Free Property and Casualty Insurance Basics Practice Questions
Nebraska Property & Casualty exam (series 13-04) — 142 practice questions.
Subtopics: Binders, Coinsurance purpose, Loss ratio, Insurable interest, Agreed value, Blanket coverage, Specific coverage, Functional replacement cost, Mortgagee clause, Salvage, Abandonment, Appraisal clause, Guaranty association purpose, Guaranty association membership, Covered claim cap, Workers compensation claims, Unearned premium, Guaranty association accounts, Advertising the guaranty association, Exhaustion of other coverage, Excluded amounts, Claims after insolvency, Assessments, Lines covered, Valued policy law, Valued policy perils, Valued policy conditions, Valued policy property type, Contents in valued-policy loss, Standard fire policy, Nuclear exclusion, Misrepresentation, Breach of warranty, Suit limitation clause, Attorney fees, Cancellation notice, Nonpayment notice, Cancellation reasons, Short-term policies, Notice content, Mailing proof, Exceptions to 44-522, Substitution of coverage, Premium finance cancellation, Cancellation provisions required, Rate standards, Rate filing effective date, Consent to rate, Prior approval lines, Auto rating disclosure, Residual market agreements, Policy form standards, Workers compensation forms, Matching, Consequential damage in repairs, Actual cash value worksheet, Nominal value property, Failure to exhibit property, Comparative negligence, Comparative negligence math, Equal fault, Joint and several liability, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, 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, 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, Insureds, Cancellation, Policy territory, No benefit to bailee, Duty to defend, Premium audit, Claim settlement, Appraisal, Duties after loss, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. A binder issued by a Nebraska producer provides:
Temporary coverage until the policy is issued or declined
A binder is temporary evidence of coverage pending issuance of the policy. Nebraska's 44-522(2) notice rules apply to binders of property and liability insurance as well as policies.
2. The coinsurance clause in a commercial property policy encourages the insured to:
Insure to an adequate percentage of value
The coinsurance clause rewards insuring to an adequate percentage of value and penalizes underinsurance.
3. The ratio of incurred losses to earned premium is the:
Loss ratio
The loss ratio compares incurred losses to earned premium to gauge underwriting results.
4. An owner has an insurable interest in property because the owner:
Would suffer a financial loss if it were damaged
Insurable interest exists because the owner would suffer a financial loss if the property were damaged.
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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.
