SOUTH CAROLINA PROPERTY AND
CASUALTY INSURANCE PRACTICE EXAM
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2025
1. What type of insurance policy covers damage to the insured's own vehicle
regardless of fault?
a) Liability
b) Collision
c) Comprehensive
d) Uninsured Motorist
Collision insurance pays for damage to the insured’s vehicle caused by collision
with another vehicle or object.
2. Which of the following is NOT typically covered under a Homeowners Policy?
a) Fire damage
,b) Theft
c) Flood damage
d) Vandalism
c) Flood damage
Flood damage is generally excluded from standard homeowners policies and
requires a separate flood insurance policy.
3. What is the primary purpose of liability insurance?
a) Cover the insured's property damage
b) Cover medical expenses of the insured
c) Protect against legal responsibility for injuries or damages to others
d) Replace the insured's lost income
Liability insurance protects the insured when they are legally responsible for bodily
injury or property damage to others.
4. In South Carolina, what is the minimum bodily injury liability limit per person
required by law?
a) $10,000
b) $25,000
c) $50,000
d) $100,000
South Carolina requires a minimum of $25,000 bodily injury liability per person.
, 5. The term “deductible” in insurance refers to:
a) The premium paid
b) The total coverage limit
c) The amount the insured must pay before insurance coverage applies
d) The commission paid to agents
Deductible is the portion the insured pays out-of-pocket before the insurer pays.
6. What does the term “peril” mean in insurance?
a) The insured’s property
b) The insurance company
c) The cause of loss or damage
d) The policy premium
Peril is a specific risk or cause of loss covered by the policy.
7. Which of the following is an example of an “indirect loss”?
a) Fire damage to a home
b) Theft of personal property
c) Loss of rental income due to fire damage
d) Windstorm damage
Indirect loss refers to consequential losses that happen as a result of a direct loss.
8. What type of policy provides coverage for all risks except those specifically
excluded?
CASUALTY INSURANCE PRACTICE EXAM
QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES
2025
1. What type of insurance policy covers damage to the insured's own vehicle
regardless of fault?
a) Liability
b) Collision
c) Comprehensive
d) Uninsured Motorist
Collision insurance pays for damage to the insured’s vehicle caused by collision
with another vehicle or object.
2. Which of the following is NOT typically covered under a Homeowners Policy?
a) Fire damage
,b) Theft
c) Flood damage
d) Vandalism
c) Flood damage
Flood damage is generally excluded from standard homeowners policies and
requires a separate flood insurance policy.
3. What is the primary purpose of liability insurance?
a) Cover the insured's property damage
b) Cover medical expenses of the insured
c) Protect against legal responsibility for injuries or damages to others
d) Replace the insured's lost income
Liability insurance protects the insured when they are legally responsible for bodily
injury or property damage to others.
4. In South Carolina, what is the minimum bodily injury liability limit per person
required by law?
a) $10,000
b) $25,000
c) $50,000
d) $100,000
South Carolina requires a minimum of $25,000 bodily injury liability per person.
, 5. The term “deductible” in insurance refers to:
a) The premium paid
b) The total coverage limit
c) The amount the insured must pay before insurance coverage applies
d) The commission paid to agents
Deductible is the portion the insured pays out-of-pocket before the insurer pays.
6. What does the term “peril” mean in insurance?
a) The insured’s property
b) The insurance company
c) The cause of loss or damage
d) The policy premium
Peril is a specific risk or cause of loss covered by the policy.
7. Which of the following is an example of an “indirect loss”?
a) Fire damage to a home
b) Theft of personal property
c) Loss of rental income due to fire damage
d) Windstorm damage
Indirect loss refers to consequential losses that happen as a result of a direct loss.
8. What type of policy provides coverage for all risks except those specifically
excluded?
