Free Property Casualty Basics Practice Questions
Montana Personal Lines exam — 129 practice questions.
Subtopics: Comparative negligence, Actual cash value, Insurable interest, Proximate cause, Binder, Endorsement, Subrogation, Salvage, Pro rata cancellation, Limit of liability, Peril, Consequential loss, Valued policy law, Damage reduction, 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, Pro rata other insurance, Vacancy, Real vs personal property, Negligence, Elements of negligence, Compensatory damages, Punitive damages, Bodily injury, Property damage, Occurrence, Absolute liability, Vicarious liability, Liability limits, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, 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, 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, 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 Montana driver found 51 percent negligent sues the other driver, who was 49 percent negligent. Under Montana's comparative negligence statute, the 51-percent driver:
is barred from recovering damages
Mont. Code Ann. 27-1-702 allows recovery only if the plaintiff's negligence was not greater than the negligence of the person sued; at 51 percent the plaintiff's negligence is greater, so recovery is barred.
2. Actual cash value is most commonly defined as:
replacement cost minus depreciation
Actual cash value is commonly replacement cost minus depreciation.
3. For property insurance, insurable interest generally must exist:
at the time of the loss
Property insurance requires insurable interest at the time of the loss.
4. The proximate cause of a loss is:
the cause that starts an unbroken chain of events
Proximate cause is the primary cause that sets in motion the chain of events leading to 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.
