North Dakota Property Practice Exam

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• What is typically the primary purpose of an insurance binder?
• If an insured's accounts receivable records are damaged, how can they cover the loss?
• After a fatal car accident, how long do survivors have to start legal action to seek benefits for funeral and burial expenses?
• What must a nonresident producer do to obtain a license in this state?
• What is the function of a real estate appraiser?
• What is the process of determining the premium charged and the amount of insurance required for a specific loss called?
• In the event of a house fire, how many days is an insured item covered at a new location under a standard fire policy?
• Which type of report contains information regarding an applicant's past insurance claims?
• How are disagreements between tenants and landlords typically resolved?
• A mortgage company is named as a loss payee on the insured's homeowners policy. If the insured suffers a loss due to a fire, what is true about the payment of the loss?
• Even though the Standard Fire Policy is a named peril contract, under which of the following circumstances would the policy provide "all risk of loss" coverage on insured property?
• What kind of policy protects an individual against damages caused by the actions of another party?
• Installing deadbolt locks on the doors of a home is an example of which method of handling risk?
• An additional loss that results from a direct loss of property is known as what?
• Which documents are typically required for a closing in North Dakota?
• When must insurable interest in a property policy be proven?
• What type of loss is experienced when a business is damaged and income is lost due to necessary repairs?
• Who typically initiates mediation in a dispute between a tenant and a landlord?
• Which type of insurance does NOT require an agent's signature for coverage to be valid in North Dakota?
• What disclosures are required for lead-based paint in properties built before 1978?
• What is the standard expiration period for a real estate license in North Dakota?
• When do insurance policies issued in this state begin covering the insured?
• What is the primary purpose of a property insurance policy?
• In the context of insurance claims, what does "Duties after Loss" refer to?
• Which of the following actions can an insurer take when they discover a material misrepresentation?
• What defines "real property" in North Dakota?
• What do representations made by an applicant in an insurance context refer to?
• Which aspect is most essential for effective mediation?
• What is the maximum amount the insurer will pay for a loss under a business owners policy?
• What does "equity" represent in real estate?
• The HO-3 homeowners policy provides what type of coverage?
• What is typically included in the obligations of a real estate broker?
• What policy exclusion applies to damage from wear and tear?
• What is a statement of information?
• What is the primary purpose of an appraisal?
• Which of the following is a key aspect of the Fair Housing Act?
• What is the primary role of closing disclosure in real estate transactions?
• Which of the following must an insurer obtain in order to transact insurance within a given state?
• What term describes the scenario when an insured provides truthful statements on an application and pays the required premium?
• When Frank's structure is destroyed by fire, how much will the policy pay?
• Which provision requires the insured to protect damaged property from further damage?
• What are property taxes based on?
• What is the primary responsibility of an escrow officer?
• What does the endorsement in an insurance policy do?
• When is a claim typically denied in an insurance policy?
• If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
• Every insurer in North Dakota must mail a policyholder's loss information within how many days of the insured's request?
• What is the maximum coverage limit for personal property in a standard homeowners policy?
• What is a prerequisite for coverage to be effective under a flood policy?
• If Transient Mutual Insurance Co. learns of a property line dispute after issuing a policy, how long do they have to cancel the policy?
• Which type of insurer is owned by stockholders?
• Who is authorized to sign the commissioner's name and perform other statutory duties when the commissioner is temporarily absent from the office?
• What happens to single dwellings insured at least 80% of replacement value?
• Why is it important for an insurer to provide a written notice before cancellation?
• Which insurance principle states that if a policy allows for greater compensation than the loss incurred, the insured may only receive benefits for the amount lost?
• What is the main difference between "exclusive right to sell" and "exclusive agency" listings?
• An insured whose policy has been in effect for more than 60 days received a notice from his insurer that his policy would be cancelled for nonpayment of premium. What must this notice also include?
