Property & Casualty Insurance License MCQ Flashcards
7 cards from real P&C practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Property & Casualty Insurance License MCQ flashcards as text
Under a standard homeowners policy, which of the following losses would typically be EXCLUDED?
Answer: Flood damage from a rising river
Flood damage caused by rising bodies of water is excluded under standard homeowners policies and requires a separate NFIP or private flood policy.
The 'other structures' coverage in a homeowners policy typically provides what percentage of the dwelling coverage limit?
Answer: 10%
Coverage B (Other Structures) is typically set at 10% of the Coverage A (dwelling) limit under standard HO policies.
An insured's car is damaged by a hit-and-run driver. Which auto coverage would pay for the insured's vehicle repairs?
Answer: Uninsured Motorist Property Damage
Uninsured Motorist Property Damage (UMPD) covers vehicle damage caused by an uninsured or unidentified (hit-and-run) driver.
Which insurance principle prevents an insured from profiting from a loss by collecting from both their own insurer and a negligent third party for the same damage?
Answer: Subrogation
Subrogation allows the insurer to recover from a negligent third party after paying the insured, preventing the insured from receiving a double recovery.
A Commercial General Liability (CGL) policy's 'occurrence' trigger means coverage applies when:
Answer: The injury or damage occurs during the policy period
Under an occurrence-based CGL, coverage is triggered when the bodily injury or property damage actually occurs, regardless of when the claim is made.
What does the term 'named perils' mean in a property insurance policy?
Answer: The policy only covers losses caused by perils explicitly listed in the policy
A named perils policy only provides coverage for losses caused by perils that are specifically listed and identified in the policy.
Under personal auto policies, 'stacking' of uninsured motorist limits refers to:
Answer: Combining UM limits from multiple vehicles or policies to increase available coverage
Stacking allows an insured to combine UM/UIM limits from multiple insured vehicles or policies, though many states prohibit or restrict this practice.