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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Pennsylvania Property & Casualty exam (series 16-06) — 59 practice questions.

Subtopics: PA required provisions, Standard fire perils, Coinsurance penalty, 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. If an admitted Pennsylvania property and casualty insurer becomes insolvent, covered unpaid claims are paid by the:

Pennsylvania Property and Casualty Insurance Guaranty Association

The PA Property and Casualty Insurance Guaranty Association pays covered claims of insolvent admitted P and C insurers, subject to statutory limits.

2. The form that establishes the baseline fire insurance provisions required in Pennsylvania property policies is the:

Standard fire policy

Pennsylvania incorporates the standard fire policy provisions as the minimum baseline for fire coverage.

3. The Pennsylvania standard fire policy covers direct loss by:

Fire, lightning, and removal

The standard fire policy covers direct loss by fire, lightning, and removal of property from a covered peril.

4. A coinsurance clause reduces the loss payment when the insured:

Carries less than the required percentage of value

If the insured carries less than the required coinsurance percentage, a penalty reduces the loss payment.

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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.