PA Property & Casualty License Practice Exam || Most
Recent Exam 2026-2027 Actual Complete Real Exam
Questions And Correct Answers (Verified Answers)
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An individual is injured during a white water rafting trip. The rafting
company claims they are not liable for the injury because the
individual signed a waiver relieving the rafting company of any
responsibility for any injuries that happen while people are using their
boats. This is an example of which of the following? - ANSWER-
Expressed assumption of risk
Which section of an insurance policy details the obligations of the
insurer in the event of
a covered loss? - ANSWER-The insuring
agreement
While on display at an industry convention, a business's prototype
of a new product is
critically damaged. Which commercial property coverage
extension would provide
insurance protection for this situation? - ANSWER-
Property off-premises
Liability for property damage could be covered by coverage ___
of a homeowners
,policy.
Select
one:
a. G
b. E
c. F
d. D - ANSWER-
E
What does an Individual Named Insured endorsement do to the
standard policy
language of a commercial auto policy? - ANSWER-Includes a
spouse under the
definition of "You" (the first named insured) and adds coverage
for personal use
vehicles owned by the insured and not used
for business
Why would a business need a business income coverage form with an
extra expense section? - ANSWER-To minimize a suspension of
business and allow operations to continue at another location after
the business's primary location has been damaged or destroyed
A contract must have a legal purpose in order to be enforceable. What
does it mean for
a contract to have legal purpose? - ANSWER-The performance of the
contract is not in
,and of itself unlawful, and the performance of the contract will not
result in a violation of
law
When does coverage from a builder's risk coverage form end? -
ANSWER-The property
is accepted by the
purchaser
If the salvage provision is invoked... - ANSWER-the insurer is allowed
to take possession of damaged property and use that property to
recoup some money
What is the loss ratio of an insurance company that, in the span of a
year, pays out
$35,900 in benefits and collects $69,550 in premiums? (Loss Ratio =
(Benefits Paid Out / Premiums Collected) x 100) - ANSWER-51.6
What happens when an actual cash value endorsement is attached to
an equipment breakdown policy? - ANSWER-After a loss the insurer
will pay the insured the lesser of the replacement cost or the actual
cash value of the loss
Which of the following is something that differentiates a motor carrier
coverage form from a trucker coverage form?
Select one:
a. Motor carriers coverage can apply to a loss of a covered auto
caused by someone tricking an insured to parting with the auto
, b. Motor carriers coverage can apply to a loss to a covered auto left
with an insured for repair
c. All of these are correct
d. Motor carriers coverage can apply to a commercial operation that
transports passengers - ANSWER-Motor carriers coverage can
apply to a commercial operation that transports passengers
Which of the following is the formula use to determine risk? -
ANSWER-Probability -
Reduction
If an individual causes property damage while working as a valet
driver for a private parking garage, will her liability be covered by
coverage B of her personal auto policy? -
ANSWER-No
In regards to "other insurance" situations, what is
nonconcurrency? - ANSWER-The
multiple policies covering the same risk do not match
up in some way
A Changes provision in a commercial package policy allows the first
named insured to
make alterations to the policy through which of the
following? - ANSWER-
Endorsements
Recent Exam 2026-2027 Actual Complete Real Exam
Questions And Correct Answers (Verified Answers)
Already Graded A+ | Guaranteed Success!! Brand
New Exam | Just Released!!
An individual is injured during a white water rafting trip. The rafting
company claims they are not liable for the injury because the
individual signed a waiver relieving the rafting company of any
responsibility for any injuries that happen while people are using their
boats. This is an example of which of the following? - ANSWER-
Expressed assumption of risk
Which section of an insurance policy details the obligations of the
insurer in the event of
a covered loss? - ANSWER-The insuring
agreement
While on display at an industry convention, a business's prototype
of a new product is
critically damaged. Which commercial property coverage
extension would provide
insurance protection for this situation? - ANSWER-
Property off-premises
Liability for property damage could be covered by coverage ___
of a homeowners
,policy.
Select
one:
a. G
b. E
c. F
d. D - ANSWER-
E
What does an Individual Named Insured endorsement do to the
standard policy
language of a commercial auto policy? - ANSWER-Includes a
spouse under the
definition of "You" (the first named insured) and adds coverage
for personal use
vehicles owned by the insured and not used
for business
Why would a business need a business income coverage form with an
extra expense section? - ANSWER-To minimize a suspension of
business and allow operations to continue at another location after
the business's primary location has been damaged or destroyed
A contract must have a legal purpose in order to be enforceable. What
does it mean for
a contract to have legal purpose? - ANSWER-The performance of the
contract is not in
,and of itself unlawful, and the performance of the contract will not
result in a violation of
law
When does coverage from a builder's risk coverage form end? -
ANSWER-The property
is accepted by the
purchaser
If the salvage provision is invoked... - ANSWER-the insurer is allowed
to take possession of damaged property and use that property to
recoup some money
What is the loss ratio of an insurance company that, in the span of a
year, pays out
$35,900 in benefits and collects $69,550 in premiums? (Loss Ratio =
(Benefits Paid Out / Premiums Collected) x 100) - ANSWER-51.6
What happens when an actual cash value endorsement is attached to
an equipment breakdown policy? - ANSWER-After a loss the insurer
will pay the insured the lesser of the replacement cost or the actual
cash value of the loss
Which of the following is something that differentiates a motor carrier
coverage form from a trucker coverage form?
Select one:
a. Motor carriers coverage can apply to a loss of a covered auto
caused by someone tricking an insured to parting with the auto
, b. Motor carriers coverage can apply to a loss to a covered auto left
with an insured for repair
c. All of these are correct
d. Motor carriers coverage can apply to a commercial operation that
transports passengers - ANSWER-Motor carriers coverage can
apply to a commercial operation that transports passengers
Which of the following is the formula use to determine risk? -
ANSWER-Probability -
Reduction
If an individual causes property damage while working as a valet
driver for a private parking garage, will her liability be covered by
coverage B of her personal auto policy? -
ANSWER-No
In regards to "other insurance" situations, what is
nonconcurrency? - ANSWER-The
multiple policies covering the same risk do not match
up in some way
A Changes provision in a commercial package policy allows the first
named insured to
make alterations to the policy through which of the
following? - ANSWER-
Endorsements
