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PROPERTY AND CASUALTY EXAM LOUISIANA
ACTUAL EXAM WITH QUESTIONS AND 100%
CORRECT ANSWERS|| LATEST AND COMPLETE
VERSION 2025-2026 WITH EXPERT VERIFIED
SOLUTIONS|| ASSURED PASS
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single
risk, in the event of a loss, the insured must notify - ANSWER: Any of the
insurers providing coverage.
The policy conditions define - ANSWER: How parties to the contract must act
following a loss.
Because an insurance policy is a legal contract, it must conform to the state laws
governing contracts which require all of the following elements EXCEPT -
ANSWER: Conditions.
The value placed on property insured under a fire insurance policy is used to
determine the policy's - ANSWER: Premium.
Shipbuilders and repairers are covered by the - ANSWER: U.S. Longshore and
Harbor Workers Compensation Act.
Which of the following terms refers to a person's ability to do some work or the
need to do alternative work? - ANSWER: Temporary partial disability
Insurer examinations must occur no less frequently than every - ANSWER: 5
years.
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If a commercial policy, in effect for less than 60 days, is to be canceled for
nonpayment of premium, how much prior notice must the insurer give to the first
named insured? - ANSWER: 10 days
The Residential Condominium Building Association Policy (RCBAP) is used for
residential condominium building associations to cover the entire building under
one policy. Which of the following statements about RCBAP is true? - ANSWER:
It does not protect the individual owner from loss to personal property owned
exclusively by the unit owner.
What is surplus lines insurance? - ANSWER: Insurance placed with an
unauthorized insurer
How long is a waiting period upon purchase of flood coverage through NFIP? -
ANSWER: 30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from - ANSWER: Annual assessments paid by member
insurers.
Uninsured Motorist property damage coverage is subject to a deductible of -
ANSWER: $250.
Rates that are established based on the similarities of the risk with other risks are
known as - ANSWER: Manual rates.
The personal injury liability endorsement to an HO policy applies to all the
following EXCEPT - ANSWER: A third party breaks a leg when the insured
knocks him down.
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The process an insurer uses to evaluate applications and determine if a policy
should be issued and on what terms, conditions, and rates is known as -
ANSWER: Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the
TRIA to the year - ANSWER: 2020
According to the Fair Credit Reporting Act, all of the following would be
considered negative information about a consumer EXCEPT - ANSWER:
Disputes regarding consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling
policies when - ANSWER: At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income
that occurs when a business must suspend operations because of a direct loss.
Which of the following terms best describes the nature of this type of coverage? -
ANSWER: Time element
Under which type of coverage does the insurer agree to pay for bodily injury or
property damage liability which the insured has agreed to assume under a written
contractual agreement? - ANSWER: Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy
period? - ANSWER: Discovery form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of
the information contained in his or her report, the reporting agency must -
ANSWER: Respond to the consumer's complaint.
, 4|Page
Workers compensation benefits are provided for an employee injury or death that
arises out of the course of normal employment in all of the following situations
EXCEPT - ANSWER: On his evening stroll, an employee of an advertising
company is injured while watching a competitor's billboard sign being removed
from an advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an
insurance contract does this describe? - ANSWER: Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - ANSWER:
The vehicle has no liability bond or insurance in force.
Which of the following are the authorities that an agent can hold? - ANSWER:
Express and implied
All of the following are supplemental payments found in liability policies
EXCEPT - ANSWER: Costs the insured incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional
living expenses incurred by an owner-occupant in the event a covered peril makes
the premises uninhabitable due to a covered loss? - ANSWER: Coverage E
A producer who fails to segregate premium monies from his own personal funds is
guilty of - ANSWER: Commingling
What is the name for the type of property damage coverage that protects the
insured or the covered auto in an accident with someone who does not have
coverage? - ANSWER: Uninsured motorist
PROPERTY AND CASUALTY EXAM LOUISIANA
ACTUAL EXAM WITH QUESTIONS AND 100%
CORRECT ANSWERS|| LATEST AND COMPLETE
VERSION 2025-2026 WITH EXPERT VERIFIED
SOLUTIONS|| ASSURED PASS
Should 2 or more insurers issue a combined Standard Fire Policy insuring a single
risk, in the event of a loss, the insured must notify - ANSWER: Any of the
insurers providing coverage.
