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Free Producer - Casualty Practice Questions

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Sample Practice Questions

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

  1. 1A contractor finishes installing a handrail. Two months later, it detaches and injures a customer. Which CGL exposure best describes the resulting liability?

    1. A. Products liability
    2. B. Premises liability
    3. C. Completed operations
    4. D. Ongoing operations

    Answer: C

    Explanation: The guide states, "Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work." The work had ended before the injury; premises and ongoing operations concern conditions or work in progress, while products liability concerns goods.

    Reference: California Department of Insurance, Commercial Insurance Guide — Commercial General Liability > Coverage

  2. 2An insured becomes careless about locking an insured warehouse because any theft would be insured, but has no intent to cause a theft. Which type of hazard is illustrated?

    1. A. Physical hazard
    2. B. Moral hazard
    3. C. Legal hazard
    4. D. Morale hazard

    Answer: D

    Explanation: The insurance regulator distinguishes morale hazard as "a certain indifference to loss simply because of the existence of" insurance, without a propensity to cause loss. That fits careless indifference; a physical hazard is a condition of the property, and moral hazard involves character or incentive to cause loss.

    Reference: West Virginia Insurance Commission, 2016 Auto Survey — Glossary, p. 62: Morale hazard

  3. 3A producer needs to confirm the named insured, policy period, and stated coverage limits on a client's issued auto policy. Which policy part should be checked first?

    1. A. Declarations page
    2. B. Insuring agreement
    3. C. Exclusions section
    4. D. General conditions

    Answer: A

    Explanation: The NAIC auto guide says the declarations page provides "information including the policy term, coverage limits, and information about the insured." The insuring agreement grants risks covered; exclusions and conditions address other contract terms.

    Reference: NAIC, Consumer's Guide to Auto Insurance — Declarations Page

  4. 4A resident seeks a Massachusetts casualty producer license and has no exemption. What is required?

    1. A. Pass the written examination for the requested line
    2. B. Obtain a public-adjuster license first
    3. C. Wait one year after applying
    4. D. Secure a claim before testing

    Answer: A

    Explanation: An unexempt resident applicant must pass a written examination on the requested line, producer duties, and Massachusetts law. The controlling text states: "shall pass a written examination".

    Reference: General Law - Part I, Title XXII, Chapter 175, Section 162K — §162K(a)

  5. 5For how long does the surplus-lines affidavit filed under Section 168 remain effective?

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

    Answer: B

    Explanation: The filed surplus-lines affidavit remains effective for one year from policy issuance or expiration, whichever is later. The controlling text states: "The affidavit shall have force and effect for 1 year".

    Reference: General Law - Part I, Title XXII, Chapter 175, Section 168 — §168

  6. 6A Massachusetts claims-made CGL policy runs from July 1, 2025 through June 30, 2026, has a January 1, 2023 retroactive date, and has no extended reporting period. Which timing can satisfy the policy's claims-made trigger?

    1. A. Injury in April 2024; first claim reported in September 2025
    2. B. Injury in April 2022; first claim reported in September 2025
    3. C. Injury in April 2024; first claim reported in September 2026
    4. D. Injury in April 2022; first claim reported in September 2026

    Answer: A

    Explanation: The guidance places prior injury "after the retroactive date of the" policy and requires that "the first notice of a claim is made during the policy" period or an extended period. Only A meets both conditions; B predates the retroactive date, C is reported after expiry, and D fails both.

    Reference: Massachusetts Division of Insurance, Policy Filing Guidance 2011-A — Policy Filing Guidance 2011-A, p. 1, claims-made definition

  7. 7A claimant seeks $18,000 for a covered property loss, although the documented financial loss is $12,000 and no valued-policy term applies. Which principle limits ordinary recovery to the loss?

    1. A. Law of large numbers
    2. B. Principle of indemnity
    3. C. Doctrine of subrogation
    4. D. Insurable interest

    Answer: B

    Explanation: The NAIC says the insured "should be restored to the approximate financial position he or she was in prior to the loss." Indemnity limits recovery to the loss rather than creating a gain. The other concepts concern pooling, third-party recovery, or financial relationship to the property.

    Reference: NAIC Glossary of Insurance Terms — Glossary: Indemnity, Principle of

  8. 8An insured wants to find the policy's initial statement of which accident risks the insurer agrees to cover. Which provision supplies that coverage grant?

    1. A. Declarations page
    2. B. Coverage territory clause
    3. C. Insuring agreement
    4. D. