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Free Property and Casualty Consultant Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Property and Casualty Consultant practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A homeowner's building has open-peril protection, but the home's contents are insured only against broad named perils. Which homeowners form matches this arrangement?

    1. A. HO-2 broad form
    2. B. HO-3 special form
    3. C. HO-5 comprehensive form
    4. D. HO-8 modified form

    Answer: B

    Explanation: NAIC describes HO-3 as providing "broad named-peril coverage on personal property" while the building has open-peril coverage. HO-5 extends open-peril treatment to both building and contents; HO-2 and HO-8 are different forms.

    Reference: NAIC Homeowners Report — Homeowners policy form descriptions, HO-3

  2. 2A rental company owns machines leased to several businesses. One machine is destroyed during a lessee's use. Which lease provision would give that lessee an insurable interest in the machine?

    1. A. The lessee must replace the machine if destroyed
    2. B. The lessee may relocate the machine with consent
    3. C. The lessee may request routine maintenance service
    4. D. The lessee may select authorized machine operators

    Answer: A

    Explanation: NAIC defines insurable interest by whether the lessee "can suffer a financial loss" from the machine damage. A duty to replace the destroyed machine creates that exposure; the other lease rights govern use or service without imposing replacement liability.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Insurable Interest

  3. 3Before evaluating a house fire claim, a consultant needs to confirm the insured property's address, effective dates, and coverage limit shown on the policy. Which part should be checked?

    1. A. The declarations or information page
    2. B. The insuring agreement alone
    3. C. The general conditions section
    4. D. The exclusions section alone

    Answer: A

    Explanation: NAIC states the "declaration/information page" identifies the insured address, effective dates, coverages, and limits. The other sections explain coverage terms and conditions rather than those policy-specific entries.

    Reference: NAIC Understanding Your Homeowners or Renter's Policy — The Policy, declaration/information page

  4. 4A customer is injured by a store's operations and claims damages from the store. Which business coverage is designed for that third-party bodily-injury exposure?

    1. A. Commercial general liability
    2. B. Workers' compensation
    3. C. Commercial auto liability
    4. D. Professional errors and omissions

    Answer: A

    Explanation: NAIC lists "Bodily injury" among CGL liability exposures. The claimant is a customer, not an employee injured at work, and no vehicle or professional-service error is involved.

    Reference: NAIC Small Business Insurance — General liability insurance, covered event categories

  5. 5A store manager sees spilled oil on a walkway, leaves it there through customer hours, and a visitor slips and is injured. Which liability theory fits the manager's conduct and resulting injury?

    1. A. Negligence
    2. B. Strict liability
    3. C. Vicarious liability
    4. D. Contractual liability

    Answer: A

    Explanation: NAIC defines negligence as "failure to exercise reasonable consideration resulting in loss or damage". Leaving a known hazard untreated before a visitor is hurt fits that theory; the facts do not establish strict liability, responsibility only for another person, or liability assumed by contract.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Negligence

  6. 6A business receives a customer's liability demand. To satisfy the commercial policy's prompt claims-reporting duty, who should receive the demand?

    1. A. The business's broker-agent or liability insurer
    2. B. Outside defense counsel retained by the business
    3. C. The state insurance regulator's consumer office
    4. D. The injured claimant's own liability insurer

    Answer: A

    Explanation: California's guide requires the insured to "report all claims in a timely manner" to the broker-agent or insurer. Counsel, the regulator, and the claimant's carrier may receive information for other reasons, but they do not replace notice to the business's insurer.

    Reference: California Department of Insurance Commercial Insurance Guide — Claims, insured reporting duty

  7. 7Who appoints the Wyoming insurance commissioner when the office is filled?

    1. A. The governor
    2. B. The state treasurer
    3. C. The attorney general
    4. D. The secretary of state

    Answer: A

    Explanation: W.S. 26-2-102(b) states, "The commissioner shall be appointed by the governor." The governor, rather than another statewide officer, therefore makes the appointment.

    Reference: Wy Title 26 — W.S. 26-2-102(b)

  8. 8An insurer mails a cancellation notice to the insured and agent at their last addresses of record. Under Wyoming Chapter 35, when is notice deemed given?

    1. A. When deposited in the U.S. mail with postage prepaid
    2. B. Three days after deposit
    3. C. When the insured signs a receipt
    4. D. When the agent opens the notice

    Answer: A

    Explanation: W.S. 26-35-101 states, "If mailed, notice shall be deemed given when deposited in the United States mail, postage prepaid." Proof of mailing is sufficient proof of notice.

