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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Alaska Property & Casualty exam — 66 practice questions.

Subtopics: Coinsurance, Occurrence policy, Claims-made policy, Valued policy, Other insurance, Bailee, Indemnity, Deductible, Replacement cost, Per-occurrence limit, Vacancy, Insurable interest, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, 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

Read the Property and Casualty Insurance Basics study guide

Sample questions & answers

1. If a property owner insures a building for less than the coinsurance clause requires, a partial loss will be:

Penalized so the insurer pays less than the full loss amount

Underinsuring below the coinsurance requirement triggers a penalty that reduces the partial loss payment.

2. An occurrence-based liability policy covers claims arising from events that happen:

During the policy period regardless of when the claim is later filed

An occurrence policy responds to covered events that occur during the policy period even if the claim is filed later.

3. A claims-made liability policy generally covers a loss only if:

The claim is first made during the policy period or extended reporting period

A claims-made policy covers claims first made during the policy period or any applicable extended reporting period.

4. Under a valued policy, in the event of a total loss the insurer pays:

The amount stated in the policy

A valued policy pays the agreed amount stated in the policy upon a total loss.

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Practice: Property and Casualty Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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.