PROPERTY AND CASUALTY INSURANCE
EXAM QUESTIONS AND ANSWERS PART
ONE | COMPREHENSIVE EXAM PREP,
PRACTICE TEST AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,The major portion of the premium of an equipment For inspections and examinations
breakdown policy pays?
An insured owns a building valued at $400,000. To comply 80% of the property's replacement cost or more
with the 80% coinsurance provision of his insurance policy,
how , much should he insure the property for?
Under the Fair Credit Reporting Act, if the consumer Respond to the consumer's complaint.
challenges the accuracy of the information contained in his or
her report, the reporting agency must
All of the following are found in the declarations section of a Exclusions.
policy EXCEPT the
The cost of restoring farm records is an additional coverage Up to $2,000
offered under a farm policy. How much will the policy pay to
restore the records?
All of the following could be considered rebates if offered to Dividends from a mutual insurer.
an insured in the sale of insurance EXCEPT
Which of the following may be covered by electronic data a) Computer hardware that is specifically scheduled.
processing coverage form under an inland marine policy?
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards and
discs
The party to a surety or fidelity bond who promises to fulfill Principal
the obligation is the
The transfer of money from inside a banking premises to a Computer fraud
person other than a messenger outside those premises or to a
place outside those premises is covered under which
commercial crime coverage?
Which of the following would NOT be covered under the Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain
liability section of a personal auto policy? vehicle.
, When a producer holding a certificate or a broker's license 30 days.
has a change in his/her residence or business address, he/she
must notify the Department of Insurance and any company for
which the producer holds an appointment within
What will happen if a house covered by a standard mortgage The insurer pays the mortgagee according to the mortgagee's interest in the property.
clause is a total loss?
What is the civil penalty for violating a cease and desist order $10,000
of the Commissioner?
The Business Pursuits endorsement under Section II of a Business liability.
homeowners policy will cover all of the following EXCEPT
If a property is covered by Company A for $20,000 and $8,000
Company B covers the same property for $40,000, how much
will Company A pay on a $24,000 loss?
The risk management technique that is used to prevent a Avoidance.
specific loss by not exposing oneself to that activity is called
In a farm policy, any cost incurred by the insurer for the The insurer.
investigation or defense of a claim will be paid by
Which of the following entities must approve all continuing The Commissioner
education courses in this state?
An applicant knowingly fails to communicate information that Concealment
would help an underwriter make a sound decision regarding
coverage. This is an example of
A common exclusion found under physical damage to your Mechanical breakdown.
auto includes
Which of the following is true regarding a risk retention It is a liability insurance company owned by its members.
group?
Which of the following best describes a misrepresentation? Issuing sales material with exaggerated statements about policy benefits
EXAM QUESTIONS AND ANSWERS PART
ONE | COMPREHENSIVE EXAM PREP,
PRACTICE TEST AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,The major portion of the premium of an equipment For inspections and examinations
breakdown policy pays?
An insured owns a building valued at $400,000. To comply 80% of the property's replacement cost or more
with the 80% coinsurance provision of his insurance policy,
how , much should he insure the property for?
Under the Fair Credit Reporting Act, if the consumer Respond to the consumer's complaint.
challenges the accuracy of the information contained in his or
her report, the reporting agency must
All of the following are found in the declarations section of a Exclusions.
policy EXCEPT the
The cost of restoring farm records is an additional coverage Up to $2,000
offered under a farm policy. How much will the policy pay to
restore the records?
All of the following could be considered rebates if offered to Dividends from a mutual insurer.
an insured in the sale of insurance EXCEPT
Which of the following may be covered by electronic data a) Computer hardware that is specifically scheduled.
processing coverage form under an inland marine policy?
b) Extra expense the insured incurs to continue the business following a loss.
c) Data processing media, including magnetic tapes or paper tapes, punch cards and
discs
The party to a surety or fidelity bond who promises to fulfill Principal
the obligation is the
The transfer of money from inside a banking premises to a Computer fraud
person other than a messenger outside those premises or to a
place outside those premises is covered under which
commercial crime coverage?
Which of the following would NOT be covered under the Bodily injury is caused by the insured's negligence while driving a three-wheel all-terrain
liability section of a personal auto policy? vehicle.
, When a producer holding a certificate or a broker's license 30 days.
has a change in his/her residence or business address, he/she
must notify the Department of Insurance and any company for
which the producer holds an appointment within
What will happen if a house covered by a standard mortgage The insurer pays the mortgagee according to the mortgagee's interest in the property.
clause is a total loss?
What is the civil penalty for violating a cease and desist order $10,000
of the Commissioner?
The Business Pursuits endorsement under Section II of a Business liability.
homeowners policy will cover all of the following EXCEPT
If a property is covered by Company A for $20,000 and $8,000
Company B covers the same property for $40,000, how much
will Company A pay on a $24,000 loss?
The risk management technique that is used to prevent a Avoidance.
specific loss by not exposing oneself to that activity is called
In a farm policy, any cost incurred by the insurer for the The insurer.
investigation or defense of a claim will be paid by
Which of the following entities must approve all continuing The Commissioner
education courses in this state?
An applicant knowingly fails to communicate information that Concealment
would help an underwriter make a sound decision regarding
coverage. This is an example of
A common exclusion found under physical damage to your Mechanical breakdown.
auto includes
Which of the following is true regarding a risk retention It is a liability insurance company owned by its members.
group?
Which of the following best describes a misrepresentation? Issuing sales material with exaggerated statements about policy benefits
