Property Certification Exam #1361 2024-2025, Exams of Real Estate Management

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Property Certification Exam #1361 2024-

2025. Questions & Correct Answers.

Graded A+

All of the following are duties of the insured following a property loss, except: A Inventory lost property B Submit a formal proof of loss C Immediately notify the department of insurance in case of loss D Protect property from additional damage - ANSC Immediately notify the department of insurance in case of loss All of the following perils are automatically covered under the DP-3, except: A Smoke damage B Theft of contents C Damage by burglars D Hail - ANSD Hail The exclusions listed in the General Exclusions section of the form Collapse, except for coverage provided by Other Coverages Freezing, thawing, or weight of water or ice on patios, fences, swimming pools, foundations, piers, docks, retaining walls, and other structure that supports a building Theft of property not part of a covered building or structure Theft in or to a dwelling or structure under construction Wind, hail, ice, snow, or sleet to trees, shrubs, plants, lawns, and outdoor radio and TV antennas and aerials Vandalism and malicious mischief, theft or attempted theft, and any ensuing loss if the dwelling has been vacant for more than 60 consecutive days immediately before a loss Constant or

repeated seepage or leakage of water or steam over a period of time from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system, or from within a household appliance Wear and tear or deterioration Mechanical breakdown Smog, rust, corrosion, mold, and wet or dry rot Pollutants, unless the discharge of pollution is caused by one of the named perils applying to personal property coverage Smoke from agricultural smudging or industrial operations Settling, cracking, bulging, or expansion of foundation, walls, floors, pavement, or patios An insured and insurer will utilize which of the following when they are unable to agree on the amount of a property claim to be paid? A Subrogation B Assignment C Recession D Appraisal - ANSD Appraisal By what other name is the Dwelling form DP-2 known? A Broad Form B Basic Form C Blanket Form D Special Form - ANSA Broad Form For insurance purposes, an unfurnished beach house in which no one lives is considered: A Empty B Unoccupied C Unused D Vacant - ANSB Unoccupied Gambling is an example of which type of risk? A Whole B Speculative C Pure D Partial - ANSB Speculative If an insured's claim was denied, the mortgagee can collect under the policy as long as the mortgagee meets all of the following requirements, except: A Notify the insurer of any change of ownership or change in risk if aware of those changes B Submit proof of loss to the insurer if the insured fails

to do so C Hire a private investigator to follow the insured D Pay any premium due under the policy on demand if the insured fails to do so - ANSC Hire a private investigator to follow the insured Lightning strikes a home and starts a fire that destroys the structure and its contents. The lightning is the: A Pure risk B Speculative risk C Proximate cause D Indirect loss - ANSC Proximate cause The Personal Articles Floater provides for all of the following, except: A Coverage on an open perils basis B Worldwide coverage C Claims are settled on an actual cash value basis D Coverage for commercial property - ANSD Coverage for commercial property Similar to the Scheduled Personal Property Endorsement available for Homeowners policies, the Personal Articles Floater is used to insure individual items of personal property, which are listed (scheduled) on the policy. Coverage may be provided for different classes of property, including: Jewelry Furs Cameras Musical instruments Silverware and goldware Golfer's equipment Fine arts Stamp collections Coin collections Scheduled property is protected on an open perils basis while it is anywhere in the world. Each scheduled item has a specific amount of insurance listed for it. Coverage may also be written for unscheduled items of the same classes of property, in which case a blanket limit of insurance is provided for all unscheduled items. In addition to the common Personal Inland Marine

