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Wyoming Property Practice Exam

20 exam-style questions drawn from the same bank as our full Wyoming Property course (Wyoming 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. A carrier wants to roll out a new rate increase as quickly as possible. Two regulatory regimes are common: 'prior approval' (regulator must approve before use) and 'file and use' (carrier files and may use immediately or after a short waiting period, subject to later disapproval). Which statement best captures the practical consequence?
File-and-use generally lets the carrier implement rates quickly, but the regulator retains the right to disapprove and order corrective action (including refunds) after the factPrior-approval states deliver rate changes to market fastest because the regulator pre-screens every filing under the streamlined-review framework that fast-tracks any properly documented rate change submitted by an admitted carrierFile-and-use means the rate is permanent and cannot be challenged later under the finality-of-filing rule that locks any rate change against regulatory revision once a filing has been submitted to the departmentBoth regimes produce identical time-to-market; the difference is purely cosmetic under the harmonized-rate-filing framework that most state insurance departments now follow for personal-lines rate revisions
2. Homeowners coverage for trees, shrubs and plants is limited per tree to
$1,000$250$2,500$500
3. An office building is vacant for 75 days while the owner searches for new tenants. On day 71 a vandal breaks in and starts a fire, causing $400,000 in damage. The Commercial Property policy contains the standard vacancy provision and the building has been vacant beyond the threshold. Which outcome correctly applies the vacancy clause?
The vandalism loss is excluded and any other covered loss would be reduced by 15%The claim is denied entirely because vandalism is excluded after any period of vacancyThe claim is paid in full because fire is always a covered cause regardless of occupancyThe claim is paid but reduced by 15% because vacancy beyond 60 days reduces, rather than excludes, fire losses
4. A commercial tenant's lease contains a 'mutual waiver of subrogation' clause between landlord and tenant. The tenant's negligence causes a fire damaging the landlord's building. The landlord's carrier pays the building loss and then sues the tenant. Which is the most likely result?
The subrogation claim succeeds because the waiver is unenforceable against the carrierThe carrier may recover only attorney's fees, not the lossThe subrogation claim is reduced by the tenant's proportionate shareThe subrogation claim fails because the landlord waived subrogation rights pre-loss
5. When a homeowners limit is used up, debris removal adds an extra
10% of the limit20% of the limit5% of the limit15% of the limit
6. On a standard HO-3, Coverage C is automatically set at what percentage of Coverage A?
20%70%50%10%
7. A contractor's $40,000 mini-excavator is stolen overnight from a fenced job site. The contractor has a Contractors Equipment Floater with $250,000 blanket limit, $1,000 deductible, and the equipment was scheduled on the policy. Which statement is correct?
Coverage applies anywhere within policy territory; the floater is mobile property coverageCoverage applies only if the equipment was locked inside a building at the time of theftThe floater pays only the contractor's legal liability, not the value of its own equipmentCoverage applies only while the equipment is at the insured's own yard or permanent shop
8. Functional replacement cost is most useful when:
Standard replacement cost coverage is unavailable in the voluntary market for the structure, which is rare for ordinary residential exposures and is not what the HO-8 functional-replacement form actually addressesThe dwelling is brand new and built entirely with modern materials, in which case ordinary replacement cost coverage on the HO-3 already settles a partial loss using the same materials and methods originally usedCoverage A is set to actual cash value on a DP-1 Basic Form, which already settles partial dwelling losses on a depreciated basis and does not require any separate functional replacement endorsementThe cost to replace with current materials is significantly less than reproducing original construction (e.g., older homes with hand-plastered walls)
9. NFIP coverage that helps pay to bring a damaged building up to floodplain rules is
Elevation allowanceIncreased cost of complianceBuilding code upgradeOrdinance or law
10. Inland marine coverage for a jeweler's stock is the
Jewelers blockPersonal articlesValuable papersFine arts floater
11. An applicant completes a fully signed application for a homeowners policy and pays the first premium. The producer forwards it to the insurer the next morning. In contract terms, the application functions as:
The insurer's offer, the carrier's underwriting guidelines constitute a standing public offer that any applicant accepts by signing the formA binding contract by itself, once the application is signed and the first premium is tendered, the insurance contract is fully formedThe applicant's offer to enter into an insurance contract, which the insurer may accept or rejectA non-binding inquiry, the application is a pre-contractual request that creates no rights or duties until the policy is delivered
12. An insured submits a claim and during investigation the carrier asks to see the application. The application contradicts what the insured now tells the adjuster about prior losses. The carrier may use the application primarily because:
Applications carry no evidentiary weight after issuance under the merger-into-policy doctrine that extinguishes themThe application is a separate contract that overrides the policy under the parol-override rule applied during claim investigationThe application is incorporated into the policy and may be used to test the insured's statements at claim timeThe application is a public record available to the adjuster through state insurance department records on demand
13. A printing company sends $40,000 of inventory to a trade-show booth 600 miles from the insured premises. While the booth is unattended overnight, vandals destroy the inventory. The insured's Commercial Property policy describes premises only and does not list any off-premises locations. The policy contains the standard Property Off-Premises additional coverage. What is the most that can be recovered?
Up to $10,000 under the Property Off-Premises extension, subject to the deductibleUp to 25% of Business Personal Property limit, no separate sublimitNothing, property at a trade show is not 'at the described premises'The full $40,000, because the inventory remains the insured's property
14. An insurer issues a policy in reliance on the applicant's statement that the building had a functioning sprinkler system. After a fire, the insurer learns the sprinklers had been drained two years earlier and never recommissioned. To rescind for misrepresentation, the insurer must generally prove:
Only that the insured intended to commit fraud and willfully concealed the sprinkler-shutdown fact for the purpose of obtaining a more favorable rate at policy inceptionOnly that the statement was false at any point during the application interview, regardless of whether materiality or reliance can be shown by the carrier on these factsFalsity, materiality, and reliance, the false statement was about a material fact and the insurer relied on it in issuing the policyFalsity plus criminal intent beyond a reasonable doubt, the elevated criminal-burden standard that property insurers must meet before any post-loss rescission claim is permitted
15. A jury awards a plaintiff $50,000 in past medical bills, $30,000 in future lost wages, $75,000 for pain and suffering, and $200,000 in punitive damages after finding the defendant acted with malice. Which categories are considered compensatory rather than punitive?
Medical bills, lost wages, and pain and suffering are compensatory; punitive damages are separate.Only the medical bills, wages and pain-and-suffering are categorized as punitive under tort-reform statutes.Only the punitive award is compensatory; the rest are special damages payable to the state under fee-shifting rules.All four categories are compensatory because they were awarded to the plaintiff in a single judgment for tort damages.
16. A burglar enters a home through an unlocked window, trips on a child's toy, and breaks his ankle. He sues the homeowner. Under traditional rules, what duty did the homeowner owe?
Full duty of reasonable inspection and warning as to a business invitee.Duty to warn of known non-obvious dangers as to a licensee.Strict liability for any condition on the property.Only the duty to refrain from willful, wanton, or intentional harm to a trespasser.
17. 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?
UnilateralAleatoryBilateralConditional
18. Which homeowners form covers both the dwelling and personal property only for a list of broad named perils?
HO-6HO-2HO-3HO-5
19. The default homeowners Coverage F limit is
$1,000 per person$5,000 per person$10,000 per person$500 per person
20. The homeowners additional coverage for fire department service charges pays up to
$500$100$250$1,000

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