    Reference: Wy Title 26 — W.S. 26-35-101

  9. 9For how long must proof of financial responsibility generally be maintained after Wyoming first requires it?

    1. A. One year
    2. B. Two years
    3. C. Three years
    4. D. Five years

    Answer: C

    Explanation: W.S. 31-9-401(e) requires proof to be maintained "for three (3) years from the date it is required," subject to the statutory exception. The other periods do not state Wyoming's general rule.

    Reference: Wy Title 31 — W.S. 31-9-401(e)

  10. 10A client rents an apartment and wants broad named-peril protection for the client's unscheduled belongings rather than coverage for an owned condominium unit. Which form fits?

    1. A. HO-2 broad homeowners form
    2. B. HO-3 special homeowners form
    3. C. HO-4 renter's form
    4. D. HO-6 condominium owner's form

    Answer: C

    Explanation: The NAIC identifies the "HO-4 (Renter’s Form)" as covering unscheduled personal property on a broad named-perils basis. HO-6 addresses a unit owner's real-property interest, which the renter lacks.

    Reference: NAIC Homeowners Market Data Call: 2025 Updated Definitions — Homeowners Policy Forms, HO-4 and HO-6

Topics in this practice bank

These topics describe the available practice for Property and Casualty Consultant. Review the examination outline and its sources for scope and allocation details.

