Property and Casualty Insurance Exam |
Questions with 100% Correct Answers | Verified |
Latest Update 2026
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Practice questions for this set
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1 Personal Property 2 Theft
3 Actual Cash Value 4 Occurrence
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Terms in this set (73)
, Personal Property Contents refers to personal property, including
items inside and outside the building. Personal
property includes transportable items like
appliances, unattached outdoor items, and items
on the land.
Real Property Real property includes the building and its
attached components, such as doors, windows,
sinks, and toilets.
Insurable Interest Interest someone has in a person or property that
is subject to a financial loss if injured or damaged.
Must exist at the time of loss in P&C insurance.
Elements of Insurable Interest There are 3 elements of insurable interest: Financial
(Mortgage company and borrower), Blood
(Family), Business (Business partners over a
company).
Actual Cash Value Replacement cost less than depreciation (RC-
Depreciation=Amount Paid). Reinforces the
principal of indemnity.
Replacement Cost What it cost to replace the property at today's
price without depreciation. Contrary to the
principal of indemnity.
Functional Replacement Cost Replacing a property with a more modern and less
expensive property.
Market Value What a willing buyer is willing to pay a willing seller.
Questions with 100% Correct Answers | Verified |
Latest Update 2026
Save
Practice questions for this set
Learn 1 /7 Study using Learn
Continuous or repeated exposure
Choose an answer
1 Personal Property 2 Theft
3 Actual Cash Value 4 Occurrence
Don't know?
Terms in this set (73)
, Personal Property Contents refers to personal property, including
items inside and outside the building. Personal
property includes transportable items like
appliances, unattached outdoor items, and items
on the land.
Real Property Real property includes the building and its
attached components, such as doors, windows,
sinks, and toilets.
Insurable Interest Interest someone has in a person or property that
is subject to a financial loss if injured or damaged.
Must exist at the time of loss in P&C insurance.
Elements of Insurable Interest There are 3 elements of insurable interest: Financial
(Mortgage company and borrower), Blood
(Family), Business (Business partners over a
company).
Actual Cash Value Replacement cost less than depreciation (RC-
Depreciation=Amount Paid). Reinforces the
principal of indemnity.
Replacement Cost What it cost to replace the property at today's
price without depreciation. Contrary to the
principal of indemnity.
Functional Replacement Cost Replacing a property with a more modern and less
expensive property.
Market Value What a willing buyer is willing to pay a willing seller.
