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2025 Newest Property and Casualty Exam Prep Test
Bank with 300 Questions and Correct Answers/
Property and Casualty License Test / P & C Exam
the one basic characteristic of any type of insurance is
that the insured is returned to the same status that
existed prior to the loss, but without a chance for gain or
profit - ...✔✔ANSWER✔✔...true
which of the following coverages does an open peril
policy provide? - ...✔✔ANSWER✔✔...perils other than
those specifically named as being excluded
determine the actual cash value in the following situation:
original price of office equiptment when purchased 8
years ago- 9,000. depreciated amount at time of fire-
5,000 current replacement cost 12,000 -
...✔✔ANSWER✔✔...7,000
liquor liability - ...✔✔ANSWER✔✔...need for a dram shot,
liquor, or package store
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inherent vice or defect - ...✔✔ANSWER✔✔...iron rusting,
milk going sour, rubber breaking down are all inherent
vices
how is hitting an animal on the road covered? -
...✔✔ANSWER✔✔...other than collision otc
medicare supplement insurance - ...✔✔ANSWER✔✔...aka
medical gap insurance. must include core benefits
ordinance or law - ...✔✔ANSWER✔✔...an endorsement
for building code upgrades
loss sustained/discovery forms under crime coverage -
...✔✔ANSWER✔✔...loss is for later than the policy period.
discovery is for before the policy (loss is later, discovery
before)
designated brush fire or civil unrest areas -
...✔✔ANSWER✔✔...qualifying areas under the fair plan
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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 a health claim
in any particular claim
shortages of inventory - ...✔✔ANSWER✔✔...under crime
insurance the employee dishonesty endorsement never
covers
can the mortgagee still collect if the insured burns their
house down - ...✔✔ANSWER✔✔...yes, the mortgage
clause is a standard provision
otc covers - ...✔✔ANSWER✔✔...earthquake, flood, hail,
theft, hitting an animal, gunshots (no collision or upset)
law of large numbers - ...✔✔ANSWER✔✔...the greater the
number of insured the more accurately the prediction
where does a driver have coverage? -
...✔✔ANSWER✔✔...U.S. Canada and US possessions eg
puerto rico, guam
2025 Newest Property and Casualty Exam Prep Test
Bank with 300 Questions and Correct Answers/
Property and Casualty License Test / P & C Exam
the one basic characteristic of any type of insurance is
that the insured is returned to the same status that
existed prior to the loss, but without a chance for gain or
profit - ...✔✔ANSWER✔✔...true
which of the following coverages does an open peril
policy provide? - ...✔✔ANSWER✔✔...perils other than
those specifically named as being excluded
determine the actual cash value in the following situation:
original price of office equiptment when purchased 8
years ago- 9,000. depreciated amount at time of fire-
5,000 current replacement cost 12,000 -
...✔✔ANSWER✔✔...7,000
liquor liability - ...✔✔ANSWER✔✔...need for a dram shot,
liquor, or package store
,2|Page
inherent vice or defect - ...✔✔ANSWER✔✔...iron rusting,
milk going sour, rubber breaking down are all inherent
vices
how is hitting an animal on the road covered? -
...✔✔ANSWER✔✔...other than collision otc
medicare supplement insurance - ...✔✔ANSWER✔✔...aka
medical gap insurance. must include core benefits
ordinance or law - ...✔✔ANSWER✔✔...an endorsement
for building code upgrades
loss sustained/discovery forms under crime coverage -
...✔✔ANSWER✔✔...loss is for later than the policy period.
discovery is for before the policy (loss is later, discovery
before)
designated brush fire or civil unrest areas -
...✔✔ANSWER✔✔...qualifying areas under the fair plan
, 3|Page
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 a health claim
in any particular claim
shortages of inventory - ...✔✔ANSWER✔✔...under crime
insurance the employee dishonesty endorsement never
covers
can the mortgagee still collect if the insured burns their
house down - ...✔✔ANSWER✔✔...yes, the mortgage
clause is a standard provision
otc covers - ...✔✔ANSWER✔✔...earthquake, flood, hail,
theft, hitting an animal, gunshots (no collision or upset)
law of large numbers - ...✔✔ANSWER✔✔...the greater the
number of insured the more accurately the prediction
where does a driver have coverage? -
...✔✔ANSWER✔✔...U.S. Canada and US possessions eg
puerto rico, guam
