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Free Property and Casualty Insurance Basics Practice Questions

Hawaii Property & Casualty exam — 66 practice questions.

Subtopics: Peril, Claims-made policy, Coinsurance penalty, Valued policy, Aggregate limit, Vacancy, Bailee, Salvage, Reservation of rights, Proof of loss, Replacement cost, 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, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, 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. A peril in property insurance is best defined as:

The cause of a loss, such as fire or windstorm

A peril is the actual cause of a loss, such as fire, windstorm, or theft.

2. A claims-made liability policy generally covers a loss only if:

The claim is first made during the policy period or an extended reporting period

A claims-made policy covers claims first made during the policy period or an applicable extended reporting period.

3. If a property owner insures a building for less than the coinsurance clause requires, a partial loss will be:

Penalized so the insurer pays less than the full loss amount

Underinsuring below the coinsurance requirement triggers a penalty that reduces the partial loss payment.

4. Under a valued policy, a total loss is generally settled for:

The amount stated in the policy

A valued policy pays the agreed amount stated in the policy upon a total loss.

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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.