Page 1 of 137
CONNECTICUT PROPERTY & CASUALTY INSURANCE
Exam–ACTUAL QUESTIONS AND ANSWERS LATEST
UPDATE THIS YEAR
CONNECTICUT PROPERTY & CASUALTY INSURANCE
HIGH-YIELD EXAM COVERAGE (SUMMARY)
Insurance Principles
• Risk transfer and pooling
• Indemnity principle (no profit from loss)
• Utmost good faith (full disclosure)
• Insurable interest requirement
• Subrogation rights of insurer
• Contribution among insurers
Policy Structure
• Declarations page (who, what, limits, premiums)
• Insuring agreement (coverage promise)
• Conditions (duties of insured/insurer)
• Exclusions (what is NOT covered)
• Endorsements (policy modifications)
Property Insurance
• Homeowners forms (HO-2, HO-3, HO-5)
• Named perils vs open perils
• Fire, theft, windstorm, vandalism
• Flood and earthquake exclusions
• Replacement cost vs actual cash value
Auto Insurance
• Liability (BI/PD)
• Collision vs comprehensive
• PIP (Personal Injury Protection)
• Uninsured/Underinsured motorist coverage
• Connecticut compulsory auto insurance laws
Liability Insurance
• Bodily injury and property damage liability
• Occurrence vs claims-made policies
• CGL (Commercial General Liability)
• Legal defense costs
Underwriting & Rating
• Risk classification
• Loss history evaluation
• Credit-based insurance scoring
• Territory and usage factors
• Premium calculation factors
Claims Handling
• Notice of loss
• Investigation process
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• Proof of loss
• Settlement options
• Subrogation recovery
BATCH 1 (QUESTIONS 1–50)
1.
Which insurance principle ensures that policyholders cannot profit financially from insurance claim
payments exceeding their actual loss?
A. Contribution principle
B. Indemnity principle
C. Subrogation principle
D. Estoppel principle
Answer: B
Rationale: Indemnity restores the insured to pre-loss condition without allowing profit.
2.
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Which policy section typically contains the insurer’s promise to pay covered claims under specified
conditions?
A. Exclusions section
B. Insuring agreement
C. Declarations page
D. Endorsements section
Answer: B
Rationale: The insuring agreement defines the insurer’s contractual promise.
3.
What is the primary purpose of subrogation in insurance claims handling?
A. Increase insurer premiums
B. Prevent policy cancellation
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C. Allow insurer recovery from responsible third parties
D. Guarantee claim approval
Answer: C
Rationale: Subrogation lets insurers recover paid losses from negligent parties.
4.
Which type of homeowners policy provides the broadest coverage form in standard insurance
classification?
A. HO-1
B. HO-2
C. HO-3
D. HO-8
Answer: C
Rationale: HO-3 provides open-perils coverage for dwelling protection.
CONNECTICUT PROPERTY & CASUALTY INSURANCE
Exam–ACTUAL QUESTIONS AND ANSWERS LATEST
UPDATE THIS YEAR
CONNECTICUT PROPERTY & CASUALTY INSURANCE
HIGH-YIELD EXAM COVERAGE (SUMMARY)
Insurance Principles
• Risk transfer and pooling
• Indemnity principle (no profit from loss)
• Utmost good faith (full disclosure)
• Insurable interest requirement
• Subrogation rights of insurer
• Contribution among insurers
Policy Structure
• Declarations page (who, what, limits, premiums)
• Insuring agreement (coverage promise)
• Conditions (duties of insured/insurer)
• Exclusions (what is NOT covered)
• Endorsements (policy modifications)
Property Insurance
• Homeowners forms (HO-2, HO-3, HO-5)
• Named perils vs open perils
• Fire, theft, windstorm, vandalism
• Flood and earthquake exclusions
• Replacement cost vs actual cash value
Auto Insurance
• Liability (BI/PD)
• Collision vs comprehensive
• PIP (Personal Injury Protection)
• Uninsured/Underinsured motorist coverage
• Connecticut compulsory auto insurance laws
Liability Insurance
• Bodily injury and property damage liability
• Occurrence vs claims-made policies
• CGL (Commercial General Liability)
• Legal defense costs
Underwriting & Rating
• Risk classification
• Loss history evaluation
• Credit-based insurance scoring
• Territory and usage factors
• Premium calculation factors
Claims Handling
• Notice of loss
• Investigation process
, Page 2 of 137
• Proof of loss
• Settlement options
• Subrogation recovery
BATCH 1 (QUESTIONS 1–50)
1.
Which insurance principle ensures that policyholders cannot profit financially from insurance claim
payments exceeding their actual loss?
A. Contribution principle
B. Indemnity principle
C. Subrogation principle
D. Estoppel principle
Answer: B
Rationale: Indemnity restores the insured to pre-loss condition without allowing profit.
2.
, Page 3 of 137
Which policy section typically contains the insurer’s promise to pay covered claims under specified
conditions?
A. Exclusions section
B. Insuring agreement
C. Declarations page
D. Endorsements section
Answer: B
Rationale: The insuring agreement defines the insurer’s contractual promise.
3.
What is the primary purpose of subrogation in insurance claims handling?
A. Increase insurer premiums
B. Prevent policy cancellation
, Page 4 of 137
C. Allow insurer recovery from responsible third parties
D. Guarantee claim approval
Answer: C
Rationale: Subrogation lets insurers recover paid losses from negligent parties.
4.
Which type of homeowners policy provides the broadest coverage form in standard insurance
classification?
A. HO-1
B. HO-2
C. HO-3
D. HO-8
Answer: C
Rationale: HO-3 provides open-perils coverage for dwelling protection.
