Free Property Casualty Basics Practice Questions
South Carolina Personal Lines exam — 133 practice questions.
Subtopics: Indemnity, Insurable interest, Actual cash value, Deductible, Subrogation, Salvage, Perils, Morale hazard, Binder, Declarations, Valued policy law, Replacement cost riders, Fire policy contents, Coinsurance, Policy structure DICE, Insuring agreement, Exclusions, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, 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, Endorsement, Stated value vs agreed value, Abandonment, Mortgagee clause, Assignment, Proximate cause, Attractive nuisance, Hold harmless agreement, Additional insured, 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, 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, Valuation calculation, Other insurance calculation, Pro rata refund calculation, Waiver of subrogation, Mortgage clause, Defense costs, Insurable interest limit, Deductibles, Appraisal, Appraisal costs, Suit against insurer, Proof of loss, Loss payment timing, Insurer repair option, Pair or set, Recovered property, Concealment or fraud, Service agreements, Nuclear hazard, Neglect exclusion, Power failure exclusion, Governmental action
Read the Property Casualty Basics study guide
Sample questions & answers
1. The principle of indemnity in property insurance means the insured should be:
Restored to approximately the same financial position as before the loss, no more
Indemnity aims to restore the insured to roughly the pre-loss financial position without allowing a profit from the loss.
2. For applications to the South Carolina Wind and Hail Underwriting Association, "insurable interest" includes:
Any lawful and substantial economic interest in the property
Section 38-75-350(A) defines insurable interest to include any lawful and substantial economic interest in the safety or preservation of property from loss, destruction, or pecuniary damage.
3. Under the ISO HO-3 Loss Settlement condition, covered personal property losses are settled at:
Actual cash value at the time of loss
The HO-3 settles personal property, awnings, carpeting, appliances, and similar property at actual cash value at the time of loss, but not more than the cost to repair or replace; ACV generally reflects depreciation.
4. A deductible in a property policy is:
The insured's share before payment
Under the HO-3 deductible provision, the insurer pays only the part of the loss that exceeds the deductible shown in the Declarations; the insured bears the deductible.
Practice: Property Casualty Basics
Answer choices are shuffled every time, and every question comes with an explanation.
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.