  • Property–General Knowledge — I. TYPES OF PROPERTY POLICIES
    • Homeowners
    • Homeowners > HO-2
    • Homeowners > HO-3
    • Homeowners > HO-4
    • Homeowners > HO-5
    • Homeowners > HO-6
    • Homeowners > HO-8
    • Dwelling policies
    • Dwelling policies > DP-1
    • Dwelling policies > DP-2
    • Dwelling policies > DP-3
    • Commercial lines
    • Commercial lines > Commercial Package Policy (CPP)
    • Commercial lines > Commercial property
    • Commercial lines > Commercial property > Commercial building and business personal property form
    • Commercial lines > Commercial property > Causes of loss forms
    • Commercial lines > Commercial property > Business income
    • Commercial lines > Commercial property > Extra expense
    • Commercial lines > Commercial property > Equipment breakdown
    • Commercial lines > Business Owners Policy (BOP)
    • Commercial lines > Builders Risk
    • Commercial lines > Cyber First-Party Coverage
    • Inland marine
    • Inland marine > Personal Articles floaters
    • Inland marine > Commercial Property floaters
    • National Flood Insurance Program
    • Others
    • Others > Earthquake
    • Others > Mobile Homes
    • Others > Watercraft
    • Others > Farm Owners
    • Others > Windstorm
  • Property–General Knowledge — II. INSURANCE TERMS AND RELATED CONCEPTS
    • Insurance
    • Insurance > Law of Large Numbers
    • Insurable interest
    • Risk
    • Risk > Pure vs. Speculative Risk
    • Hazard
    • Hazard > Moral
    • Hazard > Morale
    • Hazard > Physical
    • Peril
    • Loss
    • Loss > Direct
    • Loss > Indirect
    • Loss Valuation
    • Loss Valuation > Actual cash value
    • Loss Valuation > Replacement cost
    • Loss Valuation > Market value
    • Loss Valuation > Stated/agreed value
    • Loss Valuation > Salvage value
    • Proximate cause
    • Deductible
    • Indemnity
    • Limits of liability
    • Coinsurance/Insurance to value
    • Occurrence
    • Cancellation
    • Nonrenewal
    • Vacancy and unoccupancy
    • Liability
    • Liability > Absolute
    • Liability > Strict
    • Liability > Vicarious
    • Negligence
    • Binder
    • Endorsements
    • Blanket vs. Specific
  • Property–General Knowledge — III. PROPERTY POLICY PROVISIONS AND CONTRACT LAW
    • Declarations
    • Insuring agreement
    • Conditions
    • Exclusions
    • Definition of the insured
    • Duties of the insured
    • Obligations of the insurance company
    • Mortgagee rights
    • Proof of loss
    • Notice of claim
    • Appraisal
    • Other Insurance Provision
    • Subrogation
    • Elements of a contract
    • Warranties, representations, and concealment
    • Sources of underwriting information
    • Fair Credit Reporting Act
    • Privacy Protection (Gramm Leach Bliley)
    • Policy Application
    • Terrorism Risk Insurance Act (TRIA)
    • Territory
  • Casualty–General Knowledge — I. TYPES OF CASUALTY POLICIES, BONDS, AND RELATED TERMS
    • Commercial general liability
    • Commercial general liability > Exposures
    • Commercial general liability > Exposures > Premises and Operations
    • Commercial general liability > Exposures > Products and Completed Operations
    • Commercial general liability > Coverage
    • Commercial general liability > Coverage > Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • Commercial general liability > Coverage > Coverage B: Personal Injury and Advertising Injury
    • Commercial general liability > Coverage > Coverage C: Medical Payments
    • Commercial general liability > Coverage > Supplemental Payments
    • Commercial general liability > Coverage > Who is an insured
    • Commercial general liability > Coverage > First named insured
    • Commercial general liability > Coverage > Limits (Per occurrence, Annual Aggregate)
    • Commercial general liability > Coverage > Damage to Property of Others
    • Automobile: personal auto and business auto
    • Automobile: personal auto and business auto > Liability
    • Automobile: personal auto and business auto > Liability > Bodily Injury
    • Automobile: personal auto and business auto > Liability > Property Damage
    • Automobile: personal auto and business auto > Liability > Split Limits
    • Automobile: personal auto and business auto > Liability > Combined Single Limit
    • Automobile: personal auto and business auto > Medical Payments
    • Automobile: personal auto and business auto > Physical Damage (collision; other than collision; specified perils)
    • Automobile: personal auto and business auto > Uninsured motorists
    • Automobile: personal auto and business auto > Underinsured motorists
    • Automobile: personal auto and business auto > Who is an insured
    • Automobile: personal auto and business auto > Types of Auto
    • Automobile: personal auto and business auto > Types of Auto > Owned
    • Automobile: personal auto and business auto > Types of Auto > Non-owned
    • Automobile: personal auto and business auto > Types of Auto > Hired
    • Automobile: personal auto and business auto > Types of Auto > Temporary Substitute
    • Automobile: personal auto and business auto > Types of Auto > Newly Acquired Autos
    • Automobile: personal auto and business auto > Types of Auto > Transportation Expense and Rental Reimbursement Expense
    • Automobile: personal auto and business auto > Auto Dealers Coverage Form, including Garagekeepers Insurance
    • Automobile: personal auto and business auto > Exclusions
    • Automobile: personal auto and business auto > Individual Insured and Drive Other Car (DOC)
    • Automobile: personal auto and business auto > Mobile equipment
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Standard policy concepts
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Standard policy concepts > Who is an employee/employer
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Standard policy concepts > Compensation
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Work-related vs. non-work-related
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Other states’ insurance
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Employers Liability
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Exclusive remedy
    • Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > Premium Determination
    • Crime
    • Crime > Employee Dishonesty
    • Crime > Theft
    • Crime > Robbery
    • Crime > Burglary
