Free Casualty Insurance Basics Practice Questions
Michigan Casualty exam (series 16-68) — 133 practice questions.
Subtopics: Casualty cancellation notice, Comparative fault, Insured bankruptcy, Late notice, Notice to agent, Insurer not a defendant, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
Read the Casualty Insurance Basics study guide
Sample questions & answers
1. Under section 3020, a Michigan casualty policy (other than workers compensation) may be canceled by the insurer by mailing written notice of at least:
10 days
Section 3020(1)(b) requires a not-less-than 10 days' written notice of cancellation mailed to the insured's last known address.
2. In a Michigan personal injury suit, if the plaintiff's fault is greater than the combined fault of all others, the plaintiff:
Gets reduced economic damages only
MCL 600.2959 reduces economic damages by the plaintiff's share of fault and bars noneconomic damages when the plaintiff's fault exceeds the aggregate fault of others.
3. Michigan requires liability policies to state that the insured's insolvency or bankruptcy:
Does not release the insurer
Section 3006 requires a provision that insolvency or bankruptcy of the insured does not release the insurer, and allows a garnishment action by the injured person.
4. Under required Michigan liability policy provisions, failing to give notice within the policy's time limit does NOT invalidate a claim if:
Timely notice was impossible, then given promptly
Section 3008 requires a provision that late notice does not invalidate a claim if it was not reasonably possible to give notice in time and notice was given as soon as reasonably possible.
Practice: 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.
