MULTIPLE CHOICE PRACTICE QUESTIONS
Property Insurance
1. Which homeowners policy provides the BROADEST coverage for personal property? - A) HO-3 -
B) HO-4 - C) HO-5 - D) HO-6
2. John’s home is valued at $300,000. His policy has 80% coinsurance and he carries $200,000 in
coverage. He suffers a $60,000 loss. How much will the insurance company pay? - A) $60,000 - B)
$50,000 - C) $48,000 - D) $40,000
3. Which of the following is covered under a standard HO-3 policy? - A) Flood damage - B)
Earthquake damage - C) Wind damage to the roof - D) Backup of sewers and drains
4. Coverage B (Other Structures) is typically what percentage of Coverage A? - A) 5% - B) 10% - C)
20% - D) 50%
5. Which valuation method pays the cost to replace property with new property minus
depreciation? - A) Replacement cost - B) Actual cash value - C) Agreed value - D) Market value
Auto Insurance
6. What are Texas minimum auto liability limits? - A) 15/30/10 - B) 20/40/15 - C) 25/50/20 - D)
30/60/25
7. Which auto coverage pays for damage to YOUR vehicle when you hit a tree? - A) Liability - B)
Collision - C) Comprehensive - D) Uninsured motorist
8. Comprehensive coverage would pay for which of the following? - A) Damage from backing into a
pole - B) Damage from hitting a deer - C) Damage from rear-ending another car - D) Damage from rolling
your car
9. In Texas, uninsured motorist coverage is: - A) Required by law - B) Optional and must be rejected in
writing - C) Not available - D) Included automatically with no option to reject
10. What does 100/300/50 mean in auto liability coverage? - A) $100k property damage, $300k per
person, $50k per accident - B) $100k per person, $300k per accident, $50k property damage - C) $100k
per accident, $300k total, $50k property damage - D) $100k comprehensive, $300k collision, $50k
liability
Commercial Insurance
11. Which commercial property form provides the BROADEST coverage? - A) CP 10 10 (Basic) - B)
CP 10 20 (Broad) - C) CP 10 30 (Special) - D) All provide equal coverage
12. Business Income coverage pays for: - A) Property damage to the building - B) Lost income when
operations are suspended - C) Extra expenses only - D) Employee injuries
13. What does “occurrence” mean in a CGL policy? - A) Each policy period - B) Each claim filed - C) An
accident resulting in bodily injury or property damage - D) Each location insured
14. Which is NOT covered under Coverage B (Personal and Advertising Injury) of a CGL policy? - A)
Libel - B) Slander - C) Bodily injury - D) Copyright infringement
Property Insurance
1. Which homeowners policy provides the BROADEST coverage for personal property? - A) HO-3 -
B) HO-4 - C) HO-5 - D) HO-6
2. John’s home is valued at $300,000. His policy has 80% coinsurance and he carries $200,000 in
coverage. He suffers a $60,000 loss. How much will the insurance company pay? - A) $60,000 - B)
$50,000 - C) $48,000 - D) $40,000
3. Which of the following is covered under a standard HO-3 policy? - A) Flood damage - B)
Earthquake damage - C) Wind damage to the roof - D) Backup of sewers and drains
4. Coverage B (Other Structures) is typically what percentage of Coverage A? - A) 5% - B) 10% - C)
20% - D) 50%
5. Which valuation method pays the cost to replace property with new property minus
depreciation? - A) Replacement cost - B) Actual cash value - C) Agreed value - D) Market value
Auto Insurance
6. What are Texas minimum auto liability limits? - A) 15/30/10 - B) 20/40/15 - C) 25/50/20 - D)
30/60/25
7. Which auto coverage pays for damage to YOUR vehicle when you hit a tree? - A) Liability - B)
Collision - C) Comprehensive - D) Uninsured motorist
8. Comprehensive coverage would pay for which of the following? - A) Damage from backing into a
pole - B) Damage from hitting a deer - C) Damage from rear-ending another car - D) Damage from rolling
your car
9. In Texas, uninsured motorist coverage is: - A) Required by law - B) Optional and must be rejected in
writing - C) Not available - D) Included automatically with no option to reject
10. What does 100/300/50 mean in auto liability coverage? - A) $100k property damage, $300k per
person, $50k per accident - B) $100k per person, $300k per accident, $50k property damage - C) $100k
per accident, $300k total, $50k property damage - D) $100k comprehensive, $300k collision, $50k
liability
Commercial Insurance
11. Which commercial property form provides the BROADEST coverage? - A) CP 10 10 (Basic) - B)
CP 10 20 (Broad) - C) CP 10 30 (Special) - D) All provide equal coverage
12. Business Income coverage pays for: - A) Property damage to the building - B) Lost income when
operations are suspended - C) Extra expenses only - D) Employee injuries
13. What does “occurrence” mean in a CGL policy? - A) Each policy period - B) Each claim filed - C) An
accident resulting in bodily injury or property damage - D) Each location insured
14. Which is NOT covered under Coverage B (Personal and Advertising Injury) of a CGL policy? - A)
Libel - B) Slander - C) Bodily injury - D) Copyright infringement
