VA P&C Practice Exam Questions
A building owner purchases a fire policy providing $60,000 worth of coverage with an 80%
coinsurance clause for his $100,000 building. He suffers a $10,000 loss. How much will with
insurer pay?
A. $1,667
B. $7,500
C. $8,000
D. $10,000 - correct answer-B. $7,500
A Businessowners Policy (BOP) is best described as:
A. A self-contained complete package policy
B. A modular approach to insuring businesses
C. Combination of personal and commercial insurance coverage
D. Combination of property and crime coverage - correct answer-A. A self-contained
complete package policy
A commercial general liability policy provides coverage for:
A. damage to property owned by an insured
B. bodily injury to an employee
C. bodily injury caused by an auto accident
D. liability for slander - correct answer-D. liability for slander
A Commercial Package Policy (CPP) is best described as:
A. A self-contained complete package policy
B. A modular approach to insuring businesses
C. A package including liability, workers compensation and vehicle
D. Commercial property and commercial general liability insurance - correct answer-B. A
modular approach to insuring businesses
A farmer's crops being damaged by toxic fumes that have been escaping continuously from
a factory is an example of a/an:
A. occurrence
B. accident
C. proximate cause
D. insurable interest - correct answer-A. occurrence
A fire causes extensive damage to the interior of a small restaurant. The building was
covered by a commercial package policy with a building and personal property form. Which
of the following losses was covered by this contract?
A. the loss of gross earnings of the restaurant
B. tables and chairs destroyed by the fire
C. loss of profits while customers are unable to make purchases
D. expenses incurred to reopen the restaurant - correct answer-B. tables and chairs
destroyed by the fire
,A licensed agent must report a name change to the Commission within how many days?
A. 30
B. 45
C. 60
D. 90 - correct answer-A. 30
A notice of claim to an insurer must include all of the following EXCEPT:
A. Insured's name
B. Insured's address
C. Name of insured's attorney
D. Description of how the loss occurred - correct answer-C. Name of insured's attorney
A person who, for a fee, offers advice to the public regarding property and casualty
insurance, best describes a/an:
A. Agent
B. Nonresident agent
C. Consultant
D. Adjuster - correct answer-C. Consultant
A policy covering owner occupied dwelling may be cancelled or terminated for all of the
following reasons EXCEPT:
A. submission of a claim for fire damage
B. nonpayment of premium
C. discovery of fraud or material misrepresentation
D. physical changes to the property that cause the property to become uninsurable - correct
answer-A. submission of a claim for fire damage
A policy covering owner-occupied dwellings may be cancelled or terminated for each of the
following reasons EXCEPT:
A. discovery of fraud on the part of the insured
B. bodily injury to a person caused by the insured's dog
C. reckless act which increases the hazard
D. material misrepresentation - correct answer-B. bodily injury to a person caused by the
insured's dog
A solicitor may not:
A. Issue or countersign policies
B. Sell insurance
C. Collect premiums
D. Sign an application - correct answer-A. Issue or countersign policies
A surety bond is a financial guarantee of:
A. Payment
B. Performance
C. Obligation
D. Principal - correct answer-B. Performance
A typical Outboard Motor and Boat policy provides which of the following coverages?
, A. Liability
B. Medical Payments
C. Physical damage
D. All of the above - correct answer-C. Physical damage
After a torrential rain, Velma discovered her basement was filling up water. If she has an
HO5, the loss would be:
A. Covered
B. Excluded
C. Considered a flood loss
D. Damage to the house is covered, but the personal property is not - correct answer-B.
Excluded
All of the following are Basic Perils covered on a BOP, EXCEPT:
A. Sprinkler leakage
B. Transportation
C. Earthquake
D. Sinkhole Collapse - correct answer-C. Earthquake
All of the following are covered by a PAP EXCEPT:
A. glass breakage
B. theft
C. liability for damage to the insured's property
D. damage to the property of others - correct answer-C. liability for damage to the insured's
property
All of the following are covered by a standard fire insurance policy EXCEPT:
A. fire
B. explosion
C. lightning
D. removal - correct answer-B. explosion
All of the following are duties of the insured as detailed in the Conditions of the policy
EXCEPT:
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster - correct answer-D. Assist in selecting an
insurance adjuster
All of the following are exceptions to the contractual liability exclusion in a CGL, except:
A. Easement agreement
B. Tort liability
C. Liquor liability
D. Elevator maintenance agreement - correct answer-C. Liquor liability
All of the following are indirect loss coverage available under equipment breakdown forms
EXCEPT:
A building owner purchases a fire policy providing $60,000 worth of coverage with an 80%
coinsurance clause for his $100,000 building. He suffers a $10,000 loss. How much will with
insurer pay?
