P&C License 2025 UPDATED EXAM QUESTIONS
AND CORRECT ANSWERS
An appliance repair business is robbed of $10,000 in equipment and $500 cash. The $75,000
Special Businessowner's policy will cover the loss for:
Select one:
a. $0
b. $500
c. $10,000
d. $10,500 - CORRECT ANSWERS The correct answer is: $10,000
The BOP and the BPP don't cover money and securities. However, a Special property policy will
cover theft of almost everything except money and securities. Thus, the policy will cover the
theft of equipment but not the theft of money. So, what policy will cover theft of money? That
is a Commercial Crime policy which is (strangely) covered under Casualty Insurance and can only
be sold with a Casualty license in most states.
Farm Policy's Coverages - CORRECT ANSWERS Coverage A: Dwellings (no coverage for
land, water, trees, shrubs, plants, crops or lawns)
Coverage B: Other Private Structures Appurtenant to Dwellings (detached garage)
Coverage C: Household Personal Property (unscheduled furniture, dishes etc. are covered only
while at the insured's location)
Coverage D: Loss of use
Coverage E: Scheduled Farm Personal Property (such as farm machinery, livestock, grain or that
modern milking machine)
Coverage F: Unscheduled Farm Personal Property (tools, water pumps, computers, etc.)
Coverage G: Barns, Outbuildings and Other Farm Structures
, Inland marine part of the farm policy is used for what - CORRECT ANSWERS to provide
property coverage for
-Mobile Agricultural Machinery and Equipment
-Livestock
Both Broad and Special form include the following coverage for any insured livestock - CORRECT
ANSWERS -Electrocution of covered livestock
-Attacks on covered livestock by dogs or wild animals
-accidental shooting of covered livestock
-Drowning of covered livestock
-Loading or unloading resulting in the death of covered livestock
The BOP provides a $200,000 limit of liability for business personal property. The most the
policy will pay for a total loss of inventory is:
Select one:
a. $200,000
b. $250,000
c. $180,000
d. $225,000 - CORRECT ANSWERS The correct answer is: $250,000
Remember that the BOP is simplified to make it more attractive for unsophisticated owners of
small businesses who don't want to be hassled by having to send in a monthly reporting form as
inventory coverage changes. The BOP's solution is the Seasonal Inventory Variable of an
additional 25% of the personal property's limit of liability stated in the dec sheet. $200,000 X
.25 = $50,000. $50,000 plus $200,000 = $250,000 personal property coverage.
AND CORRECT ANSWERS
An appliance repair business is robbed of $10,000 in equipment and $500 cash. The $75,000
Special Businessowner's policy will cover the loss for:
Select one:
a. $0
b. $500
c. $10,000
d. $10,500 - CORRECT ANSWERS The correct answer is: $10,000
The BOP and the BPP don't cover money and securities. However, a Special property policy will
cover theft of almost everything except money and securities. Thus, the policy will cover the
theft of equipment but not the theft of money. So, what policy will cover theft of money? That
is a Commercial Crime policy which is (strangely) covered under Casualty Insurance and can only
be sold with a Casualty license in most states.
Farm Policy's Coverages - CORRECT ANSWERS Coverage A: Dwellings (no coverage for
land, water, trees, shrubs, plants, crops or lawns)
Coverage B: Other Private Structures Appurtenant to Dwellings (detached garage)
Coverage C: Household Personal Property (unscheduled furniture, dishes etc. are covered only
while at the insured's location)
Coverage D: Loss of use
Coverage E: Scheduled Farm Personal Property (such as farm machinery, livestock, grain or that
modern milking machine)
Coverage F: Unscheduled Farm Personal Property (tools, water pumps, computers, etc.)
Coverage G: Barns, Outbuildings and Other Farm Structures
, Inland marine part of the farm policy is used for what - CORRECT ANSWERS to provide
property coverage for
-Mobile Agricultural Machinery and Equipment
-Livestock
Both Broad and Special form include the following coverage for any insured livestock - CORRECT
ANSWERS -Electrocution of covered livestock
-Attacks on covered livestock by dogs or wild animals
-accidental shooting of covered livestock
-Drowning of covered livestock
-Loading or unloading resulting in the death of covered livestock
The BOP provides a $200,000 limit of liability for business personal property. The most the
policy will pay for a total loss of inventory is:
Select one:
a. $200,000
b. $250,000
c. $180,000
d. $225,000 - CORRECT ANSWERS The correct answer is: $250,000
Remember that the BOP is simplified to make it more attractive for unsophisticated owners of
small businesses who don't want to be hassled by having to send in a monthly reporting form as
inventory coverage changes. The BOP's solution is the Seasonal Inventory Variable of an
additional 25% of the personal property's limit of liability stated in the dec sheet. $200,000 X
.25 = $50,000. $50,000 plus $200,000 = $250,000 personal property coverage.
