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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Illinois Property & Casualty exam — 63 practice questions.

Subtopics: Insurable interest, Indemnity, Actual cash value, Peril, Negligence, Liability insurance, Deductible, Coinsurance, Loss valuation, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, 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. For property insurance insurable interest must exist:

At the time of the loss

Property insurance requires insurable interest at the time of loss to collect.

2. Property insurance is generally a contract of:

Indemnity

Property insurance indemnifies the insured restoring the pre-loss financial position without profit.

3. Actual cash value is generally calculated as:

Replacement cost minus depreciation

Actual cash value equals replacement cost less depreciation.

4. Fire is an example of a:

Peril

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

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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.