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  4. Property Casualty Basics

Free Property Casualty Basics Practice Questions

Washington Personal Lines exam — 100 practice questions.

Subtopics: Definition of risk, Other insurance, Loss settlement, Abandonment, Occupancy, Physical hazard, Salvage, Proximate cause, Coinsurance, Policy structure DICE, Declarations, Insuring agreement, Exclusions, Actual cash value, Replacement cost, Coinsurance purpose, Coinsurance penalty math, Coinsurance no penalty, Deductible effect, Named perils, Open perils, Burden of proof, Subrogation, 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, Binder, Endorsement, Stated value vs agreed value, Mortgagee clause, Assignment, Attractive nuisance, Hold harmless agreement, Certificate of insurance, 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, Self-insured 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

Read the Property Casualty Basics study guide

Sample questions & answers

1. In insurance terms, risk is best defined as:

Uncertainty about whether a loss will occur

Risk is the uncertainty regarding the possibility of loss, which insurance is designed to manage.

2. When two homeowners policies cover the same loss, a pro rata other-insurance clause causes each insurer to:

Pay its proportional share of the loss

A pro rata other-insurance provision has each insurer pay its share based on its proportion of total coverage.

3. A personal property claim settled on an actual cash value basis pays:

Replacement cost minus depreciation

Actual cash value settlement reduces the replacement cost by depreciation at the time of loss.

4. Most property policies provide that the insured may not:

Abandon damaged property to the insurer

Property policies typically state the insured may not abandon damaged property to the insurer to force a total loss payment.

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Practice: Property Casualty 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.