INSURANCE LICENSE AND PROPERTY CASUALTY
INSURANCE LATEST EXAM 2025 WITH QUESTIONS
AND CERTIFIED CORRECT ANSWERS | ALREADY
GRADED A+ | GUARANTEED SUCCESS | INSURANCE
LICENSE AND PROPERTY CASUALTY INSURANCE
ACTUAL EXAM [BRAND NEW!!]
During the application process, the agent's primary responsibility is to - ANSWER-
the insurance company
In Virginia, an insurer domiciled and incorporated in Virginia is called a(n) -
ANSWER- domestic insurer
Which of these describe a participating insurance policy? - ANSWER-
Policyowners are entitled to receive dividends
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWER- a fraternal benefit society
A stock insurance company - ANSWER- is owned exclusively by its shareholders
Who owns a stock company? - ANSWER- Its stockholders
A mutual insurance company and a stock insurance company have one main
difference between them. What is this major contrast? - ANSWER- Stock
,company is owned by its shareholders. Mutual company is owned by its
policyholders.
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely empty with no people or
contents. The warehouse has a - ANSWER- Vacancy
Y has a policy of split limits of 50/100/50. If Y causes loss, what is the maximum
amount that each person would receive? - ANSWER- $50,000
B purchased a home five years ago and was issued an HO-3 contract. This year, B
wants to add the sump pump overflow rider to her policy.
Adding coverage to her policy can best be described as an: - ANSWER-
Endorsement
An unbroken chain of events that begins with negligence and leads to loss is
known as: - ANSWER- Proximate Cause
What is CORRECT regarding the cancellation of a policy? - ANSWER- If the
insured terminated coverage, the insurer is sometimes allowed to deduct
administrative costs for processing cancellation before refunding any premiums.
H owns a small restaurant that is a local favorite.
One night, H's restaurant catches fire which will cause his business to be shut down
for the next six months, causing H to lose revenue during repairs. H's loss of
revenue because of the fire is known as a. - ANSWER- Consequential Loss
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely with no people but there
is some miscellaneous office furniture.
,The warehouse has a: - ANSWER- unoccupancy
An insured purchases a rental property for $250,000, its replacement cost. He
insures it for $150,000 under a Property Coverage Form with an 80 percent
Coinsurance clause with a $100 deductible. In the event of a $100,000 loss how
much will the insurer pay on the claim? - ANSWER- $74,900
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as - ANSWER- risk retention group
Who elects the governing body of a mutual insurance company? - ANSWER-
Policyholders
Who is a mutual insurance company owned by? - ANSWER- Its policyholders
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWER- Treaty
Insurers that are organized in countries outside the United States are referred to as -
ANSWER-alien
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWER- Fair Credit Reporting Act
At what point must an insurance applicant be informed of their rights that fall
under the Fair Credit Reporting Act? - ANSWER- Upon completion of the
application
, What type of insurer's company is domiciled in England, but conducts business in
the United States? - ANSWER- Alien
N causea an accident injuring tree people. N's policy has split limits of liability of
250/500/250.
What is the maximum amount that all three as a whole could collect in the event of
death or injury? - ANSWER- $500,000
Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated - ANSWER- 1970 - Fair Credit Reporting
Act
J has a policy that pays a maximum single dollar amount for property damage and
death or bodily injury. Which limit of liability does J's policy have? - ANSWER-
Combined Single Limit
Which of the following situations would be best described as a pure risk? -
ANSWER- An insured purchasing an HO-6 policy to insure their new condo
F's toy company has just produced a child's toy that has sharp edges. Although F's
toy company guarantees the product is safe, if a child were to get hurt, the
company would have: - ANSWER- Strict Liability
Which of the following would be an example of a peril?
• Fire
• Lightning
• Internal Explosion - ANSWER- All of the answers listed.
INSURANCE LATEST EXAM 2025 WITH QUESTIONS
AND CERTIFIED CORRECT ANSWERS | ALREADY
GRADED A+ | GUARANTEED SUCCESS | INSURANCE
LICENSE AND PROPERTY CASUALTY INSURANCE
ACTUAL EXAM [BRAND NEW!!]
During the application process, the agent's primary responsibility is to - ANSWER-
the insurance company
In Virginia, an insurer domiciled and incorporated in Virginia is called a(n) -
ANSWER- domestic insurer
Which of these describe a participating insurance policy? - ANSWER-
Policyowners are entitled to receive dividends
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWER- a fraternal benefit society
A stock insurance company - ANSWER- is owned exclusively by its shareholders
Who owns a stock company? - ANSWER- Its stockholders
A mutual insurance company and a stock insurance company have one main
difference between them. What is this major contrast? - ANSWER- Stock
,company is owned by its shareholders. Mutual company is owned by its
policyholders.
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely empty with no people or
contents. The warehouse has a - ANSWER- Vacancy
Y has a policy of split limits of 50/100/50. If Y causes loss, what is the maximum
amount that each person would receive? - ANSWER- $50,000
B purchased a home five years ago and was issued an HO-3 contract. This year, B
wants to add the sump pump overflow rider to her policy.
Adding coverage to her policy can best be described as an: - ANSWER-
Endorsement
An unbroken chain of events that begins with negligence and leads to loss is
known as: - ANSWER- Proximate Cause
What is CORRECT regarding the cancellation of a policy? - ANSWER- If the
insured terminated coverage, the insurer is sometimes allowed to deduct
administrative costs for processing cancellation before refunding any premiums.
H owns a small restaurant that is a local favorite.
One night, H's restaurant catches fire which will cause his business to be shut down
for the next six months, causing H to lose revenue during repairs. H's loss of
revenue because of the fire is known as a. - ANSWER- Consequential Loss
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely with no people but there
is some miscellaneous office furniture.
,The warehouse has a: - ANSWER- unoccupancy
An insured purchases a rental property for $250,000, its replacement cost. He
insures it for $150,000 under a Property Coverage Form with an 80 percent
Coinsurance clause with a $100 deductible. In the event of a $100,000 loss how
much will the insurer pay on the claim? - ANSWER- $74,900
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as - ANSWER- risk retention group
Who elects the governing body of a mutual insurance company? - ANSWER-
Policyholders
Who is a mutual insurance company owned by? - ANSWER- Its policyholders
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWER- Treaty
Insurers that are organized in countries outside the United States are referred to as -
ANSWER-alien
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWER- Fair Credit Reporting Act
At what point must an insurance applicant be informed of their rights that fall
under the Fair Credit Reporting Act? - ANSWER- Upon completion of the
application
, What type of insurer's company is domiciled in England, but conducts business in
the United States? - ANSWER- Alien
N causea an accident injuring tree people. N's policy has split limits of liability of
250/500/250.
What is the maximum amount that all three as a whole could collect in the event of
death or injury? - ANSWER- $500,000
Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated - ANSWER- 1970 - Fair Credit Reporting
Act
J has a policy that pays a maximum single dollar amount for property damage and
death or bodily injury. Which limit of liability does J's policy have? - ANSWER-
Combined Single Limit
Which of the following situations would be best described as a pure risk? -
ANSWER- An insured purchasing an HO-6 policy to insure their new condo
F's toy company has just produced a child's toy that has sharp edges. Although F's
toy company guarantees the product is safe, if a child were to get hurt, the
company would have: - ANSWER- Strict Liability
Which of the following would be an example of a peril?
• Fire
• Lightning
• Internal Explosion - ANSWER- All of the answers listed.
