Free Casualty Insurance Basics Practice Questions
North Dakota Casualty exam — 172 practice questions.
Subtopics: Scope of cancellation law, Policy term rule, Cancellation reasons, Cancellation notice, Proof of mailing, Five-day cancellation, Reason for cancellation, Nonrenewal notice, Renewal offer, Proof of mailing retention, Prohibited reasons, Occupation as a reason, Declination reasons, Declination defined, Renewal defined, Duplicate coverage, Penalties, Producer refusing application, Commercial cancellation, Commercial new policies, Commercial nonrenewal, Commercial renewal terms, Commercial scope, Loss of reinsurance appeal, Commercial notice to agent, Commercial dues cancellation, Modified comparative fault, Several liability, Auto property damage rule, TRIA program trigger, TRIA insurer deductible, TRIA federal share, TRIA annual cap, TRIA expiration, TRIA make-available, 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
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Sample questions & answers
1. North Dakota's property and casualty declination, cancellation, and nonrenewal rules in 26.1-39 apply to a policy covering a building with how many residential units, one of which is the named insured's home?
Not more than four
N.D.C.C. 26.1-39-10 applies to real property of not more than four residential units, one of which is the named insured's principal residence, plus household personal property and personal liability.
2. Which policy is NOT subject to North Dakota's personal property and casualty cancellation and nonrenewal rules in 26.1-39-10 through 26.1-39-21?
A policy issued through a residual market
N.D.C.C. 26.1-39-10 excludes workforce safety and insurance, automobile, inland marine, residual market, and commercial or industrial policies.
3. For North Dakota's personal property cancellation and nonrenewal rules, a policy written for a term of three months is treated as having a term of:
Six months
N.D.C.C. 26.1-39-10 treats any policy term of less than six months as six months and any term longer than one year, or with no fixed expiration, as one year.
4. After a North Dakota homeowners policy has been in effect more than 60 days, the insurer may cancel it for which reason?
Discovery of fraud in obtaining the coverage
N.D.C.C. 26.1-39-13(1) limits cancellation after sixty days (or after a renewal) to listed reasons, including nonpayment, fraud or material misrepresentation, willful or reckless acts increasing a hazard, and substantial change in risk.
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.
