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Free Property and Casualty Insurance Basics Practice Questions

Nebraska Property & Casualty exam — 66 practice questions.

Subtopics: Coinsurance purpose, Loss ratio, Insurable interest, Agreed value, Blanket coverage, Specific coverage, Functional replacement cost, Mortgagee clause, Salvage, Abandonment, Appraisal clause, Loss valuation, Coinsurance, 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. The coinsurance clause in a commercial property policy encourages the insured to:

Insure to an adequate percentage of value

The coinsurance clause rewards insuring to an adequate percentage of value and penalizes underinsurance.

2. The ratio of incurred losses to earned premium is the:

Loss ratio

The loss ratio compares incurred losses to earned premium to gauge underwriting results.

3. An owner has an insurable interest in property because the owner:

Would suffer a financial loss if it were damaged

Insurable interest exists because the owner would suffer a financial loss if the property were damaged.

4. A commercial property provision that waives the coinsurance penalty when an agreed amount is carried is the:

Agreed value (agreed amount) provision

The agreed value provision suspends the coinsurance requirement when the agreed amount of insurance is carried.

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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 Insurance Department and the exam administrator before relying on it.