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  4. Property Casualty Basics

Free Property Casualty Basics Practice Questions

Alabama Personal Lines exam — 101 practice questions.

Subtopics: Actual cash value, Replacement cost, Deductible, Coinsurance clause, Named perils, Open perils, Liability coverage, Declarations page, Endorsement, Pro rata cancellation, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Burden of proof, Subrogation, Salvage, Appraisal provision, Pro rata other insurance, Vacancy, Real vs personal property, Negligence, Elements of negligence, Compensatory damages, Punitive damages, Bodily injury, Property damage, Occurrence, Absolute liability, Vicarious liability, Comparative negligence, Liability limits, Binder, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, Proximate cause, Attractive nuisance, Hold harmless agreement, Certificate of insurance, Valued policy, Blanket vs specific, Liability vs property insurance, Duties after loss, Concurrent causation, Conditions section, Definitions section, Pair or set clause, Inflation guard, Aggregate limit, Combined single limit, Sublimit, Self-insured retention, Primary vs excess coverage, Excess other insurance clause, Escape other insurance clause, Flat cancellation, Short-rate cancellation, Nonrenewal, Liberalization clause, No benefit to bailee, Loss payable clause, Sue and labor, Occurrence trigger, Retroactive date, Extended reporting period, Contributory negligence, Last clear chance, Res ipsa loquitur, Assumption of risk, Negligence per se, General vs special damages, Nominal damages, Direct vs consequential loss, Time element coverage, Catastrophe, Floater, Wear and tear exclusion, Inherent vice exclusion, Mysterious disappearance, Pollution exclusion, Earth movement exclusion, Personal injury offense, Duty to defend, Defense within limits, Statute of limitations, Pure premium, Exposure unit, Reasonable repairs, Actual cash value calculation

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Sample questions & answers

1. Actual cash value (ACV) is generally calculated as:

Replacement cost minus depreciation

ACV equals replacement cost less depreciation for age and wear.

2. Replacement cost coverage pays to repair or replace damaged property:

Without deduction for depreciation, up to limits

Replacement cost coverage pays to replace property without deducting depreciation, subject to policy limits.

3. A deductible in a property policy is the amount:

The insured retains before coverage applies

A deductible is the portion of a loss the insured pays before the insurer's coverage responds.

4. A property coinsurance clause requires the insured to carry coverage equal to a stated percentage of value or face:

A penalty on claims if underinsured

If the insured carries less than the required percentage, the coinsurance clause reduces loss payments by a penalty.

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Practice: Property Casualty 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.