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Alaska Property Practice Exam

20 exam-style questions drawn from the same bank as our full Alaska Property course (Alaska Insurance Producer - Property - Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. Commercial Auto policies classify autos by the numeric 'covered auto' symbols on the declarations. Symbol 1 means:
Any autoHired autos onlyOwned autos onlyNon-owned autos only
2. Two homeowners policies, both using a pro-rata other-insurance clause, cover the same $60,000 fire loss. Policy A's limit is $150,000; Policy B's limit is $450,000. How much does each policy pay?
A pays $45,000; B pays $15,000.A pays $60,000; B pays $0 because A is primary.A pays $30,000; B pays $30,000.A pays $15,000; B pays $45,000.
3. Equipment Breakdown (formerly Boiler & Machinery) coverage is intended to insure against:
Damage caused by ordinary wear and tear, gradual deterioration, or rust — losses that every standard property and equipment form expressly excludesTheft of inventory and goods on display, covered separately under the ISO Commercial Crime CR 00 20 employee-theft form, not equipment breakdownSudden, accidental mechanical or electrical breakdown of pressure vessels, electrical equipment, and similar machineryFire damage to the building, which is the same exposure the BPP CP 00 10 already insures under any causes-of-loss form including Special
4. Under a standard mortgagee clause, who is entitled to receive payment for a total loss on a dwelling with a remaining mortgage balance?
Only the mortgagee — the insured has no interest — applicable to surplus-lines placements, which the scenario explicitly excludesThe state DOI, which then distributes the funds — under the older rule that was superseded by the post-2018 model amendmentsBoth, with the mortgagee paid up to the remaining balance and the insured receiving any surplus.Only the insured — the insurer is not responsible to the mortgagee — required if and only if the policy includes a co-insurance penalty endorsement
5. An insured owns a 1910 Victorian whose replacement cost is $1.2M and market value is $380,000. If the home is written on an HO-8 and suffers a total loss, how will the dwelling claim be settled?
Actual cash value only on both partial and total losses, with depreciation calculated using the home's 1910 original construction dateMarket value at the time of loss, with no adjustment for the spread between replacement cost and the home's depressed real-estate valueThe cost to repair with common construction materials and methods functionally equivalent to the original, up to the policy limitFull replacement cost using like kind and quality materials matching the original Victorian construction, provided the insured carried at least 80% to value
6. How much notice of nonrenewal must be given on a personal insurance policy, and on a business or commercial one?
30 days personal, 60 days commercial20 days personal, 45 days commercial20 days personal, 30 days commercial45 days for both
7. Under the NFIP Standard Flood Insurance Policy Dwelling Form (Regular Program), what are the maximum coverage limits available for a residential building and its contents?
$500,000 building / $500,000 contents$250,000 building / $250,000 contents$250,000 building / $100,000 contents$100,000 building / $100,000 contents
8. Only the insurer makes legally enforceable promises in an insurance contract — the insured can stop paying premium and the policy simply lapses without further obligation. Which contract characteristic does this describe?
ConditionalUnilateralAleatoryBilateral
9. Insurance is fundamentally a method of:
Transferring risk from the insured to the insurer through a contract of indemnityEliminating risk entirely so neither the insured nor the insurer is exposed to any lossAvoiding all financial loss by refusing to engage in any activity that creates exposureInvesting premium dollars in equities for capital appreciation, with claims paid from gains
10. A warehouse stores flammable chemicals next to a welding operation. The dangerous arrangement of physical conditions that increases the likelihood of a fire loss is best classified as which type of hazard?
Legal hazard.Moral hazard.Morale hazard.Physical hazard.
11. A 'proof of loss' is best described as:
An advertisement or solicitation for a public adjuster's services, which has no contractual standing under the policy's loss-conditions section at allAn invoice from a contractor for repair work performed at the insured location, which is supporting documentation and not the sworn proof of loss form itselfA sworn statement detailing the date, cause, value, and extent of the loss, signed by the insured under penalty of perjuryA premium billing notice sent by the carrier requesting payment of an outstanding installment, which is a billing document and not a claims document
12. A producer binds homeowners coverage on Monday and the carrier issues the formal policy on Friday. What happens to the binder at that point?
It must be cancelled in writing by the insured before the issued policy can take effectIt remains in force alongside the policy until the end of the first full annual policy termIt converts into a permanent endorsement that is attached to the front of the issued policyIt expires by its own terms because the formal policy it stood in for has now been issued
13. A consumer reporting agency sells insurers a report summarizing an applicant's prior claims history from multiple carriers. This report is commonly known as:
A credit score, consistent with the model regulation but inapplicable to this scenarioA SR-22 filing — applicable to commercial scenarios only, not the personal-lines contextA certificate of insurance — required under a separate compliance provision that doesn't reach this fact patternA CLUE (Comprehensive Loss Underwriting Exchange) report.
14. Which section states the general prohibition that makes the practices in chapter 21.36 unlawful?
AS 21.27.010AS 21.36.320AS 21.36.020AS 21.06.010
15. A restaurant has a kitchen fire. The kitchen is unusable for five months, during which the owner loses the income the restaurant would have earned and also pays triple the normal rent for a nearby commissary kitchen so the catering arm of the business can keep operating. Which coverages respond to which portion of the time-element loss?
Neither coverage responds until the building is fully rebuilt and a certificate of occupancy is issued, at which point retroactive payments are calculatedBusiness Income pays the lost net income plus continuing expenses; Extra Expense pays the increased commissary rent incurred to avoid suspending operationsExtra Expense pays both the lost profit and the commissary rent because any spending after a covered loss qualifies as an extraordinary continuing operating costBusiness Income pays both the lost profit and the commissary rent because all losses tied to the suspension are bundled into a single time-element insuring agreement
16. An icy sidewalk in front of a store is an example of which type of hazard?
Physical hazardSpeculative hazardMoral hazardMorale hazard
17. An annual policy with an $1,800 premium is cancelled by the INSURED at the six-month mark. The short-rate cancellation table (used when the insured initiates) returns 50% of the unearned premium minus a penalty. Approximately how much premium refund does the insured receive, compared to a pro-rata refund?
Short-rate refund is HIGHER than pro-rata because the insurer absorbs setup costs.Short-rate refund is EQUAL to pro-rata; the term is just another name.Short-rate refund is LOWER than pro-rata because of the insurer's penalty/retention.Short-rate refund is zero; insureds forfeit all unearned premium.
18. The NFIP is administered by:
HUDThe Federal ReserveThe state department of insuranceFEMA
19. A lender tells a borrower the loan will close only if the borrower buys the insurance through the lender's own agency. Which prohibition is engaged?
Defamation of an insurer under AS 21.36.070Twisting through misrepresentation under AS 21.36.050Rebating and unlawful inducement under AS 21.36.100Boycott, coercion, and intimidation under AS 21.36.080
20. The NFIP General Property Form is used for:
Condominium master policies for entire association buildings, which the Residential Condominium Building Association Policy (RCBAP) coversSingle-family owner-occupied 1-4 family homes, which is the function of the Dwelling Form rather than the General Property FormRenters seeking NFIP contents coverage only — an exposure handled under the Dwelling Form's contents-only option, not General PropertyNon-residential buildings, including most commercial structures

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