LOUISIANA PROPERTY AND CASUALTY EXAM
QUESTIONS AND ANSWERS 2026 FULL
PRACTICE TEST
◉ Competent parties
Legal capacity means that the parties to the contract are not minors
and are not incapacitated in any way, such as being under the
influence of drugs or alcohol.. Answer: Which element of an
insurance contract requires that the insured have the legal capacity
to make a contract?
◉ Apparent
Apparent authority is the authority that a producer seems to have
based upon his actions, whether he actually has it or not.. Answer:
The authority that a producer seems to have that is based upon
certain actions that the producer takes is known as __________
authority.
◉ Lloyd's Association
,Lloyd's Associations are a group of unincorporated individuals who
pledge their personal assets to underwrite risks that authorized
insurers will generally not accept.. Answer: A group of individuals
who band together to assume risks, where each individual is
responsible only for the share of the risk they assumed is known as:
◉ A moral hazard:
A moral hazard is created by a dishonest person, such as someone
who may use arson to collect on their fire insurance. Moral hazards
are best spotted by the producer, who is considered to be the "front
line" underwriter.. Answer: Is the tendency to create a loss on
purpose, to collect from the insurance company
◉ Pay the claim
Since the insurer is vicariously liable for the acts of their agent, if the
agent was to specifically state a claim would be covered, the insurer
would most likely provide coverage for the loss even if the loss is
excluded.. Answer: If an insurance producer informs a client that a
policy claim will be covered, and the claim is specifically excluded in
the policy, what will the insurer do?
◉ Aleatory
,Aleatory means that the consideration is not necessarily equal. A
valued contract is like life insurance, where the insurer agrees to pay
a specified amount upon the death of the insured, regardless of their
human life value. All insurance contracts are unilateral, meaning
one-sided.. Answer: Which of the following terms means that an
insurance contract is dependent upon chance or uncertain outcome:
◉ Morale Hazard. Answer: Mr. Green leaves his car running while he
goes inside to finish getting ready for work. This is considered a:
◉ Changing provisions in the policy
Only a company officer can approve changes in a policy requested by
an insured.. Answer: A producer's responsibilities may include all of
the following EXCEPT:
◉ Implied
The authority which is given by the insurer that is not specified, but
needed to conduct customary business practices, is implied
authority.. Answer: The authority which is given by the insurer that
is not specified is which of the following:
◉ Life, Health and Accident
Variable life and variable annuities
, Property
Casualty
Personal lines
Title
Credit
Travel
Limited life, health and accident
Industrial fire
Surety
Bailbonds
Surplus lines
Any other line of insurance permitted under state law. Answer: An
insurance producer may be licensed for one or more of the following
lines of authority:
◉ A producer's license will remain in effect, unless revoked,
suspended, or denied renewal, as long as?. Answer: all applicable
fees are paid and continuing education requirements are satisfied.
◉ Any licensee who fails to file a timely license renewal shall be
charged a?. Answer: $25 late fee.
QUESTIONS AND ANSWERS 2026 FULL
PRACTICE TEST
◉ Competent parties
Legal capacity means that the parties to the contract are not minors
and are not incapacitated in any way, such as being under the
influence of drugs or alcohol.. Answer: Which element of an
insurance contract requires that the insured have the legal capacity
to make a contract?
◉ Apparent
Apparent authority is the authority that a producer seems to have
based upon his actions, whether he actually has it or not.. Answer:
The authority that a producer seems to have that is based upon
certain actions that the producer takes is known as __________
authority.
◉ Lloyd's Association
,Lloyd's Associations are a group of unincorporated individuals who
pledge their personal assets to underwrite risks that authorized
insurers will generally not accept.. Answer: A group of individuals
who band together to assume risks, where each individual is
responsible only for the share of the risk they assumed is known as:
◉ A moral hazard:
A moral hazard is created by a dishonest person, such as someone
who may use arson to collect on their fire insurance. Moral hazards
are best spotted by the producer, who is considered to be the "front
line" underwriter.. Answer: Is the tendency to create a loss on
purpose, to collect from the insurance company
◉ Pay the claim
Since the insurer is vicariously liable for the acts of their agent, if the
agent was to specifically state a claim would be covered, the insurer
would most likely provide coverage for the loss even if the loss is
excluded.. Answer: If an insurance producer informs a client that a
policy claim will be covered, and the claim is specifically excluded in
the policy, what will the insurer do?
◉ Aleatory
,Aleatory means that the consideration is not necessarily equal. A
valued contract is like life insurance, where the insurer agrees to pay
a specified amount upon the death of the insured, regardless of their
human life value. All insurance contracts are unilateral, meaning
one-sided.. Answer: Which of the following terms means that an
insurance contract is dependent upon chance or uncertain outcome:
◉ Morale Hazard. Answer: Mr. Green leaves his car running while he
goes inside to finish getting ready for work. This is considered a:
◉ Changing provisions in the policy
Only a company officer can approve changes in a policy requested by
an insured.. Answer: A producer's responsibilities may include all of
the following EXCEPT:
◉ Implied
The authority which is given by the insurer that is not specified, but
needed to conduct customary business practices, is implied
authority.. Answer: The authority which is given by the insurer that
is not specified is which of the following:
◉ Life, Health and Accident
Variable life and variable annuities
, Property
Casualty
Personal lines
Title
Credit
Travel
Limited life, health and accident
Industrial fire
Surety
Bailbonds
Surplus lines
Any other line of insurance permitted under state law. Answer: An
insurance producer may be licensed for one or more of the following
lines of authority:
◉ A producer's license will remain in effect, unless revoked,
suspended, or denied renewal, as long as?. Answer: all applicable
fees are paid and continuing education requirements are satisfied.
◉ Any licensee who fails to file a timely license renewal shall be
charged a?. Answer: $25 late fee.
