PROPERTY AND CASUALTY INSURANCE EXAM NEWEST 2025/2026 COMPLETE
QUESTIONS AND DETAILED ANSWER S (VERIFIED ANSWERS) |ALREADY GRADED
A+||RANKED!
Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C
limit of insurance for a covered loss to improvements, alterations, and additions made at the
insured's expense to that part of the described location occupied by the named insured? -
DETAILED ANSWER -10%
Which of the following residents in the insured's dwelling is eligible to receive medical payments
under Section II of a Homeowners Policy? - DETAILED ANSWER -A residence employee
Coverage B of a dwelling policy will not apply to a detached garage if which of the following is
being stored? - DETAILED ANSWER -A helium tank used for the insured's business
All the following injuries are covered under a Workers' Compensation policy, except: - DETAILED
ANSWER -An employee whose injury results from intoxication
In which section of the BOP would coverage for equipment breakdown be found? - DETAILED
ANSWER -Optional coverages
All of the following statements regarding property insurance terminology are true, except: -
DETAILED ANSWER -Proximate cause is a secondary cause of loss
Which of the following is true about the National Flood Insurance Program? - CORRECT
,ANSWER-Property removed to protect it from flood is covered for 45 days at other locations
What is the term for the first event in the unbroken chain of events, that resulted in a loss? -
DETAILED ANSWER -The Proximate Cause
The maximum liability assumed by the Property and Casualty Insurance Guaranty Association
with regard to an individual insured is no more than: - DETAILED ANSWER -The amount of each
claim, up to $300,000 per claim
Which of the following is true concerning the Premium Audit condition of the Commercial
General Coverage Part to the Commercial Package Policy? - DETAILED ANSWER -Premium audit
determines what the earned premium will be at the end of the policy period
All of the following are true about liability, except: - DETAILED ANSWER -Liability policies pay
costs incurred by an insured to sue negligent third parties
A property purchased 10 years ago for $100,000 has a replacement value today of $200,000. It
has depreciated 3% each year. What is today's actual cash value? - DETAILED ANSWER -
$140,000
Ocean marine hull insurance covers a vessel for: - DETAILED ANSWER -Physical damage
Which of the following vehicles would be excluded under the Personal Auto Policy? - DETAILED
ANSWER -A motorcycle
The Building and Personal Property Coverage Form does not cover which of the following? -
DETAILED ANSWER -Liability
, Which of the following coverage forms covers the cost of replacing or reproducing documents
that are important for the continuation of business such as books, files, and maps? - DETAILED
ANSWER -Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the following are included, except: -
DETAILED ANSWER -Pets belonging to the insured
Which of the following is not a valid reason to cancel a personal auto policy after the first 60
days of coverage? - DETAILED ANSWER -Claims history
All of the following are excluded under the BOP, except: - DETAILED ANSWER -Increased cost of
construction
Under a Building and Personal Property Coverage Form, up to what percent of a partial loss
would be available for debris removal? - DETAILED ANSWER -25%
Which statement is true of the Equipment Breakdown Protection Coverage Form? - CORRECT
ANSWER-It may be written as a coverage part of the Commercial Package Policy
Which of the following is not covered under the Building and Personal Property Coverage Form?
- DETAILED ANSWER -Liability
What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail
storm? - DETAILED ANSWER -0%
The following statements regarding hazards are all correct, except: - DETAILED ANSWER -A
moral hazard arises from an attitude of indifference to loss
QUESTIONS AND DETAILED ANSWER S (VERIFIED ANSWERS) |ALREADY GRADED
A+||RANKED!
Under a dwelling policy, an insured tenant may use up to what percentage of the Coverage C
limit of insurance for a covered loss to improvements, alterations, and additions made at the
insured's expense to that part of the described location occupied by the named insured? -
DETAILED ANSWER -10%
Which of the following residents in the insured's dwelling is eligible to receive medical payments
under Section II of a Homeowners Policy? - DETAILED ANSWER -A residence employee
Coverage B of a dwelling policy will not apply to a detached garage if which of the following is
being stored? - DETAILED ANSWER -A helium tank used for the insured's business
All the following injuries are covered under a Workers' Compensation policy, except: - DETAILED
ANSWER -An employee whose injury results from intoxication
In which section of the BOP would coverage for equipment breakdown be found? - DETAILED
ANSWER -Optional coverages
All of the following statements regarding property insurance terminology are true, except: -
DETAILED ANSWER -Proximate cause is a secondary cause of loss
Which of the following is true about the National Flood Insurance Program? - CORRECT
,ANSWER-Property removed to protect it from flood is covered for 45 days at other locations
What is the term for the first event in the unbroken chain of events, that resulted in a loss? -
DETAILED ANSWER -The Proximate Cause
The maximum liability assumed by the Property and Casualty Insurance Guaranty Association
with regard to an individual insured is no more than: - DETAILED ANSWER -The amount of each
claim, up to $300,000 per claim
Which of the following is true concerning the Premium Audit condition of the Commercial
General Coverage Part to the Commercial Package Policy? - DETAILED ANSWER -Premium audit
determines what the earned premium will be at the end of the policy period
All of the following are true about liability, except: - DETAILED ANSWER -Liability policies pay
costs incurred by an insured to sue negligent third parties
A property purchased 10 years ago for $100,000 has a replacement value today of $200,000. It
has depreciated 3% each year. What is today's actual cash value? - DETAILED ANSWER -
$140,000
Ocean marine hull insurance covers a vessel for: - DETAILED ANSWER -Physical damage
Which of the following vehicles would be excluded under the Personal Auto Policy? - DETAILED
ANSWER -A motorcycle
The Building and Personal Property Coverage Form does not cover which of the following? -
DETAILED ANSWER -Liability
, Which of the following coverage forms covers the cost of replacing or reproducing documents
that are important for the continuation of business such as books, files, and maps? - DETAILED
ANSWER -Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the following are included, except: -
DETAILED ANSWER -Pets belonging to the insured
Which of the following is not a valid reason to cancel a personal auto policy after the first 60
days of coverage? - DETAILED ANSWER -Claims history
All of the following are excluded under the BOP, except: - DETAILED ANSWER -Increased cost of
construction
Under a Building and Personal Property Coverage Form, up to what percent of a partial loss
would be available for debris removal? - DETAILED ANSWER -25%
Which statement is true of the Equipment Breakdown Protection Coverage Form? - CORRECT
ANSWER-It may be written as a coverage part of the Commercial Package Policy
Which of the following is not covered under the Building and Personal Property Coverage Form?
- DETAILED ANSWER -Liability
What is the limit of insurance available under an HO-3 policy for a tree totally damaged in a hail
storm? - DETAILED ANSWER -0%
The following statements regarding hazards are all correct, except: - DETAILED ANSWER -A
moral hazard arises from an attitude of indifference to loss
