Wisconsin Insurance Exam (P&C).
Questions with Correct Verified
Answers 2026-2027. Graded A
A bailee is - ANSsomeone who has taken temporary custody of another
person's property for a special purpose
A bailee is a person or organization who - ANShas temporary possession
of someone else's personal property
A bid bond guarantees to the entity awarding the contract that the bidding
contractor, if selected, will undertake the contract and will furnish a
performance bond for the project. What will the bond do if the contractor
does not take the job? - ANSAgree to pay difference between the selected
contractor's bid and the bid that is then accepted
A business loses money because it was forced to close after a fire on the
premises. This loss is described as - ANSan indirect loss
A claims payment is NOT considered overdue under which one of the
following situations? - ANSThe insurer believes that it is not responsible for
paying the claim.
1
,A commercial property policy with the Causes of Loss—Basic Form covers
all of the following perils EXCEPT - ANSearthquake
A contract in which one insurer cedes all or part of a risk to another insurer
is known as - ANSreinsurance
A contractor built a home for a family. Four months after the family moved
into the home, the kitchen sink fell on a family member's foot and broke it.
This is an example of what type of loss? - ANSCompleted operations
A difference in conditions contract is - ANSa policy issued to cover what is
normally excluded in other property insurance contracts
A DP-2 policy would cover losses from all of the following perils EXCEPT -
ANSinfestation of insects
A dwelling policy can be used to insure all of the following EXCEPT -
ANSan apartment building with 6 units
A dwelling policy can insure all of the following types of personal property
EXCEPT - ANSsailboats
A fire, inland marine, or other property insurance form can be confusing
and may be considered improper if it does not include all of the following
clauses EXCEPT - ANStime limit the insurer has to pay a loss
2
,A flood insurance policy issued by the NFIP would NOT cover -
ANSpersonal property in a basement
A group of individuals who agree to share each other's losses is known as
a - ANSreciprocal company
A home has $150,000 of building coverage under the regular flood
insurance program. What is the minimum deductible for building coverage?
- ANS1,250
A house has a replacement cost of $150,000. To make sure that the
replacement cost provision of a homeowners policy applies, the minimum
policy amount for the dwelling should be - ANS$120,000
A parking valet at a hotel uses a guest's car to do a personal errand and
damages the car in a collision. The guest has a personal auto policy (PAP).
The insurance company will pay the claim and - ANSsubrogate against the
parking valet
A person is injured after slipping on a wet floor in a grocery store.
Insurance against which of the following exposures would provide
coverage? - ANSPremises
A person who needs coverage for her professional liability exposure can
obtain it by purchasing - ANSa professional liability policy tailored to the
specific occupational need
3
, A personal auto policy provides coverage for all for the following drivers of
an insured car EXCEPT - ANSa thief who steals the car
A policy may be amended only with - ANSan endorsement
A policy under which the insured and insurer agree on the property value
and list the value in the policy is known as - ANSan agreed value policy
A property owner wants to insure both the rental property and any of the
tenant's belongings if they are stolen. Which policy would you recommend
and why? - ANSDP-3 Special Form and a separate tenants policy to cover
personal property
A property that is vacant is described as having an absence of -
ANSpeople and property
A self-insured retention (SIR) in a personal umbrella policy functions like -
ANSa deductible
A temporary license may be issued for how long? - ANS12 months.
A warranty is a statement made by the applicant regarding the risk to be
insured. Which of the following statements is NOT true about warranties? -
ANSA warranty must refer to a material fact.
A warranty that certain things will be done or not be done after the policy
has taken effect is called - ANSa promissory warranty
4
Questions with Correct Verified
Answers 2026-2027. Graded A
A bailee is - ANSsomeone who has taken temporary custody of another
person's property for a special purpose
A bailee is a person or organization who - ANShas temporary possession
of someone else's personal property
A bid bond guarantees to the entity awarding the contract that the bidding
contractor, if selected, will undertake the contract and will furnish a
performance bond for the project. What will the bond do if the contractor
does not take the job? - ANSAgree to pay difference between the selected
contractor's bid and the bid that is then accepted
A business loses money because it was forced to close after a fire on the
premises. This loss is described as - ANSan indirect loss
A claims payment is NOT considered overdue under which one of the
following situations? - ANSThe insurer believes that it is not responsible for
paying the claim.
1
,A commercial property policy with the Causes of Loss—Basic Form covers
all of the following perils EXCEPT - ANSearthquake
A contract in which one insurer cedes all or part of a risk to another insurer
is known as - ANSreinsurance
A contractor built a home for a family. Four months after the family moved
into the home, the kitchen sink fell on a family member's foot and broke it.
This is an example of what type of loss? - ANSCompleted operations
A difference in conditions contract is - ANSa policy issued to cover what is
normally excluded in other property insurance contracts
A DP-2 policy would cover losses from all of the following perils EXCEPT -
ANSinfestation of insects
A dwelling policy can be used to insure all of the following EXCEPT -
ANSan apartment building with 6 units
A dwelling policy can insure all of the following types of personal property
EXCEPT - ANSsailboats
A fire, inland marine, or other property insurance form can be confusing
and may be considered improper if it does not include all of the following
clauses EXCEPT - ANStime limit the insurer has to pay a loss
2
,A flood insurance policy issued by the NFIP would NOT cover -
ANSpersonal property in a basement
A group of individuals who agree to share each other's losses is known as
a - ANSreciprocal company
A home has $150,000 of building coverage under the regular flood
insurance program. What is the minimum deductible for building coverage?
- ANS1,250
A house has a replacement cost of $150,000. To make sure that the
replacement cost provision of a homeowners policy applies, the minimum
policy amount for the dwelling should be - ANS$120,000
A parking valet at a hotel uses a guest's car to do a personal errand and
damages the car in a collision. The guest has a personal auto policy (PAP).
The insurance company will pay the claim and - ANSsubrogate against the
parking valet
A person is injured after slipping on a wet floor in a grocery store.
Insurance against which of the following exposures would provide
coverage? - ANSPremises
A person who needs coverage for her professional liability exposure can
obtain it by purchasing - ANSa professional liability policy tailored to the
specific occupational need
3
, A personal auto policy provides coverage for all for the following drivers of
an insured car EXCEPT - ANSa thief who steals the car
A policy may be amended only with - ANSan endorsement
A policy under which the insured and insurer agree on the property value
and list the value in the policy is known as - ANSan agreed value policy
A property owner wants to insure both the rental property and any of the
tenant's belongings if they are stolen. Which policy would you recommend
and why? - ANSDP-3 Special Form and a separate tenants policy to cover
personal property
A property that is vacant is described as having an absence of -
ANSpeople and property
A self-insured retention (SIR) in a personal umbrella policy functions like -
ANSa deductible
A temporary license may be issued for how long? - ANS12 months.
A warranty is a statement made by the applicant regarding the risk to be
insured. Which of the following statements is NOT true about warranties? -
ANSA warranty must refer to a material fact.
A warranty that certain things will be done or not be done after the policy
has taken effect is called - ANSa promissory warranty
4
