Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
An insured may cancel a Personal Auto Policy by taking which of the
following actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone -
correct answer ✅C
In insurance, which of the following terms refers to continuous or
repeated exposure to conditions that may result in bodily injury or
damage neither expected nor intended?
A. An accident
B. An occurrence
,Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
C. An event
D. A condition -
correct answer ✅B
Which of the following vehicles is considered a temporary
substitute auto under a Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an
errand
B. An auto purchased by an insured to replace a previously owned
vehicle
C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a
garage for repairs -
correct answer ✅D
,Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final settlement
D. temporary short-term evidence of coverage -
correct answer ✅D
Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
C. direct loss
, Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
D. indirect loss -
correct answer ✅B
The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history prior
to underwriting a policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history prior
to issuing a policy
D. insurance company to inform the applicant a credit report may
be obtained -
correct answer ✅D
The limits of liability are found in which of the following sections of
a casualty policy?
Practice Exam Actual Questions and
Answers 2026
An insured may cancel a Personal Auto Policy by taking which of the
following actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone -
correct answer ✅C
In insurance, which of the following terms refers to continuous or
repeated exposure to conditions that may result in bodily injury or
damage neither expected nor intended?
A. An accident
B. An occurrence
,Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
C. An event
D. A condition -
correct answer ✅B
Which of the following vehicles is considered a temporary
substitute auto under a Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an
errand
B. An auto purchased by an insured to replace a previously owned
vehicle
C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a
garage for repairs -
correct answer ✅D
,Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
An insurance binder is best described as:
A. a large bound volume of rules, rates, and forms
B. a rate manual supplied by one of the rating organizations
C. a temporary agreement to pay a claim pending final settlement
D. temporary short-term evidence of coverage -
correct answer ✅D
Anything that increases the chance of loss is known as a(n):
A. risk
B. hazard
C. direct loss
, Pearson VUE: Casualty Insurance
Practice Exam Actual Questions and
Answers 2026
D. indirect loss -
correct answer ✅B
The Fair Credit Reporting Act requires the:
A. insurance company to review the applicant's credit history prior
to underwriting a policy
B. insurance producer to summarize a policy for the insured
C. insurance producer to review the applicant's credit history prior
to issuing a policy
D. insurance company to inform the applicant a credit report may
be obtained -
correct answer ✅D
The limits of liability are found in which of the following sections of
a casualty policy?
