Free Property and Casualty Insurance Basics Practice Questions
North Carolina Property & Casualty exam — 140 practice questions.
Subtopics: Replacement cost, Actual cash value, Coinsurance clause, Named vs open peril, Deductible purpose, Liability vs property, Endorsement, Pro rata, 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, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, 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, Strict liability, Vicarious liability, 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
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. Replacement cost coverage on a dwelling pays to repair or replace damaged property:
Without deducting depreciation
Replacement cost coverage pays the cost to repair or replace with like kind and quality without deducting depreciation, subject to limits and conditions.
2. Actual cash value is generally calculated as:
Replacement cost minus depreciation
Actual cash value typically equals the replacement cost of the property minus depreciation for age and wear at the time of loss.
3. A property coinsurance clause requires the insured to carry a stated percentage of value or face:
A reduced payment on a partial loss
A coinsurance clause reduces a partial-loss payment when the insured carries less than the required percentage; in North Carolina the clause is valid only if "coinsurance contract" is printed on the declarations or form.
4. A named perils property policy covers:
Only the perils listed in the policy
A named perils policy insures against only the perils specifically listed, while an open perils (all-risk) form covers all causes of loss except those excluded.
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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.
