KENTUCKY (KY) PROPERTY & Casualty EXAM
PRACTICE QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026-2027
Q&A | INSTANT DOWNLOAD PDF
Which of the following types of property would be covered under the Building
and Personal Property form?
(A) Mechanical breakdown
(B) Contraband
(C) Animals for sale to the public
(D) Cash and Currency
(C) Animals for sale to the public
Each of the following is true about the National Flood Insurance Program EXCEPT
(A) Agents do not have binding authority
(B) Effective date is normally 30 days after the date of application
(C) The federal government reimburses insurance companies for losses
(D) Buildings must be in the flood zone to be eligible for coverage
(D) Buildings must be in the flood zone to be eligible for coverage
,How does a Dwelling policy differ from a Homeowners policy?
(A) Dwelling policies must have 4 units or less
(B) Homeowners includes Fair Rental Value, the Dwelling policy does not
(C) Dwelling policies require you to own the home
(D) Homeowners includes theft and liability, the Dwelling policy does not
(D) Homeowners includes theft and liability, the Dwelling policy does not
Under the appraisal clause how will a disagreement of value be settled?
(A) Each hire an appraiser and split the cost of a third; 2 out of 3 wins
(B) Rock, paper, scissors; best 2 out of 3
(C) Must be taken to court and determined by a judge
(D) After each have hired an appraiser, favor falls to the insured
(A) Each hire an appraiser and split the cost of a third; 2 out of 3 wins
Which following about the Common Policy Declarations of a Commercial
Package Policy is true?
(A) List the limits of liability
(B) Declare the specific locations of building insured
(C) Specify the property covered, its construction, and its usage
(D) Indicate the module purchased
(D) Indicate the module purchased
,What is the name of a policy that consists of the declarations and conditions,
endorsements and other attachments applicable to a single line of insurance?
(A) Commercial package
(B) Monoline
(C) Multiline
(D) Business Owners Policy
(B) Monoline
, Which of the following would be considered Business Personal Property in a
Commercial Property Policy?
(A) Permanent outdoor furniture
(B) Fire extinguishers
(C) Insured's supplies in a truck at the loading dock located directly behind the
insured's plant
(D) Lumber stacked next to the insured's building to be used for construction of a
new addition
(C) Insured's supplies in a truck at the loading dock located directly behind the
insured's plant
An example of a business that most likely needs only Extra Expense coverage is a
(A) Restaurant
(B) Insurance agency
(C) Retail store
(D) Bowling alley
(B) Insurance agency
How is business income defined through a Business Interruption form?
(A) Gross income including payroll
(B) Net income including payroll
(C) Net income not including payroll
(D) Gross sales not including payroll
(B) Net income including payroll
PRACTICE QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) PLUS RATIONALES 2026-2027
Q&A | INSTANT DOWNLOAD PDF
Which of the following types of property would be covered under the Building
and Personal Property form?
(A) Mechanical breakdown
(B) Contraband
(C) Animals for sale to the public
(D) Cash and Currency
(C) Animals for sale to the public
Each of the following is true about the National Flood Insurance Program EXCEPT
(A) Agents do not have binding authority
(B) Effective date is normally 30 days after the date of application
(C) The federal government reimburses insurance companies for losses
(D) Buildings must be in the flood zone to be eligible for coverage
(D) Buildings must be in the flood zone to be eligible for coverage
,How does a Dwelling policy differ from a Homeowners policy?
(A) Dwelling policies must have 4 units or less
(B) Homeowners includes Fair Rental Value, the Dwelling policy does not
(C) Dwelling policies require you to own the home
(D) Homeowners includes theft and liability, the Dwelling policy does not
(D) Homeowners includes theft and liability, the Dwelling policy does not
Under the appraisal clause how will a disagreement of value be settled?
(A) Each hire an appraiser and split the cost of a third; 2 out of 3 wins
(B) Rock, paper, scissors; best 2 out of 3
(C) Must be taken to court and determined by a judge
(D) After each have hired an appraiser, favor falls to the insured
(A) Each hire an appraiser and split the cost of a third; 2 out of 3 wins
Which following about the Common Policy Declarations of a Commercial
Package Policy is true?
(A) List the limits of liability
(B) Declare the specific locations of building insured
(C) Specify the property covered, its construction, and its usage
(D) Indicate the module purchased
(D) Indicate the module purchased
,What is the name of a policy that consists of the declarations and conditions,
endorsements and other attachments applicable to a single line of insurance?
(A) Commercial package
(B) Monoline
(C) Multiline
(D) Business Owners Policy
(B) Monoline
, Which of the following would be considered Business Personal Property in a
Commercial Property Policy?
(A) Permanent outdoor furniture
(B) Fire extinguishers
(C) Insured's supplies in a truck at the loading dock located directly behind the
insured's plant
(D) Lumber stacked next to the insured's building to be used for construction of a
new addition
(C) Insured's supplies in a truck at the loading dock located directly behind the
insured's plant
An example of a business that most likely needs only Extra Expense coverage is a
(A) Restaurant
(B) Insurance agency
(C) Retail store
(D) Bowling alley
(B) Insurance agency
How is business income defined through a Business Interruption form?
(A) Gross income including payroll
(B) Net income including payroll
(C) Net income not including payroll
(D) Gross sales not including payroll
(B) Net income including payroll
