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Free Property Insurance Basics Practice Questions

Indiana Property exam — 72 practice questions.

Subtopics: Insurable interest, Actual cash value, Replacement cost, Agreed value, Functional replacement cost, Direct vs indirect loss, Coinsurance purpose, Coinsurance calculation, Deductible, Declarations, Insuring agreement, Exclusions, Conditions, First named insured, Duties after loss, Subrogation condition, Liberalization, Other insurance pro rata, Blanket insurance, Loss payable clause, Construction class, Rate components, Underwriting purpose, Valued policy, Market value, Cancellation short rate, Policy territory, Assignment property, No benefit to bailee, Claim settlement options, Pair and set clause, Vacancy, Specific insurance, Terrorism program, Indirect loss time element, Hazard reduction underwriting, Named perils form, Open perils form, Burden of proof, Proximate cause, Concurrent causation, Anti-concurrent causation clause, Pro rata cancellation, Flat cancellation, Nonrenewal notice, Policy period, Salvage rights, No abandonment clause, Appraisal provision, Proof of loss, Notice of loss, Depreciation, Recoverable depreciation, Percentage deductible, Period of restoration, Business income waiting period, Contribution by equal shares, Excess other insurance, Margin clause, Waiver of subrogation, Mysterious disappearance, Inherent vice exclusion, Wear and tear exclusion, Earth movement exclusion, Flood exclusion, Ensuing loss, Ordinance or law exclusion, Sue and labor, Ingress and egress, Reinstatement of limit, Coverage extension, Stated amount

Read the Property Insurance Basics study guide

Sample questions & answers

1. In property insurance, an insured has an insurable interest when they:

Would suffer a financial loss if the property were damaged

Insurable interest exists when the insured would suffer financial loss from damage to the property.

2. Actual cash value (ACV) is generally calculated as:

Replacement cost minus depreciation

ACV equals the replacement cost of the property minus depreciation for age, wear, and obsolescence.

3. Replacement cost coverage pays to repair or replace damaged property:

Without deduction for depreciation, up to the limit

Replacement cost pays the cost to repair or replace with like kind and quality without deducting depreciation, up to the limit.

4. Under an agreed value provision, the insurer and insured:

Agree on the insured value at the outset, suspending coinsurance

Agreed value sets the property's value in advance and waives the coinsurance requirement during the policy period.

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Practice: Property Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Pennsylvania Insurance Department and the exam administrator before relying on it.