PROPERTY AND CASUALTY FINAL TEST
PAPER 2026 QUESTIONS AND SOLUTIONS
GRADED A+ COMPLETE STUDY GUIDE
●● The Standard Fire Policy is the only P and C policy to start at 12:01
__ All other policies start at 12:01 (one minute after midnight)..
Answer: p.m. and a.m.
●● In property insurance the specific event, such as fire, flood or
earthquake, that causes a loss is called a ___..
Answer: Peril
●● In a Named Peril policy, should a loss occur, the burden of proof is
on the _____..
Answer: Policy owner/insured
●● A situation or condition that increases or contributes to the
probability that a loss will occur is referred to as a ______..
Answer: Hazard
●● Faulty wiring in a building is an example of a ____ hazard..
Answer: Physical
, ●● Actual Cash Value (ACV) is defined as _____ minus _____..
Answer: Replacement Cost, Depreciation
●● Under an _____ policy, the insurance company and the insured agree
to a specific value for each piece of insured property before the contract
is written..
Answer: Agreed Value
●● What someone else will pay you in cash for a piece of property at
that moment in time is called its _____ value..
Answer: Fair market
●● The formula for Coinsurance is ____ divided by ____ times ____ =
Amount Paid..
Answer: Did Carry, Should Carry, Loss
●● The purpose of the Coinsurance Clause in a property insurance
policy is to encourage the policy owner to _____..
Answer: Insure their property to value
●● ____ is a sworn statement made by a policy owner concerning a
claim for a loss under their insurance policy..
Answer: A Proof of Loss
PAPER 2026 QUESTIONS AND SOLUTIONS
GRADED A+ COMPLETE STUDY GUIDE
●● The Standard Fire Policy is the only P and C policy to start at 12:01
__ All other policies start at 12:01 (one minute after midnight)..
Answer: p.m. and a.m.
●● In property insurance the specific event, such as fire, flood or
earthquake, that causes a loss is called a ___..
Answer: Peril
●● In a Named Peril policy, should a loss occur, the burden of proof is
on the _____..
Answer: Policy owner/insured
●● A situation or condition that increases or contributes to the
probability that a loss will occur is referred to as a ______..
Answer: Hazard
●● Faulty wiring in a building is an example of a ____ hazard..
Answer: Physical
, ●● Actual Cash Value (ACV) is defined as _____ minus _____..
Answer: Replacement Cost, Depreciation
●● Under an _____ policy, the insurance company and the insured agree
to a specific value for each piece of insured property before the contract
is written..
Answer: Agreed Value
●● What someone else will pay you in cash for a piece of property at
that moment in time is called its _____ value..
Answer: Fair market
●● The formula for Coinsurance is ____ divided by ____ times ____ =
Amount Paid..
Answer: Did Carry, Should Carry, Loss
●● The purpose of the Coinsurance Clause in a property insurance
policy is to encourage the policy owner to _____..
Answer: Insure their property to value
●● ____ is a sworn statement made by a policy owner concerning a
claim for a loss under their insurance policy..
Answer: A Proof of Loss
