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WASHINGTON STATE PROPERTY & CASUALTY INSURANCE EXAM
|2025-2026 LATEST UPDATED| REAL EXAM QUESTIONS AND
ANSWERS | 100% RATED CORRECT | 100% VERFIED SOLUTIONS |
ALREADY GRADED A+
If a building under a BPP has been vacant over 60 days, the BPP will cover? - (answer)Fire,
Wind, Explosion, and Volcano are all covered after 60 days of vacancy
A CGL provides liability coverage for: - (answer)A person whose reputation is harmed by the
insured's innocent dissemination of information.
Law of Large Numbers - (answer)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? - (answer)Insuring agreements
Commercial Liability - (answer)Purchased to cover completed operations/ products liability
Is crime covered under a CPP? - (answer)Yes, crime is covered under a CPP
Insured's Responsibilities are listed where? - (answer)Conditions
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Policy coverages will be found where? - (answer)Insuring agreements
Does a broad form policy cover volcano - (answer)Yes
Strict Liability - (answer)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 - (answer)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? - (answer)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? - (answer)The insurer is the principal in a
..
Under HO policy, coverage for removal of a fallen tree may apply if - (answer)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 - (answer)A high-risk person benefits more from insurance, so is more likely
to purchase it.
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Manual Rates - (answer)Insurance rates according to a company Rate Manual that vary from
company to company. Also known as "Standard Rates". Most rates must be filed with the state
Insurance Commissioner, but the insurance companies actually set their own rates in the
competitive marketplace.
Contract - Good Faith - (answer)All parties DO NOT rely on the contract to provide for an equal
transfer of values between the parties
utility services - time element endorsement - (answer)an endorsement that covers loss of
business income or extra expense at the insured premises caused by the interruption of utility
services to or from the insured premises
MCS-90 Endorsement - (answer)Used to certify that a motor carrier meets the federal minimum
liability coverages
General damages - (answer)Are intangible
Utility Services - Direct Damage Endorsement - (answer)Covers damage to covered property
caused by interruption of utilities, such as water, communication, or power to the insured
premises - perishable goods spoil due to no power
Commercial ordinance or law endorsement cover extra expense? - (answer)No, will not cover
extra expenses insured to operate at a new location
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Compensatory Damages - (answer)money intended to restore a plaintiff to the position he was in
before the injury
If a tree falls, a covered peril includes - (answer)Wind, hail, or weight of ice, snow, or sleet
Joint Ownership Coverage - (answer)optional endorsement added to PAP when two unmarried
individuals own a car
Reasonable Expectations - (answer)A concept which states that the insured is entitled to
coverage under a policy that a sensible and prudent person would expect it to provide. Reinforces
the rule that ambiguities in insurance contracts should be interpreted in favor of the policyholder.
Spoilage Endorsement - (answer)Covers damage to perishable stock caused by breakdown or
contamination and power outages (on and off premises). NOT if the refrigerator is left open
though
What is used to develop rates? - (answer)Business expenses, loss costs, and profits. NOT loss
reserves
Loss Payable Clause - (answer)An insurance provision authorizing payment in the event of loss
to a person or entity other than the named insured having an insurable interest in the covered
property
WASHINGTON STATE PROPERTY & CASUALTY INSURANCE EXAM
|2025-2026 LATEST UPDATED| REAL EXAM QUESTIONS AND
ANSWERS | 100% RATED CORRECT | 100% VERFIED SOLUTIONS |
ALREADY GRADED A+
If a building under a BPP has been vacant over 60 days, the BPP will cover? - (answer)Fire,
Wind, Explosion, and Volcano are all covered after 60 days of vacancy
A CGL provides liability coverage for: - (answer)A person whose reputation is harmed by the
insured's innocent dissemination of information.
Law of Large Numbers - (answer)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? - (answer)Insuring agreements
Commercial Liability - (answer)Purchased to cover completed operations/ products liability
Is crime covered under a CPP? - (answer)Yes, crime is covered under a CPP
Insured's Responsibilities are listed where? - (answer)Conditions
,2|Page
Policy coverages will be found where? - (answer)Insuring agreements
Does a broad form policy cover volcano - (answer)Yes
Strict Liability - (answer)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 - (answer)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? - (answer)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? - (answer)The insurer is the principal in a
..
Under HO policy, coverage for removal of a fallen tree may apply if - (answer)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 - (answer)A high-risk person benefits more from insurance, so is more likely
to purchase it.
,3|Page
Manual Rates - (answer)Insurance rates according to a company Rate Manual that vary from
company to company. Also known as "Standard Rates". Most rates must be filed with the state
Insurance Commissioner, but the insurance companies actually set their own rates in the
competitive marketplace.
Contract - Good Faith - (answer)All parties DO NOT rely on the contract to provide for an equal
transfer of values between the parties
utility services - time element endorsement - (answer)an endorsement that covers loss of
business income or extra expense at the insured premises caused by the interruption of utility
services to or from the insured premises
MCS-90 Endorsement - (answer)Used to certify that a motor carrier meets the federal minimum
liability coverages
General damages - (answer)Are intangible
Utility Services - Direct Damage Endorsement - (answer)Covers damage to covered property
caused by interruption of utilities, such as water, communication, or power to the insured
premises - perishable goods spoil due to no power
Commercial ordinance or law endorsement cover extra expense? - (answer)No, will not cover
extra expenses insured to operate at a new location
, 4|Page
Compensatory Damages - (answer)money intended to restore a plaintiff to the position he was in
before the injury
If a tree falls, a covered peril includes - (answer)Wind, hail, or weight of ice, snow, or sleet
Joint Ownership Coverage - (answer)optional endorsement added to PAP when two unmarried
individuals own a car
Reasonable Expectations - (answer)A concept which states that the insured is entitled to
coverage under a policy that a sensible and prudent person would expect it to provide. Reinforces
the rule that ambiguities in insurance contracts should be interpreted in favor of the policyholder.
Spoilage Endorsement - (answer)Covers damage to perishable stock caused by breakdown or
contamination and power outages (on and off premises). NOT if the refrigerator is left open
though
What is used to develop rates? - (answer)Business expenses, loss costs, and profits. NOT loss
reserves
Loss Payable Clause - (answer)An insurance provision authorizing payment in the event of loss
to a person or entity other than the named insured having an insurable interest in the covered
property
