Louisiana Casualty Insurance Exam
Practice Questions And Correct Answers
(Verified Answers) Plus Rationales Q&A
1. In Louisiana, which legal doctrine allows a plaintiff to recover damages from
multiple defendants who are solidarily liable, even if one defendant is insolvent?
A. Joint and several liability
B. Solidary liability
C. Comparative fault
D. Vicarious liability
Answer: B. Solidary liability
Rationale: Louisiana's civil law system uses 'solidary liability,' which permits a plaintiff to
recover the full judgment from any one solidary obligor, who then may seek contribution
from others. 'Joint and several liability' is common law terminology, not Louisiana's.
Comparative fault allocates fault but does not address recovery from multiple defendants.
Vicarious liability holds one party liable for another's acts, not multiple direct obligors.
2. A Louisiana homeowner's policy excludes water damage from 'flood.' Which of the
following scenarios would likely be covered under the policy's water damage
endorsement?
A. Rising water from a nearby river overflowing its banks
B. Water damage from a broken pipe inside the home
C. Storm surge from a hurricane
D. Accumulation of surface water on the property
Answer: B. Water damage from a broken pipe inside the home
Rationale: Flood exclusions typically apply to natural bodies of water, storm surge, and
surface water. A broken pipe is considered an accidental discharge within the home, often
covered under a water damage endorsement. The other options describe flood conditions
typically excluded.
Page 1 of 62
,3. Under Louisiana's workers' compensation law, which of the following is true
regarding an employer's immunity from tort liability?
A. Employers are immune from tort suits only if they carry workers' compensation
insurance.
B. Employers are immune from tort suits regardless of fault if the injury occurred in the
course and scope of employment.
C. Employers are immune only if the employee was not at fault.
D. Employers are never immune from tort suits in Louisiana.
Answer: B. Employers are immune from tort suits regardless of fault if the injury
occurred in the course and scope of employment.
Rationale: Louisiana's Workers' Compensation Act provides employers immunity from tort
liability for workplace injuries that occur in the course and scope of employment,
regardless of fault, in exchange for providing statutory benefits. Carrying insurance is
required but not the basis for immunity. Fault and employee negligence are irrelevant to
the exclusivity principle.
4. In a Louisiana commercial general liability (CGL) policy, which coverage trigger
applies to bodily injury caused by continuous exposure to harmful conditions over
multiple policy periods?
A. Occurrence
B. Claims-made
C. Manifestation
D. Exposure
Answer: A. Occurrence
Rationale: CGL policies are typically occurrence-based, meaning coverage is triggered
when the bodily injury occurs, even if it spans multiple policy periods. Claims-made
triggers coverage when the claim is made. Manifestation and exposure triggers are
alternative theories not standard in CGL occurrence forms.
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,5. Which of the following best describes the 'absolute liability' imposed by Louisiana
law on owners of wild animals?
A. Liability only if the owner was negligent in containing the animal.
B. Liability only if the animal has previously shown vicious tendencies.
C. Strict liability for any damage caused by the animal, regardless of owner's care.
D. No liability if the animal escapes due to an act of God.
Answer: C. Strict liability for any damage caused by the animal, regardless of owner's
care.
Rationale: Louisiana Civil Code Article 2321 imposes strict liability on owners of wild
animals for damage they cause, without regard to the owner's fault or the animal's prior
behavior. Negligence and prior viciousness are irrelevant. Acts of God do not absolve strict
liability.
6. A Louisiana auto policy includes medical payments coverage. Which of the
following is true regarding its application to a passenger injured in the insured
vehicle?
A. Medical payments coverage applies only to the named insured and family members.
B. Medical payments coverage applies to passengers regardless of fault.
C. Medical payments coverage is secondary to the passenger's own health insurance.
D. Medical payments coverage excludes passengers who are not residents of the
household.
Answer: B. Medical payments coverage applies to passengers regardless of fault.
Rationale: Medical payments coverage pays reasonable medical expenses for the insured
and passengers in the insured vehicle, regardless of fault. It is not limited to named
insureds or family members, and it typically pays on a primary basis without regard to
health insurance.
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, 7. In Louisiana, a producer who fails to remit premium collected to the insurer within
the time required by the Louisiana Insurance Code may be subject to which of the
following?
A. Criminal penalties including imprisonment
B. Administrative fines and license revocation
C. Both criminal penalties and administrative sanctions
D. No penalty if the producer remits within 30 days
Answer: C. Both criminal penalties and administrative sanctions
Rationale: Louisiana law imposes both criminal penalties (e.g., theft or misappropriation)
and administrative sanctions (fines, license suspension/revocation) for failure to remit
premiums. There is no 30-day grace period for intentional non-remittance.
8. Which of the following losses would be covered under a standard Louisiana
homeowners policy's personal liability coverage?
A. Bodily injury to a resident relative
B. Property damage to the insured's own property
C. Bodily injury to a guest caused by a dog bite
D. Business-related liability
Answer: C. Bodily injury to a guest caused by a dog bite
Rationale: Personal liability coverage under a homeowners policy covers bodily injury or
property damage to third parties, such as a guest bitten by the insured's dog, unless
excluded. Injuries to resident relatives and the insured's own property are excluded.
Business liability is typically excluded.