• What does it indicate when a bank requires a customer to purchase insurance to obtain a loan?
• The North Dakota Insurance Code primarily serves to protect which group?
• Which type of lease does not have a fixed end date?
• What is an earnest money deposit?
• What is the purpose of the Multiple Listing Service (MLS)?
• What term is used to describe the total amount of money that the insurer is liable to pay for a covered loss?
• How is property value affected by location?
• What rating type will the insurer most likely use for a new, experimental aircraft?
• Under an HO-8 policy, theft coverage is restricted to what?
• What are the responsibilities of a real estate broker in North Dakota?
• What is NOT provided by the declarations page of a homeowners policy?
• A building insured with commercial property insurance has been vacant for more than 60 consecutive days. Which of the following is NOT true?
• What is the most common method for transferring risk?
• What can lead to legal proceedings in landlord-tenant disputes?
• Under homeowners insurance, which of the following would NOT be considered an insured?
• To qualify for replacement cost coverage, how much Coverage A would the insured need if the home’s replacement value is $60,000?
• In the context of forming an insurance contract, the principle that the insurer must rely on the statements in the application and the insured must trust the insurer to pay valid claims is called?
• Notice of nonrenewal of a property policy must be delivered with how much written notice?
• What legal document provides the ability to transfer property ownership?
• What is the purpose of a written notice of cancellation from an insurer?
• What does the falling object peril in the Broad Form (DP-2) policy cover?
• In which situation is arbitration most beneficial for resolving disputes?
• If a building under construction is destroyed halfway through construction, how does the state's Valued Policy Law affect the claim?
• What qualifies as a "material defect" in a property?
• What is typically included in the property coverage of a homeowners insurance policy?
• What does the term "title insurance" cover?
• What is the process for disputing a property tax assessment?
• What is often a first step for tenants before considering legal action?
• What does "zoning" control in real estate?
• What is a common inclusion in an insurance policy but NOT a condition?
• Which is a common reason for property appraisal?
• Which document contains information about a person's credit, character, and reputation?
• What action must a reporting agency take if a consumer challenges the accuracy of their report under the Fair Credit Reporting Act?
• The coverage territory of the businessowners policy (BOP) includes all of the following EXCEPT?
• What does the term "principal" refer to in a real estate transaction?
• Which of the following statements regarding insurable risks is NOT true?
• What does the term "land use" in zoning refer to?
• In which situation might an adjustable-rate mortgage be beneficial?
• Why is the New York Standard Fire Policy called "Standard"?
• What part of an insurance contract describes the covered perils and nature of coverage?
• Which of the following is true for a policy that covers loss under the fire department service charge?
• An insured's TV is stolen from a repair shop, but the owner's claim under the insured's policy is denied. Which provision is likely causing this denial?
• Merriweather Mutual Insurance issued a fire policy on an apartment building on June 10. On June 20, the insurer discovered that the apartment building has more occupants than permitted under the city's fire code. What is the latest date that it can cancel the policy?
• How does a seller's market differ from a buyer's market?
• What document shows that an insurer is authorized to transact business in a specific state?
• What must agents avoid to comply with ethical insurance practices?
• What is the statute of limitations for filing a lawsuit under standard fire policy?
• What does the term "closing" refer to in real estate transactions?
• Which of the following is NOT a common method of resolving landlord-tenant disputes?
• According to agency law, who does the producer represent?
• In North Dakota, how must a landlord handle security deposits?
• What are the implications of a breach of a real estate contract?
• What is a "contingency" in a real estate contract?
• Who would likely NOT be considered an insured under a homeowner's policy?
• When an insurer cancels a policy for reasons other than nonpayment, how many days notice must they provide before cancellation takes effect?
• What is the term for a buyer's right to rescind a purchase agreement?
• During whom may an acting deputy commissioner sign legal documents on behalf of the commissioner?
• What action constitutes rebating in the context of insurance sales?
