Property and Casualty Insurance
2025 Exam Questions with 100%
Correct Answers
Which of the following is covered by Coverage E of the Farm Property Coverage Part? -
Answer-Scheduled farm personal property
Which of the following statements is correct regarding the Commercial Articles
Coverage floater? - Answer-It covers property used for business purposes
The equal sharing of a loss by two or more insurers until the loss is paid, or until each
insurer has exhausted its limits of insurance, whichever comes first, is the description of
which of the following? - Answer-Contribution by equal shares
Which of the following coverage forms covers equipment during transportation,
unloading and installation until control is given to the purchaser? - Answer-Installation
Floater
Personal Injury includes all of the following, except: - Answer-Bodily Injury
Of the following, which is covered under Part D - Coverage for Damage to Your Auto? -
Answer-A newly acquired vehicle added to the policy within 14 days
Which of the following defenses against negligence reduces damages in proportion to
the degree of negligence? - Answer-Comparative Negligence
Which of the following is not essential in determining if an action is due to negligence? -
Answer-The injured party must prove the wrongdoer committed a criminal act
Damages from which of the following would apply to the per occurrence limit under a
Commercial General Liability policy? - Answer-Professional malpractice
P's liability policy has the following limits: $50,000 per person, $250,000 per occurrence,
and $400,000 aggregate. During the policy period, the policy paid out $250,000 in
liability claims. If P suffers another loss of $250,000 during the same policy period, how
much will the policy pay? - Answer-$150,000
,Which description applies to General Damages? - Answer-Compensation to an injured
party for pain, suffering, mental anguish, disfigurement and similar types of losses
Which type of construction material has a fire-resistance rating between one and two
hours for walls, floors and roofs? - Answer-Modified fire-resistive
All of the following are true about a newly acquired additional vehicle, except: - Answer-
It can be used to transport goods for hire if receipts are less than $10,000
Every 2 years (biennially), agents must complete ___ hours of continuing education. -
Answer-24
Which of the following may broaden the coverage found in an insurance policy? -
Answer-Endorsements
Which of the following clauses protects the interests of the loss payee? - Answer-Loss
payable clause
The definition of an uninsured motor vehicle under the Personal Auto Policy includes all
of the following, except: - Answer-A vehicle newly acquired by the named insured that
has not been reported to the insurer
After being rejected by an insurer due to underwriting guidelines an applicant may
request homeowners coverage under which of the following? - Answer-FAIR Plan
An insured owns a home with a replacement cost of $300,000 and a market value of
$250,000. What is the most a valued policy will pay in the event of a total loss without a
deductible? - Answer-The policy limit
Liability coverage under the PAP will cover which of the following? - Answer-Non-owned
golf cart
Transportation Expenses coverage under the Personal Auto Policy begins how long
after a covered auto has been stolen? - Answer-48 hours
Under a dwelling policy, an insured tenant may use up to what percentage of the
Coverage C limit of insurance for a covered loss to improvements, alterations, and
additions made at the insured's expense to that part of the described location occupied
by the named insured? - Answer-10%
Which of the following residents in the insured's dwelling is eligible to receive medical
payments under Section II of a Homeowners Policy? - Answer-A residence employee
Coverage B of a dwelling policy will not apply to a detached garage if which of the
following is being stored? - Answer-A helium tank used for the insured's business
, All the following injuries are covered under a Workers' Compensation policy, except: -
Answer-An employee whose injury results from intoxication
In which section of the BOP would coverage for equipment breakdown be found? -
Answer-Optional coverages
All of the following statements regarding property insurance terminology are true,
except: - Answer-Proximate cause is a secondary cause of loss
Which of the following is true about the National Flood Insurance Program? - Answer-
Property removed to protect it from flood is covered for 45 days at other locations
What is the term for the first event in the unbroken chain of events, that resulted in a
loss? - Answer-The Proximate Cause
The maximum liability assumed by the Property and Casualty Insurance Guaranty
Association with regard to an individual insured is no more than: - Answer-The amount
of each claim, up to $300,000 per claim
Which of the following is true concerning the Premium Audit condition of the
Commercial General Coverage Part to the Commercial Package Policy? - Answer-
Premium audit determines what the earned premium will be at the end of the policy
period
All of the following are true about liability, except: - Answer-Liability policies pay costs
incurred by an insured to sue negligent third parties
A property purchased 10 years ago for $100,000 has a replacement value today of
$200,000. It has depreciated 3% each year. What is today's actual cash value? -
Answer-$140,000
Ocean marine hull insurance covers a vessel for: - Answer-Physical damage
Which of the following vehicles would be excluded under the Personal Auto Policy? -
Answer-A motorcycle
The Building and Personal Property Coverage Form does not cover which of the
following? - Answer-Liability
Which of the following coverage forms covers the cost of replacing or reproducing
documents that are important for the continuation of business such as books, files, and
maps? - Answer-Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the following are included,
except: - Answer-Pets belonging to the insured
