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  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

South Carolina Property & Casualty exam — 66 practice questions.

Subtopics: Negligence elements, Casualty insurance, Occurrence basis, Named peril, Endorsements, Certificate of insurance, Coinsurance, Reinsurance, Agreed value, Other insurance, Aggregate limit, Insurable interest, Loss valuation, Negligence, Damages, Types of loss, Insurer provisions, 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. To establish negligence, a claimant must generally show a duty, a breach of that duty, and:

Damages caused by the breach

Negligence requires duty, breach, causation, and damages; the breach must be the proximate cause of the claimant's damages.

2. Casualty (liability) insurance primarily protects the insured against:

Legal liability for injury or damage to others

Casualty insurance protects against legal liability for bodily injury or property damage the insured causes to others.

3. An occurrence-based liability policy covers claims arising from incidents that happen:

During the policy period, regardless of when the claim is later filed

An occurrence policy responds to incidents that occur during the policy period, even if the claim is reported years later.

4. A named-peril property policy covers:

Only the perils specifically listed in the policy

A named-peril policy covers only the causes of loss specifically listed; the insured must show the loss was caused by a listed peril.

All Property & Casualty topics

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.