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Free Casualty Insurance Basics Practice Questions

Illinois Casualty exam — 78 practice questions.

Subtopics: Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance

Read the Casualty Insurance Basics study guide

Sample questions & answers

1. Compensatory damages are intended to:

Reimburse the injured party for actual losses

Compensatory damages reimburse the injured party for actual losses, both economic and non-economic.

2. Special (economic) damages include:

Medical bills and lost wages

Special damages are specific, measurable economic losses such as medical expenses and lost income.

3. General damages refer to:

Non-economic losses such as pain and suffering

General damages are non-economic losses like pain, suffering, and disfigurement that are harder to quantify.

4. Punitive damages are awarded to:

Punish and deter especially reckless or malicious conduct

Punitive damages punish egregious conduct and deter others; their insurability varies by state and policy.

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Practice: 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 Pennsylvania Insurance Department and the exam administrator before relying on it.