CHAPTER 1 SELF-ASSESSMENT – ARIZONA PROPERTY &
CASUALTY LICENSE EXAM 2025
AZ P&C INSURANCE CHAPTER 1 QUIZ – TEST YOUR
KNOWLEDGE TODAY!
📘 Product Description
Test your knowledge before the real exam!
This Chapter 1 Practice Exam is designed for students preparing for the
Arizona Property & Casualty Insurance License. It covers essential
concepts from Chapter 1 and helps you assess how well you're retaining the
material.
Whether you're reviewing or just starting, this self-test is the perfect way to
build confidence and target what you still need to study.
✅ What’s Included:
📝 20+ Practice Questions based on Chapter 1 material
🧠 Designed to simulate real exam format
💡 Great for self-assessment and last-minute review
📩 Need the Answer Key?
To keep your self-test experience effective and realistic, the answer key is
available upon request.
Simply email us at:
👉 click here
,We'll send you the full Chapter 1 Answer Key with explanations within
24 hours!
Format: PDF (printable + mobile-friendly)
Delivery: Instant digital download
Course: Property & Casualty Insurance – Arizona License
Chapter: 1 – Insurance Basics
1. Under Section 1 Condition - Loss Settlement, what percentage of coverage
must an insured carry in order to receive full replacement cost
coverage?
80%
75%
90%
65%
2. Describe what it means for a building to be classified as vacant in the
context of property insurance. A vacant building is one that is
temporarily unoccupied but still contains personal property.
A vacant building is one that is occupied but has no personal property.
A vacant building is one that is abandoned and has no insurance coverage.
A vacant building is one that has no occupants and lacks personal
property, which can affect insurance coverage.
3. What is the term used when an insured adds
coverage to their policy? renew
, exclude
cancel
endorse
4. Describe the difference between direct loss and indirect
loss in property insurance. Direct loss is always
covered by insurance, while indirect loss is never
covered.
Direct loss refers to the immediate damage to property, while indirect
loss involves secondary effects such as loss of income due to the
property damage.
Direct loss only applies to physical damage, while indirect
loss applies to intangible damages. Direct loss is related to
policy exclusions, whereas indirect loss is related to coverage
types.
5. Describe how a hostile fire differs from a controlled fire in
terms of property insurance. A hostile fire is always
intentional, while a controlled fire is always accidental.
A hostile fire is uncontrolled and causes damage, while a controlled fire
is contained and does not cause harm.
, A hostile fire is less damaging than a controlled fire.
A hostile fire refers only to wildfires, while controlled fires are always
indoors.
6. What is the term used to describe the insurer's promise of protection in
a property insurance policy? Coverage Endorsement
Exclusion
Clause
Policy
Declaration
CASUALTY LICENSE EXAM 2025
AZ P&C INSURANCE CHAPTER 1 QUIZ – TEST YOUR
KNOWLEDGE TODAY!
📘 Product Description
Test your knowledge before the real exam!
This Chapter 1 Practice Exam is designed for students preparing for the
Arizona Property & Casualty Insurance License. It covers essential
concepts from Chapter 1 and helps you assess how well you're retaining the
material.
Whether you're reviewing or just starting, this self-test is the perfect way to
build confidence and target what you still need to study.
✅ What’s Included:
📝 20+ Practice Questions based on Chapter 1 material
🧠 Designed to simulate real exam format
💡 Great for self-assessment and last-minute review
📩 Need the Answer Key?
To keep your self-test experience effective and realistic, the answer key is
available upon request.
Simply email us at:
👉 click here
,We'll send you the full Chapter 1 Answer Key with explanations within
24 hours!
Format: PDF (printable + mobile-friendly)
Delivery: Instant digital download
Course: Property & Casualty Insurance – Arizona License
Chapter: 1 – Insurance Basics
1. Under Section 1 Condition - Loss Settlement, what percentage of coverage
must an insured carry in order to receive full replacement cost
coverage?
80%
75%
90%
65%
2. Describe what it means for a building to be classified as vacant in the
context of property insurance. A vacant building is one that is
temporarily unoccupied but still contains personal property.
A vacant building is one that is occupied but has no personal property.
A vacant building is one that is abandoned and has no insurance coverage.
A vacant building is one that has no occupants and lacks personal
property, which can affect insurance coverage.
3. What is the term used when an insured adds
coverage to their policy? renew
, exclude
cancel
endorse
4. Describe the difference between direct loss and indirect
loss in property insurance. Direct loss is always
covered by insurance, while indirect loss is never
covered.
Direct loss refers to the immediate damage to property, while indirect
loss involves secondary effects such as loss of income due to the
property damage.
Direct loss only applies to physical damage, while indirect
loss applies to intangible damages. Direct loss is related to
policy exclusions, whereas indirect loss is related to coverage
types.
5. Describe how a hostile fire differs from a controlled fire in
terms of property insurance. A hostile fire is always
intentional, while a controlled fire is always accidental.
A hostile fire is uncontrolled and causes damage, while a controlled fire
is contained and does not cause harm.
, A hostile fire is less damaging than a controlled fire.
A hostile fire refers only to wildfires, while controlled fires are always
indoors.
6. What is the term used to describe the insurer's promise of protection in
a property insurance policy? Coverage Endorsement
Exclusion
Clause
Policy
Declaration
