Free Casualty Insurance Basics Practice Questions
Virginia Casualty exam — 131 practice questions.
Subtopics: Insured bankruptcy, Unsatisfied judgment, Breach notice to claimant, Reservation of rights, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, 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, Statute of limitations, 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, 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. Under Virginia law, every liability policy must provide that the bankruptcy or insolvency of the insured:
Does not relieve the insurer of its obligations
Liability policies must state that insolvency or bankruptcy of the insured does not relieve the insurer of its obligations.
2. A claimant wins a judgment against a Virginia insured, but execution is returned unsatisfied. Under required policy provisions the claimant may:
Sue the insurer for the judgment up to the policy limit
If execution is returned unsatisfied, an action may be maintained against the insurer for the judgment amount up to the applicable limit.
3. A Virginia liability insurer discovers its insured breached a policy condition. To preserve that defense, it must notify the claimant within:
45 days of discovering the breach or the claim, whichever is later
Notice must be given within forty-five days after discovery of the breach or of the claim, whichever is later; failure waives the defense.
4. Once a civil action is filed, a Virginia liability insurer must give the claimant written notice of a reservation of rights at least how long before trial?
30 days
The insurer must give written notice of reservation of rights not less than thirty days before the trial date, unless the court allows less for good cause.
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.