2025 Exam Questions with 100%
Correct Answers
Which of the following is covered by Coverage E of the Farm Property Coverage Part? -
Answer-Scheduled farm personal property
Which of the following statements is correct regarding the Commercial Articles
Coverage floater? - Answer-It covers property used for business purposes
The equal sharing of a loss by two or more insurers until the loss is paid, or until each
insurer has exhausted its limits of insurance, whichever comes first, is the description of
which of the following? - Answer-Contribution by equal shares
Which of the following coverage forms covers equipment during transportation,
unloading and installation until control is given to the purchaser? - Answer-Installation
Floater
Personal Injury includes all of the following, except: - Answer-Bodily Injury
Of the following, which is covered under Part D - Coverage for Damage to Your Auto? -
Answer-A newly acquired vehicle added to the policy within 14 days
Which of the following defenses against negligence reduces damages in proportion to
the degree of negligence? - Answer-Comparative Negligence
Which of the following is not essential in determining if an action is due to negligence? -
Answer-The injured party must prove the wrongdoer committed a criminal act
Damages from which of the following would apply to the per occurrence limit under a
Commercial General Liability policy? - Answer-Professional malpractice
P's liability policy has the following limits: $50,000 per person, $250,000 per occurrence,
and $400,000 aggregate. During the policy period, the policy paid out $250,000 in
liability claims. If P suffers another loss of $250,000 during the same policy period, how
much will the policy pay? - Answer-$150,000
,Which description applies to General Damages? - Answer-Compensation to an injured
party for pain, suffering, mental anguish, disfigurement and similar types of losses
Which type of construction material has a fire-resistance rating between one and two
hours for walls, floors and roofs? - Answer-Modified fire-resistive
All of the following are true about a newly acquired additional vehicle, except: - Answer-
It can be used to transport goods for hire if receipts are less than $10,000
Every 2 years (biennially), agents must complete ___ hours of continuing education. -
Answer-24
Which of the following may broaden the coverage found in an insurance policy? -
Answer-Endorsements
Which of the following clauses protects the interests of the loss payee? - Answer-Loss
payable clause
The definition of an uninsured motor vehicle under the Personal Auto Policy includes all
of the following, except: - Answer-A vehicle newly acquired by the named insured that
has not been reported to the insurer
After being rejected by an insurer due to underwriting guidelines an applicant may
request homeowners coverage under which of the following? - Answer-FAIR Plan
An insured owns a home with a replacement cost of $300,000 and a market value of
$250,000. What is the most a valued policy will pay in the event of a total loss without a
deductible? - Answer-The policy limit
Liability coverage under the PAP will cover which of the following? - Answer-Non-owned
golf cart
Transportation Expenses coverage under the Personal Auto Policy begins how long
after a covered auto has been stolen? - Answer-48 hours
Under a dwelling policy, an insured tenant may use up to what percentage of the
Coverage C limit of insurance for a covered loss to improvements, alterations, and
additions made at the insured's expense to that part of the described location occupied
by the named insured? - Answer-10%
Which of the following residents in the insured's dwelling is eligible to receive medical
payments under Section II of a Homeowners Policy? - Answer-A residence employee
Coverage B of a dwelling policy will not apply to a detached garage if which of the
following is being stored? - Answer-A helium tank used for the insured's business
, All the following injuries are covered under a Workers' Compensation policy, except: -
Answer-An employee whose injury results from intoxication
In which section of the BOP would coverage for equipment breakdown be found? -
Answer-Optional coverages
All of the following statements regarding property insurance terminology are true,
except: - Answer-Proximate cause is a secondary cause of loss
Which of the following is true about the National Flood Insurance Program? - Answer-
Property removed to protect it from flood is covered for 45 days at other locations
What is the term for the first event in the unbroken chain of events, that resulted in a
loss? - Answer-The Proximate Cause
The maximum liability assumed by the Property and Casualty Insurance Guaranty
Association with regard to an individual insured is no more than: - Answer-The amount
of each claim, up to $300,000 per claim
Which of the following is true concerning the Premium Audit condition of the
Commercial General Coverage Part to the Commercial Package Policy? - Answer-
Premium audit determines what the earned premium will be at the end of the policy
period
All of the following are true about liability, except: - Answer-Liability policies pay costs
incurred by an insured to sue negligent third parties
A property purchased 10 years ago for $100,000 has a replacement value today of
$200,000. It has depreciated 3% each year. What is today's actual cash value? -
Answer-$140,000
Ocean marine hull insurance covers a vessel for: - Answer-Physical damage
Which of the following vehicles would be excluded under the Personal Auto Policy? -
Answer-A motorcycle
The Building and Personal Property Coverage Form does not cover which of the
following? - Answer-Liability
Which of the following coverage forms covers the cost of replacing or reproducing
documents that are important for the continuation of business such as books, files, and
maps? - Answer-Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the following are included,
except: - Answer-Pets belonging to the insured
