1. Exam Prep
  2. New Mexico
  3. Property & Casualty
  4. Commercial Property

Free Commercial Property Practice Questions

New Mexico Property & Casualty exam — 45 practice questions.

Subtopics: BPP, Causes of loss, Coinsurance, Business income, Extra expense, Vacancy, Replacement cost, Builders risk, Flood, Equipment breakdown, Ordinance or law, Protective safeguards, Handling risk, Insurer classifications, Adverse selection, Elements of a contract, Insurable risk, Hazards, Definitions, Authority of producers, Legal interpretations, Law of large numbers, Principle of indemnity, Utmost good faith, Concealment, Warranty, Waiver and estoppel, Subrogation, Reinsurance, Admitted vs nonadmitted, Domestic foreign alien, Aleatory contract, Contract of adhesion, Unilateral contract, Apparent authority, Rebating, Risk pooling, Pro-rata cancellation

Sample questions & answers

1. Business personal property coverage on a New Mexico commercial property policy generally covers:

Business contents such as furniture, equipment, and stock

Business personal property covers contents such as furniture, fixtures, equipment, and stock used in the business.

2. The broadest standard ISO causes of loss form used on New Mexico commercial property is the:

Special form

The special causes of loss form provides the broadest coverage on an open-perils basis subject to exclusions.

3. A New Mexico commercial building worth $500,000 carries $300,000 of coverage with an 80% coinsurance clause. For a $50,000 loss the policy pays approximately (before deductible):

$37,500

Required coverage is 80% of $500,000 = $400,000; recovery = ($300,000/$400,000) x $50,000 = $37,500 before deductible.

4. Business income coverage on a New Mexico commercial policy pays for:

Lost net income and continuing expenses during a covered suspension of operations

Business income coverage replaces lost net income and pays continuing expenses during a covered interruption of operations.

All Property & Casualty topics

Practice: Commercial Property

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 Insurance Department and the exam administrator before relying on it.