Free Property and Casualty Insurance Basics Practice Questions
South Dakota Property & Casualty exam — 98 practice questions.
Subtopics: Comparative negligence, Conditions, Claims-made, Strict liability, Vicarious liability, Proximate cause, Duty to defend, Supplementary payments, Aggregate limit, Other insurance, Appraisal, Salvage, Binders, Certificates of insurance, Suit against insurer, Rating, Rate information, Minimum premium, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, 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, 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, Premium audit, Claim settlement, Duties after loss, Abandonment, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. Under South Dakota's comparative negligence statute, a partially at-fault plaintiff may still recover damages only if the plaintiff's negligence was:
Slight in comparison with the defendant's negligence
SDCL 20-9-2 permits recovery when the plaintiff's contributory negligence was slight in comparison with the defendant's, with damages reduced in proportion.
2. The policy section that states the rules and duties both parties must follow, such as duties after a loss, is the:
Conditions
The conditions section sets out the rules and duties governing the policy, including the insured's duties after a loss.
3. A liability policy that covers only claims first made against the insured during the policy period is written on a:
Claims-made basis
A claims-made policy responds to claims first presented during the policy period, subject to any retroactive date.
4. Liability that is imposed on a party regardless of fault, as with certain abnormally dangerous activities, is known as:
Strict (absolute) liability
Strict or absolute liability applies without proof of fault, often for inherently dangerous activities.
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.
