Property and Casualty Insurance Exam
Questions and Answers with Verified
Solutions | Latest Updated 2026
Elements for a contract: 1) Agreement - offer and acceptance
2) Consideration
3) Competent parties
4) Legal purpose
Payment for medical expenses, Special
loss
of wages, funeral expenses, or the
cost to repair or replace damaged
property are known as what type
of
compensatory damages?
Which method of loss valuation is Replacement cost
contrary to the basic concept of
indemnity?
An insured owns several buildings, Specific
each at a different location and
insured on a separate policy. What
type of coverage does the insured
have?
,The policy provision found in Subrogation
property insurance policies that
prevents the insured from
collecting
twice for the same loss is called
Losses caused by continuous or Occurrence
repeated exposure to conditions
resulting in injury persons or
damage
to property that is neither intended
nor expected is the definition of
which of the following terms?
An insured relocated to another Unoccupied
state for work. However, she still
owns and insures a house in this
state, but has had no one living in
it
for 3 months. She is also storing
some of furniture and clothes in
the
house. From an insurance
standpoint,
the insured's house is considered
, An insured's roof cost $4,000 $5,000
when
installed 5 years ago. It has been
damaged by hail and must be
replaced. The new roof will cost
$6,000 at today's prices. If the roof
has been depreciating at $200 per
year and the insured's policy is
written on the actual cash
value(ACV), how much will the
policy
pay toward the insured's new roof?
An insured carries a property Nothing
policy
on her home in the amount of
$250,000. A bank is shown as the
mortgagor in the policy. Last
month
the insured made her final
mortgage
payment, but did not remove the
bank from the policy. In the event
of
a covered loss to her home, how
much will the bank receive?
What type of damages may be Punitive
awarded by the court to create
disincentives that discourage
behavior that is deemed highly
undesirable by society?
Questions and Answers with Verified
Solutions | Latest Updated 2026
Elements for a contract: 1) Agreement - offer and acceptance
2) Consideration
3) Competent parties
4) Legal purpose
Payment for medical expenses, Special
loss
of wages, funeral expenses, or the
cost to repair or replace damaged
property are known as what type
of
compensatory damages?
Which method of loss valuation is Replacement cost
contrary to the basic concept of
indemnity?
An insured owns several buildings, Specific
each at a different location and
insured on a separate policy. What
type of coverage does the insured
have?
,The policy provision found in Subrogation
property insurance policies that
prevents the insured from
collecting
twice for the same loss is called
Losses caused by continuous or Occurrence
repeated exposure to conditions
resulting in injury persons or
damage
to property that is neither intended
nor expected is the definition of
which of the following terms?
An insured relocated to another Unoccupied
state for work. However, she still
owns and insures a house in this
state, but has had no one living in
it
for 3 months. She is also storing
some of furniture and clothes in
the
house. From an insurance
standpoint,
the insured's house is considered
, An insured's roof cost $4,000 $5,000
when
installed 5 years ago. It has been
damaged by hail and must be
replaced. The new roof will cost
$6,000 at today's prices. If the roof
has been depreciating at $200 per
year and the insured's policy is
written on the actual cash
value(ACV), how much will the
policy
pay toward the insured's new roof?
An insured carries a property Nothing
policy
on her home in the amount of
$250,000. A bank is shown as the
mortgagor in the policy. Last
month
the insured made her final
mortgage
payment, but did not remove the
bank from the policy. In the event
of
a covered loss to her home, how
much will the bank receive?
What type of damages may be Punitive
awarded by the court to create
disincentives that discourage
behavior that is deemed highly
undesirable by society?
