OREGON PROPERTY & CASUALTY
EXAM QUESTIONS AND ANSWERS 100%
PASS.
Which statement is false regarding Inland Marine policies?
The Bailees Customers Form covers the insured's property when he/she has property of others
in his/her care, custody and control.
The Accounts Receivable Coverage Form is a filed form.
The Contractor Equipment Floater is usually written on an open peril basis.
The Installation Floater policy provides coverage while the property is in transit and during
installation. - ANS The Bailees Customers Form covers the customer's property in the
insured's care, custody and control, not the insured's property.
The Businessowners coverage form to the Businessowners policy provides coverage on which of
the following basis?
Named Peril.
Open Peril.
Agreed Value.
Actual Cash Value. - ANS Open peril. The Businessowners coverage form as written provides
open peril coverage, named peril coverage is available by endorsement.
Which of the following is NOT part of the Commercial Property Conditions?
Identifies the coverage territory
A statement that the policy may be voided in the event the insured has committed fraud.
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
,A statement that the policy will not benefit a bailee.
The premium amount that is payable at inception. - ANS The premium is shown on the
declarations page.
Which one of the following covers a carrier for liability for loss to cargo while it is being
transported in a truck?
Trip Transit policy
Motor Carrier coverage form
Motor Truck Cargo policy
Truckers coverage form - ANS Cargo insurance is purchased by the carrier (trucking company,
railroad or airline), Transit insurance is purchased by the shipper or receiver, whoever is at risk.
Which of the following is NOT covered under the Commercial General Liability Policy?
Host Liquor Liability
Contractual liability assumed under an insured contract
Fire Damage Legal Liability
Automobile Liability - ANS Automobile liability is excluded, unless specifically designated in
the contract. This is to prevent duplication of coverage.
Which statement is false regarding a Farm Liability Coverage Form?
Medical Payments do not provide coverage for anyone eligible for Workers' Compensation.
Medical Payments provide coverage only when the insured is legally liable.
Personal injury includes such things as damages arising out of false arrest, malicious
prosecution, libel and slander.
Medical Payments provide coverage for a neighbor who is exchanging help in working the
insured's livestock. - ANS Medical Payments cover injuries even if the insured is not liable. A
neighbor with whom the insured is exchanging help, without pay, would be covered under
Medical Payments.
The owner of a parking lot wants coverage for her liability for damage to vehicles left in her
custody. She needs
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
,Business Auto coverage.
Garage Liability coverage.
both Garage Liability coverage and Garagekeepers coverage.
Garagekeepers coverage. - ANS Garagekeepers (bailees) coverage, which is an endorsement
to the Garage Form.
A prospective insured wishes to protect his/her firm against criminals taking money from a
messenger going from the firm to the bank. In this situation, the prospect should consider the
purchase of coverage against:
fidelity
surety
burglary
robbery - ANS Outside Premises coverage protects the insured against robbery of a
messenger, which could be an insured, employee, partner, executive officer or an armored car
service having custody of property outside the premises.
Which one of the following losses would be covered by Coverage A of the Commercial General
Liability coverage form?
One of the insured's competitors sues the insured for slander.
The insured incurs expenses administering first aid to a customer who has fainted and injured
his head.
A third party is extremely embarrassed, but not physically injured, when she slips on a step in
the insured's store.
A third party becomes ill after eating a meal catered by the insured. - ANS Coverage A is for
bodily injury and property damage occurring at the insured's premises or because activity
conducted on behalf of the business.
Which of the following is NOT an unfair claim settlement practice?
Unreasonable delay in claim payment.
Misrepresentation of policy provisions.
Attempting to settle a claim by arbitration.
2026 STUDY MATERIAL @COPYRIGHT RESERVED 3
, Not giving a reasonable explanation when denying a claim. - ANS Attempting to settle claims
by arbitration when there is a disagreement relative to the amount of the settlement on the
claim is not an unfair claim settlement practice.
Which part of the Workers Compensation policy covers sums an employer becomes legally
obligated to pay under common law as a result of a work-related injury to an employee?
Employers Liability
Absolute Liability
Workers Compensation
Bodily Injury Liability - ANS Employers Liability (Part 2) provides coverage for an employer
sued under "common law." Certain employees are not subject to state workers' compensation
laws, e.g. domestic workers, farmer workers and casual labor, however, the employer may still
liable if negligence can be established.
Each of the following statements are true regarding a Businessowners Coverage Form - Section
II: Liability and Medical Expenses, EXCEPT:
Under Bodily Injury or Property Damage, coverage does not apply to rendering of or failing to
render professional services.
Employees are insureds with respect to their activities as employees, and any person or
organization acting as the insured's real estate manager, or having custody of the insured's
property, or operating mobile equipment with the permission of the insured, but only with
respect to their exposure in that capacity.
Under Property Damage liability, coverage applies to property that the insured owns, rents or
occupies.
Under Personal Injury, the offense must be committed in the Coverage Territory during the
policy period. - ANS Property Damage liability does not apply to any property the insured
owns, rents, or occupies. Property damage liability is third-party coverage, not first-party.
The Jewelers Block policy covers all of the following, EXCEPT:
The insured's stock in trade.
Stock that is sold, but not yet delivered.
Property of others in the insured's care, custody and control.
2026 STUDY MATERIAL @COPYRIGHT RESERVED 4
EXAM QUESTIONS AND ANSWERS 100%
PASS.
