Free Property and Casualty Insurance Basics Practice Questions
South Carolina Property & Casualty exam — 99 practice questions.
Subtopics: Negligence elements, Casualty insurance, Occurrence basis, Named peril, Endorsements, Certificate of insurance, Coinsurance, Reinsurance, Agreed value, Other insurance, Aggregate limit, Valued policy law, Replacement cost riders, Fire policy contents, 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, Underwriting, Credit-based insurance scores, Loss ratio, Insureds, Cancellation, Policy territory, No benefit to bailee, Duty to defend, Premium audit, Claim settlement, Appraisal, Duties after loss, Abandonment, Retrospective rating, Class rating, Judgment rating
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 harm to others
Section 38-1-20(11) defines casualty insurance as insurance against legal liability for bodily injury to or death of another and for damage to another's property, including workers' compensation.
3. An occurrence-based liability policy covers claims arising from incidents that happen:
During the policy period, whenever reported
The CGL occurrence form covers bodily injury or property damage that occurs during the policy period, even if the claim is made later.
4. A named-peril property policy covers:
Only the perils listed in the policy
A named-peril form covers only the perils it lists, as the HO-3 does for Coverage C personal property ("caused by any of the following perils").
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Practice: Property and Casualty Insurance 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.
