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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Arizona Property & Casualty exam — 62 practice questions.

Subtopics: Named perils, Open perils, Actual cash value, Deductible, Liability coverage, Declarations page, Endorsement, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Replacement cost, 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. A named perils property policy covers:

Only the perils specifically listed in the policy

Named perils coverage applies only to the causes of loss expressly listed in the policy.

2. An open perils (all-risk) property policy covers:

All causes of loss except those specifically excluded

Open perils coverage insures against all causes of loss except those the policy excludes.

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

Replacement cost minus depreciation

ACV is typically replacement cost less depreciation, reflecting the property's depreciated value at loss.

4. A deductible in a property policy is:

The amount the insured pays before the insurer pays

The deductible is the portion of a loss the insured pays before the insurer's payment applies.

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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.