Which statement is false regarding Inland Marine policies?
The Bailees Customers Form covers the insured's property when he/she has property of others
in his/her care, custody and control.
The Accounts Receivable Coverage Form is a filed form.
The Contractor Equipment Floater is usually written on an open peril basis.
The Installation Floater policy provides coverage while the property is in transit and during
installation. - ANS The Bailees Customers Form covers the customer's property in the
insured's care, custody and control, not the insured's property.
The Businessowners coverage form to the Businessowners policy provides coverage on which of
the following basis?
Named Peril.
Open Peril.
Agreed Value.
Actual Cash Value. - ANS Open peril. The Businessowners coverage form as written provides
open peril coverage, named peril coverage is available by endorsement.
Which of the following is NOT part of the Commercial Property Conditions?
Identifies the coverage territory
A statement that the policy may be voided in the event the insured has committed fraud.
2026 STUDY MATERIAL @COPYRIGHT RESERVED 1
,A statement that the policy will not benefit a bailee.
The premium amount that is payable at inception. - ANS The premium is shown on the
declarations page.
Which one of the following covers a carrier for liability for loss to cargo while it is being
transported in a truck?
Trip Transit policy
Motor Carrier coverage form
Motor Truck Cargo policy
Truckers coverage form - ANS Cargo insurance is purchased by the carrier (trucking company,
railroad or airline), Transit insurance is purchased by the shipper or receiver, whoever is at risk.
Which of the following is NOT covered under the Commercial General Liability Policy?
Host Liquor Liability
Contractual liability assumed under an insured contract
Fire Damage Legal Liability
Automobile Liability - ANS Automobile liability is excluded, unless specifically designated in
the contract. This is to prevent duplication of coverage.
Which statement is false regarding a Farm Liability Coverage Form?
Medical Payments do not provide coverage for anyone eligible for Workers' Compensation.
Medical Payments provide coverage only when the insured is legally liable.
Personal injury includes such things as damages arising out of false arrest, malicious
prosecution, libel and slander.
Medical Payments provide coverage for a neighbor who is exchanging help in working the
insured's livestock. - ANS Medical Payments cover injuries even if the insured is not liable. A
neighbor with whom the insured is exchanging help, without pay, would be covered under
Medical Payments.
The owner of a parking lot wants coverage for her liability for damage to vehicles left in her
custody. She needs
2026 STUDY MATERIAL @COPYRIGHT RESERVED 2
,Business Auto coverage.
Garage Liability coverage.
both Garage Liability coverage and Garagekeepers coverage.
Garagekeepers coverage. - ANS Garagekeepers (bailees) coverage, which is an endorsement
to the Garage Form.
A prospective insured wishes to protect his/her firm against criminals taking money from a
messenger going from the firm to the bank. In this situation, the prospect should consider the
purchase of coverage against:
fidelity
surety
burglary
robbery - ANS Outside Premises coverage protects the insured against robbery of a
messenger, which could be an insured, employee, partner, executive officer or an armored car
service having custody of property outside the premises.
Which one of the following losses would be covered by Coverage A of the Commercial General
Liability coverage form?
One of the insured's competitors sues the insured for slander.
The insured incurs expenses administering first aid to a customer who has fainted and injured
his head.
A third party is extremely embarrassed, but not physically injured, when she slips on a step in
the insured's store.
A third party becomes ill after eating a meal catered by the insured. - ANS Coverage A is for
bodily injury and property damage occurring at the insured's premises or because activity
conducted on behalf of the business.
Which of the following is NOT an unfair claim settlement practice?
Unreasonable delay in claim payment.
Misrepresentation of policy provisions.
Attempting to settle a claim by arbitration.
2026 STUDY MATERIAL @COPYRIGHT RESERVED 3
, Not giving a reasonable explanation when denying a claim. - ANS Attempting to settle claims
by arbitration when there is a disagreement relative to the amount of the settlement on the
claim is not an unfair claim settlement practice.
Which part of the Workers Compensation policy covers sums an employer becomes legally
obligated to pay under common law as a result of a work-related injury to an employee?
Employers Liability
Absolute Liability
Workers Compensation
Bodily Injury Liability - ANS Employers Liability (Part 2) provides coverage for an employer
sued under "common law." Certain employees are not subject to state workers' compensation
laws, e.g. domestic workers, farmer workers and casual labor, however, the employer may still
liable if negligence can be established.
Each of the following statements are true regarding a Businessowners Coverage Form - Section
II: Liability and Medical Expenses, EXCEPT:
Under Bodily Injury or Property Damage, coverage does not apply to rendering of or failing to
render professional services.
Employees are insureds with respect to their activities as employees, and any person or
organization acting as the insured's real estate manager, or having custody of the insured's
property, or operating mobile equipment with the permission of the insured, but only with
respect to their exposure in that capacity.
Under Property Damage liability, coverage applies to property that the insured owns, rents or
occupies.
Under Personal Injury, the offense must be committed in the Coverage Territory during the
policy period. - ANS Property Damage liability does not apply to any property the insured
owns, rents, or occupies. Property damage liability is third-party coverage, not first-party.
The Jewelers Block policy covers all of the following, EXCEPT:
The insured's stock in trade.
Stock that is sold, but not yet delivered.
Property of others in the insured's care, custody and control.
2026 STUDY MATERIAL @COPYRIGHT RESERVED 4
