NMPCIP - New Mexico Property and Casualty Insurance Producer

Question 1: Immediately after discovering a break-in and theft from a warehouse, an insured must take several required steps before the insurer will process the claim, including giving prompt notice and protecting the property from further damage. Which loss condition sets out these required steps?

the appraisal condition

the legal action against us condition

duties in the event of loss

the mortgageholders condition

Question 2: An insured's policy declarations show that a damaged building will be valued without any deduction for depreciation, based on the cost to repair or replace it with new materials of like kind and quality. Which valuation basis does this describe?

replacement cost

actual cash value

agreed value

functional replacement cost

Question 3: Two companies sign an advertising services agreement, and one later sues the other for breaching the contract's payment terms, without alleging a separate offense such as libel or copyright infringement. The insurer reviews the personal and advertising injury coverage for a defense to this suit. Which exclusion bars this claim?

contractual liability exclusion

knowing violation exclusion

breach of contract exclusion

criminal acts exclusion

Question 4: An aging commercial roof, well over a decade old, is damaged in a covered windstorm, and the insurer settles the claim by deducting an amount for the roof's age and prior wear from its replacement cost. Which valuation basis was applied to this claim?

replacement cost

agreed value

functional replacement cost

actual cash value

Question 5: A dispute arises under a special causes of loss form over which party must establish that a particular exclusion, rather than a covered cause, produced the damage that formed the basis of a filed property claim. Under an open-perils form, where does that burden generally fall?

the insurer must prove an exclusion applies

the insured must prove a named peril

neither party bears any burden of proof

the courts assign it case by case

Question 6: A retailer's warehouse inventory value rises sharply for several months leading up to a busy holiday shopping season, exceeding the limit of insurance that applies the rest of the year. Which endorsement automatically increases the limit during that specific seasonal period?

the agreed value option

the value reporting form

the peak season limit of insurance endorsement

the newly acquired property extension

Question 7: A municipality bills a business owner a flat response fee for sending fire apparatus to extinguish a blaze at the insured's retail shop, under a standing contractual arrangement with the local fire department. Which additional coverage reimburses that billed fee?

debris removal

preservation of property

pollutant cleanup and removal

fire department service charge

Question 8: An insured business carries a businessowners policy and, unknown to the insurer, also purchases a separate standalone commercial property policy covering the identical building for the identical covered peril. When a covered loss occurs, the other insurance condition typically directs the businessowners insurer to pay what portion of the loss?

its pro rata share of the loss

the full loss with no reduction

nothing until the other policy pays

double the amount otherwise owed

Question 9: During a premium audit conducted a year after the policy incepted, an insurer asks a policyholder to produce ledgers and payroll records related to a covered warehouse property. Which common policy condition gives the insurer this right to examine the insured's books and records?

the inspections and surveys condition

duties in the event of loss

examination of your books and records

the transfer of rights condition

Question 10: A small consulting firm has no owned vehicles listed on its businessowners policy, but employees occasionally use their own personal cars to run errands for the company, and the firm also periodically rents cars for client visits. Which endorsement would extend liability protection to the firm for these two exposures?

protective safeguards endorsement

outdoor signs endorsement

employee dishonesty endorsement

hired and non-owned auto liability

Question 11: After a severe windstorm topples part of a warehouse roof, the insured incurs significant costs hauling away broken lumber and scattered debris before any rebuilding work can begin. Which additional coverage under the building and personal property coverage form addresses those cleanup costs?

debris removal

preservation of property

fire department service charge

pollutant cleanup and removal

Question 12: A customer at a bakery burns her hand on a hot display case and requires a visit to an urgent care clinic. The bakery's insurer pays for that visit under a no-fault provision, subject to a cap on the amount payable for each injured person. Which limit governs this payment?

each occurrence limit

medical expense limit

products-completed operations aggregate

damage to premises rented limit

Question 13: A fire destroys an insured's filed contracts and customer records stored at the described premises, and the business must pay to research and recreate the lost information. Which coverage extension under the building and personal property coverage form applies to that cost, up to its own limit?

accounts receivable extension

outdoor property extension

valuable papers and records

preservation of property

Question 14: A commercial property producer reviews the common declarations page before binding a package policy to confirm the information that ties every coverage part together under one contract. Which of the following items is normally found on that common declarations page?

the coinsurance percentage for each building

the causes of loss form selected

the business income period of restoration

the named insured and policy period

Question 15: A restaurant owner insures the structure itself along with completed additions, permanently installed fixtures, and outdoor fixtures such as a walk-in cooler pad attached to the building. Under the building and personal property coverage form, this description fits which covered property category?

