LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAM Questions and
Answers 2026/2027 With 100%
Complete Solutions.
A home is insured under an HO-2 policy. The homeowner decides to replace the
roof on the house. He wasn't able to complete the roof in one day and left a
portion of it unfinished overnight. A heavy rainstorm caused $20,000 of damage
to the interior of the house and some furniture. In this situation, the policy will
pay
(Choose from the following options)
1. 80% of replacement cost.
2. Nothing.
3. The ACV of the damage.
4. Replacement cost of the damage. - CORRECT ANSWER -2. Nothing.
Which of the following endorsements under an Equipment Breakdown policy is
used for calculating the amount to be paid on a lost business claim after a direct
loss?
,(Choose from the following options)
1. Refrigeration Interruption Coverage
2. Turbine Units Explosion Coverage
3. Refrigeration Interruption - Report of Values
4. Business Income - Report of Values - CORRECT ANSWER -4. Business Income -
Report of Values
Farm fences (except field and pasture fences) are covered by which farm coverage
form?
a) Coverage A
b) Coverage B
c) Coverage E
d) Coverage G - CORRECT ANSWER -d) Coverage G
Fences, except pasture and field fences, are considered other farm structures and
are covered by Coverage G - Other Farm Structures
Personal business property out in the open is covered under commercial property
policy only while
a) Specifically described on the declarations.
,b) Within 150 feet of the described premises.
c) Within 100 feet of the described premises.
d) Located on the described premises. - CORRECT ANSWER -c) Within 100 feet of
the described premises.
Business personal property is defined in the policy as property located in the
insured structure or within 100 feet of that structure.
Which of the following coverages is included in an unendorsed homeowners
policy?
a) Personal property replacement coverage
b) Fungi, wet or dry rot, or bacteria
c) Earthquake
d) Medical payment to others - CORRECT ANSWER -d) Medical payment to others
Medical payment to others is automatically included in Section II of all HO policies.
Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy
period?
a) Discovery form
, b) Retro form
c) Reporting form
d) Loss sustained form - CORRECT ANSWER -a) Discovery form
The discovery form is used for losses that are discovered during the policy period
but may not have happened during the policy period. The discovery form is one of
the conditions contained in the crime general provisions forms, which contain
conditions and exclusions applying to all crime forms. The discovery period is
normally 1 year.
Professional photographers and musicians may insure their equipment with
a) A commercial articles floater.
b) A theatrical property coverage form.
c) A contractors equipment floater.
d) An installation floater. - CORRECT ANSWER -a) A commercial articles floater.
The commercial articles form covers photo equipment or musical instruments
used commercially, such as by a professional band.
Within how many years of a loss may an insured bring a lawsuit against an insurer,
according to the dwelling policy?
INSURANCE EXAM Questions and
Answers 2026/2027 With 100%
Complete Solutions.
A home is insured under an HO-2 policy. The homeowner decides to replace the
roof on the house. He wasn't able to complete the roof in one day and left a
portion of it unfinished overnight. A heavy rainstorm caused $20,000 of damage
to the interior of the house and some furniture. In this situation, the policy will
pay
(Choose from the following options)
1. 80% of replacement cost.
2. Nothing.
3. The ACV of the damage.
4. Replacement cost of the damage. - CORRECT ANSWER -2. Nothing.
Which of the following endorsements under an Equipment Breakdown policy is
used for calculating the amount to be paid on a lost business claim after a direct
loss?
,(Choose from the following options)
1. Refrigeration Interruption Coverage
2. Turbine Units Explosion Coverage
3. Refrigeration Interruption - Report of Values
4. Business Income - Report of Values - CORRECT ANSWER -4. Business Income -
Report of Values
Farm fences (except field and pasture fences) are covered by which farm coverage
form?
a) Coverage A
b) Coverage B
c) Coverage E
d) Coverage G - CORRECT ANSWER -d) Coverage G
Fences, except pasture and field fences, are considered other farm structures and
are covered by Coverage G - Other Farm Structures
Personal business property out in the open is covered under commercial property
policy only while
a) Specifically described on the declarations.
,b) Within 150 feet of the described premises.
c) Within 100 feet of the described premises.
d) Located on the described premises. - CORRECT ANSWER -c) Within 100 feet of
the described premises.
Business personal property is defined in the policy as property located in the
insured structure or within 100 feet of that structure.
Which of the following coverages is included in an unendorsed homeowners
policy?
a) Personal property replacement coverage
b) Fungi, wet or dry rot, or bacteria
c) Earthquake
d) Medical payment to others - CORRECT ANSWER -d) Medical payment to others
Medical payment to others is automatically included in Section II of all HO policies.
Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy
period?
a) Discovery form
, b) Retro form
c) Reporting form
d) Loss sustained form - CORRECT ANSWER -a) Discovery form
The discovery form is used for losses that are discovered during the policy period
but may not have happened during the policy period. The discovery form is one of
the conditions contained in the crime general provisions forms, which contain
conditions and exclusions applying to all crime forms. The discovery period is
normally 1 year.
Professional photographers and musicians may insure their equipment with
a) A commercial articles floater.
b) A theatrical property coverage form.
c) A contractors equipment floater.
d) An installation floater. - CORRECT ANSWER -a) A commercial articles floater.
The commercial articles form covers photo equipment or musical instruments
used commercially, such as by a professional band.
Within how many years of a loss may an insured bring a lawsuit against an insurer,
according to the dwelling policy?
