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Property and Casualty Insurance Questions
and Answers
Under a dwelling policy, an insured tenant may use up to what
percentage of the Coverage C limit of insurance for a covered loss
to improvements, alterations, and additions made at the insured's
expense to that part of the described location occupied by the
named insured?
Ans: 10%
Which of the following residents in the insured's dwelling is
eligible to receive medical payments under Section II of a
Homeowners Policy?
Ans: A residence employee
Coverage B of a dwelling policy will not apply to a detached
garage if which of the following is being stored?
Ans: A helium tank used for the insured's business
All the following injuries are covered under a Workers'
Compensation policy, except:
Ans: An employee whose injury results from intoxication
In which section of the BOP would coverage for equipment
breakdown be found?
Ans: Optional coverages
All of the following statements regarding property insurance
terminology are true, except:
Ans: Proximate cause is a secondary cause of loss
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Which of the following is true about the National Flood Insurance
Program?
Ans: Property removed to protect it from flood is covered for 45 days at
other locations
What is the term for the first event in the unbroken chain of
events, that resulted in a loss?
Ans: The Proximate Cause
The maximum liability assumed by the Property and Casualty
Insurance Guaranty Association with regard to an individual
insured is no more than:
Ans: The amount of each claim, up to $300,000 per claim
Which of the following is true concerning the Premium Audit
condition of the Commercial General Coverage Part to the
Commercial Package Policy?
Ans: Premium audit determines what the earned premium will be at the
end of the policy period
All of the following are true about liability, except:
Ans: Liability policies pay costs incurred by an insured to sue negligent
third parties
A property purchased 10 years ago for $100,000 has a
replacement value today of $200,000. It has depreciated 3% each
year. What is today's actual cash value?
Ans: $140,000
Ocean marine hull insurance covers a vessel for:
Ans: Physical damage
Which of the following vehicles would be excluded under the
Personal Auto Policy?
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Ans: A motorcycle
The Building and Personal Property Coverage Form does not cover
which of the following?
Ans: Liability
Which of the following coverage forms covers the cost of
replacing or reproducing documents that are important for the
continuation of business such as books, files, and maps?
Ans: Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the
following are included, except:
Ans: Pets belonging to the insured
Which of the following is not a valid reason to cancel a personal
auto policy after the first 60 days of coverage?
Ans: Claims history
All of the following are excluded under the BOP, except:
Ans: Increased cost of construction
Under a Building and Personal Property Coverage Form, up to
what percent of a partial loss would be available for debris
removal?
Ans: 25%
Which statement is true of the Equipment Breakdown Protection
Coverage Form?
Ans: It may be written as a coverage part of the Commercial Package
Policy
Which of the following is not covered under the Building and
Personal Property Coverage Form?
© 2025 All rights reserved
Property and Casualty Insurance Questions
and Answers
Under a dwelling policy, an insured tenant may use up to what
percentage of the Coverage C limit of insurance for a covered loss
to improvements, alterations, and additions made at the insured's
expense to that part of the described location occupied by the
named insured?
Ans: 10%
Which of the following residents in the insured's dwelling is
eligible to receive medical payments under Section II of a
Homeowners Policy?
Ans: A residence employee
Coverage B of a dwelling policy will not apply to a detached
garage if which of the following is being stored?
Ans: A helium tank used for the insured's business
All the following injuries are covered under a Workers'
Compensation policy, except:
Ans: An employee whose injury results from intoxication
In which section of the BOP would coverage for equipment
breakdown be found?
Ans: Optional coverages
All of the following statements regarding property insurance
terminology are true, except:
Ans: Proximate cause is a secondary cause of loss
© 2025 All rights reserved
, 2 | Page
Which of the following is true about the National Flood Insurance
Program?
Ans: Property removed to protect it from flood is covered for 45 days at
other locations
What is the term for the first event in the unbroken chain of
events, that resulted in a loss?
Ans: The Proximate Cause
The maximum liability assumed by the Property and Casualty
Insurance Guaranty Association with regard to an individual
insured is no more than:
Ans: The amount of each claim, up to $300,000 per claim
Which of the following is true concerning the Premium Audit
condition of the Commercial General Coverage Part to the
Commercial Package Policy?
Ans: Premium audit determines what the earned premium will be at the
end of the policy period
All of the following are true about liability, except:
Ans: Liability policies pay costs incurred by an insured to sue negligent
third parties
A property purchased 10 years ago for $100,000 has a
replacement value today of $200,000. It has depreciated 3% each
year. What is today's actual cash value?
Ans: $140,000
Ocean marine hull insurance covers a vessel for:
Ans: Physical damage
Which of the following vehicles would be excluded under the
Personal Auto Policy?
© 2025 All rights reserved
, 3 | Page
Ans: A motorcycle
The Building and Personal Property Coverage Form does not cover
which of the following?
Ans: Liability
Which of the following coverage forms covers the cost of
replacing or reproducing documents that are important for the
continuation of business such as books, files, and maps?
Ans: Valuable Papers and Records Coverage Form
Under Coverage C of the Special Dwelling Form, all of the
following are included, except:
Ans: Pets belonging to the insured
Which of the following is not a valid reason to cancel a personal
auto policy after the first 60 days of coverage?
Ans: Claims history
All of the following are excluded under the BOP, except:
Ans: Increased cost of construction
Under a Building and Personal Property Coverage Form, up to
what percent of a partial loss would be available for debris
removal?
Ans: 25%
Which statement is true of the Equipment Breakdown Protection
Coverage Form?
Ans: It may be written as a coverage part of the Commercial Package
Policy
Which of the following is not covered under the Building and
Personal Property Coverage Form?
© 2025 All rights reserved
