Free Casualty Insurance Basics Practice Questions
Vermont Casualty exam (series 14-42) — 181 practice questions.
Subtopics: Elements of negligence, Proximate cause, Strict liability, Vicarious liability, Occurrence trigger, Aggregate limit, Subrogation, Declarations page, Endorsement, Pro rata cancellation, Guaranty association, Renewal notice, Late renewal notice, Transfer to affiliate, Cancellation reasons, Increase in hazard, New business period, Cancellation notice, Cancellation scope, Notice by mail, Nonrenewal, Penalties, Commercial cancellation, Commercial nonrenewal, Consent to rate, Pollution coverage, Required provisions, Misstatements, Terrorism program, Claim acknowledgment, Department inquiries, Claim decisions, Claim denials, Investigation delays, Time limit warnings, Payment timing, Claims contact, Payment explanations, Regulation scope, Estimates, Hidden damage, Compensatory damages, Special damages, General damages, Punitive damages, Absolute liability, Negligence elements, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
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Sample questions & answers
1. To establish negligence, a claimant generally must show duty, breach, and:
Proximate cause and actual damages
Negligence is a failure to use reasonable care. To recover, a claimant must show a duty, a breach, proximate cause, and actual damages; intent and a contract are not elements.
2. Proximate cause in a liability claim refers to:
The unbroken chain of events causing harm
Proximate cause is the principal cause of the loss: an unbroken chain of events running from the negligent act to the damage.
3. Liability imposed without regard to fault, such as for keeping a dangerous animal, is called:
Strict (absolute) liability
Strict (absolute) liability applies even though fault or negligence cannot be proven, for example for abnormally dangerous activities or dangerous animals.
4. An employer held responsible for the negligent acts of an employee acting within the scope of employment is an example of:
Vicarious liability
Vicarious liability holds one party, such as an employer, responsible for the negligent acts of another, such as an employee acting within the scope of employment.
Practice: 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.
