Free Property and Casualty Insurance Basics Practice Questions
Maryland Property & Casualty exam (series 20-32) — 93 practice questions.
Subtopics: Contributory negligence and PD, Negligence elements, Strict liability, Vicarious liability, Consequential loss, Open peril, Coinsurance formula, Endorsement, Mortgagee clause, Appraisal provision, Policy structure, Vacancy clause, Contributory negligence, Contributory negligence effect, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy conditions, Actual cash value, Replacement cost, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Proof of loss, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, Comparative negligence, 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
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Sample questions & answers
1. In Maryland, a driver who was partly at fault for a collision generally finds that recovery of damages from the other driver is:
Barred under contributory negligence
Maryland retains common-law contributory negligence, which bars a negligent plaintiff from recovery; the Court of Appeals refused to adopt comparative negligence in Coleman (2013).
2. To establish negligence, a claimant generally must show duty, breach, damages, and:
Proximate cause linking the breach to the harm
Negligence requires a duty owed, breach of that duty, proximate causation, and actual damages.
3. Strict (absolute) liability may be imposed for:
Inherently dangerous activities, regardless of fault
Strict liability applies to abnormally dangerous activities (and some product cases) where liability attaches regardless of fault.
4. Vicarious liability holds a party responsible for the acts of:
Another person, such as an employee acting in the job
Vicarious liability imputes responsibility to one party (such as an employer) for the negligent acts of another (such as an employee on the job).
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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.