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Practice Questions And Correct Answers
(Verified Answers) Plus Rationales Q&A
1. In Louisiana, which legal doctrine allows a plaintiff to recover damages from
multiple defendants who are solidarily liable, even if one defendant is insolvent?
A. Joint and several liability
B. Solidary liability
C. Comparative fault
D. Vicarious liability
Answer: B. Solidary liability
Rationale: Louisiana's civil law system uses 'solidary liability,' which permits a plaintiff to
recover the full judgment from any one solidary obligor, who then may seek contribution
from others. 'Joint and several liability' is common law terminology, not Louisiana's.
Comparative fault allocates fault but does not address recovery from multiple defendants.
Vicarious liability holds one party liable for another's acts, not multiple direct obligors.
2. A Louisiana homeowner's policy excludes water damage from 'flood.' Which of the
following scenarios would likely be covered under the policy's water damage
endorsement?
A. Rising water from a nearby river overflowing its banks
B. Water damage from a broken pipe inside the home
C. Storm surge from a hurricane
D. Accumulation of surface water on the property
Answer: B. Water damage from a broken pipe inside the home
Rationale: Flood exclusions typically apply to natural bodies of water, storm surge, and
surface water. A broken pipe is considered an accidental discharge within the home, often
covered under a water damage endorsement. The other options describe flood conditions
typically excluded.
Page 1 of 62
,3. Under Louisiana's workers' compensation law, which of the following is true
regarding an employer's immunity from tort liability?
A. Employers are immune from tort suits only if they carry workers' compensation
insurance.
B. Employers are immune from tort suits regardless of fault if the injury occurred in the
course and scope of employment.
C. Employers are immune only if the employee was not at fault.
D. Employers are never immune from tort suits in Louisiana.
Answer: B. Employers are immune from tort suits regardless of fault if the injury
occurred in the course and scope of employment.
Rationale: Louisiana's Workers' Compensation Act provides employers immunity from tort
liability for workplace injuries that occur in the course and scope of employment,
regardless of fault, in exchange for providing statutory benefits. Carrying insurance is
required but not the basis for immunity. Fault and employee negligence are irrelevant to
the exclusivity principle.
4. In a Louisiana commercial general liability (CGL) policy, which coverage trigger
applies to bodily injury caused by continuous exposure to harmful conditions over
multiple policy periods?
A. Occurrence
B. Claims-made
C. Manifestation
D. Exposure
Answer: A. Occurrence
Rationale: CGL policies are typically occurrence-based, meaning coverage is triggered
when the bodily injury occurs, even if it spans multiple policy periods. Claims-made
triggers coverage when the claim is made. Manifestation and exposure triggers are
alternative theories not standard in CGL occurrence forms.
Page 2 of 62
,5. Which of the following best describes the 'absolute liability' imposed by Louisiana
law on owners of wild animals?
A. Liability only if the owner was negligent in containing the animal.
B. Liability only if the animal has previously shown vicious tendencies.
C. Strict liability for any damage caused by the animal, regardless of owner's care.
D. No liability if the animal escapes due to an act of God.
Answer: C. Strict liability for any damage caused by the animal, regardless of owner's
care.
Rationale: Louisiana Civil Code Article 2321 imposes strict liability on owners of wild
animals for damage they cause, without regard to the owner's fault or the animal's prior
behavior. Negligence and prior viciousness are irrelevant. Acts of God do not absolve strict
liability.
6. A Louisiana auto policy includes medical payments coverage. Which of the
following is true regarding its application to a passenger injured in the insured
vehicle?
A. Medical payments coverage applies only to the named insured and family members.
B. Medical payments coverage applies to passengers regardless of fault.
C. Medical payments coverage is secondary to the passenger's own health insurance.
D. Medical payments coverage excludes passengers who are not residents of the
household.
Answer: B. Medical payments coverage applies to passengers regardless of fault.
Rationale: Medical payments coverage pays reasonable medical expenses for the insured
and passengers in the insured vehicle, regardless of fault. It is not limited to named
insureds or family members, and it typically pays on a primary basis without regard to
health insurance.
Page 3 of 62
, 7. In Louisiana, a producer who fails to remit premium collected to the insurer within
the time required by the Louisiana Insurance Code may be subject to which of the
following?
A. Criminal penalties including imprisonment
B. Administrative fines and license revocation
C. Both criminal penalties and administrative sanctions
D. No penalty if the producer remits within 30 days
Answer: C. Both criminal penalties and administrative sanctions
Rationale: Louisiana law imposes both criminal penalties (e.g., theft or misappropriation)
and administrative sanctions (fines, license suspension/revocation) for failure to remit
premiums. There is no 30-day grace period for intentional non-remittance.
8. Which of the following losses would be covered under a standard Louisiana
homeowners policy's personal liability coverage?
A. Bodily injury to a resident relative
B. Property damage to the insured's own property
C. Bodily injury to a guest caused by a dog bite
D. Business-related liability
Answer: C. Bodily injury to a guest caused by a dog bite
Rationale: Personal liability coverage under a homeowners policy covers bodily injury or
property damage to third parties, such as a guest bitten by the insured's dog, unless
excluded. Injuries to resident relatives and the insured's own property are excluded.
Business liability is typically excluded.
Page 4 of 62
