Property & Casualty Insurance License Readiness Test

10 questions, balanced across the exam's topics. Answer each one, then submit for your practice readiness estimate and per-topic breakdown. This is a practice estimate — not a prediction or guarantee of your official exam result.

After your result, you can start studying right away: the first questions of the full practice bank are free, with no card required.

Question 1

A covered property loss is $30,000 with a $2,500 deductible and 70% coinsurance. How much does the insurer pay?

$21,000 $19,250 $27,500 $25,000

Question 2

By contrast with property insurance, insurable interest in a person's life generally must exist:

At the time of the insured's death only Continuously on every policy anniversary At the time the policy is taken out (inception) Only if the beneficiary is a creditor

Question 3

The cancellation notice for nonpayment of premium: what is the correct days?

10.5 days 9.5 days 11 days 10 days

Question 4

What does the term "Insurable interest" mean?

the principle that larger risk pools make losses more predictable a financial interest in the insured's life or property, required when a life policy is issued dishonest tendencies that increase risk, such as arson for insurance proceeds carelessness or indifference that increases the chance of a loss

Question 5

Which term is defined as: "the chief official regulating insurance within a state"

Nonadmitted insurer Guaranty association Surplus lines State insurance commissioner

Question 6

What does the term "Medical benefits (workers' comp)" mean?

workers' compensation payments to survivors of a fatal job injury managed care with discounted in-network rates and higher-cost out-of-network coverage workers' compensation coverage of medical treatment for job injuries the annual cap on the insured's deductible, coinsurance, and copayments

Question 7

Before opening for business, a mortgage broker must file a bond with the state guaranteeing that it will comply with state licensing laws and regulations and account for funds it receives. This type of bond is a:

License and permit bond Performance bond Payment bond Fidelity bond

Question 8

An annual premium is $3,600. What is the quarterly premium using a 0.26 modal factor?

$936 $1,872 $900 $3,600

Question 9

Which of the following best exemplifies property valuation methods?

Rehabilitation benefits (workers' comp) Replacement cost Fraternal benefit society Defamation

Question 10

Which term is defined as: "the perils, property, or situations the policy does not cover"

Exclusions Consideration clause Reinstatement provision Nonrenewal

Unanswered questions count as incorrect. Your answers are graded on the server; no answer key is sent to your browser.

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