Washington State Insurance Property &
Casualty Exam Q&A 100% Pass
If a building under a BPP has been vacant over 60 days, the BPP will cover? -
✔✔Fire, Wind, Explosion, and Volcano are all covered after 60 days of vacancy
A CGL provides liability coverage for: - ✔✔A person whose reputation is harmed
by the insured's innocent dissemination of information.
Law of Large Numbers - ✔✔A principle stating that the larger the number of
similar exposure units considered, the more closely the losses reported will
equal the underlying probability of loss.
Insurable losses will be listed where? - ✔✔Insuring agreements
Commercial Liability - ✔✔Purchased to cover completed operations/ products
liability
Is crime covered under a CPP? - ✔✔Yes, crime is covered under a CPP
Insured's Responsibilities are listed where? - ✔✔Conditions
Policy coverages will be found where? - ✔✔Insuring agreements
Does a broad form policy cover volcano - ✔✔Yes
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©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, Strict Liability - ✔✔The legal responsibility for damage or injury even if you are
not negligent - a lawnmower manufacturer is liable if a blade flies off the
mower.
Seasonal inventory variable - ✔✔25% in addition to the policies limit of liability.
Ex: $200,000 limit of liability, for total loss policy pays $250,000 (200,000x25%)
Is homeowners personal property covered on an ACV or RC basis? - ✔✔It's
covered to 50% of A on an ACV basis. ($100,000 limit of liability x 50%) covers up
to $50,000
Who is the principal in a principal agent relationship? - ✔✔The insurer is the
principal in a ..
Under HO policy, coverage for removal of a fallen tree may apply if - ✔✔Tree
blocks: access to driveway, handicap ramp, or tree damages a covered
structure. But NOT if the tree is blocking access to the front steps.
Adverse Selection - ✔✔A high-risk person benefits more from insurance, so is
more likely to purchase it.
Manual Rates - ✔✔Insurance rates according to a company Rate Manual that
vary from company to company. Also known as "Standard Rates". Most rates
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©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
Casualty Exam Q&A 100% Pass
If a building under a BPP has been vacant over 60 days, the BPP will cover? -
✔✔Fire, Wind, Explosion, and Volcano are all covered after 60 days of vacancy
A CGL provides liability coverage for: - ✔✔A person whose reputation is harmed
by the insured's innocent dissemination of information.
Law of Large Numbers - ✔✔A principle stating that the larger the number of
similar exposure units considered, the more closely the losses reported will
equal the underlying probability of loss.
Insurable losses will be listed where? - ✔✔Insuring agreements
Commercial Liability - ✔✔Purchased to cover completed operations/ products
liability
Is crime covered under a CPP? - ✔✔Yes, crime is covered under a CPP
Insured's Responsibilities are listed where? - ✔✔Conditions
Policy coverages will be found where? - ✔✔Insuring agreements
Does a broad form policy cover volcano - ✔✔Yes
1|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
, Strict Liability - ✔✔The legal responsibility for damage or injury even if you are
not negligent - a lawnmower manufacturer is liable if a blade flies off the
mower.
Seasonal inventory variable - ✔✔25% in addition to the policies limit of liability.
Ex: $200,000 limit of liability, for total loss policy pays $250,000 (200,000x25%)
Is homeowners personal property covered on an ACV or RC basis? - ✔✔It's
covered to 50% of A on an ACV basis. ($100,000 limit of liability x 50%) covers up
to $50,000
Who is the principal in a principal agent relationship? - ✔✔The insurer is the
principal in a ..
Under HO policy, coverage for removal of a fallen tree may apply if - ✔✔Tree
blocks: access to driveway, handicap ramp, or tree damages a covered
structure. But NOT if the tree is blocking access to the front steps.
Adverse Selection - ✔✔A high-risk person benefits more from insurance, so is
more likely to purchase it.
Manual Rates - ✔✔Insurance rates according to a company Rate Manual that
vary from company to company. Also known as "Standard Rates". Most rates
2|Page
©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025.
