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Free Property Casualty Basics Practice Questions

Indiana Personal Lines exam — 101 practice questions.

Subtopics: Actual cash value, Replacement cost, Insurable interest property, Named peril vs open peril, Deductible purpose, Coinsurance clause, Proximate cause, Liability vs property, Vicarious liability, Negligence elements, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Subrogation, Salvage, Appraisal provision, Pro rata other insurance, Vacancy, Real vs personal property, Negligence, Elements of negligence, Compensatory damages, Punitive damages, Bodily injury, Property damage, Occurrence, Absolute liability, Comparative negligence, Liability limits, Binder, Endorsement, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, Attractive nuisance, Hold harmless agreement, Certificate of insurance, Valued policy, Blanket vs specific, Liability vs property insurance, Duties after loss, Concurrent causation, Conditions section, Definitions section, Pair or set clause, Inflation guard, Aggregate limit, Combined single limit, Sublimit, Self-insured retention, Primary vs excess coverage, Excess other insurance clause, Escape other insurance clause, Flat cancellation, Pro rata cancellation, Short-rate cancellation, Nonrenewal, Liberalization clause, No benefit to bailee, Loss payable clause, Sue and labor, Occurrence trigger, Retroactive date, Extended reporting period, Contributory negligence, Last clear chance, Res ipsa loquitur, Assumption of risk, Negligence per se, General vs special damages, Nominal damages, Direct vs consequential loss, Time element coverage, Catastrophe, Floater, Wear and tear exclusion, Inherent vice exclusion, Mysterious disappearance, Pollution exclusion, Earth movement exclusion, Personal injury offense, Duty to defend, Defense within limits, Statute of limitations, Pure premium, Exposure unit, Reasonable repairs, Actual cash value calculation

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Sample questions & answers

1. Actual cash value is most commonly defined as replacement cost minus what?

Depreciation

Actual cash value is generally replacement cost at the time of loss reduced by depreciation.

2. Replacement cost coverage pays to repair or replace property how?

Without deduction for depreciation, subject to policy terms

Replacement cost coverage pays to repair or replace with like kind and quality without deducting depreciation, subject to limits.

3. For property insurance, insurable interest must exist at what time?

At the time of loss

In property insurance, the insured must have an insurable interest at the time of loss to collect.

4. An open-peril (all-risk) property form differs from a named-peril form because it does what?

Covers risks of direct loss unless specifically excluded

Open-peril forms cover direct physical loss unless a peril is specifically excluded, while named-peril forms cover only listed perils.

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Practice: Property Casualty 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.