1|Page
PROPERTY AND CASUALTY INSURANCE
EXAM || ACTUAL QUESTIONS AND
ANSWERS PART ONE 2026
Coverage for medical payments under a personal auto policy applies to expenses
following a covered accident that are incurred and services rendered within what
maximum time period? - correct-answer -3 years
Which of the following is an example of an unfair claims settlement practice? -
correct-answer -Failure to promptly settle a claim when liability has been clearly
established
Which of the following definitions best defines the term "accident"? - correct-
answer -A sudden, unplanned and unexpected event, not under the control of the
insured, resulting in injury or damage neither expected nor intended
1|Page
,2|Page
An insured's accounts receivable records have been damaged. The loss may be
covered with - correct-answer -The accounts receivable coverage form.
Under the workers compensation system, who is responsible for the expenses
resulting from work-related injuries and occupational diseases? - correct-answer -
The employer, regardless of whether it was at fault for the injury or disease
A person applying for a manager or exclusive general agent license must meet all
of the following criteria EXCEPT - correct-answer -Be responsible for at least 25%
of total commissions collected by the office that he or she manages.
When a vehicle travels from one state to another, what happens to the limits of
policy liability in a personal auto policy? - correct-answer -They do not change.
2|Page
,3|Page
In a personal umbrella policy, the amount paid by the insured for certain losses
not covered under the primary coverage is called - correct-answer -Self-insured
retention.
Which of the following circumstances would be EXCLUDED under medical
payments coverage of a personal auto policy? - correct-answer -The insured is
injured while driving his motorcycle on his resident premises.
Which of the following is NOT an essential element of an insurance contract? -
correct-answer -Counteroffer
Which of the following persons is required to hold a producer license? - correct-
answer -A person who negotiates insurance contracts
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, 4|Page
If an insurance company wishes to order a consumer report on an applicant to
assist in the underwriting process, and if a notice of insurance information
practices has been provided, the report may contain all of the following
information EXCEPT the applicant's - correct-answer -Ancestry
Which of the following would NOT be classified as personal property for insurance
purposes? - correct-answer -A house
Under the "limited tort insurance" option, an insured may not seek recovery for
pain and suffering or other nonmonetary damages UNLESS - correct-answer -The
injuries fall within the definition of "serious injury."
Which of the following statements is true regarding the commercial general
liability policy's Coverage C - Medical Payments? - correct-answer -The coverage
is considered good will because payments are made without regard to fault.
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PROPERTY AND CASUALTY INSURANCE
EXAM || ACTUAL QUESTIONS AND
ANSWERS PART ONE 2026
Coverage for medical payments under a personal auto policy applies to expenses
following a covered accident that are incurred and services rendered within what
maximum time period? - correct-answer -3 years
Which of the following is an example of an unfair claims settlement practice? -
correct-answer -Failure to promptly settle a claim when liability has been clearly
established
Which of the following definitions best defines the term "accident"? - correct-
answer -A sudden, unplanned and unexpected event, not under the control of the
insured, resulting in injury or damage neither expected nor intended
1|Page
,2|Page
An insured's accounts receivable records have been damaged. The loss may be
covered with - correct-answer -The accounts receivable coverage form.
Under the workers compensation system, who is responsible for the expenses
resulting from work-related injuries and occupational diseases? - correct-answer -
The employer, regardless of whether it was at fault for the injury or disease
A person applying for a manager or exclusive general agent license must meet all
of the following criteria EXCEPT - correct-answer -Be responsible for at least 25%
of total commissions collected by the office that he or she manages.
When a vehicle travels from one state to another, what happens to the limits of
policy liability in a personal auto policy? - correct-answer -They do not change.
2|Page
,3|Page
In a personal umbrella policy, the amount paid by the insured for certain losses
not covered under the primary coverage is called - correct-answer -Self-insured
retention.
Which of the following circumstances would be EXCLUDED under medical
payments coverage of a personal auto policy? - correct-answer -The insured is
injured while driving his motorcycle on his resident premises.
Which of the following is NOT an essential element of an insurance contract? -
correct-answer -Counteroffer
Which of the following persons is required to hold a producer license? - correct-
answer -A person who negotiates insurance contracts
3|Page
, 4|Page
If an insurance company wishes to order a consumer report on an applicant to
assist in the underwriting process, and if a notice of insurance information
practices has been provided, the report may contain all of the following
information EXCEPT the applicant's - correct-answer -Ancestry
Which of the following would NOT be classified as personal property for insurance
purposes? - correct-answer -A house
Under the "limited tort insurance" option, an insured may not seek recovery for
pain and suffering or other nonmonetary damages UNLESS - correct-answer -The
injuries fall within the definition of "serious injury."
Which of the following statements is true regarding the commercial general
liability policy's Coverage C - Medical Payments? - correct-answer -The coverage
is considered good will because payments are made without regard to fault.
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