Free Property and Casualty Insurance Basics Practice Questions
North Dakota Property & Casualty exam — 159 practice questions.
Subtopics: Insurable interest, Pro rata cancellation, Hazard, Limit of insurance, Liability versus property, Negligence, Strict liability, Vicarious liability, Compensatory damages, Mortgagee clause, Appraisal clause, 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, Valued policy law, Valued policy exception, Valued policy - other structures, Builders risk valuation, Standard fire policy, Suit limitation, Transfer of interest, Other insurance, Standard fire policy scope, Nonstandard fire policy, Terrorism and fire, Increase in risk, Fire protection class, Reopened claims, Supplemental claims, Bad faith claims, Notice of fire loss, Willful act, Proximate cause, Rescue of property, Valued policy defined, Open policy defined, 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, Loss valuation, Coinsurance, Damages, Types of loss, Insurer provisions, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, Replacement cost, 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, Punitive damages, Special vs general damages, 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. Insurable interest in property insurance means the insured:
Would suffer a financial loss if the property were damaged
Insurable interest exists when the insured would suffer a genuine financial loss from damage to the property.
2. When an insurer cancels a policy midterm, the unearned premium is typically returned on a:
Pro rata basis
Insurer-initiated cancellation generally returns unearned premium pro rata, while an insured-requested cancellation may be short rate.
3. Oily rags stored near a furnace are best described as a:
Hazard
A hazard is a condition that increases the chance or severity of a loss, such as oily rags near a heat source; fire is the peril.
4. The limit of insurance shown on a property policy represents:
The most the insurer will pay for a covered loss
The limit of insurance is the maximum the insurer will pay for a covered loss, subject to the policy terms.
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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.
