Free Casualty Insurance Basics Practice Questions
Arkansas Casualty exam — 133 practice questions.
Subtopics: Casualty insurance defined, Comparative fault, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
Read the Casualty Insurance Basics study guide
Sample questions & answers
1. Which coverage is included in the Arkansas Insurance Code definition of casualty insurance?
Workers' compensation and employer's liability
Ark. Code 23-62-105(a) lists casualty classes including vehicle, liability, workers' compensation and employer's liability, burglary and theft, glass, boiler and machinery, credit, and malpractice.
2. Under the Arkansas Insurance Code, insurance against loss by burglary, theft, forgery, or fraud is classified as:
Casualty insurance
Ark. Code 23-62-105(a)(4) places burglary and theft insurance within casualty insurance.
3. Arkansas uses a modified comparative fault rule. A claimant can recover damages from a defendant only if the claimant's fault is:
Less than that defendant's fault
Ark. Code 16-64-122(b): a claimant whose fault is less than the defendant's may recover reduced damages; if equal to or greater, recovery is barred.
4. In an Arkansas two-car accident, the jury finds the plaintiff 30% at fault and the defendant 70% at fault, with damages of $100,000. The plaintiff recovers:
$70,000
Under Ark. Code 16-64-122(b)(1), the plaintiff's damages are diminished in proportion to the plaintiff's own fault: $100,000 less 30% = $70,000.
Practice: Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
