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Free Property and Casualty Insurance Basics Practice Questions

Nevada Property & Casualty exam — 66 practice questions.

Subtopics: Named perils, Strict liability, Vicarious liability, Punitive damages, Pair and set, Abandonment, Hold harmless, Excess insurance, Agreed value, Insuring agreement, Conditions, 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, Special vs general damages, Proximate cause, Absolute liability, 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 property policy that covers only the causes of loss specifically listed in the policy is written on a(n):

Named-perils basis

A named-perils policy covers only the perils specifically listed, placing the burden on the insured to show the loss was from a listed peril.

2. Liability imposed without regard to fault, such as for keeping a dangerous animal or an abnormally hazardous activity, is:

Strict or absolute liability

Strict (absolute) liability applies without proof of fault for certain inherently dangerous activities or conditions.

3. When an employer is held responsible for a tort committed by an employee acting within the scope of employment, the employer faces:

Vicarious liability

Vicarious liability holds one party, such as an employer, responsible for the wrongful acts of another, such as an employee acting within the scope of employment.

4. Damages awarded to punish a wrongdoer for especially malicious conduct, beyond reimbursing the victim, are:

Punitive damages

Punitive damages are intended to punish and deter especially malicious or reckless conduct, beyond compensating the victim.

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Practice: Property and Casualty Insurance Basics

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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.