Free Property and Casualty Insurance Basics Practice Questions
Oklahoma Property & Casualty exam — 114 practice questions.
Subtopics: Comparative negligence, Insurable interest, Pro rata cancellation, Hazard, Limit of insurance, Liability versus property, Negligence, Strict liability, Vicarious liability, Compensatory damages, Mortgagee clause, Appraisal clause, Binders, Standard fire policy, Policy expiration time, Overinsurance, Proof of loss, Loss valuation, Coinsurance, 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, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, 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
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Sample questions & answers
1. Oklahoma uses modified comparative negligence for injury and property damage claims. Under 23 O.S. 13, an injured person's own negligence bars recovery only when it is:
Greater than the negligence of those at fault
23 O.S. 13 provides that contributory negligence does not bar recovery unless it is of greater degree than the defendant's (or defendants' combined) negligence; recovery is then reduced proportionally (23 O.S. 14).
2. Insurable interest in property insurance means the insured:
Would suffer a financial loss if it were damaged
Insurable interest exists when the insured would suffer a financial loss from damage to the property; ISO HO 00 03 limits payment to the amount of an insured's interest at the time of loss.
3. When an insurer cancels a policy midterm, the unearned premium is typically returned on a:
Pro rata basis
When the insurer cancels, unearned premium is returned pro rata; Oklahoma's standard fire policy, for example, refunds the excess above pro rata on insurer cancellation and uses short rates when the insured cancels.
4. Oily rags stored near a furnace are best described as a:
Hazard that increases the chance of fire
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.
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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.
