LOUISIANA PROPERTY & CASUALTY
INSURANCE COURSE EXAM 2025
QUESTIONS AND ANSWERS
Which One Of The Following Is NOT A Possible Defense Against Negligence?
A. Statue Of Limitations
B. Doctrine Of Reasonable Expectation
C. Intervening Cause
D. Comparative Negligence - ANS Doctrine Of Reasonable Expectation
What Is A Hazard? - ANS An Increase In The Possibility That A Loss Might Occur.
The Purpose Of Insurance Is To____________ - ANS Transfer Risk From A Person, Business Or
Organization To An Insurance Company.
The Type Of Insurance Company In Which The Policyholder Is Considered An Owner, With The
Right To Vote And Share Profits, Is A________ - ANS Mutual Company
The Renewal Fee For A Louisiana Producer License Is________ - ANS $50
The Federal Law That Says The Federal Government Can Only Regulate Insurance Companies To
The Extent They Are Not Regulated By The State Law Is________ - ANS McCarran-Ferguson
Act
1 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
,An Insurance Policy Is Prepared By The Insurance Company, With Little Or No Input From The
Insured. This Means That An Insurance Policy Is A/An________ - ANS Adhesion Contract
An Individual Who Owns And Lives In A Condominium Can Obtain Broad Coverage For Personal
Property In The Condo Under Which Homeowners Form? - ANS HO-6
What Rating Method Involves Modifying The Premium Based On The Insured's Loss Experience
Over A Specific Period Of Time? - ANS Experience Rating
Which One Of The Following Types Of Benefits Is Generally Not Provided By A State's Workers
Compensation Law? - ANS Pain & Suffering
Which Of The Following Describes An Insurance Company Doing Business In A State Other Than
The One Where It Is Incorporated? - ANS Foreign
What Type Of Insurance Policy Insures Against All Risk Of Loss That Are Not Specifically
Excluded By The Policy? - ANS Open Peril Policy
Which Of The Following Describes Actual Cash Value? - ANS Replacement Cost-Depreciation
An Insured Purchased New Furniture For $6,000. At The Time Of A Fire Loss, It Had Depreciated
$2,000. The Same Furniture Will Cost $7,000 To Replace. What Is The Actual Cash Value Of The
Destroyed Furniture?
A. $4,000
B. $8,000
C. $6,000
D. $5,000 - ANS $5,000
2 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
, The Primary Purpose Of The Business Income Coverage Forms Is To Reimburse The Insured For
__________. - ANS Loss Of Income Resulting From Property Damage At The Insured's
Property
The Homeowners Form That Provides Open Peril Coverage On The Dwelling And Broad
Coverage On Personal Property Is The_______
A. HO-3
B. HO-4
C HO-2
D. HO-6 - ANS HO-3
Which Of The Following Losses To Covered Equipment Would Be Covered Under The
Equipment Breakdown Protection Coverage Form? - ANS Damage From An Explosion Caused
By The Centrifugal Force Of Moving Parts
According To The Cancellation Condition In The Common Policy Conditions Form, If The
Insurance Company Is Cancelling A Commercial Package Policy For Nonpayment Of Premium,
The Insured Must Be Given At Least How Many Days Notice Of Cancellation?
A. 30
B. 60
C. 14
D. 10 - ANS 10
Which Of The Following Coverages IS Included In The Homeowners Policy But Is NOT Included
In An Unendorsed Dwelling Policy? - ANS Liability
3 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
INSURANCE COURSE EXAM 2025
QUESTIONS AND ANSWERS
Which One Of The Following Is NOT A Possible Defense Against Negligence?
A. Statue Of Limitations
B. Doctrine Of Reasonable Expectation
C. Intervening Cause
D. Comparative Negligence - ANS Doctrine Of Reasonable Expectation
What Is A Hazard? - ANS An Increase In The Possibility That A Loss Might Occur.
The Purpose Of Insurance Is To____________ - ANS Transfer Risk From A Person, Business Or
Organization To An Insurance Company.
The Type Of Insurance Company In Which The Policyholder Is Considered An Owner, With The
Right To Vote And Share Profits, Is A________ - ANS Mutual Company
The Renewal Fee For A Louisiana Producer License Is________ - ANS $50
The Federal Law That Says The Federal Government Can Only Regulate Insurance Companies To
The Extent They Are Not Regulated By The State Law Is________ - ANS McCarran-Ferguson
Act
1 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
,An Insurance Policy Is Prepared By The Insurance Company, With Little Or No Input From The
Insured. This Means That An Insurance Policy Is A/An________ - ANS Adhesion Contract
An Individual Who Owns And Lives In A Condominium Can Obtain Broad Coverage For Personal
Property In The Condo Under Which Homeowners Form? - ANS HO-6
What Rating Method Involves Modifying The Premium Based On The Insured's Loss Experience
Over A Specific Period Of Time? - ANS Experience Rating
Which One Of The Following Types Of Benefits Is Generally Not Provided By A State's Workers
Compensation Law? - ANS Pain & Suffering
Which Of The Following Describes An Insurance Company Doing Business In A State Other Than
The One Where It Is Incorporated? - ANS Foreign
What Type Of Insurance Policy Insures Against All Risk Of Loss That Are Not Specifically
Excluded By The Policy? - ANS Open Peril Policy
Which Of The Following Describes Actual Cash Value? - ANS Replacement Cost-Depreciation
An Insured Purchased New Furniture For $6,000. At The Time Of A Fire Loss, It Had Depreciated
$2,000. The Same Furniture Will Cost $7,000 To Replace. What Is The Actual Cash Value Of The
Destroyed Furniture?
A. $4,000
B. $8,000
C. $6,000
D. $5,000 - ANS $5,000
2 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
, The Primary Purpose Of The Business Income Coverage Forms Is To Reimburse The Insured For
__________. - ANS Loss Of Income Resulting From Property Damage At The Insured's
Property
The Homeowners Form That Provides Open Peril Coverage On The Dwelling And Broad
Coverage On Personal Property Is The_______
A. HO-3
B. HO-4
C HO-2
D. HO-6 - ANS HO-3
Which Of The Following Losses To Covered Equipment Would Be Covered Under The
Equipment Breakdown Protection Coverage Form? - ANS Damage From An Explosion Caused
By The Centrifugal Force Of Moving Parts
According To The Cancellation Condition In The Common Policy Conditions Form, If The
Insurance Company Is Cancelling A Commercial Package Policy For Nonpayment Of Premium,
The Insured Must Be Given At Least How Many Days Notice Of Cancellation?
A. 30
B. 60
C. 14
D. 10 - ANS 10
Which Of The Following Coverages IS Included In The Homeowners Policy But Is NOT Included
In An Unendorsed Dwelling Policy? - ANS Liability
3 Copyright ©2025 THESTAR ALL RIGHTS RESERVED
