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PROPERTY AND CASUALTIES EXAM ACTUAL EXAM
WITH QUESTIONS AND 100% CORRECT ANSWERS||
LATEST AND COMPLETE VERSION 2025-2026 WITH
EXPERT VERIFIED SOLUTIONS|| ASSURED PASS
an insurance agent who needs liability coverage for her professional liability
exposure can obtain it by purchasing what typeof insurance? - ANSWER: errors
and omissions insurance
Under the business auto coverage form, the insured's liability arising from what is
covered? - ANSWER: bodily injury resulting from loading or unloading a cover
auto
coverage for sums an employer becomes legally obligated to pay under common
law as a result of a work related injury to an employee is provided by - ANSWER:
Part Two - Employers Liability section of the workers' compensation policy
What would be included in the supplementary payments portion of a liability
policy? - ANSWER: loss of earnings, court costs the insured is required to pay,
and expenses incurred by the insurer (Damage to property owed by insured is NOT
included)
What is an example of adverse selection? - ANSWER: An individual with a
terminal illness purchases health insurance
Which personal auto coverage reimburses the insured for reasonable expenses
incurred within three years of the date of injury without regard to fault? -
ANSWER: Medical payments coverage
What kind of insurance company is owned by its policy owners? - ANSWER:
Mutual
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Most flood insurance coverage is provided by - ANSWER: a federal government
program
The principle that states that an insured should be restored to approximately the
same financial position after a loss as before is known as - ANSWER: indemnity
Medical benefits under the workers' compensation policy are - ANSWER:
Generally unlimited and do not contain deductibles
What is all included under Section I of the homeowners policy? - ANSWER:
Other structures, personal property, dwelling (Medical bills are excluded)
The insured has a Personal Auto policy with all cars insured by one company. He
sells one of the cars and buys a new one to replace it. Must the insured take any
action for the Liability portion of his current policy to apply to the replacement
vehicle? - ANSWER: No, the insured does not have to do anything; liability
coverage for a replacement vehicle is automatic
In a commercial liability policy, coverage under a claims-made form is triggered
when - ANSWER: the claim is first made against the insured
Widget enterprise wants property insurance for anew warehouse it is building.
Widget also wants the policy's limit of insurance to gradually increase as the value
of the building under construction increases. Which commercial property coverage
form would best fit Widget's needs? - ANSWER: Builders risk reporting form
The physical damage section of the personal auto policy excludes - ANSWER:
mechanical breakdown (Includes flood, theft of auto, and earthquake)
PROPERTY AND CASUALTIES EXAM ACTUAL EXAM
WITH QUESTIONS AND 100% CORRECT ANSWERS||
LATEST AND COMPLETE VERSION 2025-2026 WITH
EXPERT VERIFIED SOLUTIONS|| ASSURED PASS
an insurance agent who needs liability coverage for her professional liability
exposure can obtain it by purchasing what typeof insurance? - ANSWER: errors
and omissions insurance
Under the business auto coverage form, the insured's liability arising from what is
covered? - ANSWER: bodily injury resulting from loading or unloading a cover
auto
coverage for sums an employer becomes legally obligated to pay under common
law as a result of a work related injury to an employee is provided by - ANSWER:
Part Two - Employers Liability section of the workers' compensation policy
What would be included in the supplementary payments portion of a liability
policy? - ANSWER: loss of earnings, court costs the insured is required to pay,
and expenses incurred by the insurer (Damage to property owed by insured is NOT
included)
What is an example of adverse selection? - ANSWER: An individual with a
terminal illness purchases health insurance
Which personal auto coverage reimburses the insured for reasonable expenses
incurred within three years of the date of injury without regard to fault? -
ANSWER: Medical payments coverage
What kind of insurance company is owned by its policy owners? - ANSWER:
Mutual
, 2|Page
Most flood insurance coverage is provided by - ANSWER: a federal government
program
The principle that states that an insured should be restored to approximately the
same financial position after a loss as before is known as - ANSWER: indemnity
Medical benefits under the workers' compensation policy are - ANSWER:
Generally unlimited and do not contain deductibles
What is all included under Section I of the homeowners policy? - ANSWER:
Other structures, personal property, dwelling (Medical bills are excluded)
The insured has a Personal Auto policy with all cars insured by one company. He
sells one of the cars and buys a new one to replace it. Must the insured take any
action for the Liability portion of his current policy to apply to the replacement
vehicle? - ANSWER: No, the insured does not have to do anything; liability
coverage for a replacement vehicle is automatic
In a commercial liability policy, coverage under a claims-made form is triggered
when - ANSWER: the claim is first made against the insured
Widget enterprise wants property insurance for anew warehouse it is building.
Widget also wants the policy's limit of insurance to gradually increase as the value
of the building under construction increases. Which commercial property coverage
form would best fit Widget's needs? - ANSWER: Builders risk reporting form
The physical damage section of the personal auto policy excludes - ANSWER:
mechanical breakdown (Includes flood, theft of auto, and earthquake)
