PROPERTY & CASUALTY (P&C) INSURANCE EXAM 2026/2027 | 100%
VERIFIED QUESTIONS & ANSWERS | LATEST
1. What does P&C stand for in the insurance industry? ANSWER Property &
Casualty
2. What type of insurance covers damage to personal
property? ANSWER Property insurance
3. What is the difference between actual cash value and replacement
cost? ANSWER Actual cash value considers depreciation, while replacement
cost does not
4. What is a deductible? ANSWER The amount the policyholder pays out of
pocket before the insurance kicks in
5. What is the difference between an endorsement and a rider? ANSWER An
endorsement is an amendment to a policy, while a rider is a separate policy
added to an existing one
6. What is the difference between first-party and third-party
insurance? ANSWER First-party insurance covers the policyholder, while
third-party insurance covers others
7. What is the difference between an open peril policy and a named peril
policy? ANSWER An open peril policy covers all perils except those
specifically excluded, while a named peril policy only covers perils specifically
listed
8. What is the difference between a floater and a blanket policy? ANSWER A
floater covers a group of assets that may change over time, while a blanket
policy covers a specific asset or group of assets
9. What is the difference between an actual total loss and a constructive total
loss? ANSWER An actual total loss is when the property is physically
destroyed, while a constructive total loss is when the cost to repair is greater
than the value of the property
10. What is the difference between a claim and a lawsuit? ANSWER A claim
is a request for payment under an insurance policy, while a lawsuit is a legal
action taken to resolve a dispute
, 11. What is the difference between a per occurrence limit and an aggregate
limit? ANSWER A per occurrence limit is the maximum amount payable for a
single incident, while an aggregate limit is the maximum amount payable for all
incidents during the policy period
12. What is the difference between a named insured and an additional
insured? ANSWER A named insured is the policyholder, while an additional
insured is someone who is added to the policy for coverage
13. What is the difference between a general liability policy and a professional
liability policy? ANSWER A general liability policy covers bodily injury and
property damage, while a professional liability policy covers claims of
inadequate or negligent advice or services
14. What is the difference between a binder and a policy? ANSWER A binder
is a temporary agreement of coverage, while a policy is a formal agreement of
coverage
15. What is the difference between a policyholder and a certificate
holder? ANSWER A policyholder is the person or entity who owns the policy,
while a certificate holder is someone who is added to the policy for coverage
16. What is the difference between a policy period and a policy
term? ANSWER A policy period is the length of time the policy is in effect,
while a policy term is a specific provision or condition of the policy
17. What is the difference between a policy limit and a
deductible? ANSWER A policy limit is the maximum amount payable under
the policy, while a deductible is the amount the policyholder pays out of pocket
before the insurance kicks in
18. What is the difference between a policy exclusion and a policy
condition? ANSWER A policy exclusion is a specific peril or circumstance
that is not covered by the policy, while a policy condition is a requirement or
obligation that must be met in order for the policy to be in effect
19. What is the difference between a policy endorsement and a policy
rider? ANSWER A policy endorsement is an amendment to the policy that
adds or changes coverage, while a policy rider is a separate policy added to an
existing one
20. What is the difference between a policy declaration and a policy
schedule? ANSWER A policy declaration is a summary of the policy terms
and conditions, while a policy schedule is a detailed list of the coverage and
limits
VERIFIED QUESTIONS & ANSWERS | LATEST
1. What does P&C stand for in the insurance industry? ANSWER Property &
Casualty
2. What type of insurance covers damage to personal
property? ANSWER Property insurance
3. What is the difference between actual cash value and replacement
cost? ANSWER Actual cash value considers depreciation, while replacement
cost does not
4. What is a deductible? ANSWER The amount the policyholder pays out of
pocket before the insurance kicks in
5. What is the difference between an endorsement and a rider? ANSWER An
endorsement is an amendment to a policy, while a rider is a separate policy
added to an existing one
6. What is the difference between first-party and third-party
insurance? ANSWER First-party insurance covers the policyholder, while
third-party insurance covers others
7. What is the difference between an open peril policy and a named peril
policy? ANSWER An open peril policy covers all perils except those
specifically excluded, while a named peril policy only covers perils specifically
listed
8. What is the difference between a floater and a blanket policy? ANSWER A
floater covers a group of assets that may change over time, while a blanket
policy covers a specific asset or group of assets
9. What is the difference between an actual total loss and a constructive total
loss? ANSWER An actual total loss is when the property is physically
destroyed, while a constructive total loss is when the cost to repair is greater
than the value of the property
10. What is the difference between a claim and a lawsuit? ANSWER A claim
is a request for payment under an insurance policy, while a lawsuit is a legal
action taken to resolve a dispute
, 11. What is the difference between a per occurrence limit and an aggregate
limit? ANSWER A per occurrence limit is the maximum amount payable for a
single incident, while an aggregate limit is the maximum amount payable for all
incidents during the policy period
12. What is the difference between a named insured and an additional
insured? ANSWER A named insured is the policyholder, while an additional
insured is someone who is added to the policy for coverage
13. What is the difference between a general liability policy and a professional
liability policy? ANSWER A general liability policy covers bodily injury and
property damage, while a professional liability policy covers claims of
inadequate or negligent advice or services
14. What is the difference between a binder and a policy? ANSWER A binder
is a temporary agreement of coverage, while a policy is a formal agreement of
coverage
15. What is the difference between a policyholder and a certificate
holder? ANSWER A policyholder is the person or entity who owns the policy,
while a certificate holder is someone who is added to the policy for coverage
16. What is the difference between a policy period and a policy
term? ANSWER A policy period is the length of time the policy is in effect,
while a policy term is a specific provision or condition of the policy
17. What is the difference between a policy limit and a
deductible? ANSWER A policy limit is the maximum amount payable under
the policy, while a deductible is the amount the policyholder pays out of pocket
before the insurance kicks in
18. What is the difference between a policy exclusion and a policy
condition? ANSWER A policy exclusion is a specific peril or circumstance
that is not covered by the policy, while a policy condition is a requirement or
obligation that must be met in order for the policy to be in effect
19. What is the difference between a policy endorsement and a policy
rider? ANSWER A policy endorsement is an amendment to the policy that
adds or changes coverage, while a policy rider is a separate policy added to an
existing one
20. What is the difference between a policy declaration and a policy
schedule? ANSWER A policy declaration is a summary of the policy terms
and conditions, while a policy schedule is a detailed list of the coverage and
limits
