PROPERTY & CASUALTY INSURANCE PRACTICE EXAM 2026 |
PRACTICE QUESTIONS & VERIFIED ANSWERS | LICENSING
EXAM PREP
All the following are considered an insured under Part A liability
coverage, of the personal auto policy EXCEPT! - Precise Answer
✔✔Employer while insured is driving a company car.
A bank customer's identity was compromised and the thieves made
numerous purchases from a retailer by signing the customer's checks.
When the bank refused to make payment for the goods, the retailer
brought suit against the bank. which coverage indemnified the bank for
liability in the suit? - Precise Answer ✔✔Forgery and alteration
Which of the following best describes the CGL's general aggregate
annual limit as it applies to the coverage parts of the CGL? - Precise
Answer ✔✔Coverage A, B and C apply in sum and are the most that
will be paid subject to the general aggregate annual limit.
Which type of crime listed below best describes someone who waits
until store personnel are preoccupied and pockets merchandise while no
one is looking and leaves without detection? - Precise Answer ✔✔Theft
The claims-made liability form provides coverage from a date that
precedes the policy effective date. Which of the following defines that
date? - Precise Answer ✔✔retroactive date
Which of the following is how defense costs are paid in relation to the
limit of insurance under the personal auto policy for bodily injury and
property damage part A-liability coverage? - Precise Answer ✔✔in
excess of the limit
A cable company uses employees to install equipment in the customers
homes. THe company purchases a bond from an insurance company to
, protect itself from potential dishonest acts of the employees. Which of
the following types of bond does the cable company purchase? - Precise
Answer ✔✔fidelity bond
Exclusions common to liability coverage for both the personal auto
policy and the business auto policy include all the following EXCEPT -
Precise Answer ✔✔for liability arising while the insured auto is being
used in an auto business.
An extended reporting period attached to a general liability policy
provides coverage in which of the following ways? - Precise Answer
✔✔It provides coverage for claims made outside the policy term.
Which one of the following persons would be covered for accidental
injury on the insured's premises under Coverage C of the CGL Medical
Payments? - Precise Answer ✔✔A volunteer worker
In which of the following situations would worker compensation
benefits be covered for an injured employee? - Precise Answer ✔✔a slip
and fall while on the job at work
All of the following are common exclusions in a liability policy
EXCEPT - Precise Answer ✔✔damage caused by acts of civil
disobedience and riots.
An injured employee covered under workers compensation is entitled to
reasonably justifiable expenses for retraining. this benefit falls under
which of the following? - Precise Answer ✔✔vocational rehabilitation
For the CGL coverages of bodily injury, property damage and medical
payments, which of the following limits of insurance apply if the
aggregate limit is NOT met? - Precise Answer ✔✔per occurence
PRACTICE QUESTIONS & VERIFIED ANSWERS | LICENSING
EXAM PREP
All the following are considered an insured under Part A liability
coverage, of the personal auto policy EXCEPT! - Precise Answer
✔✔Employer while insured is driving a company car.
A bank customer's identity was compromised and the thieves made
numerous purchases from a retailer by signing the customer's checks.
When the bank refused to make payment for the goods, the retailer
brought suit against the bank. which coverage indemnified the bank for
liability in the suit? - Precise Answer ✔✔Forgery and alteration
Which of the following best describes the CGL's general aggregate
annual limit as it applies to the coverage parts of the CGL? - Precise
Answer ✔✔Coverage A, B and C apply in sum and are the most that
will be paid subject to the general aggregate annual limit.
Which type of crime listed below best describes someone who waits
until store personnel are preoccupied and pockets merchandise while no
one is looking and leaves without detection? - Precise Answer ✔✔Theft
The claims-made liability form provides coverage from a date that
precedes the policy effective date. Which of the following defines that
date? - Precise Answer ✔✔retroactive date
Which of the following is how defense costs are paid in relation to the
limit of insurance under the personal auto policy for bodily injury and
property damage part A-liability coverage? - Precise Answer ✔✔in
excess of the limit
A cable company uses employees to install equipment in the customers
homes. THe company purchases a bond from an insurance company to
, protect itself from potential dishonest acts of the employees. Which of
the following types of bond does the cable company purchase? - Precise
Answer ✔✔fidelity bond
Exclusions common to liability coverage for both the personal auto
policy and the business auto policy include all the following EXCEPT -
Precise Answer ✔✔for liability arising while the insured auto is being
used in an auto business.
An extended reporting period attached to a general liability policy
provides coverage in which of the following ways? - Precise Answer
✔✔It provides coverage for claims made outside the policy term.
Which one of the following persons would be covered for accidental
injury on the insured's premises under Coverage C of the CGL Medical
Payments? - Precise Answer ✔✔A volunteer worker
In which of the following situations would worker compensation
benefits be covered for an injured employee? - Precise Answer ✔✔a slip
and fall while on the job at work
All of the following are common exclusions in a liability policy
EXCEPT - Precise Answer ✔✔damage caused by acts of civil
disobedience and riots.
An injured employee covered under workers compensation is entitled to
reasonably justifiable expenses for retraining. this benefit falls under
which of the following? - Precise Answer ✔✔vocational rehabilitation
For the CGL coverages of bodily injury, property damage and medical
payments, which of the following limits of insurance apply if the
aggregate limit is NOT met? - Precise Answer ✔✔per occurence
