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

Free Property and Casualty Insurance Basics Practice Questions

New Hampshire Property & Casualty exam — 66 practice questions.

Subtopics: Occurrence policy, Claims-made policy, Peril versus hazard, Vacancy, Bailee, Valued policy, Per-occurrence limit, Aggregate limit, Abandonment, Short rate cancellation, Concealment, Insurable interest, 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. An occurrence-based liability policy covers claims arising from events that happen:

During the policy period, regardless of when the claim is later filed

An occurrence policy responds to covered events that occur during the policy period even if the claim is filed later.

2. A claims-made liability policy generally covers a loss only if:

The claim is first made during the policy period or an extended reporting period

A claims-made policy covers claims first made during the policy period or any applicable extended reporting period, subject to any retroactive date.

3. Which statement best distinguishes a peril from a hazard?

A peril is the cause of loss, while a hazard is a condition that increases the chance or severity of loss

A peril is the actual cause of loss, while a hazard is a condition that increases the likelihood or severity of a loss.

4. Many property policies reduce or suspend coverage if the insured building has been:

Vacant beyond a stated number of consecutive days

Property policies commonly restrict coverage once a building has been vacant beyond the number of days stated in the policy.

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 Insurance Department and the exam administrator before relying on it.