• Which type of insurance policy requires the insured to maintain a specified percentage of coverage to avoid penalties?
• How often must real estate licensees in North Dakota complete continuing education?
• In property insurance, what does the term 'actual cash value' refer to?
• What is the maximum amount of earnest money that can be held in a transaction in North Dakota?
• Who is authorized to cancel an in-force insurance policy?
• What is an assumption of mortgage?
• What is the primary responsibility of a property manager?
• What does gap insurance in real estate cover?
• An insured's roof cost $4,000 when installed 5 years ago and is now damaged. If the roof depreciates $200 per year and the policy is written on the actual cash value, how much will the policy pay for a new roof costing $6,000?
• What is the special per occurrence limit for loss or damage to precious metals, stones, and other specified items under commercial crime coverage?
• What is the purpose of the North Dakota Guaranty Association?
• Circulating deceptive sales material falls under which category of unfair trade practices?
• What is a binder in insurance terms?
• If an agent is found guilty of rebating, what might be a potential penalty?
• When does coverage become effective for a National Flood Insurance Policy purchased after an emergency program begins?
• When might courts favor the insured regarding ambiguous contract terms?
• In the event of a cancellation, what is the minimum notice requirement an insurer must provide to the policyholder?
• Which of the following will be covered by the contractors equipment floater in unfiled inland marine insurance?
• What must homeowners insurance include under Section I?
• What action is considered disturbing to a tenant's right to quiet enjoyment?
• In the context of property insurance, what is considered nonpayment?
• What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?
• What does the unfair trade practice of defamation involve?
• What coverage is typically included in renters insurance?
• Which statement regarding builders risk coverage form is correct?
• Which item is NOT considered a pollutant under Section I - Property of the Businessowners policy?
• What coverage should a businessowner have to protect against property damage and loss of income?
• What must insurers provide to policyholders about their rights in the insurance policy?
• Which type of policy provides coverage for loss of rent due to a covered hazard?
• When doing business in North Dakota, an insurance company formed under the laws of another state is referred to as which type of insurer?
• What do policy conditions define in an insurance contract?
• How will courts generally interpret any ambiguity found in an insurance contract?
• Which of the following is NOT a common condition found in an insurance policy?
• What is a "subject to" deal?
• Which statement about coinsurance is NOT true?
• For a covered claim, what is the maximum payout from The Guaranty Association?
• When the insured's car was totaled in a recent accident, what is the term for the action of the insurer selling off the wrecked car to recover some of the loss it paid to the insured?
• In insurance, what does the term 'cancellation' refer to?
• Under what condition is an insurer allowed to provide only 5 days notice of cancellation, instead of the usual 30 days?
• Which of the following categories can equity in real estate fall into?
• What is a real estate investment trust (REIT)?
• What coverage is included in an unendorsed homeowners policy?
• If an insured with a Mobile Homeowners Policy moves their mobile home to prevent damage, how much will the policy pay?
• What distinguishes a buyer's agent from a seller's agent?
• Which information is usually included in a real estate listing?
• How many hours of education are required for a real estate salesperson in North Dakota?
• What is the primary purpose of the North Dakota Real Estate Commission?
• What does underwriting involve in real estate?
• What is the maximum civil penalty for violating North Dakota's insurance laws?
• What is the North Dakota Homestead Exemption?
• The risk of loss can be classified into which of the following categories?
• Which statement is true regarding the fire department service charge under the Builders Risk form?
• What is the minimum amount of Coverage A needed for replacement cost coverage if the replacement value is $60,000?
• Which role may temporarily take over the commissioner's duties during their absence?
• What does comprehensive coverage under an auto policy typically cover?
• What is the primary function of a written notice of policy cancellation?
• Which event typically triggers the payment of an insurance claim?
• Which of the following is an example of a misrepresentation in insurance?
• What characterizes a risk that can be insured?
• What does "dual agency" mean in real estate?
