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Massachusetts Property Practice Exam

20 exam-style questions drawn from the same bank as our full Massachusetts Property course (Massachusetts 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 of the following is NOT among the standard HO-3 dwelling exclusions?
Vehicle damage caused by a non-residentEarth movementFloodNuclear hazard
2. Which of the following is typically NOT covered under an unendorsed builders risk policy?
Temporary structures used by the contractorFoundations and underground utilitiesMaterials in the course of construction at the project siteTrees, shrubs, and landscaping
3. The crime term 'theft' typically encompasses:
Any act of stealing, including burglary, robbery, embezzlement, larceny, and shopliftingOnly burglary with forcible entry and visible marks of forced exit, a much narrower trigger than the general theft definition under crime formsOnly robbery involving the use of force or threat against an individual, which is a narrower subset of theft and not the full termOnly employee dishonesty covered under the Commercial Crime CR 00 20 employee-theft insuring agreement and never any third-party stealing
4. A building is insured for $400,000 with a 90% coinsurance clause. The replacement cost is $500,000. The insured suffers a $50,000 covered loss (no deductible). How much will the insurer pay?
$44,444$50,000$40,000$45,000
5. 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.$120,000, ($600,000 / $1,000,000) × $200,000.$200,000, the full loss is paid; coinsurance does not reduce partial-loss recoveries.$150,000, (Amount Carried / Amount Required) × Loss = ($600,000 / $800,000) × $200,000.
6. Which section of a standard property insurance policy identifies the specific property covered, the policy period, the premium, and the named insured?
Declarations pageConditionsExclusionsInsuring agreement
7. The NFIP General Property Form is used for:
Single-family owner-occupied homes of one to four unitsRenters who need contents-only coverage for an apartmentCondominium association master policies on whole buildingsNon-residential buildings, including most commercial structures
8. An inland marine 'bailee' form differs from a typical property form in what important respect?
Bailee forms insure the named insured's LEGAL LIABILITY for damage to customers' property in the bailee's care, custody, or controlBailee forms cover real property such as the bailee's premises rather than personal property such as the customer goods stored on those premisesBailee forms require no proof of loss because the bailee's possession of the property is treated as conclusive evidence of value and damageBailee forms cover the bailee's own stock and inventory instead of customer property, treating the customer's goods as outside the scope of coverage
9. Under the standard mortgagee clause, if the insurer voids the policy because the INSURED committed arson, the mortgagee's interest is:
Reduced to 50 percent of the outstanding mortgage balance at the time of loss.Protected; the mortgagee's coverage remains in force despite the insured's acts.Also voided, because the mortgagee has no rights independent of the insured's.Protected only if the mortgagee itself reported the arson to the insurer.
10. In January, a homeowner sells a rental house to a new buyer but does not cancel her existing homeowners policy on the property. In March, while the policy is still technically in force, a fire destroys the house. The buyer failed to arrange his own coverage. Can the former owner collect under her policy?
No, a property policy automatically terminates the moment the property is sold, so there was no policy in force on the date of loss.Yes, she paid the premium and the policy was in force on the date of the loss, so the insurer must pay her claim in full.No, in property insurance, insurable interest must exist at the time of loss, and she no longer had a financial stake in the house.Yes, in property insurance insurable interest only has to exist at policy inception, and she owned the house when the policy was written.
11. How much written notice of cancellation does the standard fire policy require the company to give the insured, and how much to a named mortgagee?
Five days to the insured, twenty days to the mortgageeTen days to the insured, ten days to the mortgageeThirty days to both the insured and the mortgageeTwenty days to the insured, five days to the mortgagee
12. Builders Risk coverage typically insures what?
A structure while under construction, including materials and supplies at the siteThe completed building for 12 months after the certificate of occupancy is issuedA contractor's fleet of pickups and trailers used to carry workers and tools to the job siteA homeowner's furniture and household goods while in transit between two residences
13. When an insurer terminates a producer's appointment in Massachusetts, the insurer must notify the Division within what timeframe under Mass. Gen. Laws Ch. 175 § 162S?
30 days15 days10 days60 days
14. When a manuscript endorsement and a printed policy form conflict, which generally controls?
The handwritten or typed manuscript endorsement, because it represents the parties' specific intentNeither, the policy is automatically voided whenever a printed form and a manuscript endorsement conflict on any material coverage pointWhichever document was signed last by either party, regardless of which is more specific to the parties' actual agreement on the disputed termThe printed policy form, on the theory that the printed forms are filed with the department first and thus have priority over any later endorsement
15. Replacement cost coverage on real property requires the insured to:
Pay no deductible on any covered partial loss, so the full replacement cost is recoveredSchedule each item of real property individually on the declarations with an agreed valueCarry coverage equal to a stated percentage of full replacement cost (typically 80%)Elect a stated value option on the declarations page that caps recovery at a pre-agreed amount
16. Earthquake coverage is added to a homeowners or dwelling policy via:
Automatic coverage under the unendorsed HO-3, which names earth movement as a perilAn earthquake endorsement (e.g., HO-04-54) or a separate earthquake policyA Standard Fire Policy on the dwelling, which includes earthquake as an allied lineThe federal flood policy (SFIP), which covers ground shaking as earth movement
17. A Massachusetts insurer refuses to issue a homeowners policy solely because the applicant rents rather than owns a home and has a low income. Under Ch. 175 § 95B as described in the lesson, this refusal is:
Permitted, because income and homeownership are legitimate underwriting factorsProhibited only if the applicant can also show discrimination based on race or sexProhibited, because § 95B bars decisions based solely on income or homeownership statusPermitted, as long as the insurer offers the applicant coverage through the FAIR Plan
18. Punitive damages are intended to:
Compensate the plaintiff for pain and suffering that goes beyond the measurable economic loss.Punish the defendant for egregious or intentional misconduct and deter similar conduct.Cover the plaintiff's attorney fees that exceed the contingency percentage set in the fee agreement.Reimburse the plaintiff for future medical costs that are expected to arise from the injury.
19. Which of the following endorsements would an ISO homeowners policyholder need to add to obtain coverage for identity-theft expenses, legal fees, and lost wages resulting from identity theft?
Identity Fraud Expense Coverage EndorsementPersonal Injury Endorsement (HO 24 82)Inflation Guard EndorsementScheduled Personal Property Endorsement
20. A Commercial General Liability (CGL) policy is most commonly issued on which ISO form number?
BP 00 03CP 00 10CA 00 01CG 00 01

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