Free Property and Casualty Insurance Basics Practice Questions
Connecticut Property & Casualty exam (series 12-CT-04) — 120 practice questions.
Subtopics: Insurable interest, Indemnity, Actual cash value, Coinsurance, Subrogation, Proximate cause, Binder, Occurrence vs claims-made, Deductible, Other insurance, Salvage, Binders, Certificates of insurance, Standard fire policy, Vacancy, Cancellation, Mortgagee clause, Proof of loss, Appraisal, Loss payment, Company's options, Suit against insurer, Abandonment, Pro rata liability, Concealment and fraud, Increased hazard, Package policies, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Replacement cost, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Salvage and abandonment, Liberalization clause, Assignment condition, 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, 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, Policy territory, No benefit to bailee, Duty to defend, Premium audit, Claim settlement, Duties after loss, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. In property and casualty insurance, insurable interest generally must exist:
At the time of the loss
In property insurance, insurable interest must exist at the time of loss so the insured suffers a genuine financial loss.
2. Under the principle of indemnity, a property insurance claim payment should:
Restore the insured to the pre-loss financial condition
Indemnity restores the insured to the financial position held before the loss without allowing a profit.
3. Actual cash value is most commonly defined as:
Replacement cost minus depreciation
Actual cash value is generally calculated as replacement cost less depreciation at the time of loss.
4. A coinsurance clause in a commercial property policy is intended to encourage the insured to:
Insure the property to a stated percentage of its value
The coinsurance clause encourages insuring property to a stated percentage of value, or a penalty applies to partial losses.
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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.
