Free Property and Casualty Insurance Basics Practice Questions
Louisiana Property & Casualty exam — 144 practice questions.
Subtopics: Direct action statute, Comparative negligence, Coinsurance, Occurrence policy, Claims-made policy, Valued policy, Other insurance, Vacancy, Bailee, Indemnity, Per-occurrence limit, Deductible, Replacement cost, Valued policy law, Valued policy exceptions, Valued policy definition, Valued policy and fraud, Insurable interest limit, Standard fire policy perils, Removal coverage, Proof of loss, Suit against insurer, Theft exclusion, Uninsurable property, Concealment or fraud, Appraisal umpire, Company options, Abandonment, When loss payable, Mortgagee proof of loss, Assignment, Pro rata liability, Standard fire policy required, Fire binders, Hazard increase, Claim payment deadline, Initiating adjustment, Catastrophic loss adjustment, Field adjuster report, Late-payment penalty, Written settlement offer, Catastrophic residential claims, Catastrophic commercial claims, Cure period notice, Joint check statement, Contractor overhead and profit, 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, Direct action caption, Insured insolvency, Prescription, Direct action against UM, Comparative fault, Modified comparative fault, Third-party payments, Insurable interest, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, 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, 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, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. Louisiana's direct action statute, R.S. 22:1269, as currently written, permits an injured claimant to:
Sue the insurer directly only in limited cases
Under the current statute, direct action against the liability insurer is allowed only in listed situations (e.g., the insured's bankruptcy or insolvency, failed service, UM carrier, deceased insured), and the insurer may not be named in the caption.
2. For accidents on or after January 1, 2026, Louisiana allocates fault among the parties under:
Modified comparative fault with a 51% bar
Acts 2025, No. 15 amended Civil Code art. 2323: a plaintiff 51 percent or more at fault recovers nothing; below that, damages are reduced by the plaintiff's percentage. Louisiana previously used pure comparative fault.
3. If a property owner insures a building for less than the coinsurance clause requires, a partial loss will be:
Penalized so the insurer pays less than the full loss amount
Underinsuring below the coinsurance requirement triggers a penalty that reduces the partial loss payment.
4. An occurrence-based liability policy covers claims arising from events that happen:
During the policy period regardless of when the claim is later filed
An occurrence policy responds to covered events that occur during the policy period even if the claim is filed later.
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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.
