Free Property Casualty Basics Practice Questions
North Carolina Personal Lines exam — 175 practice questions.
Subtopics: Replacement cost, Actual cash value, Deductible, Named vs open perils, Coinsurance, Endorsement, Proof of loss, Other insurance, SFP scope, SFP inception time, SFP valuation, SFP ordinance or law, SFP perils, SFP removal, SFP assignment, SFP concealment fraud, SFP uninsurable property, SFP manuscripts, SFP excluded perils, SFP neglect, SFP vacancy, SFP increased hazard, SFP explosion, SFP waiver, SFP insurer cancellation, SFP refund methods, SFP mortgagee notice, SFP mortgagee proof, SFP pro rata liability, SFP duties after loss, SFP proof of loss, SFP examination under oath, SFP appraisal timing, SFP umpire, SFP appraisal award, SFP appraisal costs, SFP company options, SFP abandonment, SFP when payable, SFP suit limitation, SFP subrogation, SFP other insurance, Binder duration, Binder terms, Lender binder, Notice to agent, Coinsurance contract stamp, Coinsurance rates, Overinsurance and term, Functional replacement, Total loss limit, Mortgagee payment timing, Undisclosed mortgage, Late proof of loss defense, Perils warning notice, Ice snow sleet, Mediation scope, Mediation threshold, Mediation request, Mediation fees, Mediation notice, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Subrogation, Salvage, 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, Comparative negligence, Liability limits, Binder, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, Proximate cause, 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, 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, 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, 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. Replacement cost coverage on a home pays to repair or rebuild:
Without deducting depreciation
Replacement cost coverage pays to repair or replace with like kind and quality without depreciation, subject to limits and conditions such as actually rebuilding.
2. Actual cash value on personal property is generally:
Replacement cost minus depreciation
Actual cash value generally equals replacement cost minus depreciation at the time of loss.
3. A deductible on a homeowners policy is:
The part of a claim the insured pays
A deductible is the portion of a covered loss the insured retains; higher deductibles generally lower the premium.
4. An open-perils (special) form covers:
All causes except exclusions
An open-perils form covers all causes of loss except those excluded, while a named-perils form covers only listed causes.
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.
