Free Property Casualty Basics Practice Questions
Louisiana Personal Lines exam — 164 practice questions.
Subtopics: Direct action statute, Comparative negligence, Insurable interest, Proximate cause, Physical hazard, Moral hazard, Morale hazard, Negligence, Declarations, Exclusions, Subrogation, Salvage, Valued policy law, Valued policy exceptions, Valued policy and fraud, Standard fire policy perils, Removal coverage, Vacancy, Proof of loss, Suit against insurer, Theft exclusion, Uninsurable property, Concealment or fraud, Abandonment, Assignment, Standard fire policy required, Claim payment deadline, Initiating adjustment, Catastrophic loss adjustment, Field adjuster report, Late-payment penalty, Written settlement offer, Catastrophic residential claims, Cure period notice, Joint check statement, Depreciation explanation, Replacement cost holdback, Preferred contractors, Residential appraisal clause, Appraisal expenses, Arson investigations, Producer notification, Good faith duty, Insured good faith, Claim check processing, Direct action, Insured insolvency, Direct action against UM, Comparative fault, Modified comparative fault, Policy structure DICE, Insuring agreement, Actual cash value, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Appraisal provision, Pro rata other insurance, Real vs personal property, Elements of negligence, Compensatory damages, Punitive damages, Bodily injury, Property damage, Occurrence, Absolute liability, Vicarious liability, Liability limits, Binder, Endorsement, Stated value vs agreed value, Mortgagee clause, Attractive nuisance, Hold harmless agreement, Additional insured, Valued policy, Blanket vs specific, Liability vs property insurance, Duties after loss, Concurrent causation, Conditions section, Definitions section, Pair or set clause, Inflation guard, Aggregate limit, Combined single limit, Sublimit, Retention, Primary vs excess coverage, Excess other insurance clause, Escape other insurance clause, Flat cancellation, Pro rata cancellation, Short-rate cancellation, Nonrenewal, Liberalization clause, No benefit to bailee, Loss payable clause, Sue and labor, Occurrence trigger, Retroactive date, Extended reporting period, Contributory negligence, Last clear chance, Res ipsa loquitur, Assumption of risk, Negligence per se, General vs special damages, Nominal damages, Direct vs consequential loss, Time element coverage, Catastrophe, Floater, Wear and tear exclusion, Inherent vice exclusion, Mysterious disappearance, Pollution exclusion, Earth movement exclusion, Personal injury offense, Duty to defend, Defense within limits, Statute of limitations, Pure premium, Exposure unit, Reasonable repairs, Actual cash value calculation, Valuation calculation, Other insurance calculation, Pro rata refund calculation, Waiver of subrogation, Mortgage clause, Defense costs, Insurable interest limit, Deductibles, Appraisal, Appraisal costs, Loss payment timing, Insurer repair option, Pair or set, Recovered property, Service agreements, Nuclear hazard, Neglect exclusion, Power failure exclusion, Governmental action
Read the Property Casualty Basics study guide
Sample questions & answers
1. A notable feature of Louisiana law is its direct action statute, which generally allows an injured third party to:
Sue the insurer directly in limited situations
R.S. 22:1269(B) allows direct action against the liability insurer only in listed circumstances, such as the insured's bankruptcy or insolvency or when the insurer is a UM carrier.
2. Under Louisiana Civil Code art. 2323 as amended effective January 1, 2026, a claimant who is partly at fault:
Recovers reduced damages if under 51% at fault
Acts 2025, No. 15 replaced pure comparative fault: a claimant 51 percent or more at fault recovers nothing, and one less than 51 percent at fault recovers damages reduced by that percentage.
3. In property insurance, insurable interest must exist:
At the time of the loss
Property insurance requires the insured to have an insurable interest at the time of loss to collect.
4. The unbroken chain of events leading to a loss is referred to as the:
Proximate cause
Proximate cause is the event that sets in motion an unbroken chain of events resulting in the loss.
Practice: Property Casualty 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.
