LOUISIANA PROPERTY AND CASUALTY
INSURANCE EXAMINATION TEST 2026
QUESTIONS AND SOLUTIONS GRADED A+
◉The main difference between an HO-4 and an HO-6 is
a) HO-6 provides limited dwelling coverage as well as contents
coverage.
b) HO-4 does not cover additional living expenses.
c) HO-6 does not cover additional living expenses.
d) HO-4 provides limited dwelling coverage as well as contents
coverage.. Answer: a) HO-6 provides limited dwelling coverage as
well as contents coverage.
HO-4 provides no dwelling coverage because a tenant does not own
the dwelling; the condo owner does own the condo and is provided
with coverage for improvements. Both HO-4 and HO-6 cover theft
and additional living expenses.
,◉Which part of an insurance policy covers claims-related expenses,
reasonable expenses incurred by an insured to protect damaged
property from further loss, or defense expenses?
a) Insuring agreement
b) Additional coverage
c) Exclusions
d) Declarations. Answer: b) Additional coverage
The additional coverage portion of a policy provides an additional
amount of coverage for specific loss expense, at no additional
premium.
◉Which of the following would not be a violation of Louisiana
insurance regulations?
a) Producer B charges his clients, in addition to the premium, a
consulting fee.
b) Producer C uses her license to write uncontrolled business only.
c) Producer D collects premiums due on policies and deposits the
funds in his own personal account.
d) Producer A uses her license to write only insurance for herself
and her immediate family.. Answer: b) Producer C uses her license to
write uncontrolled business only.
,The purpose of a license is to primarily write non-controlled
business.
◉A claim is considered to have been made
a) When notice is received and recorded by the insurer.
b) When notice is received and recorded by any insured or the
insurer, whichever comes first.
c) When received in writing or telephonically by the insurer.
d) When notice is received by any insured.. Answer: b) When notice
is received and recorded by any insured or the insurer, whichever
comes first.
This is a standard claims-made condition.
◉When Commercial Crime Coverage Form M - Safe Depository
Liability is written, what must be attached to the policy?
a) The Robbery and Safe Burglary Provisions
b) The General Provisions
c) The Safe Depository General Provisions
, d) The Safe Depository Direct Loss Provisions. Answer: c) The Safe
Depository General Provisions
When this coverage is written, the Safe Depository General
Provisions must be attached to the policy instead of the general
provisions.
◉Which of the following is NOT a goal of risk retention?
a) To increase control of claim reserving and claims settlements
b) To fund losses that cannot be insured
c) To minimize the insured's level of liability in the event of loss
d) To reduce expenses and improve cash flow. Answer: c) To
minimize the insured's level of liability in the event of loss
Retention usually results from three basic desires of the insured: to
reduce expenses and improve cash flow, to increase control of claim
reserving and claims settlements, and to fund losses that cannot be
insured.
◉Workers compensation statutes require employers to meet capital
reserves requirements sufficient to pay any claims that might arise.
Employers can meet such obligations through all of the following
EXCEPT
INSURANCE EXAMINATION TEST 2026
QUESTIONS AND SOLUTIONS GRADED A+
◉The main difference between an HO-4 and an HO-6 is
a) HO-6 provides limited dwelling coverage as well as contents
coverage.
b) HO-4 does not cover additional living expenses.
c) HO-6 does not cover additional living expenses.
d) HO-4 provides limited dwelling coverage as well as contents
coverage.. Answer: a) HO-6 provides limited dwelling coverage as
well as contents coverage.
HO-4 provides no dwelling coverage because a tenant does not own
the dwelling; the condo owner does own the condo and is provided
with coverage for improvements. Both HO-4 and HO-6 cover theft
and additional living expenses.
,◉Which part of an insurance policy covers claims-related expenses,
reasonable expenses incurred by an insured to protect damaged
property from further loss, or defense expenses?
a) Insuring agreement
b) Additional coverage
c) Exclusions
d) Declarations. Answer: b) Additional coverage
The additional coverage portion of a policy provides an additional
amount of coverage for specific loss expense, at no additional
premium.
◉Which of the following would not be a violation of Louisiana
insurance regulations?
a) Producer B charges his clients, in addition to the premium, a
consulting fee.
b) Producer C uses her license to write uncontrolled business only.
c) Producer D collects premiums due on policies and deposits the
funds in his own personal account.
d) Producer A uses her license to write only insurance for herself
and her immediate family.. Answer: b) Producer C uses her license to
write uncontrolled business only.
,The purpose of a license is to primarily write non-controlled
business.
◉A claim is considered to have been made
a) When notice is received and recorded by the insurer.
b) When notice is received and recorded by any insured or the
insurer, whichever comes first.
c) When received in writing or telephonically by the insurer.
d) When notice is received by any insured.. Answer: b) When notice
is received and recorded by any insured or the insurer, whichever
comes first.
This is a standard claims-made condition.
◉When Commercial Crime Coverage Form M - Safe Depository
Liability is written, what must be attached to the policy?
a) The Robbery and Safe Burglary Provisions
b) The General Provisions
c) The Safe Depository General Provisions
, d) The Safe Depository Direct Loss Provisions. Answer: c) The Safe
Depository General Provisions
When this coverage is written, the Safe Depository General
Provisions must be attached to the policy instead of the general
provisions.
◉Which of the following is NOT a goal of risk retention?
a) To increase control of claim reserving and claims settlements
b) To fund losses that cannot be insured
c) To minimize the insured's level of liability in the event of loss
d) To reduce expenses and improve cash flow. Answer: c) To
minimize the insured's level of liability in the event of loss
Retention usually results from three basic desires of the insured: to
reduce expenses and improve cash flow, to increase control of claim
reserving and claims settlements, and to fund losses that cannot be
insured.
◉Workers compensation statutes require employers to meet capital
reserves requirements sufficient to pay any claims that might arise.
Employers can meet such obligations through all of the following
EXCEPT
