1. Exam Prep
  2. Montana
  3. Property & Casualty
  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Montana Property & Casualty exam — 66 practice questions.

Subtopics: Coinsurance, Claims-made, Indirect loss, Open perils, Appraisal clause, Pair and set, Policy parts, Abandonment, Liberalization, Aggregate limit, Indemnity, Insurable interest, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Actual cash value, 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. A commercial property owner who carries less than the coinsurance clause requires will, on a partial loss, have the claim:

reduced by a coinsurance penalty

Underinsuring below the coinsurance requirement reduces the partial loss payment by a penalty.

2. A claims-made liability form generally covers a claim only if it is:

first made during the policy period or extended reporting period

A claims-made form covers claims first made during the policy period or extended reporting period.

3. Lost business income resulting from a covered fire is best classified as a(n):

indirect (consequential) loss

Lost income following a covered fire is an indirect (consequential) loss.

4. A policy that covers all causes of loss except those specifically excluded is written on a(n):

open-peril (special) basis

Covering all causes except those excluded is an open-peril (special) basis.

All Property & Casualty topics

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