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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Georgia Property & Casualty exam — 61 practice questions.

Subtopics: 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

Read the Property and Casualty Insurance Basics study guide

Sample questions & answers

1. An open-peril (all-risk) property form covers:

all causes of loss except those specifically excluded

Open-peril forms cover all causes of loss except those the policy specifically excludes.

2. A property coinsurance clause penalizes the insured at claim time if the building is insured for:

less than the required percentage of its value

If the insured carries less than the required percentage of value, the coinsurance clause reduces the loss payment.

3. A deductible in a property policy:

requires the insured to bear an initial portion of each loss

A deductible is the amount of each loss the insured retains before the insurer pays.

4. Casualty (liability) insurance primarily protects the insured against:

legal liability for injury or damage to others

Casualty insurance covers the insured's legal liability for bodily injury or property damage to third parties.

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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.