LOUISIANA PROPERTY AND CASUALTY EXAM
QUESTIONS AND ANSWERS 2026
CERTIFICATION STUDY PACK
◉ The purpose of the federal Terrorism Risk Insurance Act (TRIA) is
to? Answer: ensure that insurers have the financial capacity to
insure acts of terrorism.
◉ The TRIA covers. Answer: only commercial insurers and causes of
loss specified in their underlying policies, including residual market
entities such as workers compensations pools, state licensed captive
insurers and risk retention groups.
◉ The TRIA covers acts of? Answer: terrorism perpetrated by both
foreign and domestic interests.
◉ The TRIA does not cover?. Answer: personal auto or home, group
life, medical malpractice, commercial auto, crops, professional
liability, surety, burglary, theft or farm owner's package policies.
◉ Under the TRIA, only terrorist acts in excess of?. Answer: a $100
million threshold will result in the payment of federal funds.
,◉ Under the TRIA, individual insurance company losses are subject
to a deductible of?. Answer: 20% of their commercial
property/casualty premiums. After the deductible, the federal
government will pay 85% of covered claims and the individual
insurer must pay 15%.
◉ Under the TRIA, the insurance industry as a whole must cover a
certain amount of the losses through deductibles and co-payments.
This amount, which is known as the aggregate retention, is
currently?. Answer: $27.5 billion.
◉ By law, LA Citizens is required to charge a policy premium that is
at least?. Answer: 10% higher than private insurance.
◉ The Louisiana Citizens Property Insurance Corporation (also
known as "LA Citizens") is a?. Answer: non- profit entity that
functions as a residual market mechanism to provide essential
property insurance for residential and commercial property solely
for applicants who are in good faith entitled to, but are unable to
procure insurance through the voluntary market.
◉ LA Citizens will write "essential property insurance", such as?.
Answer: fire, extended coverage, wind, hail, homeowners and
commercial business interruption insurance on real and tangible
personal property at a fixed location in this state.
,◉ All authorized property insurers in this state are subject to?.
Answer: proportionate assessments to pay the claims and expenses
of LA Citizens.
◉ All authorized property insurers in this state must participate in?.
Answer: LA Citizen's FAIR and Coastal plans as a condition of their
Certificate of Authority.
◉ Insurers subject to assessment by LA Citizens are permitted to
recoup all regular assessments from their voluntary policyholders
by?. Answer: applying a premium surcharge.
◉ Applicants for LA Citizens coverage must have?. Answer: been
declined by one or more voluntary insurers prior to applying for
coverage.
◉ LA Citizens is considered to be?. Answer: an insurer of "last
resort".
◉ Property policies written by LA Citizens are written for a term?.
Answer: not exceeding one year and may be renewed annually.
◉ Every agent licensed to sell property and casualty insurance in
this state may?. Answer: sell insurance policies issued by LA
Citizens.
, ◉ Historically, the FAIR Plan covered?. Answer: most of the state
◉ Licensed P&C agents may "bind" coverage through LA Citizen's
FAIR and Coastal Plans if they have?. Answer: adequate Errors and
Omissions insurance and have completed a training course offered
by the corporation.
◉ the Coastal Plan covered?. Answer: the coastal parishes
◉ Certificate of insurance means?. Answer: any document prepared
by an insurer or producer and issued to a third person not a party to
the contract, as evidence of property and casualty insurance
coverage.
◉ Insurance binders are not?. Answer: certificates of insurance.
◉ Certificate holder means?. Answer: any person, other than a
policyholder, that is designated on a certificate of insurance.
◉ P&C insurers or producers may not issue certificates of insurance
that?. Answer: negatively amend the coverage provided by the
referenced insurance policies.
QUESTIONS AND ANSWERS 2026
CERTIFICATION STUDY PACK
◉ The purpose of the federal Terrorism Risk Insurance Act (TRIA) is
to? Answer: ensure that insurers have the financial capacity to
insure acts of terrorism.
◉ The TRIA covers. Answer: only commercial insurers and causes of
loss specified in their underlying policies, including residual market
entities such as workers compensations pools, state licensed captive
insurers and risk retention groups.
◉ The TRIA covers acts of? Answer: terrorism perpetrated by both
foreign and domestic interests.
◉ The TRIA does not cover?. Answer: personal auto or home, group
life, medical malpractice, commercial auto, crops, professional
liability, surety, burglary, theft or farm owner's package policies.
◉ Under the TRIA, only terrorist acts in excess of?. Answer: a $100
million threshold will result in the payment of federal funds.
,◉ Under the TRIA, individual insurance company losses are subject
to a deductible of?. Answer: 20% of their commercial
property/casualty premiums. After the deductible, the federal
government will pay 85% of covered claims and the individual
insurer must pay 15%.
◉ Under the TRIA, the insurance industry as a whole must cover a
certain amount of the losses through deductibles and co-payments.
This amount, which is known as the aggregate retention, is
currently?. Answer: $27.5 billion.
◉ By law, LA Citizens is required to charge a policy premium that is
at least?. Answer: 10% higher than private insurance.
◉ The Louisiana Citizens Property Insurance Corporation (also
known as "LA Citizens") is a?. Answer: non- profit entity that
functions as a residual market mechanism to provide essential
property insurance for residential and commercial property solely
for applicants who are in good faith entitled to, but are unable to
procure insurance through the voluntary market.
◉ LA Citizens will write "essential property insurance", such as?.
Answer: fire, extended coverage, wind, hail, homeowners and
commercial business interruption insurance on real and tangible
personal property at a fixed location in this state.
,◉ All authorized property insurers in this state are subject to?.
Answer: proportionate assessments to pay the claims and expenses
of LA Citizens.
◉ All authorized property insurers in this state must participate in?.
Answer: LA Citizen's FAIR and Coastal plans as a condition of their
Certificate of Authority.
◉ Insurers subject to assessment by LA Citizens are permitted to
recoup all regular assessments from their voluntary policyholders
by?. Answer: applying a premium surcharge.
◉ Applicants for LA Citizens coverage must have?. Answer: been
declined by one or more voluntary insurers prior to applying for
coverage.
◉ LA Citizens is considered to be?. Answer: an insurer of "last
resort".
◉ Property policies written by LA Citizens are written for a term?.
Answer: not exceeding one year and may be renewed annually.
◉ Every agent licensed to sell property and casualty insurance in
this state may?. Answer: sell insurance policies issued by LA
Citizens.
, ◉ Historically, the FAIR Plan covered?. Answer: most of the state
◉ Licensed P&C agents may "bind" coverage through LA Citizen's
FAIR and Coastal Plans if they have?. Answer: adequate Errors and
Omissions insurance and have completed a training course offered
by the corporation.
◉ the Coastal Plan covered?. Answer: the coastal parishes
◉ Certificate of insurance means?. Answer: any document prepared
by an insurer or producer and issued to a third person not a party to
the contract, as evidence of property and casualty insurance
coverage.
◉ Insurance binders are not?. Answer: certificates of insurance.
◉ Certificate holder means?. Answer: any person, other than a
policyholder, that is designated on a certificate of insurance.
◉ P&C insurers or producers may not issue certificates of insurance
that?. Answer: negatively amend the coverage provided by the
referenced insurance policies.
