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2025 Newest Property and Casualty Exam Prep Test
Bank with 300 Questions and Correct Answers/
Property and Casualty License Test / P & C Exam
Bailee - ...✔✔ANSWER✔✔...An individual or organization
who has taken into its care, custody, and/or control the
property of another for servicing, repair, or storage
Hazard - ...✔✔ANSWER✔✔...Something that increases the
chance or likelihood of a loss occuring.
(physical or moral or morale)
Market Value - ...✔✔ANSWER✔✔...A property policy
provision that changes the valuation method otherwise
applicable (ACV or RV) to a valuation method that allows
reimbursement to the insured, according to the price a
willing buyer would pay for the property purches from a
willing seller
Insurable Interest
(limit of liability) - ...✔✔ANSWER✔✔...Specifies that the
insurer will not be responsible for an amount which is
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greater than the financial interest of an insured person or
more that the limit of liability stated on the Declarations
Page
Actual Cash Value
(ACV) - ...✔✔ANSWER✔✔...The policy pays for the cost to
repair or replace the damaged property at the time of
loss, less depreciation
Deductible - ...✔✔ANSWER✔✔...The amount of money
which the insured party must pay before the insurance
company's own coverage plan begins.
Vacancy - ...✔✔ANSWER✔✔...A property that has neither
occupants nor personal property is described as vacant.
Right of Salvage - ...✔✔ANSWER✔✔...The right of the
insurer to take possession of damaged property after the
loss to the property has been paid. The salvage belongs to
the insurer.
Inherent Vice - ...✔✔ANSWER✔✔...A condition or defect
that exists within property itself that causes the property
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to spoil, break, become defective, or destroy itself.
Insurance policies typically exclude inherent vice.
Example: The quality of materials used in a painting
allows the painting to fade or lose luster with time.
Aircraft Hull Insurance - ...✔✔ANSWER✔✔...Provides
coverage on an open peril basis for physical loss or
damage to the insured aircraft, on ground, or in flight.
In flight is from the moment it moves forward for takeoff
until it completes its landing run.
Motor Carrier Act of 1980 -
...✔✔ANSWER✔✔...Department of Transportaion (DOT)
requires:
-Motor carrier must carry an insurance policy of certain
minimum limits, or
-Post a surety bond representing certain financial
stability criteria when transporting passengers or cargo.
Contribution by Equal Shares - ...✔✔ANSWER✔✔...Under
this concept, when 2 or more insurers' policies cover at
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the same level (Primary or Excess), each insurer
contributes an equal amount to the loss settlement until
the loss is paid, or until each insurer has exhausted its
limits of insurance, whichever comes first.
Example: If there are 3 insurers participating, each would
pay 33 1/3 percent of the loss; if 4 insurers participating,
each would pay 25 percent of the loss; or if 5 insurers
participating, each would pay 20 percent of the loss.
Certified Act of Terrorism - ...✔✔ANSWER✔✔...Any act,
certified jointly as terrorism by the Secretary of Treasury,
State and Attorney General which is at least one of the
following:
-Violent/dangerous to human life/property/infrastructure.
-Damaging within the U.S. or on U.S. air
carrier/vessel/mission.
-Committed by persons on behalf of any foreign
person/interest to coerce/influence the U.S.
civilian/government policy.
Nationwide Marine Definition - ...✔✔ANSWER✔✔...Wet
insurance and Dry insurance are terms that the
Nationwide Marine Definition uses in specifying risks that
2025 Newest Property and Casualty Exam Prep Test
Bank with 300 Questions and Correct Answers/
Property and Casualty License Test / P & C Exam
Bailee - ...✔✔ANSWER✔✔...An individual or organization
who has taken into its care, custody, and/or control the
property of another for servicing, repair, or storage
Hazard - ...✔✔ANSWER✔✔...Something that increases the
chance or likelihood of a loss occuring.
(physical or moral or morale)
Market Value - ...✔✔ANSWER✔✔...A property policy
provision that changes the valuation method otherwise
applicable (ACV or RV) to a valuation method that allows
reimbursement to the insured, according to the price a
willing buyer would pay for the property purches from a
willing seller
Insurable Interest
(limit of liability) - ...✔✔ANSWER✔✔...Specifies that the
insurer will not be responsible for an amount which is
,2|Page
greater than the financial interest of an insured person or
more that the limit of liability stated on the Declarations
Page
Actual Cash Value
(ACV) - ...✔✔ANSWER✔✔...The policy pays for the cost to
repair or replace the damaged property at the time of
loss, less depreciation
Deductible - ...✔✔ANSWER✔✔...The amount of money
which the insured party must pay before the insurance
company's own coverage plan begins.
Vacancy - ...✔✔ANSWER✔✔...A property that has neither
occupants nor personal property is described as vacant.
Right of Salvage - ...✔✔ANSWER✔✔...The right of the
insurer to take possession of damaged property after the
loss to the property has been paid. The salvage belongs to
the insurer.
Inherent Vice - ...✔✔ANSWER✔✔...A condition or defect
that exists within property itself that causes the property
,3|Page
to spoil, break, become defective, or destroy itself.
Insurance policies typically exclude inherent vice.
Example: The quality of materials used in a painting
allows the painting to fade or lose luster with time.
Aircraft Hull Insurance - ...✔✔ANSWER✔✔...Provides
coverage on an open peril basis for physical loss or
damage to the insured aircraft, on ground, or in flight.
In flight is from the moment it moves forward for takeoff
until it completes its landing run.
Motor Carrier Act of 1980 -
...✔✔ANSWER✔✔...Department of Transportaion (DOT)
requires:
-Motor carrier must carry an insurance policy of certain
minimum limits, or
-Post a surety bond representing certain financial
stability criteria when transporting passengers or cargo.
Contribution by Equal Shares - ...✔✔ANSWER✔✔...Under
this concept, when 2 or more insurers' policies cover at
, 4|Page
the same level (Primary or Excess), each insurer
contributes an equal amount to the loss settlement until
the loss is paid, or until each insurer has exhausted its
limits of insurance, whichever comes first.
Example: If there are 3 insurers participating, each would
pay 33 1/3 percent of the loss; if 4 insurers participating,
each would pay 25 percent of the loss; or if 5 insurers
participating, each would pay 20 percent of the loss.
Certified Act of Terrorism - ...✔✔ANSWER✔✔...Any act,
certified jointly as terrorism by the Secretary of Treasury,
State and Attorney General which is at least one of the
following:
-Violent/dangerous to human life/property/infrastructure.
-Damaging within the U.S. or on U.S. air
carrier/vessel/mission.
-Committed by persons on behalf of any foreign
person/interest to coerce/influence the U.S.
civilian/government policy.
Nationwide Marine Definition - ...✔✔ANSWER✔✔...Wet
insurance and Dry insurance are terms that the
Nationwide Marine Definition uses in specifying risks that