    • Crime > Forgery and Alteration
    • Crime > Mysterious disappearance
    • Bonds
    • Bonds > Surety
    • Bonds > Fidelity
    • Professional liability
    • Professional liability > Errors and Omissions
    • Professional liability > Medical Malpractice
    • Professional liability > Directors and Officers (D&O)
    • Professional liability > Employment Practices Liability (EPLI)
    • Professional liability > Cyber liability and data breach
    • Professional liability > Liquor liability
    • Umbrella/Excess Liability
    • Business Owners Policy (BOP)
  • Casualty–General Knowledge — II. INSURANCE TERMS AND RELATED CONCEPTS
    • Risk
    • Hazards
    • Hazards > Moral
    • Hazards > Morale
    • Hazards > Physical
    • Indemnity
    • Insurable interest
    • Loss valuation
    • Loss valuation > Actual cash value
    • Loss valuation > Replacement cost
    • Loss valuation > Market value
    • Loss valuation > Stated/agreed value
    • Loss valuation > Salvage value
    • Negligence
    • Liability
    • Occurrence
    • Binders
    • Warranties
    • Representations
    • Concealment
    • Deposit Premium/Audit
    • Certificate of Insurance
    • Law of Large Numbers
    • Pure vs. Speculative Risk
    • Endorsements
    • Damages
    • Damages > Compensatory
    • Damages > Compensatory > General
    • Damages > Compensatory > Special
    • Damages > Punitive
    • Compliance with provisions of Fair Credit Reporting Act
  • Casualty–General Knowledge — III. CASUALTY POLICY PROVISIONS
    • Declarations
    • Insuring agreement
    • Conditions
    • Exclusions and Limitations
    • Definition of the insured
    • Duties of the insured after a loss
    • Cancellation and nonrenewal provisions
    • Supplementary payments
    • Proof of loss
    • Notice of claim
    • Other insurance
    • Subrogation
    • Loss settlement provisions including consent to settle a loss
    • Terrorism Risk Insurance Act (TRIA)
  • Wyoming Specific — I. WYOMING STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, ACCIDENT AND HEALTH, PROPERTY, AND CASUALTY INSURANCE
    • Insurance Commissioner
    • Insurance Commissioner > Appointment
    • Insurance Commissioner > General powers and duties
    • Insurance Commissioner > Examinations
    • Insurance Commissioner > Orders and hearings
    • Insurance Commissioner > Penalties
    • Definitions
    • Definitions > Domestic company
    • Definitions > Foreign company
    • Definitions > Alien company
    • Definitions > Stock and mutual companies and reciprocals
    • Definitions > Reciprocal
    • Definitions > Certificate of authority
    • Licensing
    • Licensing > Persons required to be licensed
    • Licensing > Persons required to be licensed > Producer/business entity
    • Licensing > Persons required to be licensed > Producer acting as broker
    • Licensing > Persons required to be licensed > Consultant
    • Licensing > Persons required to be licensed > Limited lines
    • Licensing > Persons required to be licensed > Surplus lines broker
    • Licensing > Persons required to be licensed > Nonresident
    • Licensing > Persons required to be licensed > Temporary license
    • Licensing > Agent appointment/termination of contract
    • Licensing > Obtaining a license
    • Licensing > Obtaining a license > Qualifications
    • Licensing > Obtaining a license > Exemptions/exceptions
    • Licensing > Obtaining a license > License denial
    • Licensing > Maintaining a license
    • Licensing > Maintaining a license > Continuing education
    • Licensing > Maintaining a license > Change of address
    • Licensing > Maintaining a license > Fees/renewal/reinstatement
    • Licensing > Maintaining a license > License expiration/termination
    • Licensing > Maintaining a license > Suspension or revocation of licenses
    • Licensing > Maintaining a license > Reporting of actions
    • Licensing > Maintaining a license > Penalties
    • Producer responsibilities
    • Producer responsibilities > Fiduciary capacity
    • Producer responsibilities > Fiduciary capacity > Premium accountability
    • Producer responsibilities > Fiduciary capacity > Separate account requirements
    • Producer responsibilities > Commissions and compensation
    • Producer responsibilities > Place of business of licensees/display of licenses/records
    • Producer responsibilities > Agency vs. individual licensee
    • Unfair trade practices
    • Unfair trade practices > Boycott, coercion, intimidation
    • Unfair trade practices > Controlled business
    • Unfair trade practices > Defamation
    • Unfair trade practices > False advertising
    • Unfair trade practices > False financial statements
    • Unfair trade practices > Fraud
    • Unfair trade practices > Misrepresentation
    • Unfair trade practices > Rebates/illegal inducements
    • Unfair trade practices > Unfair discrimination
    • Unfair trade practices > Unfair claims settlement practices
    • Wyoming Insurance Guaranty Association
    • Consumer privacy regulation
  • Wyoming Specific — II. WYOMING STATUTES, RULES AND REGULATIONS COMMON TO PROPERTY AND CASUALTY INSURANCE ONLY
    • Renewal, Nonrenewal, Cancellation
    • Binders
    • Payment of claims
    • Terrorism Risk Insurance Act of 2002 and Extension Act of 2005
  • Wyoming Specific — III. WYOMING STATUTES, RULES, AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLY
    • Automobile Insurance
    • Automobile Insurance > Financial responsibility
    • Automobile Insurance > Financial responsibility > Proof of financial responsibility
    • Automobile Insurance > Financial responsibility > Persons required to show proof
    • Automobile Insurance > Financial responsibility > Penalty for noncompliance
    • Automobile Insurance > Financial responsibility > Methods for satisfying financial responsibility
    • Automobile Insurance > Uninsured/underinsured motorists coverage
    • Automobile Insurance > Uninsured/underinsured motorists coverage > Required coverages
    • Automobile Insurance > Uninsured/underinsured motorists coverage > Required coverages > Bodily injury
    • Automobile Insurance > Uninsured/underinsured motorists coverage > Option for additional coverage
    • Automobile Insurance > Cancellation/nonrenewal
    • Automobile Insurance > Wyoming Automobile Insurance (Assigned Risk) Plan
    • Workers’ Compensation
    • Surplus Lines

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