PROPERTY AND CASUALTY
INSURANCE LICENSING EXAM
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025
To prevent recovery beyond the amount of the insured's actual loss, the policy
will contain:
✔✔ An Other Insurance Clause
Collision coverage of an auto policy covers:
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects
✔✔ b) upset of the vehicle
The maximum amount payable for all losses resulting from one event is
known as the:
a) occurrence limit
b) aggregate limit
✔✔ a) occurrence limit
Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form
✔✔ d) basic form
,The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000
✔✔ c) $500
The insured intentionally did not inform the insurer that the insured owned only
35% of the property. The insurer can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment - ANSWER✔✔d) concealment
Which of the following is NOT a defense against negligence?
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk - ANSWER✔✔c) presumption of negligence
The presumed authority necessary to carry out the producer's routine tasks is
known as:
a) expressed authority
b) implied authority - ANSWER✔✔b) implied authority
Which of the following statements regarding the Towing and Labor endorsement is
false?
, a) it will pay to the limit stated in the endorsement each time a covered vehicle is
disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above - ANSWER✔✔b) there is no coverage for roadside labor
costs
A licensee may violate federal law and be subject to a fine and prison for doing
which of the following?
a) selling insurance w/ a nonresident license
b) sending threatening letters to the state insurance regulator
c) fraudulently telling an insured a claim isn't covered on the policy
d) murdering an applicant - ANSWER✔✔b) sending threatening letters to the state
insurance regulator
Which of the following is not an insured location for liability coverage under the
homeowners policy?
a) a restaurant party room the insured has rented for a business meeting
b) the insured's cemetery plot
c) a restaurant party room the insured has rented for a birthday party
d) vacant land owned by the insured - ANSWER✔✔a) a restaurant party room the
insured has rented for a business meeting
Special covers each of the following EXCEPT:
a) theft
b) mysterious disappearance
c) Acts of God
INSURANCE LICENSING EXAM
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 100% CORRECT
RATED A+ NEWLY UPDATED 2025
To prevent recovery beyond the amount of the insured's actual loss, the policy
will contain:
✔✔ An Other Insurance Clause
Collision coverage of an auto policy covers:
a) road damage to the tires
b) upset of the vehicle
c) frozen engine block
d) falling objects
✔✔ b) upset of the vehicle
The maximum amount payable for all losses resulting from one event is
known as the:
a) occurrence limit
b) aggregate limit
✔✔ a) occurrence limit
Which of the following is a cause of loss form?
a) declarations form
b) proof of loss form
c) garage keepers' form
d) basic form
✔✔ d) basic form
,The minimum flood deductible is:
a) $100
b) $250
c) $500
d) $1000
✔✔ c) $500
The insured intentionally did not inform the insurer that the insured owned only
35% of the property. The insurer can void the policy for:
a) conditional coverage
b) misrepresentation
c) error
d) concealment - ANSWER✔✔d) concealment
Which of the following is NOT a defense against negligence?
a) contributory negligence
b) statues of limitations
c) presumption of negligence
d) assumption of risk - ANSWER✔✔c) presumption of negligence
The presumed authority necessary to carry out the producer's routine tasks is
known as:
a) expressed authority
b) implied authority - ANSWER✔✔b) implied authority
Which of the following statements regarding the Towing and Labor endorsement is
false?
, a) it will pay to the limit stated in the endorsement each time a covered vehicle is
disabled
b) there is no coverage for roadside labor costs
c) there is no deductible
d) none of the above - ANSWER✔✔b) there is no coverage for roadside labor
costs
A licensee may violate federal law and be subject to a fine and prison for doing
which of the following?
a) selling insurance w/ a nonresident license
b) sending threatening letters to the state insurance regulator
c) fraudulently telling an insured a claim isn't covered on the policy
d) murdering an applicant - ANSWER✔✔b) sending threatening letters to the state
insurance regulator
Which of the following is not an insured location for liability coverage under the
homeowners policy?
a) a restaurant party room the insured has rented for a business meeting
b) the insured's cemetery plot
c) a restaurant party room the insured has rented for a birthday party
d) vacant land owned by the insured - ANSWER✔✔a) a restaurant party room the
insured has rented for a business meeting
Special covers each of the following EXCEPT:
a) theft
b) mysterious disappearance
c) Acts of God