covered property -- building

business personal property

personal property of others

property not covered

Question 16: A visitor to an insured shop scrapes her arm on a display rack and needs a brief clinic visit, and the businessowners policy pays for that visit without any finding of fault, subject to a per-person cap. Which part of Section Two liability coverage provides this no-fault benefit?

bodily injury liability coverage

medical expenses coverage

personal and advertising injury coverage

damage to premises rented coverage

Question 17: A property owner upgrades from the basic form to a broader causes of loss form specifically to gain coverage for glass breakage and for damage caused by falling objects striking the roof. Which causes of loss form adds these perils to the basic list?

the special form

the basic form

the broad form

the equipment breakdown form

Question 18: After a claims-made policy is cancelled, the named insured pays an additional premium to purchase a longer reporting window, often extending for several years, so that claims for earlier wrongful acts can still be reported well beyond the brief automatic tail. What is this optional purchase called?

basic extended reporting period

occurrence conversion endorsement

prior acts endorsement

supplemental extended reporting period

Question 19: A visitor trips on a small step at a retail shop and suffers a scraped knee requiring a brief clinic visit. The store's insurer pays for that visit, without requiring any finding that the store was at fault for the fall. Which coverage part allows this payment regardless of liability?

medical payments coverage

bodily injury liability coverage

personal and advertising injury coverage

products and completed operations coverage

Question 20: A company's marketing director publishes an advertisement she personally knows contains false and defamatory statements about a rival business, intending the statements to harm that rival's reputation. When the rival sues, the insurer denies the personal and advertising injury claim entirely. Which exclusion most likely supports that denial?

pollution exclusion

knowing violation of rights exclusion

recall of products exclusion

employment related practices exclusion

NMPCIP New Mexico Property and Casualty Insurance Producer - Set 4 - Part 1

Question 1: Immediately after discovering a break-in and theft from a warehouse, an insured must take several required steps before the insurer will process the claim, including giving prompt notice and protecting the property from further damage. Which loss condition sets out these required steps?

Question 2: An insured's policy declarations show that a damaged building will be valued without any deduction for depreciation, based on the cost to repair or replace it with new materials of like kind and quality. Which valuation basis does this describe?

Question 4: An aging commercial roof, well over a decade old, is damaged in a covered windstorm, and the insurer settles the claim by deducting an amount for the roof's age and prior wear from its replacement cost. Which valuation basis was applied to this claim?

Question 5: A dispute arises under a special causes of loss form over which party must establish that a particular exclusion, rather than a covered cause, produced the damage that formed the basis of a filed property claim. Under an open-perils form, where does that burden generally fall?

Question 6: A retailer's warehouse inventory value rises sharply for several months leading up to a busy holiday shopping season, exceeding the limit of insurance that applies the rest of the year. Which endorsement automatically increases the limit during that specific seasonal period?

Question 7: A municipality bills a business owner a flat response fee for sending fire apparatus to extinguish a blaze at the insured's retail shop, under a standing contractual arrangement with the local fire department. Which additional coverage reimburses that billed fee?

Question 9: During a premium audit conducted a year after the policy incepted, an insurer asks a policyholder to produce ledgers and payroll records related to a covered warehouse property. Which common policy condition gives the insurer this right to examine the insured's books and records?

Question 12: A customer at a bakery burns her hand on a hot display case and requires a visit to an urgent care clinic. The bakery's insurer pays for that visit under a no-fault provision, subject to a cap on the amount payable for each injured person. Which limit governs this payment?

Question 14: A commercial property producer reviews the common declarations page before binding a package policy to confirm the information that ties every coverage part together under one contract. Which of the following items is normally found on that common declarations page?

Question 16: A visitor to an insured shop scrapes her arm on a display rack and needs a brief clinic visit, and the businessowners policy pays for that visit without any finding of fault, subject to a per-person cap. Which part of Section Two liability coverage provides this no-fault benefit?

Question 17: A property owner upgrades from the basic form to a broader causes of loss form specifically to gain coverage for glass breakage and for damage caused by falling objects striking the roof. Which causes of loss form adds these perils to the basic list?

Question 19: A visitor trips on a small step at a retail shop and suffers a scraped knee requiring a brief clinic visit. The store's insurer pays for that visit, without requiring any finding that the store was at fault for the fall. Which coverage part allows this payment regardless of liability?

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