Fall SemeSter 2025 | louiSiana ProPerty and
CaSualty inSuranCe exam PreP | VeriFied
PraCtiCe QueStionS with CorreCt anSwerS &
detailed exPlanationS | ComPlete liCenSing
Study guide For la inSuranCe agentS
Question 1:
Which of the following is considered a peril under a standard homeowners
insurance policy in Louisiana?
• A) Fire
• B) Theft
• C) Flood
• D) Both A and B
Correct Option: D) Both A and B
Rationale:
A standard homeowners insurance policy typically covers perils such as fire and theft,
which are common risks to property. Flood, however, is usually excluded from standard
policies and requires separate flood insurance.
Question 2:
In Louisiana, what is the maximum amount of time an insurer has to pay a claim
after it has been submitted and accepted?
• A) 30 days
• B) 60 days
• C) 90 days
• D) 120 days
Correct Option: B) 60 days
Rationale:
According to Louisiana insurance regulations, insurers are required to pay claims within
60 days of receiving all necessary information and documentation. This timeframe is
designed to ensure prompt payment to policyholders.
Question 3:
Under the Louisiana Unfair Trade Practices Act, which of the following is
prohibited?
• A) Misrepresentation of policy benefits
, • B) Offering discounts
• C) Providing policyholders with clear information
• D) Advertising insurance products
Correct Option: A) Misrepresentation of policy benefits
Rationale:
The Louisiana Unfair Trade Practices Act prohibits deceptive practices, including the
misrepresentation of policy benefits. This is to protect consumers from misleading
information that could affect their insurance decisions.
Question 4:
What type of liability coverage is required by law for all drivers in Louisiana?
• A) Bodily Injury Liability
• B) Property Damage Liability
• C) Uninsured Motorist Coverage
• D) Comprehensive Coverage
Correct Option: A) Bodily Injury Liability
Rationale:
In Louisiana, all drivers are required to carry Bodily Injury Liability coverage to protect
against claims for injuries they may cause to others in an accident. This is a critical
component of the state’s financial responsibility laws.
Question 5:
Which of the following would typically not be covered under a standard
commercial property insurance policy?
• A) Fire damage
• B) Theft
• C) Employee dishonesty
• D) Flood damage
Correct Option: D) Flood damage
Rationale:
Standard commercial property insurance policies generally exclude flood damage.
Businesses in flood-prone areas are advised to purchase separate flood insurance to
mitigate this risk.
,Question 6:
In Louisiana, which of the following is NOT a requirement for obtaining a property
insurance license?
• A) Completing pre-licensing education
• B) Passing a state exam
• C) Having a college degree
• D) Submitting a background check
Correct Option: C) Having a college degree
Rationale:
Louisiana does not require a college degree to obtain a property insurance license.
Instead, candidates must complete pre-licensing education, pass an exam, and submit
to a background check.
Question 7:
What is the primary purpose of the Louisiana Insurance Guaranty Association
(LIGA)?
• A) To provide low-cost insurance options
• B) To protect policyholders in case of insurer insolvency
• C) To regulate insurance rates
• D) To offer discounts to consumers
Correct Option: B) To protect policyholders in case of insurer insolvency
Rationale:
LIGA is established to protect policyholders and beneficiaries from financial loss due to
the insolvency of licensed insurers in Louisiana. This ensures that claims are paid even
if the insurance company cannot fulfill its obligations.
Question 8:
Which of the following best describes the term "underinsurance"?
• A) Having no insurance at all
• B) Having inadequate insurance coverage to meet potential losses
• C) Overestimating the value of insured property
• D) Carrying multiple insurance policies
Correct Option: B) Having inadequate insurance coverage to meet potential losses
, Rationale:
Underinsurance occurs when a policyholder has insufficient coverage to fully protect
against potential losses. This can lead to significant out-of-pocket expenses in the event
of a claim.
Question 9:
What does the term "premium" refer to in insurance?
• A) The amount paid for a claim
• B) The amount paid for an insurance policy
• C) The total value of insured property
• D) The deductible amount
Correct Option: B) The amount paid for an insurance policy
Rationale:
The premium is the cost that policyholders pay to maintain their insurance coverage. It
is typically paid monthly, quarterly, or annually.
Question 10:
Which of the following is true regarding the "deductible" in an insurance policy?
• A) It is the total amount covered by the policy
• B) It is the amount the insured must pay before coverage kicks in
• C) It is the premium amount
• D) It is the limit of liability
Correct Option: B) It is the amount the insured must pay before coverage kicks in
Rationale:
A deductible is the specified amount that the insured must pay out of pocket before the
insurance company pays for covered losses.
Question 11:
In Louisiana, what is the minimum liability coverage required for personal auto
insurance?
