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PEARSON VUE: CASUALTY INSURANCE
PRACTICE EXAM WITH VERIFIED
SOLUTIONS 2026
An insured may cancel a Personal Auto Policy by taking which of the following
actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone - correct-answer -C
In insurance, which of the following terms refers to continuous or repeated
exposure to conditions that may result in bodily injury or damage neither
expected nor intended?
A. An accident
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B. An occurrence
C. An event
D. A condition - correct-answer -B
Which of the following vehicles is considered a temporary substitute auto under a
Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an errand
B. An auto purchased by an insured to replace a previously owned vehicle
C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a garage for repairs -
correct-answer -D
Which of the following statements best describes a representation in an insurance
application?
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A. It is a statement made by the insured that certain conditions exist at the time of
application.
B. It is a promise made by the insured that certain conditions will continue to exist
throughout the policy term.
C. It explains the promises of the insurance company.
D. It is part of the Insuring Agreement. - correct-answer -A
If an insured intentionally conceals a material fact about an auto to be covered by
a policy, coverage may be:
A. voided
B. suspended
C. reduced
D. restricted - correct-answer -A
PEARSON VUE: CASUALTY INSURANCE
PRACTICE EXAM WITH VERIFIED
SOLUTIONS 2026
An insured may cancel a Personal Auto Policy by taking which of the following
actions?
A. Paying the insurance company any past due premiums
B. Waiting until the policy expiration date
C. Giving written notice to the insurance company
D. Informing the producer by telephone - correct-answer -C
In insurance, which of the following terms refers to continuous or repeated
exposure to conditions that may result in bodily injury or damage neither
expected nor intended?
A. An accident
,2|Page
B. An occurrence
C. An event
D. A condition - correct-answer -B
Which of the following vehicles is considered a temporary substitute auto under a
Personal Auto policy?
A. A neighbor's pickup truck borrowed by an insured to run an errand
B. An auto purchased by an insured to replace a previously owned vehicle
C. An auto rented by an insured when the insured is on vacation
D. An auto rented by an insured when the insured's car is in a garage for repairs -
correct-answer -D
Which of the following statements best describes a representation in an insurance
application?
, 3|Page
A. It is a statement made by the insured that certain conditions exist at the time of
application.
B. It is a promise made by the insured that certain conditions will continue to exist
throughout the policy term.
C. It explains the promises of the insurance company.
D. It is part of the Insuring Agreement. - correct-answer -A
If an insured intentionally conceals a material fact about an auto to be covered by
a policy, coverage may be:
A. voided
B. suspended
C. reduced
D. restricted - correct-answer -A
