LOUISIANA PROPERTY AND CASUALTY
PRACTICE EXAMS WITH CORRECT
SOLUTIONS 2026/2027/UPDATED /GRADED
A+
1. What is a hazard? - ANSWER-An increase in the possibility
that a loss might occur
2. the purpose of insurance is to? - ANSWER-Transfer risk from
a person, business, or organization to an insurance company
that agrees to pay for losses in exchange for a premium.
3. mutual company - ANSWER-type of insurance company in which
the policyholder is considered an owner, with the right to
vote and share in the profits.
4. $50 - ANSWER-the renewal fee for a Louisiana producer
license.
5. b McCarran-Ferguson Act - ANSWER-the federal law that says
the federal government can only regulate insurance
companies to the extent they are not regulated by state
law.
6. Adhesion Contract - ANSWER-an insurance policy is prepared
by the insurance company, with little or no input from the
insured. this means that an insurance policy is a
, 7. HO-6 - ANSWER-an individual who owns and lives in a
condominium can obtain broad coverage for personal property
in the condo under which Homeowners form?
8. experience rating - ANSWER-what rating method involves
modifying the premium based on the insured's loss
experience over a specified period of time?
9. pain and suffering - ANSWER-which type of benefits is
generally not provided by a state's workers compensation
law?
10. foreign - ANSWER-which of the following describes an
insurance company doing business in a state other than the
where it is incorporated?
11. open peril policy - ANSWER-type of insurance policy
that insures against all risks of loss that are not
specifically excluded by the policy?
12. replacement cost-depreciation - ANSWER-which of the
following describes actual cash value?
13. Actual Cash Value (ACV) - ANSWER-Recplacement Cost -
Depreciation Cost
14. $5000 - ANSWER-an insured purchased new furniture for
$6000. At the time of a fire loss, it had depreciated
$2000. The same furniture will cost $7000 to replace. What
is the actual cash value of the destroyed furniture?
PRACTICE EXAMS WITH CORRECT
SOLUTIONS 2026/2027/UPDATED /GRADED
A+
1. What is a hazard? - ANSWER-An increase in the possibility
that a loss might occur
2. the purpose of insurance is to? - ANSWER-Transfer risk from
a person, business, or organization to an insurance company
that agrees to pay for losses in exchange for a premium.
3. mutual company - ANSWER-type of insurance company in which
the policyholder is considered an owner, with the right to
vote and share in the profits.
4. $50 - ANSWER-the renewal fee for a Louisiana producer
license.
5. b McCarran-Ferguson Act - ANSWER-the federal law that says
the federal government can only regulate insurance
companies to the extent they are not regulated by state
law.
6. Adhesion Contract - ANSWER-an insurance policy is prepared
by the insurance company, with little or no input from the
insured. this means that an insurance policy is a
, 7. HO-6 - ANSWER-an individual who owns and lives in a
condominium can obtain broad coverage for personal property
in the condo under which Homeowners form?
8. experience rating - ANSWER-what rating method involves
modifying the premium based on the insured's loss
experience over a specified period of time?
9. pain and suffering - ANSWER-which type of benefits is
generally not provided by a state's workers compensation
law?
10. foreign - ANSWER-which of the following describes an
insurance company doing business in a state other than the
where it is incorporated?
11. open peril policy - ANSWER-type of insurance policy
that insures against all risks of loss that are not
specifically excluded by the policy?
12. replacement cost-depreciation - ANSWER-which of the
following describes actual cash value?
13. Actual Cash Value (ACV) - ANSWER-Recplacement Cost -
Depreciation Cost
14. $5000 - ANSWER-an insured purchased new furniture for
$6000. At the time of a fire loss, it had depreciated
$2000. The same furniture will cost $7000 to replace. What
is the actual cash value of the destroyed furniture?
