Free Property and Casualty Insurance Basics Practice Questions
Georgia Property & Casualty exam (series 12-GA-06) — 86 practice questions.
Subtopics: Duties after loss, Open peril, Coinsurance clause, Deductible, Casualty coverage, Occurrence, Aggregate limit, 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, 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, Underwriting, Credit-based insurance scores, Loss ratio, Insureds, Cancellation, Policy territory, No benefit to bailee, Duty to defend, Premium audit, Claim settlement, Appraisal, Abandonment, Retrospective rating, Class rating, Judgment rating
Read the Property and Casualty Insurance Basics study guide
Sample questions & answers
1. After a covered property loss, a Georgia insured's first duty is generally to:
give prompt notice of the loss to the insurer or agent
The homeowners form's duties after loss begin with giving prompt notice to the insurer or its agent, followed by protecting the property and documenting the loss.
2. An open-peril (all-risk) property form covers:
all causes of loss except those specifically excluded
An open-peril form covers direct physical loss from any cause unless the cause is excluded.
3. A property coinsurance clause penalizes the insured at claim time if the building is insured for:
less than the required percentage of its value
Insurance-to-value provisions reduce recovery when the insured carries less than the required percentage of value; the homeowners form, for example, pays full replacement cost only if the limit is at least 80 percent of replacement cost.
4. A deductible in a property policy:
requires the insured to bear an initial portion of each loss
A deductible is the amount the insured pays out of pocket on each claim; higher deductibles lower the premium.
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Practice: Property and Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
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.
