Free Casualty Insurance Basics Practice Questions
Pennsylvania Casualty & Allied Lines exam (series 16-05) — 163 practice questions.
Subtopics: Guaranty association, Auto cancellation, Commercial cancellation, Residential cancellation, Negligence elements, Comparative negligence, Statute of limitations, Claims-made vs occurrence, Duty to defend, Binders, Commercial renewal premium, Claims-made policies, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Proximate cause, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
Read the Casualty Insurance Basics study guide
Sample questions & answers
1. The Pennsylvania Property and Casualty Insurance Guaranty Association pays:
Covered claims of insolvent member insurers, within limits
The PA P&C Guaranty Association pays covered claims up to statutory limits when a member insurer is declared insolvent.
2. Cancellation and nonrenewal of a Pennsylvania private passenger auto policy are regulated by:
Article XX of the Insurance Company Law (Act 68)
Article XX of the Insurance Company Law (Act 68 of 1998) limits cancellation reasons and requires 60 days notice (15 days for nonpayment or suspension) for private passenger auto policies.
3. Midterm cancellation and nonrenewal of a Pennsylvania commercial casualty policy require the insurer to:
Provide written notice and a valid statutory reason
Pennsylvania's commercial cancellation/nonrenewal law requires advance written notice and a permissible statutory reason.
4. After a residential policy has been in effect more than 60 days, Pennsylvania allows midterm cancellation only for:
Stated reasons such as nonpayment or increased hazard
After 60 days, residential policies may be cancelled midterm only for stated reasons, with required notice.
All Casualty & Allied Lines topics
Practice: 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.
