PROPERTY AND CASUALTY ACTUAL
EXAMINATION SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS
VERIFIED PASS
●● Which of the following terms refers to such disabilities the loss of a
limb, hearing , or eye sight?
Answer: Permanent partial disability
●● Who is NOT considered an employee in an commercial general
liability (CGL) policy?
Answer: Temporary worker
●● The major portion of the premium of an equipment breakdown
policy pays?
Answer: For inspections and examinations
●● An insured owns a building valued at $400,000. To comply with the
80% coinsurance provision of his insurance policy, how , much should
he insure the property for?
Answer: 80% of the property's replacement cost or more
,●● Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the reporting
agency must
Answer: Respond to the consumer's complaint.
●● All of the following are found in the declarations section of a policy
EXCEPT the
Answer: Exclusions.
●● The cost of restoring farm records is an additional coverage offered
under a farm policy. How much will the policy pay to restore the
records?
Answer: Up to $2,000
●● All of the following could be considered rebates if offered to an
insured in the sale of insurance EXCEPT
Answer: Dividends from a mutual insurer.
●● Which of the following may be covered by electronic data
processing coverage form under an inland marine policy?
Answer: a) Computer hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a
loss.
,c) Data processing media, including magnetic tapes or paper tapes,
punch cards and discs
●● The party to a surety or fidelity bond who promises to fulfill the
obligation is the
Answer: Principal
●● The transfer of money from inside a banking premises to a person
other than a messenger outside those premises or to a place outside those
premises is covered under which commercial crime coverage?
Answer: Computer fraud
●● Which of the following would NOT be covered under the liability
section of a personal auto policy?
Answer: Bodily injury is caused by the insured's negligence while
driving a three-wheel all-terrain vehicle.
●● When a producer holding a certificate or a broker's license has a
change in his/her residence or business address, he/she must notify the
Department of Insurance and any company for which the producer holds
an appointment within
Answer: 30 days.
, ●● What will happen if a house covered by a standard mortgage clause
is a total loss?
Answer: The insurer pays the mortgagee according to the mortgagee's
interest in the property.
●● What is the civil penalty for violating a cease and desist order of the
Commissioner?
Answer: $10,000
●● The Business Pursuits endorsement under Section II of a
homeowners policy will cover all of the following EXCEPT
Answer: Business liability.
●● If a property is covered by Company A for $20,000 and Company B
covers the same property for $40,000, how much will Company A pay
on a $24,000 loss?
Answer: $8,000
●● The risk management technique that is used to prevent a specific loss
by not exposing oneself to that activity is called
Answer: Avoidance.
●● In a farm policy, any cost incurred by the insurer for the investigation
or defense of a claim will be paid by
EXAMINATION SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS
VERIFIED PASS
●● Which of the following terms refers to such disabilities the loss of a
limb, hearing , or eye sight?
Answer: Permanent partial disability
●● Who is NOT considered an employee in an commercial general
liability (CGL) policy?
Answer: Temporary worker
●● The major portion of the premium of an equipment breakdown
policy pays?
Answer: For inspections and examinations
●● An insured owns a building valued at $400,000. To comply with the
80% coinsurance provision of his insurance policy, how , much should
he insure the property for?
Answer: 80% of the property's replacement cost or more
,●● Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the reporting
agency must
Answer: Respond to the consumer's complaint.
●● All of the following are found in the declarations section of a policy
EXCEPT the
Answer: Exclusions.
●● The cost of restoring farm records is an additional coverage offered
under a farm policy. How much will the policy pay to restore the
records?
Answer: Up to $2,000
●● All of the following could be considered rebates if offered to an
insured in the sale of insurance EXCEPT
Answer: Dividends from a mutual insurer.
●● Which of the following may be covered by electronic data
processing coverage form under an inland marine policy?
Answer: a) Computer hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a
loss.
,c) Data processing media, including magnetic tapes or paper tapes,
punch cards and discs
●● The party to a surety or fidelity bond who promises to fulfill the
obligation is the
Answer: Principal
●● The transfer of money from inside a banking premises to a person
other than a messenger outside those premises or to a place outside those
premises is covered under which commercial crime coverage?
Answer: Computer fraud
●● Which of the following would NOT be covered under the liability
section of a personal auto policy?
Answer: Bodily injury is caused by the insured's negligence while
driving a three-wheel all-terrain vehicle.
●● When a producer holding a certificate or a broker's license has a
change in his/her residence or business address, he/she must notify the
Department of Insurance and any company for which the producer holds
an appointment within
Answer: 30 days.
, ●● What will happen if a house covered by a standard mortgage clause
is a total loss?
Answer: The insurer pays the mortgagee according to the mortgagee's
interest in the property.
●● What is the civil penalty for violating a cease and desist order of the
Commissioner?
Answer: $10,000
●● The Business Pursuits endorsement under Section II of a
homeowners policy will cover all of the following EXCEPT
Answer: Business liability.
●● If a property is covered by Company A for $20,000 and Company B
covers the same property for $40,000, how much will Company A pay
on a $24,000 loss?
Answer: $8,000
●● The risk management technique that is used to prevent a specific loss
by not exposing oneself to that activity is called
Answer: Avoidance.
●● In a farm policy, any cost incurred by the insurer for the investigation
or defense of a claim will be paid by
