Free Property Casualty Basics Practice Questions
New Mexico Personal Lines exam (series 18-38) — 149 practice questions.
Subtopics: Comparative negligence, Cancellation notice, Coinsurance math, Proof of loss, Appraisal clause, Subrogation, Salvage, Pro rata cancellation, Premium refund math, Concealment, Insurable interest, Binder, Mortgagee rights, Credit information, Cancellation reasons, Insured cancellation, Cancellation for nonpayment, New policy cancellation, Midterm cancellation, Cancellation notice delivery, Binders, Guaranty association, Surplus lines, Rate standards, Credit-based insurance scores, Adverse action notice, Credit score updates, Credit inquiries, Credit disclosure, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Actual cash value, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, 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, Liability limits, Endorsement, 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, 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. New Mexico generally follows which rule when an injured party is partly at fault for an accident?
Recovery is reduced by the injured party's share of fault
New Mexico follows a pure comparative negligence approach, reducing a claimant's recovery by their percentage of fault.
2. A New Mexico personal auto insurer that cancels a policy mid-term generally must provide the insured:
Advance written notice
Insurers must give advance written notice of cancellation within the time the law requires so the insured can obtain replacement coverage.
3. A New Mexico home valued at $400,000 is insured for $280,000 under an 80% coinsurance clause. The required amount is $320,000. For a $40,000 loss the policy pays approximately (before deductible):
$35,000
Recovery equals (carried/required) times the loss: ($280,000/$320,000) x $40,000 = $35,000 before any deductible.
4. After a covered homeowners loss in New Mexico the insured is generally required to:
Submit a signed, sworn proof of loss
The insured must submit a signed, sworn proof of loss within the period the policy specifies after a covered loss.
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.
