Personal Lines Property & Casualty Questions & Answers
2026 | Latest Study Guide
1. How many insurers must applicants be rejected by to qualify for TAIPA?
Three insurers
One insurer
Four insurers
Two insurers
2. When the insured's car was totaled in a recent accident, the ownership of the
car was transferred to the insurer. The insurer then sold off the wrecked car to
recover some of the loss it paid to the insurer. What is the term for this action.
Salvage
Liberalization
Duty to defend
Subrogation
3. What is the minimum percentage of annual premiums that must come from
individuals other than the applicant and their immediate connections?
25%
10%
50%
15%
,4. If a family member who is not listed on the automobile insurance policy has
an accident while driving the insured vehicle, what implications does this
have for coverage?
The accident will be covered regardless of the relationship to the
named insured.
The accident will not be covered at all.
The accident may still be covered if the family member is living in
the same household as the named insured.
The accident will be covered only if the family member is listed as an
additional insured.
5. What are the additional benefits provided by Supplementary Payments in an
insurance policy?
They provide coverage for property damage only.
They are discounts on premiums.
They cover expenses such as court costs and attorney fees.
They are penalties for late payments.
6. Describe the significance of the Commissioner of Insurance's term ending on
February 1 of each odd-numbered year.
It provides a fixed term regardless of legislative changes.
It allows for annual reviews of insurance regulations.
It ensures the Commissioner can serve indefinitely.
It aligns the appointment with the legislative session, allowing for
potential policy changes.
,7. An individual applicant for an insurance agent's license must be at least:
18 years of age.
21 years of age.
25 years of age.
24 years of age.
8. If the term of the Commissioner of Insurance ends on February 1 of each
odd-numbered year, what would be the implications if a new Commissioner is
not appointed by that date?
The previous Commissioner would continue indefinitely.
The position would be filled by a legislative appointee.
There could be a temporary gap in leadership affecting regulatory
oversight.
Insurance regulations would automatically renew.
9. What is the definition of Replacement Cost in property insurance?
The amount paid for the original purchase of the property.
The cost of repairs needed to restore the property to its original
condition.
The cost to replace damaged property with new property of like
kind and quality.
The market value of the property at the time of loss.
10. Describe the significance of exclusions in the context of an insurance policy.
Exclusions increase the overall premium of the insurance policy.
, Exclusions clarify what is not covered, helping policyholders
understand the limitations of their coverage.
Exclusions are irrelevant to the claims process.
Exclusions provide additional coverage options for policyholders.
11. Which one of the following types of acts trigger coverage under the
Terrorism Risk Insurance Act (TRIA)? Choose one answer.
A declared act of terrorism
A certified act of terrorism
An anonymous act of terrorism
An undeclared act of terrorism
12. An employer carrying worker's compensation insurance must notify its
employees within
15 days.
30 days.
7 days.
45 days.
13. Market value loss valuation means that the insurer will pay:
The amount for which property can be sold at the end of its life
The cost to repair or replace property, minus depreciation
The price a willing buyer would pay under fair market conditions
The cost of replacing property with its functional equivalent
2026 | Latest Study Guide
1. How many insurers must applicants be rejected by to qualify for TAIPA?
Three insurers
One insurer
Four insurers
Two insurers
2. When the insured's car was totaled in a recent accident, the ownership of the
car was transferred to the insurer. The insurer then sold off the wrecked car to
recover some of the loss it paid to the insurer. What is the term for this action.
Salvage
Liberalization
Duty to defend
Subrogation
3. What is the minimum percentage of annual premiums that must come from
individuals other than the applicant and their immediate connections?
25%
10%
50%
15%
,4. If a family member who is not listed on the automobile insurance policy has
an accident while driving the insured vehicle, what implications does this
have for coverage?
The accident will be covered regardless of the relationship to the
named insured.
The accident will not be covered at all.
The accident may still be covered if the family member is living in
the same household as the named insured.
The accident will be covered only if the family member is listed as an
additional insured.
5. What are the additional benefits provided by Supplementary Payments in an
insurance policy?
They provide coverage for property damage only.
They are discounts on premiums.
They cover expenses such as court costs and attorney fees.
They are penalties for late payments.
6. Describe the significance of the Commissioner of Insurance's term ending on
February 1 of each odd-numbered year.
It provides a fixed term regardless of legislative changes.
It allows for annual reviews of insurance regulations.
It ensures the Commissioner can serve indefinitely.
It aligns the appointment with the legislative session, allowing for
potential policy changes.
,7. An individual applicant for an insurance agent's license must be at least:
18 years of age.
21 years of age.
25 years of age.
24 years of age.
8. If the term of the Commissioner of Insurance ends on February 1 of each
odd-numbered year, what would be the implications if a new Commissioner is
not appointed by that date?
The previous Commissioner would continue indefinitely.
The position would be filled by a legislative appointee.
There could be a temporary gap in leadership affecting regulatory
oversight.
Insurance regulations would automatically renew.
9. What is the definition of Replacement Cost in property insurance?
The amount paid for the original purchase of the property.
The cost of repairs needed to restore the property to its original
condition.
The cost to replace damaged property with new property of like
kind and quality.
The market value of the property at the time of loss.
10. Describe the significance of exclusions in the context of an insurance policy.
Exclusions increase the overall premium of the insurance policy.
, Exclusions clarify what is not covered, helping policyholders
understand the limitations of their coverage.
Exclusions are irrelevant to the claims process.
Exclusions provide additional coverage options for policyholders.
11. Which one of the following types of acts trigger coverage under the
Terrorism Risk Insurance Act (TRIA)? Choose one answer.
A declared act of terrorism
A certified act of terrorism
An anonymous act of terrorism
An undeclared act of terrorism
12. An employer carrying worker's compensation insurance must notify its
employees within
15 days.
30 days.
7 days.
45 days.
13. Market value loss valuation means that the insurer will pay:
The amount for which property can be sold at the end of its life
The cost to repair or replace property, minus depreciation
The price a willing buyer would pay under fair market conditions
The cost of replacing property with its functional equivalent