The policy conditions define - ANSWER: How parties to the contract must act
following a loss.
Because an insurance policy is a legal contract, it must conform to the state laws
governing contracts which require all of the following elements EXCEPT -
ANSWER: Conditions.
The value placed on property insured under a fire insurance policy is used to
determine the policy's - ANSWER: Premium.
Shipbuilders and repairers are covered by the - ANSWER: U.S. Longshore and
Harbor Workers Compensation Act.
Which of the following terms refers to a person's ability to do some work or the
need to do alternative work? - ANSWER: Temporary partial disability
Insurer examinations must occur no less frequently than every - ANSWER: 5
years.
,2|Page
If a commercial policy, in effect for less than 60 days, is to be canceled for
nonpayment of premium, how much prior notice must the insurer give to the first
named insured? - ANSWER: 10 days
The Residential Condominium Building Association Policy (RCBAP) is used for
residential condominium building associations to cover the entire building under
one policy. Which of the following statements about RCBAP is true? - ANSWER:
It does not protect the individual owner from loss to personal property owned
exclusively by the unit owner.
What is surplus lines insurance? - ANSWER: Insurance placed with an
unauthorized insurer
How long is a waiting period upon purchase of flood coverage through NFIP? -
ANSWER: 30 days
Funding for the operation and administration of the Louisiana Insurance Guaranty
Association comes from - ANSWER: Annual assessments paid by member
insurers.
Uninsured Motorist property damage coverage is subject to a deductible of -
ANSWER: $250.
Rates that are established based on the similarities of the risk with other risks are
known as - ANSWER: Manual rates.
The personal injury liability endorsement to an HO policy applies to all the
following EXCEPT - ANSWER: A third party breaks a leg when the insured
knocks him down.
,3|Page
The process an insurer uses to evaluate applications and determine if a policy
should be issued and on what terms, conditions, and rates is known as -
ANSWER: Underwriting.
Terrorism Risk Insurance Program Reauthorization Act of 2015 has extended the
TRIA to the year - ANSWER: 2020
According to the Fair Credit Reporting Act, all of the following would be
considered negative information about a consumer EXCEPT - ANSWER:
Disputes regarding consumer report information
Replacement cost coverage is provided in both the broad and special form dwelling
policies when - ANSWER: At least 80% of the replacement cost
The business income coverage form covers consequential loss of business income
that occurs when a business must suspend operations because of a direct loss.
Which of the following terms best describes the nature of this type of coverage? -
ANSWER: Time element
Under which type of coverage does the insurer agree to pay for bodily injury or
property damage liability which the insured has agreed to assume under a written
contractual agreement? - ANSWER: Contractural liability policy
Which commercial crime form would provide coverage for a loss that did not
necessarily happen during the policy period but was revealed during the policy
period? - ANSWER: Discovery form
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of
the information contained in his or her report, the reporting agency must -
ANSWER: Respond to the consumer's complaint.
, 4|Page
Workers compensation benefits are provided for an employee injury or death that
arises out of the course of normal employment in all of the following situations
EXCEPT - ANSWER: On his evening stroll, an employee of an advertising
company is injured while watching a competitor's billboard sign being removed
from an advertising site.
An insured pays a $100 premium every month for his insurance coverage, yet the
insurer promises to pay $10,000 for a covered loss. What characteristic of an
insurance contract does this describe? - ANSWER: Aleatory
An uninsured motor vehicle includes all of the following EXCEPT - ANSWER:
The vehicle has no liability bond or insurance in force.
Which of the following are the authorities that an agent can hold? - ANSWER:
Express and implied
All of the following are supplemental payments found in liability policies
EXCEPT - ANSWER: Costs the insured incurred in hiring an attorney.
In a dwelling policy, which of the following provides coverage for additional
living expenses incurred by an owner-occupant in the event a covered peril makes
the premises uninhabitable due to a covered loss? - ANSWER: Coverage E
A producer who fails to segregate premium monies from his own personal funds is
guilty of - ANSWER: Commingling
What is the name for the type of property damage coverage that protects the
insured or the covered auto in an accident with someone who does not have
coverage? - ANSWER: Uninsured motorist
