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Free Property and Casualty Insurance Basics Practice Questions

Delaware Property & Casualty exam — 66 practice questions.

Subtopics: Salvage, Negligence elements, Strict liability, Punitive damages, Pair and set, Cancellation methods, Additional insured, Endorsement, Conditions, Vicarious liability, Duty to defend, Insurable interest, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, 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, 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. When an insurer pays a total loss and takes the damaged property, its right to sell the recovered property is the right of:

Salvage

Salvage is the insurer's right to take and sell damaged property for which it has paid a total loss.

2. To establish negligence, a claimant generally must show a duty, a breach of that duty, and:

Causation and actual damages

Negligence requires duty, breach, causation, and actual damages resulting from the breach.

3. Liability imposed without regard to fault or negligence, such as for abnormally dangerous activities, is:

Strict or absolute liability

Strict (absolute) liability applies without proof of negligence, often for inherently dangerous activities or defective products.

4. Damages awarded to punish a wrongdoer for malicious conduct, beyond the victim's actual loss, are:

Punitive damages

Punitive damages are intended to punish and deter egregious conduct, separate from compensatory damages.

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Practice: Property and Casualty Insurance 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.