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Free Property Casualty Basics Practice Questions

Louisiana Personal Lines exam — 101 practice questions.

Subtopics: Insurable interest, Proximate cause, Physical hazard, Moral hazard, Morale hazard, Negligence, Declarations, Exclusions, Subrogation, Salvage, Policy structure DICE, Insuring agreement, Actual cash value, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Appraisal provision, Pro rata other insurance, Vacancy, Real vs personal property, Elements of negligence, Compensatory damages, Punitive damages, Bodily injury, Property damage, Occurrence, Absolute liability, Vicarious 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. In property insurance, insurable interest must exist:

At the time of the loss

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

2. The unbroken chain of events leading to a loss is referred to as the:

Proximate cause

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

3. A frayed electrical wire that increases the chance of a fire is an example of a:

Physical hazard

A physical hazard is a tangible condition that increases the likelihood or severity of a loss.

4. An insured who intentionally causes a loss to collect insurance money illustrates a:

Moral hazard

A moral hazard arises from dishonesty, such as intentionally causing a loss to profit from insurance.

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Practice: Property Casualty Basics

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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.