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  4. Property Casualty Basics

Free Property Casualty Basics Practice Questions

North Carolina Personal Lines exam — 99 practice questions.

Subtopics: Replacement cost, Actual cash value, Deductible, Named vs open perils, Coinsurance, Endorsement, Proof of loss, Other insurance, 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, Vicarious liability, Comparative negligence, Liability limits, Binder, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, Proximate cause, 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

Read the Property Casualty Basics study guide

Sample questions & answers

1. Replacement cost coverage on a home pays to repair or rebuild:

Without deducting depreciation, subject to policy terms

Replacement cost coverage pays to repair or replace with like kind and quality without depreciation, subject to limits and conditions such as actually rebuilding.

2. Actual cash value on personal property is generally:

Replacement cost minus depreciation

Actual cash value generally equals replacement cost minus depreciation at the time of loss.

3. A deductible on a homeowners policy is:

The amount the insured pays before the insurer pays

A deductible is the portion of a covered loss the insured retains; higher deductibles generally lower the premium.

4. An open-perils (special) form covers:

All causes of loss except those specifically excluded

An open-perils form covers all causes of loss except those excluded, while a named-perils form covers only listed causes.

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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.