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Free Property and Casualty Insurance Basics Practice Questions

Idaho Property & Casualty exam — 66 practice questions.

Subtopics: Claims-made, Proximate cause, Indirect loss, Valued policy, Aggregate limit, Vacancy, Salvage, Physical hazard, Warranty, Liberalization, Abandonment, 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, 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 claims-made liability policy covers a loss only if the claim is first made:

During the policy period or any extended reporting period

A claims-made policy responds when the claim is first made during the policy period or an applicable extended reporting period.

2. Proximate cause refers to:

An unbroken chain of events that leads to a loss

Proximate cause is the primary cause that sets in motion an unbroken chain of events resulting in the loss.

3. Lost business income following a covered fire is an example of a(n):

Indirect (consequential) loss

An indirect, or consequential, loss is a financial loss such as lost income that results from a direct physical loss.

4. Under a valued policy, the insurer pays the amount stated in the policy when:

A total loss to the covered property occurs

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

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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.