Free Property and Casualty Insurance Basics Practice Questions
Rhode Island Property & Casualty exam — 92 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, Indemnity, 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, Proof of loss, 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. In a Rhode Island liability lawsuit, the pure comparative negligence rule means a partially at-fault plaintiff:
Has damages reduced by his or her share of fault
Rhode Island's comparative negligence statute does not bar recovery for a plaintiff's own lack of care; damages are diminished in proportion to the plaintiff's negligence (pure comparative negligence).
2. Insurable interest in property insurance means the insured:
Would suffer a financial loss from damage
Insurable interest exists when the insured would suffer a genuine financial loss from damage to the property.
3. When an insurer cancels a policy midterm, the unearned premium is typically returned on a:
Pro rata basis
When the insurer cancels, the RI standard fire policy returns the excess of paid premium above the pro rata premium for the expired time; short-rate refunds apply only when the insured cancels.
4. Oily rags stored near a furnace are best described as a:
Hazard that increases the chance of loss
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.
