PROPERTY AND CASUALTY ACTUAL EXAM
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
●● Loss Sustained/Discovery Forms under Crime Coverage Answer:
Loss is for later than the policy period. Discovery is before the policy.
(Loss is later - Discover is before)
●● Errors & Omissions Insurance Answer: Liability insurance that
covers agents and insurance companies if they make mistakes or forget
to include information in a contract
●● Non-admitted Insurer Answer: An insurer that is not licensed to do
business in a particular state. (A surplus lines broker works with non-
admitted carriers)
●● Size limits for business owners policy Answer: Six stories, 100,000
sq. feet , offices 25,000 sq. feet and $3 million dollars gross sales for
mercantile space (store)
●● Retroactive date Answer: The first date an occurrence would be
covered under a claim made CGL policy
●● Peril Answer: The cause of loss
,●● Collision Answer: Colliding with another car, an object, or upset
(rolling)
●● Exclusions Answer: Things that are not covered
●● Contributory negligence Answer: A person cannot file or collect for a
claim if he/she is at all negligent
●● Repair, Replace, or ACV Answer: The amount a company pays on a
damaged or stolen vehicle whatever is less
●● What percentage must be vacant for a building to be called vacant?
Answer: 70%
●● Livery Answer: A vehicle for hire, to transport people, e.g.
limousines
●● You have only liability insurance, borrow a car and collide with
another. Which pays? Answer: The borrowed car's insurance is primary
●● NFIP (flood insurance) is only found where? Answer: Participating
communities, areas designated on a flood map
, ●● CAARP covers Answer: Liability, medical payments and uninsured
motorist
●● For what amount can a binder be written for? Answer: One million
dollars
●● Where are excluded perils listed? Answer: Exclusions are found in
the cause of loss form
●● Inherent vice or inherent defect Answer: Iron rusting, milk going
sour, rubber breaking down are all inherent vices
●● Noncontributory benefits Answer: A life or health insurance plan that
an employer provides for employees in which the employee does not pay
any part of the premium
●● What is embezzlement? Answer: Employee dishonesty, which is not
covered by a crime policy unless an Employee Dishonesty form is
attached. (Does not cover shortages, theft only)
●● Stop Loss provision Answer: Used in health insurance to limit the
maximum amount of money the insured would have to pay out of pocket
on health claims in any particular year
PAPER 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
●● Loss Sustained/Discovery Forms under Crime Coverage Answer:
Loss is for later than the policy period. Discovery is before the policy.
(Loss is later - Discover is before)
●● Errors & Omissions Insurance Answer: Liability insurance that
covers agents and insurance companies if they make mistakes or forget
to include information in a contract
●● Non-admitted Insurer Answer: An insurer that is not licensed to do
business in a particular state. (A surplus lines broker works with non-
admitted carriers)
●● Size limits for business owners policy Answer: Six stories, 100,000
sq. feet , offices 25,000 sq. feet and $3 million dollars gross sales for
mercantile space (store)
●● Retroactive date Answer: The first date an occurrence would be
covered under a claim made CGL policy
●● Peril Answer: The cause of loss
,●● Collision Answer: Colliding with another car, an object, or upset
(rolling)
●● Exclusions Answer: Things that are not covered
●● Contributory negligence Answer: A person cannot file or collect for a
claim if he/she is at all negligent
●● Repair, Replace, or ACV Answer: The amount a company pays on a
damaged or stolen vehicle whatever is less
●● What percentage must be vacant for a building to be called vacant?
Answer: 70%
●● Livery Answer: A vehicle for hire, to transport people, e.g.
limousines
●● You have only liability insurance, borrow a car and collide with
another. Which pays? Answer: The borrowed car's insurance is primary
●● NFIP (flood insurance) is only found where? Answer: Participating
communities, areas designated on a flood map
, ●● CAARP covers Answer: Liability, medical payments and uninsured
motorist
●● For what amount can a binder be written for? Answer: One million
dollars
●● Where are excluded perils listed? Answer: Exclusions are found in
the cause of loss form
●● Inherent vice or inherent defect Answer: Iron rusting, milk going
sour, rubber breaking down are all inherent vices
●● Noncontributory benefits Answer: A life or health insurance plan that
an employer provides for employees in which the employee does not pay
any part of the premium
●● What is embezzlement? Answer: Employee dishonesty, which is not
covered by a crime policy unless an Employee Dishonesty form is
attached. (Does not cover shortages, theft only)
●● Stop Loss provision Answer: Used in health insurance to limit the
maximum amount of money the insured would have to pay out of pocket
on health claims in any particular year
