Property and Casualty Insurance Licensing Exam |Study Guide Exam Questions with 100% Expertly Verified Answers, 2026 | 2027.

Property and Casualty Insurance Licensing Exam |Study Guide Exam Questions with 100% Expertly Verified Answers, 2026 | 2027. Quiz_________________? 3 types of liability - Answer Absolute Strict Vicarious Quiz_________________? 4 types of negligence - Answer Legal Duty Standard of Care Unbroken chain of events actual loss or damage Quiz_________________? A broad form policy covers: a) sewer backup b) inherent vice c) earthquake d) volcano - Answer d) volcano Quiz_________________? A church has hired a painting contractor to stain and varnish the woodwork in the building. He leaves the rags and brushes used to apply the painting materials in a small storage area. This is an example of: - Answer hazard Quiz_________________? A cost of replacement minus depreciation is: - Answer actual cash value Quiz_________________? A dwelling policy may be used if the structure has a max. of how many boarders? - Answer 5 Quiz_________________? A licensee may violate federal law and be subject to a fine and prison for doing which of the following? a) selling insurance w/ a nonresident license b) sending threatening letters to the state insurance regulator c) fraudulently telling an insured a claim isn't covered on the policy d) murdering an applicant - Answer b) sending threatening letters to the state insurance regulator Quiz_________________? A loss that is a direct consequence of a particular peril is called a - Answer direct loss Quiz_________________? A water pipe has burst and the insured has suffered floor and ceiling damage in his two story home. The cost to remove and replace the walls to get the pipe is $300. The cost to repair the damaged floor is $400. The pipe that burst must now be replaced according to new building codes. The cost to replace the pipe is $200. How much will the insured's policy pay? - Answer $700 Quiz_________________? agent (producer) - Answer acts as a legal representative of the insurance company Quiz_________________? All of the following are covered under Coverage A of a Homeowner Policy, EXCEPT: A. Attached garage B. Construction materials used in building an addition to the dwelling C. Detached garage D. Furnace - Answer C. Detached garage Quiz_________________? An apartment dweller would be in the market for a: - Answer HO-4 Quiz_________________? An insurance contract that is contingent on a uncertain event is referred to as - Answer aleatory Quiz_________________? An insured carries a DP-2 with $10,000 contents coverage. He owns a canoe and stores it at a lake in a private non-owned garage. Fire destroys the garage and the boat. How much coverage will his policy provide? - Answer Nothing Quiz_________________? An insured has suffered a fire loss to his or her dwelling. This insured is which party to the claim? - Answer First party Quiz_________________? An insured lives close to Mount St. Helens and carried a DP-2 policy. When the volcano erupted, the movement of the earth caused his home to collapse. He reported the claim as a volcanic eruption loss. What do you feel would be the result of this claim? - Answer The claim would be denied Quiz_________________? An insured's home is covered by the DP-3 form. The policy provides $20,000 in coverage on a home that would cost $50,000 to replace. When high winds destroy the roof, it is determined that it will cost $2,000 to replace it. Assuming the actual cash value of the roof is $750., how much will the insured collect for this loss? - Answer $1,000