exclusions, this floater will also exclude losses caused by wear and tear, deterioration, inherent vice, insects, or vermin. Other floaters are available that apply to each of these property classes individually. The terms provided for those specific classes are also included on the Personal Articles Floater. The scrap value of damaged property is the: A Salvage value B Appraisal value C Actual cash value D Arbitration value - ANSA Salvage value What is another name for the Homeowners form HO-4? A Modified Coverage Form B Tenant's Form C Broad Form D Special Form - ANSB Tenant's Form The Contents Broad Form is also known as the Renter's or Tenant's Form. Unlike the other forms, coverage is not provided for real property, like the dwelling or other structures, as the insured is only a tenant of the dwelling and is not responsible for insuring the structure itself. Coverage C will insure personal property against the Broad Form named perils, and losses are settled on an ACV basis. When is insurable interest required to exist on a property policy? A At the time of application B At the time of loss C When the first premium is paid D At policy delivery - ANSB At the time of loss (Typically at time of Application as well) Which condition provides the insurer the right to collect against a responsible third party? A Restoration B Subrogation C Liberalization D No Benefit to Bailee - ANSB Subrogation Which Homeowners policy form is for dwelling owners who cannot

insure their older homes for replacement cost? A HO-3 B HO- C HO-2 D HO-8 - ANSD HO-8 Which insurance concept is designed to eliminate small claims and help reduce the cost of insurance? A Indemnity B Exclusions C Coinsurance D Deductibles - ANSD Deductibles Which loss would NOT be covered by the National Flood Insurance Program? A Unusual and rapid accumulation or runoff of surface waters B Overflow of inland or tidal waters C Mudflow caused by accumulation of water D Water main break - ANSD Water main break NFIP Definition of Flood Flood policies provide protection against direct loss to insured property (buildings and contents) from flood. For its policies, the NFIP defines flood as a general or temporary condition of partial or complete inundation of land that is normally dry land. The flood must involve 2 or more acres of the insured's land, or both the insured's property and an adjacent piece of property. The inundation of land may be the result of: Overflow of inland or tidal waters, such as a tidal wave generated by a hurricane Unusual and rapid accumulation or runoff of surface waters Mudslides or mudflow caused by accumulation of water Collapse or destabilization of land along a shoreline resulting from erosion or the effect of waves or currents exceeding normal, cyclical levels NATURAL CAUSES Which of the following forms provides named perils coverage to the owner of a condominium or cooperative unit? A HO-5 B

HO-4 C HO-6 D HO-8 - ANSC HO-6 (Unit owners form) Which of the following forms provides open perils coverage for Coverages A, B, and C? A HO-5 B HO-3 C HO-8 D HO-6 - ANSA HO-5 Comprehensive Form (HO-5) The Comprehensive Form provides the broadest coverage of any of the Homeowners forms. Coverages A, B, and C provide insurance on an open perils basis. Like the other forms, losses to the dwelling and other structures are valued on a replacement cost basis, and losses to personal property are valued on an actual cash value basis. Which of the following is an example of a peril? A Indifference B Earthquake C Gasoline stored on the premises D Unlocked front door to a home - ANSB Earthquake Which peril is covered under the DP-1? A Weight of ice, snow, or sleet B Freezing C Falling objects D Lightning - ANSD Lightning As its name implies, the DP-1 provides basic insurance coverage to insure the dwelling, its contents, and other structures on the premises against three named perils: fire, lightning, and internal explosion. Internal explosion refers to explosions occurring within the covered dwelling or other structure, or within a structure containing covered personal property. Which peril is NOT covered under Part D of a Personal Auto policy? A Road damage to tires B Earthquake C Flood D Riot - ANSA Road damage to tires Which provision encourages the insured to maintain insurance to a certain value? A Limit of liability B

Insuring Agreement C Coinsurance D Replacement cost - ANSC Coinsurance Which section of an insurance policy states the obligations of the parties to the contract? A Endorsements B Exclusions C Conditions D Declarations - ANSC Conditions Which term describes the cost to replace property with a deduction for depreciation? A Fair market value B Stated value C Actual cash value D Replacement cost - ANSC Actual cash value Which type of loss valuation will replace damaged or destroyed property with its equivalent at current cost? A Stated amount B Actual cash value C Replacement cost D Market value

• ANSC Replacement cost