair trade practices?
• When an agent changes email address, the Department of Insurance must be notified within how many days?
• In insurance, who is responsible for the conditions of the policy?
• Replacement cost in insurance is defined as what?
• The equipment breakdown coverage form provides coverage for all of the following EXCEPT?
• If the ownership of an insured vessel changes involuntarily, within how many days of the ownership transfer will the hull policy terminate?
• Which of the following is NOT considered a coverage part in property insurance?
• What additional coverage is provided by the extended coverages written on the basic form dwelling policy for an additional premium?
• In insurance, the uncertainty of an individual sustaining a loss in the future is classified as a/an:
• What is the primary purpose of liability coverage in property insurance?
• In the context of property insurance, what is the typical coverage for loss of earnings?
• What is the primary aim of insurance?
• What do policy conditions define in an insurance contract?
• If more than one person has an insurable interest in the property coverage under a dwelling policy, what is true regarding the insurer's liability?
• How long does removal coverage under a standard fire policy remain in effect?
• What describes a businessowners policy?
• Which of the following is a common exclusion in property insurance policies?
• What is the best term to classify an advertisement misrepresenting a company's financial stability when its actual health is poor?
• What is the primary purpose of an extra expense coverage form?
• What is the marital status-related condition regarding insurance coverage?
• What is defined as the maximum payment the insurance company will provide for a specific loss?
• What does homeowners coverage typically exclude from its primary coverages?
• The Commissioner is required to examine books and records of all domestic insurers at least once every:
• What do individuals typically use to transfer their risk of loss to a larger group?
• Which of the following is NOT considered primary coverage in homeowners insurance?
• Which of the following types of coverage is typically NOT included in a Businessowners Policy (BOP)?
• How much coverage is typically provided under a homeowners policy for theft or unauthorized use of a credit card?
• What is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
• Which situation would be covered under the Broad Form (DP-2) policy's falling object peril?
• If a building insured with commercial property insurance has been vacant for 90 days, which statement is true?
• What is NOT considered a misrepresentation in terms of unfair trade practices?
• What is required for a change to be made in a commercial package policy?
• All of the following are included within the Insurance Commissioner's duties except?
• Which type of property is typically excluded under an HO-3 homeowners policy?
• Which policy form is referred to as the Comprehensive Form?
• Who is responsible for notifying the Commissioner of an agent's appointment?
• What is the primary role of the Insurance Information and Privacy Act?
• Coverage C generally covers what type of property?
• Under a businessowners policy, which of the following is not a right of the insurer regarding inspections and surveys?
• Which aspect is NOT protected under the Business Personal Property Coverage Form?
• From an insurance standpoint, how is an insured's house categorized if unoccupied for three months?
• Which of the following types of property would be covered under Coverage C - Personal Property in a dwelling policy?
• How many days does an insurer have to select a competent appraiser after a written request is received for a property claim dispute?
• When an insurer makes changes to premium rates, the insurer must notify policy owners within how many days of the change?
• What does the applicant's failure to communicate necessary information represent in underwriting terms?
• Which of the following is the type of property NOT covered by the homeowners policy?
• What part of the insurance contract describes covered perils and the nature of coverage?
• What must be obtained for a policy to be endorsed in the event of changes in the coverage?
• For what time period are SDIP surcharges applied to premiums?
• What is the time period during which all earthquake shocks are considered to be one earthquake under the endorsement?
• What notice period is required for the cancellation of a dwelling policy within the first 60 days of coverage?
• What type of ocean marine insurance specifically covers physical damage to the ship while in transit?
• Who typically pays the premiums for a standard commercial policy?
• What is the primary difference in the contents coverage between an HO-3 and an HO-5 policy?
• An agent represents which party in an insurance contract?
• What is the term for failing to disclose pertinent information when applying for an insurance policy?
• Which type of risk is eligible for coverage under a businessowners policy?
• Which liability coverage does general liability insurance provide?
• Which of the following causes for flood conditions is covered by the National Flood Insurance Program?
• In a businessowners policy, coverage typically includes protection against which risk?
• What is the term used when a company falsely claims to have funds available for losses or claims?
• Which of the following homeowners forms would be best for a person renting half a duplex?
• What type of liability coverage is automatically included in businessowners liability coverage?
• What is the purpose of the North Carolina FAIR Plan?
• Who is responsible for the payment of medical bills incurred by guests injured on property that is under liability coverage?
• What is the maximum height for an office building to be eligible for businessowners policy (BOP) coverage?
• What exclusion applies to both personal injury and advertising injury in the business owners policy?