Free Property and Casualty Insurance Basics Practice Questions
Vermont Property & Casualty exam (series 14-31) — 151 practice questions.
Subtopics: Elements of negligence, Proximate cause, Strict liability, Vicarious liability, Occurrence trigger, Physical hazard, Aggregate limit, Coinsurance concept, Credit information, Insurance scores, Credit updates, Extraordinary life events, Guaranty association, Renewal notice, Late renewal notice, Transfer to affiliate, Cancellation reasons, Increase in hazard, New business period, Cancellation notice, Cancellation scope, Notice by mail, Nonrenewal, Agent termination, Penalties, Commercial cancellation, Commercial nonrenewal, Consent to rate, Pollution coverage, Required provisions, Misstatements, Premium finance, Terrorism program, Loss payment, Proof of loss, Defective proof of loss, Vermont contracts, Agreed valuation, Claim acknowledgment, Department inquiries, Claim decisions, Claim denials, Investigation delays, Time limit warnings, Payment timing, Claims contact, Payment explanations, Regulation scope, Estimates, Hidden damage, Insurable interest, Loss valuation, Coinsurance, 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, Salvage and abandonment, Liberalization clause, Assignment condition, Binder, Sublimit, Named perils vs open perils, Burden of proof, Direct vs indirect loss, Comparative negligence, 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, Appraisal, Duties after loss, Abandonment, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. To establish negligence, a claimant generally must show duty, breach, and:
Proximate cause and actual damages
Negligence is a failure to use reasonable care. To recover, a claimant must show a duty, a breach, proximate cause, and actual damages; intent and a contract are not elements.
2. Proximate cause in a liability claim refers to:
The unbroken chain of events causing harm
Proximate cause is the principal cause of the loss: an unbroken chain of events running from the negligent act to the damage.
3. Liability imposed without regard to fault, such as for keeping a dangerous animal, is called:
Strict (absolute) liability
Strict (absolute) liability applies even though fault or negligence cannot be proven, for example for abnormally dangerous activities or dangerous animals.
4. An employer held responsible for the negligent acts of an employee acting within the scope of employment is an example of:
Vicarious liability
Vicarious liability holds one party, such as an employer, responsible for the negligent acts of another, such as an employee acting within the scope of employment.
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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.
