Property and Casualty Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What type of insurance protects against damage to your own vehicle?
✔✔Collision insurance
What type of coverage pays for injuries to others if you are at fault in an accident?
✔✔Liability insurance
Which policy covers both your home and personal property?
✔✔Homeowners insurance
What is the term for the amount a policyholder must pay before insurance coverage begins?
✔✔Deductible
What type of insurance covers damages caused by fire, wind, or hail?
✔✔Property insurance
Which insurance protects businesses from financial losses due to lawsuits?
✔✔Commercial liability insurance
What coverage pays for temporary housing if your home is uninhabitable after a loss?
1
,✔✔Loss of use or additional living expenses
Which policy protects against legal claims arising from professional services?
✔✔Errors and omissions insurance
What is the maximum amount an insurance company will pay under a policy called?
✔✔Policy limit
Which type of policy covers damages to third-party property?
✔✔Property liability insurance
What insurance protects against injuries to employees on the job?
✔✔Workers’ compensation insurance
Which coverage is designed to protect against theft of personal property from your home?
✔✔Personal property coverage
What type of insurance is required by law for most drivers?
✔✔Auto liability insurance
Which term describes the intentional misrepresentation of information to obtain insurance
benefits?
2
,✔✔Insurance fraud
What type of policy protects a business from interruptions in operations due to property damage?
✔✔Business interruption insurance
What is the term for the risk that cannot be insured?
✔✔Uninsurable risk
Which coverage protects renters’ personal belongings?
✔✔Renters insurance
What coverage pays for injuries to someone on your property?
✔✔Premises liability insurance
Which insurance covers damages from floods?
✔✔Flood insurance
What is the term for a reduction in the value of property due to age or wear?
✔✔Depreciation
Which coverage protects against losses from earthquakes?
✔✔Earthquake insurance
3
, What type of insurance covers medical expenses after a car accident, regardless of fault?
✔✔Medical payments coverage
Which type of policy protects against liability for accidents caused by a business vehicle?
✔✔Commercial auto liability insurance
Which type of insurance protects your vehicle from uninsured motorists?
✔✔Uninsured motorist coverage
What is the term for sharing risk with another insurer?
✔✔Reinsurance
Which coverage protects against damage to your home caused by plumbing issues?
✔✔Water damage coverage
What type of insurance covers losses from vandalism?
✔✔Property insurance
Which term refers to the chance of loss that can be insured?
✔✔Insurable risk
4
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What type of insurance protects against damage to your own vehicle?
✔✔Collision insurance
What type of coverage pays for injuries to others if you are at fault in an accident?
✔✔Liability insurance
Which policy covers both your home and personal property?
✔✔Homeowners insurance
What is the term for the amount a policyholder must pay before insurance coverage begins?
✔✔Deductible
What type of insurance covers damages caused by fire, wind, or hail?
✔✔Property insurance
Which insurance protects businesses from financial losses due to lawsuits?
✔✔Commercial liability insurance
What coverage pays for temporary housing if your home is uninhabitable after a loss?
1
,✔✔Loss of use or additional living expenses
Which policy protects against legal claims arising from professional services?
✔✔Errors and omissions insurance
What is the maximum amount an insurance company will pay under a policy called?
✔✔Policy limit
Which type of policy covers damages to third-party property?
✔✔Property liability insurance
What insurance protects against injuries to employees on the job?
✔✔Workers’ compensation insurance
Which coverage is designed to protect against theft of personal property from your home?
✔✔Personal property coverage
What type of insurance is required by law for most drivers?
✔✔Auto liability insurance
Which term describes the intentional misrepresentation of information to obtain insurance
benefits?
2
,✔✔Insurance fraud
What type of policy protects a business from interruptions in operations due to property damage?
✔✔Business interruption insurance
What is the term for the risk that cannot be insured?
✔✔Uninsurable risk
Which coverage protects renters’ personal belongings?
✔✔Renters insurance
What coverage pays for injuries to someone on your property?
✔✔Premises liability insurance
Which insurance covers damages from floods?
✔✔Flood insurance
What is the term for a reduction in the value of property due to age or wear?
✔✔Depreciation
Which coverage protects against losses from earthquakes?
✔✔Earthquake insurance
3
, What type of insurance covers medical expenses after a car accident, regardless of fault?
✔✔Medical payments coverage
Which type of policy protects against liability for accidents caused by a business vehicle?
✔✔Commercial auto liability insurance
Which type of insurance protects your vehicle from uninsured motorists?
✔✔Uninsured motorist coverage
What is the term for sharing risk with another insurer?
✔✔Reinsurance
Which coverage protects against damage to your home caused by plumbing issues?
✔✔Water damage coverage
What type of insurance covers losses from vandalism?
✔✔Property insurance
Which term refers to the chance of loss that can be insured?
✔✔Insurable risk
4