• Which entity oversees the regulation of insurance companies within North Dakota?
• What is the definition of "escrow" in real estate transactions?
• What type of coverage includes loss incurred due to vandalism or malicious mischief?
• In which scenario might arbitration be used to resolve property disputes?
• An insurer must mail a notice of nonrenewal for professional liability coverage for legal and medical services at least how many days before the policy expiration date?
• How much will the Loss Assessment coverage pay if each neighborhood association member is assessed $2,000?
• Which report provides underwriters with credit information about an insurance applicant?
• What section of an insurance policy details the perils that are not insured against?
• Which of the following is NOT covered under Additional Coverages in a homeowner's policy?
• What is a primary function of a property manager?
• Which of the following situations exemplifies risk transfer?
• When a person is named on a policy to receive payment in the event of a specified event, what are they referred to as?
• What is the Fair Housing Act?
• What term refers to other insurance that is written on the same risk but not on the same coverage basis?
• What characteristic defines legal proceedings in landlord-tenant disputes?
• What is the name of the endorsement that covers direct damage from utility service disruption?
• Which term describes the practice of spreading risk among multiple insurers?
• What is a "quitclaim deed"?
• In the context of property insurance, what does the term "exclusion" refer to?
• According to the loss payment condition in homeowners policies, how many days must a loss be paid after receiving proof of loss?
• What is true concerning the special form dwelling policy?
• In insurance transactions, fiduciary responsibility refers to what?
• What term describes the monetary limit the insurer will pay on a claim after deductibles?
• What role do home inspectors play in real estate transactions?
• What is the outcome of a successful mediation process between a tenant and a landlord?
• What is a comparative market analysis (CMA)?
• Which document provides a summary of coverage, conditions, limits, and exclusions found in an insurance policy?
• What is the validity period of a temporary insurance license in this state?
• What is an important factor that can affect the premium costs of property insurance?
• If an agent provides something of value in exchange for business, what is this practice commonly referred to?
• What is the term for the reduction of value in property insured by a peril?
• What role does mediation play in tenant-landlord disputes?
• When someone purchases insurance, which risk management technique are they using?
• Who will transport the property of anyone who hires them?
• What does the term "equity" mean in real estate?
• What is a listing agreement?
• What is the minimum coverage period for a North Dakota professional liability policy?
• An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
• What is a common characteristic of a pure risk?
• Which of the following is typically included in the purchase agreement?
• What effect does underinsuring property have on a coinsurance policy?
• Which of the following is NOT a requirement to obtain a real estate license in North Dakota?
• How long will a second shed be automatically covered under a building and personal property policy?
• What does "fiduciary duty" mean in the context of real estate?
• What type of deed provides the most protection for the buyer?
• What happens if a tenant feels their rights have been violated by a landlord?
• Which of the following is a consequence of engaging in rebating?
• Which type of property is NOT covered under the dwelling policy special form Coverage A - Dwelling?
• In North Dakota, who is responsible for conducting a title search?
• What is the purpose of the coinsurance clause found in property insurance policies?
• What is the maximum payout for pollution cleanup and removal under an equipment dealer's policy?
• What is the purpose of a property disclosure statement?
• What is a short sale?
• What is the impact of interest rates on real estate sales?
• In which type of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation?
• What is a lease option?
• What type of policy should an insured condominium unit owner purchase for fire and extended coverage?
• What constitutes a foreclosure?
• Which item is NOT excluded from coverage under a standard fire policy?
• How can a property be valued differently for tax purposes versus market purposes?
• Which method of dispute resolution is typically the most formal?
• What is a primary purpose of property insurance?
• When an insurer markets a policy, they must avoid which of the following?
• What is the primary legal framework governing residential leases in North Dakota?
• What is one advantage of mediation over legal proceedings?
• The limit of liability for personal property under many homeowners policies typically is?
• What provision requires the named insured to prepare an inventory of damaged property after a loss?