Liberty Mutual License Practice Exam 2025 – Your All-in-One Guide to Certification Success!

Casualty insurance primarily covers property and liability losses, which is what makes this answer the correct choice. This type of insurance provides protection against legal liability for damages caused to other people or their belongings. It encompasses a variety of insurance types, including general liability, professional liability, and workers' compensation, along with coverage for physical loss or damage to property.

By covering both property damage and legal liability, casualty insurance helps protect individuals and businesses from the financial repercussions associated with accidents or unforeseen events that result in harm to others or their property. This comprehensive approach is fundamental to the nature of casualty insurance, distinguishing it from other types such as life or health insurance.

The other options do not align with the broad coverage scope of casualty insurance. Life and health insurance, for example, focus exclusively on personal health and life-related risks, while accidental death and dismemberment policies cater to specific scenarios. Automobile repair costs specifically relate to auto insurance and do not encompass the broader liability and property risks addressed by casualty insurance.