Free Property and Casualty Insurance Basics Practice Questions
Arkansas Property & Casualty exam — 108 practice questions.
Subtopics: Indemnity, Occurrence policy, Claims-made policy, Valued policy, Vacancy, Per-occurrence limit, Replacement cost, Other insurance pro rata, Indirect loss, Short-rate cancellation, First-party coverage, Property insurance defined, Marine insurance defined, Valued policy law, Proof of loss, Exhibiting damaged property, Settling coverages separately, Arson exception, Payment responsibility, Casualty insurance defined, Comparative fault, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, Comparative negligence, Strict liability, Vicarious liability, Punitive damages, Special vs general damages, Proximate cause, Absolute liability, Hold harmless, Bailee liability, Attractive nuisance, Res ipsa loquitur, Coinsurance calculation, Actual cash value calculation, Split limits application, Underwriting, Credit-based insurance scores, Loss ratio, Insureds, Cancellation, Policy territory, No benefit to bailee, Duty to defend, Premium audit, Claim settlement, Appraisal, Duties after loss, Abandonment, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. The principle of indemnity means an insured should be:
Restored to the pre-loss position, without profit
Under the principle of indemnity, the insured recovers the loss but should not profit from it.
2. An occurrence-based liability policy covers claims arising from events that happen:
During the policy period, whenever the claim is made
An occurrence policy responds to injury or damage that happens during the policy period, even if the claim is made later.
3. A claims-made liability policy generally covers a loss only if:
The claim is first made during the policy period or ERP
Arkansas defines a claims-made policy as one covering a claim first made during the policy period; an extended reporting period extends the time to report.
4. Under a valued policy, a total loss is paid:
At the amount stated in the policy
A valued policy pays the agreed amount stated in the policy upon a total loss.
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Practice: Property and 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.
