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Free Property Casualty Basics Practice Questions

New Jersey Personal Lines exam — 99 practice questions.

Subtopics: Insurable interest, Replacement cost, Coinsurance, Subrogation, Peril, Hazard, Declarations, Return premium, Policy structure DICE, Insuring agreement, Exclusions, Actual cash value, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, 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, Endorsement, 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. To collect on a homeowners claim, the insured must have an insurable interest in the property:

At the time of the loss

Property insurance requires insurable interest at the time of loss.

2. Replacement cost coverage pays to repair or replace damaged property:

Without deducting depreciation, up to limits

Replacement cost pays to rebuild or replace without deducting depreciation, subject to policy limits.

3. A homeowner who insures a home to less than the required percentage of value may face:

A coinsurance penalty at the time of a partial loss

Insuring below the coinsurance requirement causes the insured to share in a partial loss as a penalty.

4. After paying for damage caused by a negligent third party, the insurer may:

Subrogate against the responsible party

Subrogation allows the insurer to recover its payment from the at-fault third party.

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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.