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Kentucky Property & Casualty Exam
Questions and Correct Answers/ Latest
Update / Already Graded
Which of the following meets the definition of an occurrence, but not
an accident?
(A) Two cars collide in a busy intersection
(B) A tree falls on a home during a storm
(C) Loss of income as a result of a fire
(D) Water damage from a leaking pipe
Ans: (D) Water damage from a leaking pipe
Which of the following is not an example of insurable interest?
(A) The gas station, which is intended to be bought next week
(B) A baseball card collection given to the insured by a grandfather
(C) Personal property left at a vacation home
(D) Personal tools that are left at the station
Ans: (A) The gas station, which is intended to be bought next
week
All rights reserved © 2025/ 2026 |
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Which of the following will state that the insured will be indemnified
against loss caused by fire, lightning, and internal explosion?
(A) Named peril
(B) Stated value
(C) Special form
(D) Open peril
Ans: (A) Named peril
An insured originally bought a house for $150,000. Today it could sell
for $200,000. It is estimated that if the house were totally destroyed it
would cost approximately $180,000 to rebuild. The replacement cost of
the house is:
(A) $200,000
(B) $180,000
(C) $160,000
(D) $150,000
Ans: (B) $180,000
All rights reserved © 2025/ 2026 |
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One of the purposes of the Other Insurance clause found in a Property
Policy is to:
(A) Provide bodily injury coverage equal to property coverage offered
under the contract
(B) Encourages insured to purchase adequate amounts of insurance
(C) Prevent the insured from profiting from a loss by over insuring the
property
(D) Provides that if other insurance applies to the loss the insurer does
not pay
Ans: (C) Prevent the insured from profiting from a loss by over
insuring the property
Which of the following is necessary for a valid contract?
(A) Must show signs of duress
(B) A written agreement signed by both the applicant and the agent
(C) Acceptance must be accepted by the insured
(D) Something of value must be exchanged between each party
Ans: (D) Something of value must be exchanged between each
party
All rights reserved © 2025/ 2026 |
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If an individual is liable for the loss of another, the court can require
damages be paid. What type of damages is typically covered by liability
insurance?
(A) Punitive damages meant to punish insured for gross negligence
(B) Special damages, which includes tangible financial losses
(C) Negligent property damage to a borrowed piece of equipment
(D) Negligence that results from an intervening cause
Ans: (B) Special damages, which includes tangible financial
losses
An insured purchases a property contract with a one-year policy
period. Parkway through the year the insured is informed that at the
end of the policy period the insurer will no longer provide coverage.
This is known as:
(A) Cancellation with unearned premium returned on pro rata basis.
(B) Nonrenewal with no refund.
(C) All premiums will be refunded since the insurer is canceling.
(D) Cancellation with unearned premium returned on short rate basis.
All rights reserved © 2025/ 2026 |
Kentucky Property & Casualty Exam
Questions and Correct Answers/ Latest
Update / Already Graded
Which of the following meets the definition of an occurrence, but not
an accident?
(A) Two cars collide in a busy intersection
(B) A tree falls on a home during a storm
(C) Loss of income as a result of a fire
(D) Water damage from a leaking pipe
Ans: (D) Water damage from a leaking pipe
Which of the following is not an example of insurable interest?
(A) The gas station, which is intended to be bought next week
(B) A baseball card collection given to the insured by a grandfather
(C) Personal property left at a vacation home
(D) Personal tools that are left at the station
Ans: (A) The gas station, which is intended to be bought next
week
All rights reserved © 2025/ 2026 |
, Page |2
Which of the following will state that the insured will be indemnified
against loss caused by fire, lightning, and internal explosion?
(A) Named peril
(B) Stated value
(C) Special form
(D) Open peril
Ans: (A) Named peril
An insured originally bought a house for $150,000. Today it could sell
for $200,000. It is estimated that if the house were totally destroyed it
would cost approximately $180,000 to rebuild. The replacement cost of
the house is:
(A) $200,000
(B) $180,000
(C) $160,000
(D) $150,000
Ans: (B) $180,000
All rights reserved © 2025/ 2026 |
, Page |3
One of the purposes of the Other Insurance clause found in a Property
Policy is to:
(A) Provide bodily injury coverage equal to property coverage offered
under the contract
(B) Encourages insured to purchase adequate amounts of insurance
(C) Prevent the insured from profiting from a loss by over insuring the
property
(D) Provides that if other insurance applies to the loss the insurer does
not pay
Ans: (C) Prevent the insured from profiting from a loss by over
insuring the property
Which of the following is necessary for a valid contract?
(A) Must show signs of duress
(B) A written agreement signed by both the applicant and the agent
(C) Acceptance must be accepted by the insured
(D) Something of value must be exchanged between each party
Ans: (D) Something of value must be exchanged between each
party
All rights reserved © 2025/ 2026 |
, Page |4
If an individual is liable for the loss of another, the court can require
damages be paid. What type of damages is typically covered by liability
insurance?
(A) Punitive damages meant to punish insured for gross negligence
(B) Special damages, which includes tangible financial losses
(C) Negligent property damage to a borrowed piece of equipment
(D) Negligence that results from an intervening cause
Ans: (B) Special damages, which includes tangible financial
losses
An insured purchases a property contract with a one-year policy
period. Parkway through the year the insured is informed that at the
end of the policy period the insurer will no longer provide coverage.
This is known as:
(A) Cancellation with unearned premium returned on pro rata basis.
(B) Nonrenewal with no refund.
(C) All premiums will be refunded since the insurer is canceling.
(D) Cancellation with unearned premium returned on short rate basis.
All rights reserved © 2025/ 2026 |
