Free Property Insurance Basics Practice Questions
South Carolina Property exam — 121 practice questions.
Subtopics: Valued policy law, Replacement cost riders, Fire policy contents, Coinsurance, 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, Actual cash value calculation, Deductible application, Coinsurance - adequate insurance, Coinsurance with deductible, Coinsurance - limit cap, Coinsurance - value at time of loss, Coinsurance - who bears shortfall, ACV calculation - contents, Pro rata other insurance calc, Pro rata return premium calc, Pair and set calc, Proximate cause example, Direct loss example, Endorsements, Definitions section, Limits - sublimits, Mortgagee - proof of loss, Mortgagee - premium, Mortgagee - cancellation notice, Subrogation example, Appraisal procedure, Appraisal costs, Proof of loss timing, Suit against insurer, Burglary definition, Robbery definition, Theft definition, Water damage vs flood, Liberalization timing, Occurrence, Named insured, Salvage value, Unearned premium, Settlement of claims - deductible, Additional coverages vs extensions, Policy conditions - concealment, Valuation
Read the Property Insurance Basics study guide
Sample questions & answers
1. Under South Carolina's valued policy law, when a building insured under a fire policy is totally destroyed by fire, the insured is entitled to recover:
The full amount of insurance stated in the policy
Section 38-75-20 provides that in case of total loss by fire the insured is entitled to recover the full amount of insurance; the amount is fixed by the insurer and insured when the policy is issued.
2. Under South Carolina Code 38-75-20, for a PARTIAL loss by fire, the insured recovers:
The actual loss, up to the amount of insurance
Section 38-75-20 provides that for a partial loss by fire the insured recovers the actual amount of the loss, but never more than the amount of insurance in the contract.
3. South Carolina's valued policy law in Section 38-75-20 does NOT apply to insurance on:
Chattels or personal property
Section 38-75-20 ends by stating the section does not apply to insurance on chattels or personal property.
4. Under South Carolina law, the amount of insurance on a fire policy covering a building must be:
Fixed by the insurer and insured at or before issuance
Section 38-75-20 bars issuing a fire policy for more than the stated value or the value of the property and requires the amount to be fixed by insurer and insured at or before issuance.
Practice: Property Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
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.
