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Free Property Casualty Basics Practice Questions

Maryland Personal Lines exam — 101 practice questions.

Subtopics: Insurable interest timing, Indemnity, Subrogation, Proximate cause, Pro rata other insurance, Salvage, Deductible purpose, Valued policy, Liability vs property, Loss settlement, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Actual cash value, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Appraisal provision, Vacancy, Real vs personal property, Negligence, 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, 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. For property insurance, insurable interest must generally exist:

At the time of the loss

Unlike life insurance, property insurance requires insurable interest at the time of the loss to support indemnification.

2. The principle of indemnity in property insurance means the insured should be:

Restored to approximately the same financial position as before the loss

Indemnity restores the insured to the pre-loss financial position, preventing profit from an insured loss.

3. After paying a claim, an insurer's right to pursue a negligent third party is called:

Subrogation

Subrogation lets the insurer recover its payment from the party responsible for the loss, supporting the principle of indemnity.

4. Proximate cause refers to:

The primary cause that sets in motion the chain of events leading to a loss

Proximate cause is the dominant, efficient cause that begins an unbroken sequence resulting in the loss.

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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.