A. $1,667
B. $7,500
C. $8,000
D. $10,000 - correct answer-B. $7,500
A Businessowners Policy (BOP) is best described as:
A. A self-contained complete package policy
B. A modular approach to insuring businesses
C. Combination of personal and commercial insurance coverage
D. Combination of property and crime coverage - correct answer-A. A self-contained
complete package policy
A commercial general liability policy provides coverage for:
A. damage to property owned by an insured
B. bodily injury to an employee
C. bodily injury caused by an auto accident
D. liability for slander - correct answer-D. liability for slander
A Commercial Package Policy (CPP) is best described as:
A. A self-contained complete package policy
B. A modular approach to insuring businesses
C. A package including liability, workers compensation and vehicle
D. Commercial property and commercial general liability insurance - correct answer-B. A
modular approach to insuring businesses
A farmer's crops being damaged by toxic fumes that have been escaping continuously from
a factory is an example of a/an:
A. occurrence
B. accident
C. proximate cause
D. insurable interest - correct answer-A. occurrence
A fire causes extensive damage to the interior of a small restaurant. The building was
covered by a commercial package policy with a building and personal property form. Which
of the following losses was covered by this contract?
A. the loss of gross earnings of the restaurant
B. tables and chairs destroyed by the fire
C. loss of profits while customers are unable to make purchases
D. expenses incurred to reopen the restaurant - correct answer-B. tables and chairs
destroyed by the fire
,A licensed agent must report a name change to the Commission within how many days?
A. 30
B. 45
C. 60
D. 90 - correct answer-A. 30
A notice of claim to an insurer must include all of the following EXCEPT:
A. Insured's name
B. Insured's address
C. Name of insured's attorney
D. Description of how the loss occurred - correct answer-C. Name of insured's attorney
A person who, for a fee, offers advice to the public regarding property and casualty
insurance, best describes a/an:
A. Agent
B. Nonresident agent
C. Consultant
D. Adjuster - correct answer-C. Consultant
A policy covering owner occupied dwelling may be cancelled or terminated for all of the
following reasons EXCEPT:
A. submission of a claim for fire damage
B. nonpayment of premium
C. discovery of fraud or material misrepresentation
D. physical changes to the property that cause the property to become uninsurable - correct
answer-A. submission of a claim for fire damage
A policy covering owner-occupied dwellings may be cancelled or terminated for each of the
following reasons EXCEPT:
A. discovery of fraud on the part of the insured
B. bodily injury to a person caused by the insured's dog
C. reckless act which increases the hazard
D. material misrepresentation - correct answer-B. bodily injury to a person caused by the
insured's dog
A solicitor may not:
A. Issue or countersign policies
B. Sell insurance
C. Collect premiums
D. Sign an application - correct answer-A. Issue or countersign policies
A surety bond is a financial guarantee of:
A. Payment
B. Performance
C. Obligation
D. Principal - correct answer-B. Performance
A typical Outboard Motor and Boat policy provides which of the following coverages?
, A. Liability
B. Medical Payments
C. Physical damage
D. All of the above - correct answer-C. Physical damage
After a torrential rain, Velma discovered her basement was filling up water. If she has an
HO5, the loss would be:
A. Covered
B. Excluded
C. Considered a flood loss
D. Damage to the house is covered, but the personal property is not - correct answer-B.
Excluded
All of the following are Basic Perils covered on a BOP, EXCEPT:
A. Sprinkler leakage
B. Transportation
C. Earthquake
D. Sinkhole Collapse - correct answer-C. Earthquake
All of the following are covered by a PAP EXCEPT:
A. glass breakage
B. theft
C. liability for damage to the insured's property
D. damage to the property of others - correct answer-C. liability for damage to the insured's
property
All of the following are covered by a standard fire insurance policy EXCEPT:
A. fire
B. explosion
C. lightning
D. removal - correct answer-B. explosion
All of the following are duties of the insured as detailed in the Conditions of the policy
EXCEPT:
A. Make premium payments on time
B. Notify insurer of incidents that may lead to a claim
C. Cooperate with the insurer
D. Assist in selecting an insurance adjuster - correct answer-D. Assist in selecting an
insurance adjuster
All of the following are exceptions to the contractual liability exclusion in a CGL, except:
A. Easement agreement
B. Tort liability
C. Liquor liability
D. Elevator maintenance agreement - correct answer-C. Liquor liability
All of the following are indirect loss coverage available under equipment breakdown forms
EXCEPT:
