Free Property and Casualty Insurance Basics Practice Questions
Virginia Property & Casualty exam (series 11-03) — 147 practice questions.
Subtopics: Insurable interest, Indemnity, Actual cash value, Subrogation, Coinsurance, Peril, Liability coverage, Replacement cost, Deductible, Proximate cause, Binder, Standard fire policy, Concealment and fraud, Uninsurable property, Perils not included, Neglect, Vacancy, Explosion and riot, Increased hazard, Cancellation by insured, Cancellation by insurer, Mortgagee cancellation, Mortgagee proof of loss, Pro rata liability, Duties after loss, Appraisal, Appraisal umpire, Appraisal costs, Company options, Abandonment, When loss payable, Suit against insurer, Subrogation clause, Binders, Flood exclusion notice, Earthquake notice, Ordinance or law offer, Volunteer fire department, Assignment of claims, Replacement cost claims, Functional replacement cost, Replacement cost statement, Fire insurance discrimination, Credit information, Owner-occupied cancellation, Owner-occupied review, Owner-occupied notice content, New business period, Nonrenewal prohibited, Coverage inquiries, Foster parents, Credit and nonrenewal, Proof of mailing, Notice retention, VPIA policies, Foreclosure sale, Insured bankruptcy, Unsatisfied judgment, Breach notice to claimant, Reservation of rights, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Proof of loss, Salvage and abandonment, Liberalization clause, Assignment condition, 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, 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, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. For property insurance, insurable interest must exist:
At the time of the loss
Property insurance indemnifies a financial loss, so the insured must have an insurable interest when the loss occurs.
2. The principle of indemnity means an insured should:
Be restored to the pre-loss position without profit
Indemnity restores the insured to the financial position held before the loss and prevents profiting from a loss.
3. Actual cash value (ACV) is most often calculated as:
Replacement cost minus depreciation
ACV is typically replacement cost less physical depreciation.
4. After paying its insured, an insurer's right to recover from the at-fault party is called:
Subrogation
Subrogation transfers the insured's right of recovery against a responsible third party to the insurer to the extent it paid.
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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.
