Free Property and Casualty Insurance Basics Practice Questions
Tennessee Property & Casualty exam — 124 practice questions.
Subtopics: Risk pooling, Contract elements, Competent parties, Consideration, Legal purpose, Moral hazard, Morale hazard, Physical hazard, Loss frequency, Reinsurance, Coinsurance, Fire insurance inspection, Fair value, Total loss by fire, Overinsurance refund, Value presumed reasonable, Personal risk definition, Commercial risk definition, Personal risk nonrenewal, Nonrenewal reason request, Nonrenewal immunity, Personal risk rate filing, Deemed approval, Filing extension, Commercial risk exclusions, Commercial cancellation grounds, Commercial cancellation notice, Cancellation reasons, Commercial nonrenewal, Late nonrenewal notice, Reduced coverage at renewal, Nonrenewal notice exceptions, Commercial premium increase, Commercial nonpayment, Commercial rate filing, Loss run requests, Loss run period, Loss run fees, Loss run violations, Classification changes, Residual market information, Insurable interest, Loss valuation, Negligence, 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, Comparative negligence, Strict liability, Vicarious liability, 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. The basic mechanism by which insurance works is:
Pooling the risks of many to pay the losses of a few
Insurance works by pooling the premiums and risks of many insureds to pay the losses of the few who suffer them.
2. Which is a required element of a valid insurance contract?
Offer and acceptance (agreement)
A valid contract requires agreement (offer and acceptance), consideration, legal purpose, and competent parties.
3. For an insurance contract to be valid, the parties must be:
Legally competent
The parties to a valid contract must be legally competent to contract.
4. The insured's consideration in a property insurance contract is primarily:
The premium payment
The insured's consideration is primarily the premium paid in exchange for the insurer's promise to pay covered losses.
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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.
