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Free Property Casualty Basics Practice Questions

Colorado Personal Lines exam — 101 practice questions.

Subtopics: Insurable interest, Indemnity, Actual cash value, Peril and hazard, Deductible, Named insured, Declarations, Subrogation, Endorsement, Pro rata cancellation, Policy structure DICE, Insuring agreement, Exclusions, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, 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. In property insurance, insurable interest must exist:

At the time of the loss

In property insurance, the insured must have an insurable interest at the time of loss to collect, reflecting the principle of indemnity.

2. The principle of indemnity in property insurance means the insured should:

Be restored to approximately the same financial position as before the loss, no more

Indemnity aims to restore the insured to the pre-loss financial position without allowing a profit from the loss.

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

Replacement cost minus depreciation

ACV equals the cost to replace the property minus depreciation for age, wear, and obsolescence.

4. In property insurance, a peril is the cause of loss while a hazard is:

A condition that increases the chance or severity of a loss

A peril causes loss while a hazard is a condition that increases the likelihood or severity of a loss from a peril.

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Practice: Property Casualty Basics

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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.