Property and Casualty Insurance License Test 2025 With 120
Exam Prep Questions And Correct Verified ANSWERs/
Property And Casualty Exam 2025 Kentucky Qs And
As(Brand New!)
Elements for a contract: - ANSWER-1) Agreement - offer and acceptance
2) Consideration
3) Competent parties
4) Legal purpose
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace
damaged property are known as what type of compensatory damages? - ANSWER-Special
Which method of loss valuation is contrary to the basic concept of indemnity? - ANSWER-
Replacement cost
An insured owns several buildings, each at a different location and insured on a separate policy. What
type of coverage does the insured have? - ANSWER-Specific
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000.
Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for
replacement cost coverage? - ANSWER-$48,000
(A house must be insured for at least 80% of its value on the date of loss to qualify for replacement
coverage. In this example, 80% of $60,000 is $48,000.)
Which of the following may be covered by electronic data processing coverage form under an inland
marine policy? - ANSWER-ALL
-Computer hardware that is specifically scheduled.
-Extra expense the insured incurs to continue the business following a loss.
-Data processing media, including magnetic tapes or paper tapes, punch cards and discs
If an insured is in the process of moving to a new location, his personal property coverage under the
dwelling policy will apply on a pro rata basis at both locations for - ANSWER-30 days
,(personal property being moved to a new location can be covered for up to 30 days without notice to
the insurer.)
Replacement cost coverage is provided in both the broad and special form dwelling policies when -
ANSWER-The amount of insurance on the dwelling is at least 80% of its replacement costs at the
time of loss
A policy condition that states if a policy is broadened with no additional premium, then the
expanded coverage will be automatically applied to all policies of the same type is known as -
ANSWER-Liberalization clause
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations
EXCEPT - ANSWER-$1,000 on silverware
(the limit on silverware is $2,500)
What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy?
- ANSWER-80%
How long is an insurer required to maintain records in Virginia? - ANSWER-3 years
An agent is convicted of a felony in another jurisdiction. Within what period of time must the agent
report the felony charge to the Commission? - ANSWER-30 days
An insured has a Homeowners policy with an insurance company that declares bankruptcy about the
time the insured's home burns down. The insurance policy limit was $375,000 and the property was
declared a total loss. What will be the result of the insured's claim? - ANSWER-The insured is
entitled to $300,000 from the Virginia Property and Casualty Insurance Guaranty Association.
Within his or her fiduciary capacity, what must an agent do with funds held in the separate account?
- ANSWER-Keep accurate and detailed records
Which of the following authorities ultimately decides whether an applicant is in good enough
standing to receive a license? - ANSWER-Commission
,All companies authorized and licensed to transact the business of insurance in this state are subject
to inspection, supervision and regulation by - ANSWER-The Commission
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered
to be rebating EXCEPT - ANSWER-An agent misrepresents policy benefits to convince a
policyowner to replace policies
Person M and Person N worked on writing an insurance policy for a client. Which of the following
statements regarding their possible share of commission is correct? - ANSWER-As long as M and N
are both licensed for the line of insurance written, they may share the commission
An agent is licensed for life and property insurance. How many hours of CE is the agent required to
earn every 2 years? - ANSWER-24
(Any agent who holds one type of license must complete 16 hours of continuing education. Any
agent who holds more than one type (such as life and property) must complete 24 hours of
continuing education.)
What is the maximum penalty that could be imposed on an agent for an UNINTENTIONAL violation
of Virginia insurance law? - ANSWER-$1,000
Which of the following is NOT a duty of the Commission of Insurance? - ANSWER-Examining each
domestic insurer at least once a year
(they are required to examine every licensed insurer at least once in every 5 years)
An insurance agent changes his residential address. Within what time period must the agent notify
the Commission of the change? - ANSWER-30 calendar days
If an agent's appointment is terminated, suspended or revoked, the agent must cease selling or
soliciting on behalf of the insurer within - ANSWER-10 calendar days
Which of the following will NOT be considered unfair discrimination by insurers? - ANSWER-
Discriminating in benefits and coverages based on the insured's habits and lifestyle
, Which of the following would be required to be licensed as an insurance producer? - ANSWER-A
salaried employee who advertises and solicits insurance
What governing body issues rules and regulations for the administration of the Insurance Code? -
ANSWER-The State Corporation Commission
Which of the following represents an insurer? - ANSWER-Agent
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or
switch policies from one to another? - ANSWER-Twisting
Who is legally required to keep records pertaining to insurance transactions? - ANSWER-All
licensees
What are the disclosure requirements if an insurance producer wishes to charge a fee? - ANSWER-
Posting a schedule of fees in the producer's office, disclosing the fees to the client in writing, and
obtaining a signature on the disclosure from the client
Which of the following best describes the unfair trade practice of defamation? - ANSWER-Making
derogatory oral statements about another insurer's financial position
At what time may the Insurance Commissioner inspect records pertaining to insurance transactions?
- ANSWER-At any business time in the 3 years immediately following the relevant transaction
If an insurance company makes a statement that its policies are guaranteed by the existence of the
Insurance Guaranty Association, that would be considered - ANSWER-An unfair trade practice
An adverse underwriting decision may be based on which of the following? - ANSWER-Information
obtained from an insurance institution responsible for a previous adverse underwriting decision
Agent P has a life license. How many hours of CE must be completed to complete Agent P's
requirement? - ANSWER-16 hours
Exam Prep Questions And Correct Verified ANSWERs/
Property And Casualty Exam 2025 Kentucky Qs And
As(Brand New!)
