VA P&C PRACTICE EXAM QUESTIONS
AND DETAILED SOLUTIONS 2026
▶ Which of the following constitutes the acceptance of an offer?
A
When an insurer issues a binder
B
When the applicant completes the application
C
When the agent assures the applicant they will be covered
D
When the insurer makes a counteroffer. Answer: When an insurer issues a
binder
▶ ABC Industries contracts with municipal governments to build bridges,
viaducts, and similar engineering projects. If workers from ABC Industries
cause damage to a taxicab while pouring the foundation for a new
overpass, ABC Industries has been exposed to which type of legal liability?
A
Premises
B
Contractual liability
C
Completed operations
D
Operations. Answer: Operations
▶ Which commercial property coverage form provides coverage for an
indirect loss?
A
Business Income Coverage Form
B
Legal Liability Coverage Form
,C
Building and Personal Property Coverage Form
D
Builders Risk Coverage Form. Answer: Business Income Coverage Form
▶ ACV is generally used for which of the following types of claims?
A
Auto Physical Damage
B
Umbrella
C
Workers' Compensation
D
Businessowners Property. Answer: Auto Physical Damage
▶ A Commercial Crime policy written with the Inside the Premises -
Robbery or Safe Burglary of Other Property Insuring Agreement would
cover which of the following?
A
A robber breaks glass display cases and steals the jewels inside
B
A masked gunman confronts a cashier and demands money
C
An employee breaks into the company safe and steals precious metal
D
A messenger is robbed while transporting high-end computer components.
Answer: A robber breaks glass display cases and steals the jewels inside
▶ Under the Businessowners policy, if there is other insurance covering the
same loss, how will the policy respond?
A
The Businessowners policy pays 50% of the loss or damage
B
The Businessowners policy will pay its proportional share of the loss or
damage
C
The insurer will pay only for the amount of covered loss or damage in
excess of the amount due from that other insurance
, D
The Businessowners policy does not pay if there is other insurance
applicable to the loss or damage. Answer: The insurer will pay only for the
amount of covered loss or damage in excess of the amount due from that
other insurance
▶ Which of the following is considered property not covered under the
Building and Personal Property Coverage Form?
A
Stock
B
Electronic data
C
Furniture
D
Telephone system. Answer: Electronic data
▶ Which statement regarding the Equipment Breakdown Protection
Coverage Form is correct?
A
Every Equipment Breakdown Protection policy automatically includes
business income and extra expense coverage
B
Every Equipment Breakdown Protection policy automatically includes
coverage for expediting expenses
C
Coverage must be written as a monoline policy
D
Coverage can be written as a coverage part on the Commercial Package
policy. Answer: Coverage can be written as a coverage part on the
Commercial Package policy
▶ Which of the following statements about specialty and professional
liability insurance policies is correct?
A
They provide excess coverage over Commercial General Liability policies
B
They protect businesses with few liability exposures
AND DETAILED SOLUTIONS 2026
▶ Which of the following constitutes the acceptance of an offer?
A
When an insurer issues a binder
B
When the applicant completes the application
C
When the agent assures the applicant they will be covered
D
When the insurer makes a counteroffer. Answer: When an insurer issues a
binder
▶ ABC Industries contracts with municipal governments to build bridges,
viaducts, and similar engineering projects. If workers from ABC Industries
cause damage to a taxicab while pouring the foundation for a new
overpass, ABC Industries has been exposed to which type of legal liability?
A
Premises
B
Contractual liability
C
Completed operations
D
Operations. Answer: Operations
▶ Which commercial property coverage form provides coverage for an
indirect loss?
A
Business Income Coverage Form
B
Legal Liability Coverage Form
,C
Building and Personal Property Coverage Form
D
Builders Risk Coverage Form. Answer: Business Income Coverage Form
▶ ACV is generally used for which of the following types of claims?
A
Auto Physical Damage
B
Umbrella
C
Workers' Compensation
D
Businessowners Property. Answer: Auto Physical Damage
▶ A Commercial Crime policy written with the Inside the Premises -
Robbery or Safe Burglary of Other Property Insuring Agreement would
cover which of the following?
A
A robber breaks glass display cases and steals the jewels inside
B
A masked gunman confronts a cashier and demands money
C
An employee breaks into the company safe and steals precious metal
D
A messenger is robbed while transporting high-end computer components.
Answer: A robber breaks glass display cases and steals the jewels inside
▶ Under the Businessowners policy, if there is other insurance covering the
same loss, how will the policy respond?
A
The Businessowners policy pays 50% of the loss or damage
B
The Businessowners policy will pay its proportional share of the loss or
damage
C
The insurer will pay only for the amount of covered loss or damage in
excess of the amount due from that other insurance
, D
The Businessowners policy does not pay if there is other insurance
applicable to the loss or damage. Answer: The insurer will pay only for the
amount of covered loss or damage in excess of the amount due from that
other insurance
▶ Which of the following is considered property not covered under the
Building and Personal Property Coverage Form?
A
Stock
B
Electronic data
C
Furniture
D
Telephone system. Answer: Electronic data
▶ Which statement regarding the Equipment Breakdown Protection
Coverage Form is correct?
A
Every Equipment Breakdown Protection policy automatically includes
business income and extra expense coverage
B
Every Equipment Breakdown Protection policy automatically includes
coverage for expediting expenses
C
Coverage must be written as a monoline policy
D
Coverage can be written as a coverage part on the Commercial Package
policy. Answer: Coverage can be written as a coverage part on the
Commercial Package policy
▶ Which of the following statements about specialty and professional
liability insurance policies is correct?
A
They provide excess coverage over Commercial General Liability policies
B
They protect businesses with few liability exposures
