Washington State Community Property Law Practice Exam – Updated 2026–2027

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WA State Property & Casualty State exam (NEW UPDATED VERSION)
LATEST ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS (VERIFIED
QUESTIONS AND ANSWERS)- GUARANTEED PASS A+ UPDATED 2026




Assignment - CORRECT ANSWER The transfer of a policy to another
party. Often done when commercial property is sold to a new owner.


QUESTION : Building & Personal Property (BPP) - CORRECT ANSWER
The commercial property policy for larger businesses.


QUESTION : Business Income Policy - CORRECT ANSWER A commercial
policy covering the indirect loss of income following a loss.


QUESTION : Cancellation - CORRECT ANSWER Termination of a policy
during the policy period.


QUESTION : Casualty Insurance - CORRECT ANSWER A broad term
which includes all of the policy types that may be sold with a Casualty License -
in most states this includes auto, liability, work comp, commercial crime, and
surety bonds.


QUESTION : Claims Made Form - CORRECT ANSWER A policy that pays
according to the coverage in effect in the year the claim is made rather than
according to the coverage in effect at the time of the loss. Professional Liability
policies are usually written on a Claims Made basis, while other Liability Policies
are written on an Occurrence Basis.

2026 2027 GRADED A+

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QUESTION : Coinsurance Clause - CORRECT ANSWER The policy
provision which sates that if the Insured has less than a specified amount of
coverage (usually 80%), the Insurer will not fully cover a partial loss.


QUESTION : Commercial Package Policy (CPP) - CORRECT ANSWER A
bundling of commercial policies


QUESTION : Competent Party - CORRECT ANSWER A person who is
capable of entering into an insurance contract. Such a person must be sane,
sober, and of age of majority (age 15 in most states).


QUESTION : Employers Liability - CORRECT ANSWER The section of a
Work Comp policy covering the employer for claims made by the injured
worker's family members.


QUESTION : Fair Credit Reporting Act - CORRECT ANSWER What an
item would sell for in the marketplace.


QUESTION : Fidelity Bond - CORRECT ANSWER A contract sold by a
Surety Producer to cover employee theft.


QUESTION : Gramm-Leach-Bliley Act - CORRECT ANSWER A federal
law which protects consumer privacy and which encourages the states to adopt
uniform licensing standards.




2026 2027 GRADED A+

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QUESTION : Hazzard - CORRECT ANSWER Any factor that increases the
likelihood that a peril will occur.


QUESTION : Twisting - CORRECT ANSWER Is the illegal and means that
no person can, by misrepresentations or misleading comparisons, induce, or
tend to induce any insured to lapse, terminate, forfeit, surrender, retain or
convert any insurance policy.


QUESTION : Law of Large Numbers - CORRECT ANSWER The maximum
the policy will pay for any one loss - this amount will be stated on the
Declarations.


QUESTION : Medical Payments - CORRECT ANSWER A liability
insurance term which refers to payment for a victim's medical bills without
regard to fault. The policy will have a specified Limit of Liability for "med pay."
Medical payments are never made to the Insured.


QUESTION : Morale Hazzard - CORRECT ANSWER An Insured's
carelessness or indifference which will make a loss more likely to occur.


QUESTION : Moral Hazzard - CORRECT ANSWER Refer to the fact that
we all act differently when we have insurance. We are simply less likely to
prevent a loss if we know that the Insurer will pay the claim. Moral Hazzard may
also refer to a thief or arsonist who intentionally causes a loss.


QUESTION : Mutual Insurer - CORRECT ANSWER An insurance
company owned by the policy holders.




2026 2027 GRADED A+

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QUESTION : Inherent Vice - CORRECT ANSWER A loss caused by
natural deterioration. Insurers will not pay claims for inherent vice.


QUESTION : Extra Expense Policy - CORRECT ANSWER Commercial
property coverage to pay for the extra cost of continuing a business after a loss.


QUESTION : Business Income Policy - CORRECT ANSWER A commercial
policy covering the indirect loss of income following a loss.


QUESTION : Comprehension Coverage - CORRECT ANSWER Physical
damage insurance that covers all property losses except collision. Also known as
"Other than Collision."


QUESTION : Concealment - CORRECT ANSWER Intentionally hiding the
truth or intentionally telling only a partial truth.


QUESTION : Conditions Section - CORRECT ANSWER The part of the
policy containing the details of the policy, including the duties of the Insured.


QUESTION : Consent to Settle Provision - CORRECT ANSWER The
provision in an E&O policy or Employment Practices Liability Policy requiring the
Insured's consent prior to any claim settlement.


QUESTION : Consideration - CORRECT ANSWER Something of value
given by each party in a contract.




2026 2027 GRADED A+