PRO-METRIC PRACTICE TEST P&C
EXAM 2025 QUESTIONS AND ANSWERS
All of the following are true about the limit of insurance in an unendorsed property insurance
policy EXCEPT:
A.It can be increased by attaching an endorsement.
B.The insured can expect additional limits automatically upon purchasing a second property.
C.The insurer will normally not pay more than the stated limit.
D.There are special limits of insurance on some types of property. - ANS B.The insured can
expect additional limits automatically upon purchasing a second property.
A store employee discovers a large shortage while taking product inventory. Under an
unendorsed Businessowners Policy, the loss:
A.Could be covered by an off-premises endorsement
B.Is covered if the store takes reasonable security precautions
C.Is covered under the additional coverages section of the policy
D.Is excluded under the limitations section of the policy - ANS D.Is excluded under the
limitations section of the policy
Under the Farm Policy, losses which qualify for payment on a replacement cost basis is limited
to the actual cash value until:
A.The final loss report is submitted to the insurance company
B.A loss statement has been signed by the insured
C.The total damages exceed 80% of the limit of insurance
1
D.The actual repairs or replacement are completed - ANS D.The actual repairs or
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replacement are completed
@COPYRIGHT THESTAR 2025/2026
, When an insurer unknowingly accepts two large cash payments from an illegal drug dealer to
insure the drug operation and its employees, there is generally:
A.No contract
B.A quasi-contract
C.A contract of adhesion
D.An unenforceable contract - ANS An unenforceable contract
A group-owned insurer whose primary activity consists of assuming and spreading the liability
risks of its members is the definition of:
A.Reinsurer
B.Risk retention group
C.Insurance purchasing group
D.Pure off-shore captive - ANS Risk retention group
An unendorsed liability insurance policy provides coverage for:
A.Criminal actions
B.Unintentional torts
C.Intentional torts
D.Moral obligations - ANS Unintentional torts
Which of the following is NOT used in determining the amount an insured can receive under
the Personal Property Replacement Coverage Endorsement to a Homeowners Policy?
A.Full cost of repair at the time of loss
B.Depreciated market value
C.The Coverage C amount
D.Special limits stated in the policy - ANS Depreciated market value
2
Which one of the following is covered under the Liability Coverage of the Business Auto
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Coverage Form?
@COPYRIGHT THESTAR 2025/2026
EXAM 2025 QUESTIONS AND ANSWERS
All of the following are true about the limit of insurance in an unendorsed property insurance
policy EXCEPT:
A.It can be increased by attaching an endorsement.
B.The insured can expect additional limits automatically upon purchasing a second property.
C.The insurer will normally not pay more than the stated limit.
D.There are special limits of insurance on some types of property. - ANS B.The insured can
expect additional limits automatically upon purchasing a second property.
A store employee discovers a large shortage while taking product inventory. Under an
unendorsed Businessowners Policy, the loss:
A.Could be covered by an off-premises endorsement
B.Is covered if the store takes reasonable security precautions
C.Is covered under the additional coverages section of the policy
D.Is excluded under the limitations section of the policy - ANS D.Is excluded under the
limitations section of the policy
Under the Farm Policy, losses which qualify for payment on a replacement cost basis is limited
to the actual cash value until:
A.The final loss report is submitted to the insurance company
B.A loss statement has been signed by the insured
C.The total damages exceed 80% of the limit of insurance
1
D.The actual repairs or replacement are completed - ANS D.The actual repairs or
Page
replacement are completed
@COPYRIGHT THESTAR 2025/2026
, When an insurer unknowingly accepts two large cash payments from an illegal drug dealer to
insure the drug operation and its employees, there is generally:
A.No contract
B.A quasi-contract
C.A contract of adhesion
D.An unenforceable contract - ANS An unenforceable contract
A group-owned insurer whose primary activity consists of assuming and spreading the liability
risks of its members is the definition of:
A.Reinsurer
B.Risk retention group
C.Insurance purchasing group
D.Pure off-shore captive - ANS Risk retention group
An unendorsed liability insurance policy provides coverage for:
A.Criminal actions
B.Unintentional torts
C.Intentional torts
D.Moral obligations - ANS Unintentional torts
Which of the following is NOT used in determining the amount an insured can receive under
the Personal Property Replacement Coverage Endorsement to a Homeowners Policy?
A.Full cost of repair at the time of loss
B.Depreciated market value
C.The Coverage C amount
D.Special limits stated in the policy - ANS Depreciated market value
2
Which one of the following is covered under the Liability Coverage of the Business Auto
Page
Coverage Form?
@COPYRIGHT THESTAR 2025/2026
