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Free Casualty Insurance Basics Practice Questions

Pennsylvania Casualty & Allied Lines exam (series 16-05) — 91 practice questions.

Subtopics: Guaranty association, Auto cancellation, Commercial cancellation, Residential cancellation, Consultation services exemption, Negligence elements, Comparative negligence, Statute of limitations, Claims-made vs occurrence, Duty to defend, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Proximate cause, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application

Read the Casualty Insurance Basics study guide

Sample questions & answers

1. The Pennsylvania Property and Casualty Insurance Guaranty Association pays:

Covered claims, within limits, if a member insurer becomes insolvent

The PA P&C Guaranty Association pays covered claims up to statutory limits when a member insurer is declared insolvent.

2. Cancellation and nonrenewal of a Pennsylvania private passenger auto policy are regulated by:

The Pennsylvania law governing private passenger automobile policies

PA law governs when and how private passenger auto policies may be cancelled or nonrenewed, with required notice and reasons.

3. Midterm cancellation and nonrenewal of a Pennsylvania commercial casualty policy require the insurer to:

Provide written notice and a valid statutory reason

Pennsylvania's commercial cancellation/nonrenewal law requires advance written notice and a permissible statutory reason.

4. After a residential policy has been in effect more than 60 days, Pennsylvania allows midterm cancellation only for:

Stated reasons such as nonpayment, fraud, or a substantial increase in hazard

After 60 days, residential policies may be cancelled midterm only for stated reasons, with required notice.

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Practice: 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.