PROPERTY AND CASUALTY EXAM STUDY
GUIDE | COMPREHENSIVE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND TEST REVIEW
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,BOP Commercial package policy that provides property and liability insurance to certain
types of small businesses
Who is the ideal BOP prospect? The small, well managed, one location business with easily predicted coverage needs
Under the BOP what sq footage and gross sales can eligible 25,000 ft in total floor area or $3 million in annual gross sales at each location
risks not exceed?
What's the building size limit to be eligible for a BOP? Building cannot exceed 6 stories in height or contain more than 100,000 sq ft
What's coverage A and coverage B under a BOP? Coverage A - Buildings
Coverage B - Business Personal Property
Liability policies usually pay damages for the insured liabilities A B and C
for
Bodily injury
Property damage
Personal injury
Intentional torts
An aggregate limit is the most a company will pay Over the policy year
For any one event
Over the policy year
For any one person or item of property
What are the four components needed to have negligence? Duty to others
Breach of this duty
Damages
Proximate cause
Compensatory damages Damages that reimburse the injured party only for losses that were actually sustained
Name and define the two types of compensatory damages Special and general
Special damages include all direct and specific expenses involved in a particular loss
(medical expenses, lost wages)
General damages compensate other things like pain and suffering and disfigurement
,What are the four coverages of a basic dp form? Coverage A - Dwelling
Coverage B - other structures
Coverage C - personal property
Coverage D - fair rental value
What are the extended perils covered under a dwelling Wind
policy? Hail
Aircraft
Riot / civil commotion
Volcanic eruption
Explosion
Smoke
What four Other Coverages are covered under the DP-2 and Plants
3? Collapse
Glass
Ordinance or law
What is the Ordinance Or Law? Coverage that allows payment of up to 10% of coverage A limit of liability for the
increased cost to repair or rebuild a dwelling or other structure to conform with
applicable building and land use codes
Which dwelling form covers losses to the dwelling and other DP-2 and DP-3
structures on a replacement cost basis?
Under the dwelling policy, what coverage would reimburse a Coverage E - additional living expense
family for having to stay in a motel because they had a fire?
What's the percentages paid for losses under Coverage B, C, Coverage B other structures is 10% of coverage A limit
and D under the dwelling policy? Coverage C personal property is 20%
Coverage D fair rental value is 20% divided by 12 months
What does the HO-5 policy provide and what's another name Comprehensive form that provides open peril coverage for dwellings, other structures,
for its form? and personal property
What for of homeowners insurance is good for tenants and HO-4 and provides broad coverage for personal property and no coverage for the
what does it provide? dwelling
, Which homeowners form provides broad coverage for both HO-3
the dwelling and its contents?
An extension of coverage is good for what? How long is it Newly acquired property coverage
good for?
14 days before you need to contact your insurance company
What's the formula for a co-insurance penalty? Insurance carried over insurance required times loss equals the amount paid
Liability losses are known as - first party, second party, or third Third party - the insurance company is the second party and you're the first
party losses?
Insurance is a contract by which one seeks to protect another Loss.
from ______________.
An insured carries a property policy on her home in the Nothing
amount of $250,000. A bank is shown as the mortgagor in the
policy. Last month the insured made her final mortgage
payment but did not remove the bank from the policy. In
the event of a covered loss to her home, how much will the
bank receive?
Aggregate Limit of Liability the maximum limit of coverage available under a liability policy during a policy year
regardless of the number of claims that may be made or the number of accidents that
may occur
Speculative Risk events in which the principal has both the chance of winning or losing
Direct Loss includes damage where the insured peril was the proximate cause of loss
All of the following are factors in the determination of "Actual b)Original cost, new
Cash Value" EXCEPT:
a)Replacement cost
b) Original cost, new
c) Kind and quality of property
d) Age of the property
Loss of use coverage that covers any additional living expenses
GUIDE | COMPREHENSIVE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND TEST REVIEW
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,BOP Commercial package policy that provides property and liability insurance to certain
types of small businesses
Who is the ideal BOP prospect? The small, well managed, one location business with easily predicted coverage needs
Under the BOP what sq footage and gross sales can eligible 25,000 ft in total floor area or $3 million in annual gross sales at each location
risks not exceed?
What's the building size limit to be eligible for a BOP? Building cannot exceed 6 stories in height or contain more than 100,000 sq ft
What's coverage A and coverage B under a BOP? Coverage A - Buildings
Coverage B - Business Personal Property
Liability policies usually pay damages for the insured liabilities A B and C
for
Bodily injury
Property damage
Personal injury
Intentional torts
An aggregate limit is the most a company will pay Over the policy year
For any one event
Over the policy year
For any one person or item of property
What are the four components needed to have negligence? Duty to others
Breach of this duty
Damages
Proximate cause
Compensatory damages Damages that reimburse the injured party only for losses that were actually sustained
Name and define the two types of compensatory damages Special and general
Special damages include all direct and specific expenses involved in a particular loss
(medical expenses, lost wages)
General damages compensate other things like pain and suffering and disfigurement
,What are the four coverages of a basic dp form? Coverage A - Dwelling
Coverage B - other structures
Coverage C - personal property
Coverage D - fair rental value
What are the extended perils covered under a dwelling Wind
policy? Hail
Aircraft
Riot / civil commotion
Volcanic eruption
Explosion
Smoke
What four Other Coverages are covered under the DP-2 and Plants
3? Collapse
Glass
Ordinance or law
What is the Ordinance Or Law? Coverage that allows payment of up to 10% of coverage A limit of liability for the
increased cost to repair or rebuild a dwelling or other structure to conform with
applicable building and land use codes
Which dwelling form covers losses to the dwelling and other DP-2 and DP-3
structures on a replacement cost basis?
Under the dwelling policy, what coverage would reimburse a Coverage E - additional living expense
family for having to stay in a motel because they had a fire?
What's the percentages paid for losses under Coverage B, C, Coverage B other structures is 10% of coverage A limit
and D under the dwelling policy? Coverage C personal property is 20%
Coverage D fair rental value is 20% divided by 12 months
What does the HO-5 policy provide and what's another name Comprehensive form that provides open peril coverage for dwellings, other structures,
for its form? and personal property
What for of homeowners insurance is good for tenants and HO-4 and provides broad coverage for personal property and no coverage for the
what does it provide? dwelling
, Which homeowners form provides broad coverage for both HO-3
the dwelling and its contents?
An extension of coverage is good for what? How long is it Newly acquired property coverage
good for?
14 days before you need to contact your insurance company
What's the formula for a co-insurance penalty? Insurance carried over insurance required times loss equals the amount paid
Liability losses are known as - first party, second party, or third Third party - the insurance company is the second party and you're the first
party losses?
Insurance is a contract by which one seeks to protect another Loss.
from ______________.
An insured carries a property policy on her home in the Nothing
amount of $250,000. A bank is shown as the mortgagor in the
policy. Last month the insured made her final mortgage
payment but did not remove the bank from the policy. In
the event of a covered loss to her home, how much will the
bank receive?
Aggregate Limit of Liability the maximum limit of coverage available under a liability policy during a policy year
regardless of the number of claims that may be made or the number of accidents that
may occur
Speculative Risk events in which the principal has both the chance of winning or losing
Direct Loss includes damage where the insured peril was the proximate cause of loss
All of the following are factors in the determination of "Actual b)Original cost, new
Cash Value" EXCEPT:
a)Replacement cost
b) Original cost, new
c) Kind and quality of property
d) Age of the property
Loss of use coverage that covers any additional living expenses
