1. Exam Prep
  2. Virginia
  3. Property & Casualty
  4. Property and Casualty Insurance Basics

Free Property and Casualty Insurance Basics Practice Questions

Virginia Property & Casualty exam — 66 practice questions.

Subtopics: Insurable interest, Indemnity, Actual cash value, Subrogation, Coinsurance clause, Peril vs hazard, Liability basis, Replacement cost, Deductible, Proximate cause, Binder, Loss valuation, Coinsurance, Negligence, Damages, Types of loss, Insurer provisions, Other insurance, Liability, Limits of liability, Deductibles, Policy structure, Policy conditions, Pair and set clause, Vacancy provision, Mortgagee rights, Appraisal condition, Proof of loss, Salvage and abandonment, Liberalization clause, Assignment condition, 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, 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. For property insurance, insurable interest must exist:

At the time of loss

For property insurance, insurable interest must exist at the time of loss.

2. The principle of indemnity in property insurance means the insured should:

Be restored to the pre-loss financial position without profit

Indemnity restores the insured to the pre-loss position and prevents profiting from a loss.

3. Actual cash value (ACV) is generally:

Replacement cost minus depreciation

ACV is typically replacement cost less depreciation.

4. After paying a claim, an insurer's right to recover from the at-fault party is:

Subrogation

Subrogation lets the insurer pursue the responsible third party after paying the insured's claim.

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.