Free Property and Casualty Insurance Basics Practice Questions
Oregon Property & Casualty exam (series 12-04) — 124 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, Binders, Binder duration, Binder terms, Representations, Misrepresentation defense, Policy delivery, Premium increase explanation, Guaranty association, Guaranty limit, Guaranty workers comp, Guaranty exclusions, Guaranty membership, Guaranty net worth, Guaranty assessments, Unfair discrimination location, Fire policy cancellation, Return premium, Insurer cancellation refund, Package policy cancellation, Suit against insurer, Concealment or fraud, Proof of loss, Return premium on total loss, Commercial liability cancellation, Commercial liability notice, Cancellation hearing, Burden of proof, Renewal on worse terms, Proof of mailing, Exempt policies, Commercial new policy, Multiyear guarantee, 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, Direct vs indirect loss, Comparative negligence, 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
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 or destroyed
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 that increases the chance of a 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.
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.
All Property & Casualty topics
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.
