VIRGINIA PROPERTY AND CASUALTY
INSURANCE PRACTICE EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following best describes insurable interest?
A) The insured must have a financial stake in the property or life insured
B) The insurer’s interest in underwriting the policy
C) A type of insurance policy
D) The premium paid by the insured
A) The insured must have a financial stake in the property or life insured
Insurable interest means the insured must stand to lose financially if the
insured event occurs.
2. The Declaration page of an insurance policy contains:
A) Policy definitions
B) The insured's rights and duties
C) The name of the insured, policy limits, and premium
, D) The insurer’s complaint process
C) The name of the insured, policy limits, and premium
The declarations summarize key facts of the policy including who is insured,
coverage amounts, and premiums.
3. In Virginia, what is the minimum liability coverage required for an
automobile insurance policy?
A) 10/20/5
B) 25/50/20
C) 20/40/15
D) 15/30/10
B) 25/50/20
Virginia law requires 25,000 for bodily injury per person, 50,000 per
accident, and 20,000 for property damage.
4. Which type of policy would typically cover a homeowner’s personal
property off the premises?
A) HO-1
B) HO-3
C) HO-5
D) HO-4
D) HO-4
HO-4 policies are renters’ insurance and cover personal property both on
and off premises.
, 5. The perils covered under a named perils policy are:
A) All risks except those excluded
B) Only the perils specifically listed
C) Only fire and theft
D) None of the above
B) Only the perils specifically listed
Named perils policies cover only those perils that are specifically listed in the
policy.
6. In property insurance, the term "actual cash value" means:
A) Replacement cost minus depreciation
B) Replacement cost without depreciation
C) Market value of the property
D) Insured value of the property
A) Replacement cost minus depreciation
Actual cash value pays the replacement cost minus depreciation due to age
or use.
7. The insured has the right to transfer ownership of a policy to another
person. This is called:
A) Assignment
B) Subrogation
C) Indemnification
INSURANCE PRACTICE EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2025
1. Which of the following best describes insurable interest?
A) The insured must have a financial stake in the property or life insured
B) The insurer’s interest in underwriting the policy
C) A type of insurance policy
D) The premium paid by the insured
A) The insured must have a financial stake in the property or life insured
Insurable interest means the insured must stand to lose financially if the
insured event occurs.
2. The Declaration page of an insurance policy contains:
A) Policy definitions
B) The insured's rights and duties
C) The name of the insured, policy limits, and premium
, D) The insurer’s complaint process
C) The name of the insured, policy limits, and premium
The declarations summarize key facts of the policy including who is insured,
coverage amounts, and premiums.
3. In Virginia, what is the minimum liability coverage required for an
automobile insurance policy?
A) 10/20/5
B) 25/50/20
C) 20/40/15
D) 15/30/10
B) 25/50/20
Virginia law requires 25,000 for bodily injury per person, 50,000 per
accident, and 20,000 for property damage.
4. Which type of policy would typically cover a homeowner’s personal
property off the premises?
A) HO-1
B) HO-3
C) HO-5
D) HO-4
D) HO-4
HO-4 policies are renters’ insurance and cover personal property both on
and off premises.
, 5. The perils covered under a named perils policy are:
A) All risks except those excluded
B) Only the perils specifically listed
C) Only fire and theft
D) None of the above
B) Only the perils specifically listed
Named perils policies cover only those perils that are specifically listed in the
policy.
6. In property insurance, the term "actual cash value" means:
A) Replacement cost minus depreciation
B) Replacement cost without depreciation
C) Market value of the property
D) Insured value of the property
A) Replacement cost minus depreciation
Actual cash value pays the replacement cost minus depreciation due to age
or use.
7. The insured has the right to transfer ownership of a policy to another
person. This is called:
A) Assignment
B) Subrogation
C) Indemnification
