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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Connecticut Property & Casualty exam — 66 practice questions.

Subtopics: Insurable interest, Indemnity, Actual cash value, Coinsurance, Subrogation, Proximate cause, Binder, Occurrence vs claims-made, Deductible, Other insurance, Salvage, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, 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, 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, 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. In property and casualty insurance, insurable interest generally must exist:

At the time of the loss

In property insurance, insurable interest must exist at the time of loss so the insured suffers a genuine financial loss.

2. The principle of indemnity is intended to:

Restore the insured to the pre-loss financial condition

Indemnity restores the insured to the financial position held before the loss without allowing a profit.

3. Actual cash value is most commonly defined as:

Replacement cost minus depreciation

Actual cash value is generally calculated as replacement cost less depreciation at the time of loss.

4. A coinsurance clause in a commercial property policy is intended to encourage the insured to:

Insure the property to a stated percentage of its value

The coinsurance clause encourages insuring property to a stated percentage of value, or a penalty applies to partial losses.

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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.