Property and Casualty Insurance
Mastery Exam A 2026 Questions and
Answers
An insured rents a car while on vacation in Canada and causes an accident. Is there
coverage under his personal auto policy? - Correct answer-The loss is covered
under an unendorsed personal auto policy.
Under the workers' compensation laws, which of the following would NOT be
covered? - Correct answer-Heart-related illness resulting from hereditary causes
An insurance policy covers fire, will not cover nuclear contamination, and loss
must be reported as soon as possible. In this order, where are these facts found in
the policy? - Correct answer-Insuring agreement, exclusions, and conditions
Which of the following principles holds that a person should not profit by
collecting on insurance? - Correct answer-Principle of indemnity
Which of the following is NOT a benefit of workers' compensation insurance? -
Correct answer-Pain and suffering
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,The building and personal property form covers all the following EXCEPT -
Correct answer-highway billboards
The personal auto policy's comprehensive physical damage coverage covers all of
the following EXC - Correct answer-freezing
Who is responsible for controlling the content, form, and distribution of insurance
policy advertisements? - Correct answer-The insurer
An automobile policy may be canceled for any of the following reasons EXCEPT -
Correct answer-being involved in a hit-and-run accident for which the insured was
not at fault
The Terrorism Risk Insurance Act provides federal compensation for insured losses
resulting from acts of terrorism. All of the following would qualify as acts of
terrorism EXCEPT - Correct answer-acts causing property damage and loss of life
in foreign countries
Which of the following is NOT a commercial general liability exposure? - Correct
answer-Owned investment portfolio
Open peril coverage for both the dwelling and personal property is provided by the
- Correct answer-HO-5
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, All of the following would be covered property by the CPP building and personal
property form EXCEPT - Correct answer-bailee property
An agent license is renewed by paying the applicable renewal fee and completing -
Correct answer-continuing education
In an insurance transaction, who does a licensed agent legally represent? - Correct
answer-Insurer
The listing of the perils covered under a policy is found in - Correct answer-the
insuring agreement
If a loss paid by a workers' compensation policy was caused by a negligent third
party, the insurer retains the right to - Correct answer-subrogate
The term unoccupied means - Correct answer-the insured has gone on vacation
States give an insurer permission to transact insurance with a certificate of -
Correct answer-authority
Which of the following situations would most likely be covered by a commercial
general liability (CGL) policy? - Correct answer-A surfboard falls off a shelf and
injures a shopper.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Mastery Exam A 2026 Questions and
Answers
An insured rents a car while on vacation in Canada and causes an accident. Is there
coverage under his personal auto policy? - Correct answer-The loss is covered
under an unendorsed personal auto policy.
Under the workers' compensation laws, which of the following would NOT be
covered? - Correct answer-Heart-related illness resulting from hereditary causes
An insurance policy covers fire, will not cover nuclear contamination, and loss
must be reported as soon as possible. In this order, where are these facts found in
the policy? - Correct answer-Insuring agreement, exclusions, and conditions
Which of the following principles holds that a person should not profit by
collecting on insurance? - Correct answer-Principle of indemnity
Which of the following is NOT a benefit of workers' compensation insurance? -
Correct answer-Pain and suffering
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,The building and personal property form covers all the following EXCEPT -
Correct answer-highway billboards
The personal auto policy's comprehensive physical damage coverage covers all of
the following EXC - Correct answer-freezing
Who is responsible for controlling the content, form, and distribution of insurance
policy advertisements? - Correct answer-The insurer
An automobile policy may be canceled for any of the following reasons EXCEPT -
Correct answer-being involved in a hit-and-run accident for which the insured was
not at fault
The Terrorism Risk Insurance Act provides federal compensation for insured losses
resulting from acts of terrorism. All of the following would qualify as acts of
terrorism EXCEPT - Correct answer-acts causing property damage and loss of life
in foreign countries
Which of the following is NOT a commercial general liability exposure? - Correct
answer-Owned investment portfolio
Open peril coverage for both the dwelling and personal property is provided by the
- Correct answer-HO-5
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, All of the following would be covered property by the CPP building and personal
property form EXCEPT - Correct answer-bailee property
An agent license is renewed by paying the applicable renewal fee and completing -
Correct answer-continuing education
In an insurance transaction, who does a licensed agent legally represent? - Correct
answer-Insurer
The listing of the perils covered under a policy is found in - Correct answer-the
insuring agreement
If a loss paid by a workers' compensation policy was caused by a negligent third
party, the insurer retains the right to - Correct answer-subrogate
The term unoccupied means - Correct answer-the insured has gone on vacation
States give an insurer permission to transact insurance with a certificate of -
Correct answer-authority
Which of the following situations would most likely be covered by a commercial
general liability (CGL) policy? - Correct answer-A surfboard falls off a shelf and
injures a shopper.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
