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Iowa Property Practice Exam

20 exam-style questions drawn from the same bank as our full Iowa Property course (Iowa 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. Which chapter of the Iowa Code carries insurer receivership, the commissioner acting as receiver?
Chapter 505Chapter 522BChapter 507CChapter 507B
2. Where does Iowa set out the standard fire policy form itself?
In Iowa Admin. Code 191-15Printed inside Iowa Code 515.109By reference to an industry formIn a Division bulletin
3. A buyer pays the carrier's quoted premium of $3,200 by check at the producer's office. The producer hands the buyer a signed binder. Which two elements of consideration are present in this transaction?
Insured's signature and insurer's countersignatureInsured's application and insurer's underwriting reviewProducer's commission and carrier's licensureInsured's premium and insurer's promise to pay covered losses
4. Under the ISO commercial property vacancy clause, how is 'vacant' defined for a tenant-occupied building, and how does vacancy affect a vandalism claim?
Vacant after 30 days with no occupants of any kind; vandalism remains fully covered, but theft, water damage and glass breakage are excluded while the building stays vacant.Vacant after 90 days regardless of how much of the building is in use; all coverage under the form is suspended until the insured notifies the insurer that occupancy has resumed.Vacant after 60 days with less than 31% of the building's total square footage used for customary operations; vandalism coverage is suspended, and most other losses are reduced by 15%.Vacancy has no effect on commercial property coverage as long as the premium is paid, because the vacancy provision applies only to dwelling forms and homeowners policies.
5. A community must do what to allow its residents to purchase NFIP flood insurance?
Nothing, NFIP is available nationwide regardless of local action, because the program is administered as a uniform federal entitlementRequire every homeowner inside the community to insure their property against flood and provide proof of coverage at the time of property transferParticipate in the NFIP by adopting and enforcing FEMA-approved floodplain management ordinancesCollect a local flood tax assessed on every property within the community and remit the proceeds to FEMA to fund the federal program's reserves
6. Electronic Data Processing (EDP) coverage typically expands on commercial property forms by:
Insuring computer equipment, media, and data on a broader (often open-peril) basis, including some perils excluded by standard property formsCovering only data, not hardware, restricting the policy to intangible files and excluding any servers, networking gear, peripherals, or other physical computing equipment owned by the insuredExcluding all damage to computer equipment from the property coverage part, which is actually the opposite of what an EDP form is designed to accomplish for a commercial insured with significant technology exposureProviding auto liability for laptops and tablets while in vehicles, an exposure actually addressed under Business Auto CA 00 01 hired or non-owned auto and not under any inland marine EDP form
7. A 1920s Craftsman-style house has ornate plaster moldings and solid oak trim. After a fire, the insurer offers to pay to rebuild using modern drywall and stained MDF trim that serves the same function. This settlement method is called:
Market value.Replacement cost.Actual cash value.Functional replacement cost.
8. On most homeowners policies, watercraft liability is automatically extended to:
All boats regardless of length or horsepower, including the large inboard cruisers that require a separate yacht or boatowners policyCommercial fishing boats used in the insured's trade or business, an exposure expressly excluded under the HO-3 business-pursuits exclusionSmall watercraft only, outboards 25 hp or less, sailboats under 26 feet, and certain non-ownedYachts over 50 feet covered under ocean marine hull-and-P&I principles, an entirely separate market and never bundled into a homeowners form
9. A commercial building has a replacement cost of $1,000,000. The policy carries an 80% coinsurance clause. The insured carries only $600,000 in limits. A partial loss of $200,000 occurs. How much does the insurer pay (before deductible)?
$100,000, a flat 50% coinsurance penalty on the loss.$200,000, the full loss is paid; coinsurance does not reduce partial-loss recoveries.$120,000, ($600,000 / $1,000,000) × $200,000.$150,000, (Amount Carried / Amount Required) × Loss = ($600,000 / $800,000) × $200,000.
10. A homeowners policy lists Coverage A at $300,000 and provides Coverage B (other structures) with no scheduled limit. What is the Coverage B limit?
$30,000, 10% of Coverage A$300,000, equal to Coverage A$60,000, 20% of Coverage A$150,000, 50% of Coverage A
11. Chapter 321A operates on what basis?
Universal compulsory insuranceVoluntary certification onlyA no-fault benefits schemeTriggered financial responsibility
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 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 issuedIt remains in force alongside the policy until the end of the first full annual policy term
13. An umbrella policy (personal or commercial) generally requires:
Specified minimum underlying limits on the primary HO/PAP/CGL/CA before the umbrella attachesNo underlying coverage of any kind, allowing the umbrella to drop down and respond from the first dollar of every covered lossLower underlying limits than the umbrella's own retention amount, which would create a coverage gap below the SIRAn ocean marine cargo policy in force on every covered shipment, regardless of whether the insured ships any goods by sea
14. A jeweler wants coverage for jewelry the store owns and for customer-owned jewelry being repaired. Which inland marine form fits best?
Personal Articles Form (PAF)Builders Risk FormJewelers Block PolicyMotor Truck Cargo Form
15. On an unendorsed homeowners policy, what is the default Coverage F (Medical Payments) per-person limit?
$2,500$5,000$1,000$500
16. Under most ISO commercial property forms, a building is generally considered 'vacant' when:
Interior furniture is rearranged into different configurations or rooms, regardless of whether the square-footage usage threshold has actually changedA single tenant moves out for one consecutive day during the policy term, which the BPP vacancy clause does not actually treat as vacancyThe owner is on vacation away from the insured location for any extended consecutive period during the policy term as stated on the dec pageIt contains less than 31% of the total square footage in customary use, and lacks customary contents/equipment for normal operations
17. Under 515B.5, what unearned premium does the association pay on a policy?
Above 500 up to 25,000 dollarsAbove 100 up to 10,000 dollarsThe whole unearned premiumThe first 10,000 dollars
18. On a dwelling form, Coverage D refers to:
Loss of use combined with ALEPersonal liabilityFair rental valueOther structures
19. A homeowners policy states: 'We will pay for direct physical loss to the dwelling.' This sentence most directly reflects which part of the policy?
The conditions.The declarations.The exclusions.The insuring agreement.
20. Personal liability coverage under a dwelling form is:
Built into the DP-3 only, as part of its open-perils coverageAvailable only by endorsement (Personal Liability Supplement)Built into all three dwelling forms at a basic limitAutomatically provided in an amount equal to Coverage A

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