Free Property Casualty Basics Practice Questions
Maryland Personal Lines exam (series 20-29) — 131 practice questions.
Subtopics: Binder, Producer duty of care, Contributory negligence, Contributory negligence impact, Actual cash value, Insurable interest timing, Indemnity, Subrogation, Proximate cause, Pro rata other insurance, Salvage, Deductible purpose, Valued policy, Liability vs property, Loss settlement, Contributory negligence effect, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Appraisal provision, Vacancy, Real vs personal property, Negligence, Elements of negligence, Compensatory damages, Punitive damages, Bodily injury, Property damage, Occurrence, Absolute liability, Vicarious liability, Comparative negligence, Liability limits, Endorsement, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, Attractive nuisance, Hold harmless agreement, Additional insured, 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, 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, Suit against insurer, Proof of loss, Loss payment timing, Insurer repair option, Pair or set, Recovered property, Concealment or fraud, Service agreements, Nuclear hazard, Neglect exclusion, Power failure exclusion, Governmental action
Read the Property Casualty Basics study guide
Sample questions & answers
1. A binder in property and casualty insurance provides:
Temporary evidence of coverage until the policy is issued
A binder is temporary proof of coverage that is effective until the formal policy is issued or the binder is canceled.
2. A producer who negligently fails to obtain requested coverage for a client may face:
Liability for errors and omissions
Producers owe a duty of care; failing to procure requested coverage can expose the producer to errors and omissions (E&O) liability.
3. Under Maryland's negligence rule, a claimant who is found even slightly at fault for an auto accident generally:
Recovers nothing from the other driver
Maryland follows strict contributory negligence: a claimant who is even 1% at fault is generally barred from recovering from the other party, one of only a few states using this harsh rule.
4. Compared with comparative negligence states, Maryland's contributory negligence doctrine makes it:
Harder for a partly at-fault claimant to recover
Because any fault by the claimant bars recovery, Maryland's contributory negligence rule makes recovery harder than in comparative negligence states, an important point for auto liability claims.
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.