Elements for a contract: - ANSWER-1) Agreement - offer and acceptance
2) Consideration
3) Competent parties
4) Legal purpose
Payment for medical expenses, loss of wages, funeral expenses, or the cost to repair or replace
damaged property are known as what type of compensatory damages? - ANSWER-Special
Which method of loss valuation is contrary to the basic concept of indemnity? - ANSWER-
Replacement cost
An insured owns several buildings, each at a different location and insured on a separate policy. What
type of coverage does the insured have? - ANSWER-Specific
The insured's home is covered by an HO-3. Two years ago, the insured bought the home for $58,000.
Today, its replacement value is $60,000. How much Coverage A does the insured need to qualify for
replacement cost coverage? - ANSWER-$48,000
(A house must be insured for at least 80% of its value on the date of loss to qualify for replacement
coverage. In this example, 80% of $60,000 is $48,000.)
Which of the following may be covered by electronic data processing coverage form under an inland
marine policy? - ANSWER-ALL
-Computer hardware that is specifically scheduled.
-Extra expense the insured incurs to continue the business following a loss.
-Data processing media, including magnetic tapes or paper tapes, punch cards and discs
If an insured is in the process of moving to a new location, his personal property coverage under the
dwelling policy will apply on a pro rata basis at both locations for - ANSWER-30 days
,(personal property being moved to a new location can be covered for up to 30 days without notice to
the insurer.)
Replacement cost coverage is provided in both the broad and special form dwelling policies when -
ANSWER-The amount of insurance on the dwelling is at least 80% of its replacement costs at the
time of loss
A policy condition that states if a policy is broadened with no additional premium, then the
expanded coverage will be automatically applied to all policies of the same type is known as -
ANSWER-Liberalization clause
The broad theft coverage endorsement on the dwelling form specifies all of the following limitations
EXCEPT - ANSWER-$1,000 on silverware
(the limit on silverware is $2,500)
What is the coinsurance requirement for a theatrical property floater under an Inland Marine policy?
- ANSWER-80%
How long is an insurer required to maintain records in Virginia? - ANSWER-3 years
An agent is convicted of a felony in another jurisdiction. Within what period of time must the agent
report the felony charge to the Commission? - ANSWER-30 days
An insured has a Homeowners policy with an insurance company that declares bankruptcy about the
time the insured's home burns down. The insurance policy limit was $375,000 and the property was
declared a total loss. What will be the result of the insured's claim? - ANSWER-The insured is
entitled to $300,000 from the Virginia Property and Casualty Insurance Guaranty Association.
Within his or her fiduciary capacity, what must an agent do with funds held in the separate account?
- ANSWER-Keep accurate and detailed records
Which of the following authorities ultimately decides whether an applicant is in good enough
standing to receive a license? - ANSWER-Commission
,All companies authorized and licensed to transact the business of insurance in this state are subject
to inspection, supervision and regulation by - ANSWER-The Commission
Rebating is an unfair trade practice and is regulated by law. All of the following would be considered
to be rebating EXCEPT - ANSWER-An agent misrepresents policy benefits to convince a
policyowner to replace policies
Person M and Person N worked on writing an insurance policy for a client. Which of the following
statements regarding their possible share of commission is correct? - ANSWER-As long as M and N
are both licensed for the line of insurance written, they may share the commission
An agent is licensed for life and property insurance. How many hours of CE is the agent required to
earn every 2 years? - ANSWER-24
(Any agent who holds one type of license must complete 16 hours of continuing education. Any
agent who holds more than one type (such as life and property) must complete 24 hours of
continuing education.)
What is the maximum penalty that could be imposed on an agent for an UNINTENTIONAL violation
of Virginia insurance law? - ANSWER-$1,000
Which of the following is NOT a duty of the Commission of Insurance? - ANSWER-Examining each
domestic insurer at least once a year
(they are required to examine every licensed insurer at least once in every 5 years)
An insurance agent changes his residential address. Within what time period must the agent notify
the Commission of the change? - ANSWER-30 calendar days
If an agent's appointment is terminated, suspended or revoked, the agent must cease selling or
soliciting on behalf of the insurer within - ANSWER-10 calendar days
Which of the following will NOT be considered unfair discrimination by insurers? - ANSWER-
Discriminating in benefits and coverages based on the insured's habits and lifestyle
, Which of the following would be required to be licensed as an insurance producer? - ANSWER-A
salaried employee who advertises and solicits insurance
What governing body issues rules and regulations for the administration of the Insurance Code? -
ANSWER-The State Corporation Commission
Which of the following represents an insurer? - ANSWER-Agent
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or
switch policies from one to another? - ANSWER-Twisting
Who is legally required to keep records pertaining to insurance transactions? - ANSWER-All
licensees
What are the disclosure requirements if an insurance producer wishes to charge a fee? - ANSWER-
Posting a schedule of fees in the producer's office, disclosing the fees to the client in writing, and
obtaining a signature on the disclosure from the client
Which of the following best describes the unfair trade practice of defamation? - ANSWER-Making
derogatory oral statements about another insurer's financial position
At what time may the Insurance Commissioner inspect records pertaining to insurance transactions?
- ANSWER-At any business time in the 3 years immediately following the relevant transaction
If an insurance company makes a statement that its policies are guaranteed by the existence of the
Insurance Guaranty Association, that would be considered - ANSWER-An unfair trade practice
An adverse underwriting decision may be based on which of the following? - ANSWER-Information
obtained from an insurance institution responsible for a previous adverse underwriting decision
Agent P has a life license. How many hours of CE must be completed to complete Agent P's
requirement? - ANSWER-16 hours
