Ohio Property Insurance Practice Questions
12 sample questions written from the Ohio exam outline, with answers and explanations. The first two are open. Enter your email to see the other ten.
Ohio tests Property and Casualty together on Series 11-36: 150 questions in 2.5 hours. You need 70% to pass. How to get the Ohio Property license →
Try two questions
1. A manufacturer ships its products to a trade show and sets up a display booth there. Which inland marine coverage is designed for this property while it is on display and in transit?
- A. Exhibition floater
- B. Bailee's customer policy
- C. Equipment breakdown coverage
- D. Builders risk policy
Show answer
Answer: A. Exhibition floater
An exhibition floater covers property displayed at trade shows and exhibitions, including while it travels to and from the show.
2. A town adopts floodplain rules that go beyond the National Flood Insurance Program minimums. Under the program's Community Rating System, residents of the town can earn:
- A. Higher building coverage limits than the program allows
- B. Discounts on their flood insurance premiums
- C. Coverage with no waiting period
- D. Free flood insurance
Show answer
Answer: B. Discounts on their flood insurance premiums
The Community Rating System rewards communities that do more than the minimum to reduce flood risk. Policyholders there get premium discounts.
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3. When a community first joins the National Flood Insurance Program and only limited amounts of coverage are available, the community is in the:
- A. Write Your Own Program
- B. Community Rating System
- C. Emergency Program
- D. Regular Program
Answer: C. Emergency Program
A newly participating community starts in the Emergency Program with lower limits. It moves to the Regular Program after its flood insurance rate map is issued and it adopts the required floodplain rules.
4. During a storm at sea, a cargo owner pays to move and protect her goods so they will not be ruined. The ocean marine clause that requires these steps and pays their reasonable cost is the:
- A. Free of particular average clause
- B. Warehouse to warehouse clause
- C. Inchmaree clause
- D. Sue and labor clause
Answer: D. Sue and labor clause
The sue and labor clause requires the insured to act to prevent or reduce a loss. The insurer pays the reasonable cost of doing so.
5. A business loses a lawsuit and wants to appeal. The court requires a bond guaranteeing the judgment will be paid if the appeal fails. This is an:
- A. License and permit bond
- B. Appeal bond
- C. Performance bond
- D. Bid bond
Answer: B. Appeal bond
An appeal bond is a court bond. It protects the winning party by guaranteeing payment of the judgment if the appeal is lost.
6. Under a commercial property coinsurance clause, whether the insured carried enough insurance is measured using the property's value:
- A. On the date the policy was bought
- B. At the most recent renewal
- C. At the time of the loss
- D. When the building was first built
Answer: C. At the time of the loss
Coinsurance compares the limit carried with the property's value when the loss happens. Rising values during the policy term can cause a penalty.
7. After a covered boiler breakdown, a business pays overtime and express shipping to make temporary repairs and speed up permanent repairs. Equipment breakdown coverage pays these costs as:
- A. Debris removal
- B. Extra expense coverage for a civil authority order
- C. Preservation of property
- D. Expediting expenses
Answer: D. Expediting expenses
Expediting expenses cover the reasonable extra cost of temporary repairs and of speeding up permanent repairs after a covered breakdown.
8. During a riot, looters break into a store and take stock. Under the commercial property basic causes of loss form, this loss is covered under which peril?
- A. Riot or civil commotion
- B. Burglary
- C. Vandalism
- D. Theft
Answer: A. Riot or civil commotion
The basic form does not cover theft, but riot or civil commotion includes looting that happens at the time and place of a riot.
9. A business wants open perils coverage for its computer hardware, software and data, including mechanical breakdown. Which inland marine coverage fits best?
- A. A jewelers block policy
- B. A transportation floater
- C. An electronic data processing policy
- D. A floor plan policy
Answer: C. An electronic data processing policy
An electronic data processing policy covers computer equipment and data, often on an open perils basis with breakdown coverage included.
10. A fire destroys stock that a store has already sold to a customer but not yet delivered. Under the standard commercial property valuation condition, this stock is valued at:
- A. Its actual cash value
- B. Its replacement cost new
- C. The store's original purchase cost
- D. The selling price, less discounts and expenses the store would have had
Answer: D. The selling price, less discounts and expenses the store would have had
The building and personal property form values sold but undelivered stock at its selling price, minus discounts and expenses the insured saves.
11. An appliance dealer buys its stock with a lender's loan, and the lender keeps an interest in the stock until each item is sold. Which inland marine coverage protects both the dealer and the lender?
- A. Floor plan coverage
- B. Contractors equipment floater
- C. Installation floater
- D. Accounts receivable coverage
Answer: A. Floor plan coverage
Floor plan coverage insures merchandise held for sale that is financed by a lender. It protects the interests of both the dealer and the lender.
12. A sprinkler head breaks and water ruins a store's stock. Which commercial property causes of loss forms cover sprinkler leakage?
- A. Special form only
- B. Basic, broad and special forms
- C. None, because it needs a separate water damage endorsement
- D. Broad and special forms only
Answer: B. Basic, broad and special forms
Sprinkler leakage is a named peril in the basic and broad forms, and the special form covers it as well.
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These are original questions written from the published exam outline. They are not taken from the state exam.
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