• A) $15,000 for bodily injury per person and $30,000 per accident
• B) $25,000 for bodily injury per person
• C) $50,000 for property damage
• D) $10,000 for personal injury protection
CaSualty inSuranCe exam PreP | VeriFied
PraCtiCe QueStionS with CorreCt anSwerS &
detailed exPlanationS | ComPlete liCenSing
Study guide For la inSuranCe agentS
Question 1:
Which of the following is considered a peril under a standard homeowners
insurance policy in Louisiana?
• A) Fire
• B) Theft
• C) Flood
• D) Both A and B
Correct Option: D) Both A and B
Rationale:
A standard homeowners insurance policy typically covers perils such as fire and theft,
which are common risks to property. Flood, however, is usually excluded from standard
policies and requires separate flood insurance.
Question 2:
In Louisiana, what is the maximum amount of time an insurer has to pay a claim
after it has been submitted and accepted?
• A) 30 days
• B) 60 days
• C) 90 days
• D) 120 days
Correct Option: B) 60 days
Rationale:
According to Louisiana insurance regulations, insurers are required to pay claims within
60 days of receiving all necessary information and documentation. This timeframe is
designed to ensure prompt payment to policyholders.
Question 3:
Under the Louisiana Unfair Trade Practices Act, which of the following is
prohibited?
• A) Misrepresentation of policy benefits
, • B) Offering discounts
• C) Providing policyholders with clear information
• D) Advertising insurance products
Correct Option: A) Misrepresentation of policy benefits
Rationale:
The Louisiana Unfair Trade Practices Act prohibits deceptive practices, including the
misrepresentation of policy benefits. This is to protect consumers from misleading
information that could affect their insurance decisions.
Question 4:
What type of liability coverage is required by law for all drivers in Louisiana?
• A) Bodily Injury Liability
• B) Property Damage Liability
• C) Uninsured Motorist Coverage
• D) Comprehensive Coverage
Correct Option: A) Bodily Injury Liability
Rationale:
In Louisiana, all drivers are required to carry Bodily Injury Liability coverage to protect
against claims for injuries they may cause to others in an accident. This is a critical
component of the state’s financial responsibility laws.
Question 5:
Which of the following would typically not be covered under a standard
commercial property insurance policy?
• A) Fire damage
• B) Theft
• C) Employee dishonesty
• D) Flood damage
Correct Option: D) Flood damage
Rationale:
Standard commercial property insurance policies generally exclude flood damage.
Businesses in flood-prone areas are advised to purchase separate flood insurance to
mitigate this risk.
,Question 6:
In Louisiana, which of the following is NOT a requirement for obtaining a property
insurance license?
• A) Completing pre-licensing education
• B) Passing a state exam
• C) Having a college degree
• D) Submitting a background check
Correct Option: C) Having a college degree
Rationale:
Louisiana does not require a college degree to obtain a property insurance license.
Instead, candidates must complete pre-licensing education, pass an exam, and submit
to a background check.
Question 7:
What is the primary purpose of the Louisiana Insurance Guaranty Association
(LIGA)?
• A) To provide low-cost insurance options
• B) To protect policyholders in case of insurer insolvency
• C) To regulate insurance rates
• D) To offer discounts to consumers
Correct Option: B) To protect policyholders in case of insurer insolvency
Rationale:
LIGA is established to protect policyholders and beneficiaries from financial loss due to
the insolvency of licensed insurers in Louisiana. This ensures that claims are paid even
if the insurance company cannot fulfill its obligations.
Question 8:
Which of the following best describes the term "underinsurance"?
• A) Having no insurance at all
• B) Having inadequate insurance coverage to meet potential losses
• C) Overestimating the value of insured property
• D) Carrying multiple insurance policies
Correct Option: B) Having inadequate insurance coverage to meet potential losses
, Rationale:
Underinsurance occurs when a policyholder has insufficient coverage to fully protect
against potential losses. This can lead to significant out-of-pocket expenses in the event
of a claim.
Question 9:
What does the term "premium" refer to in insurance?
• A) The amount paid for a claim
• B) The amount paid for an insurance policy
• C) The total value of insured property
• D) The deductible amount
Correct Option: B) The amount paid for an insurance policy
Rationale:
The premium is the cost that policyholders pay to maintain their insurance coverage. It
is typically paid monthly, quarterly, or annually.
Question 10:
Which of the following is true regarding the "deductible" in an insurance policy?
• A) It is the total amount covered by the policy
• B) It is the amount the insured must pay before coverage kicks in
• C) It is the premium amount
• D) It is the limit of liability
Correct Option: B) It is the amount the insured must pay before coverage kicks in
Rationale:
A deductible is the specified amount that the insured must pay out of pocket before the
insurance company pays for covered losses.
Question 11:
In Louisiana, what is the minimum liability coverage required for personal auto
insurance?
• A) $15,000 for bodily injury per person and $30,000 per accident
• B) $25,000 for bodily injury per person
• C) $50,000 for property damage
• D) $10,000 for personal injury protection
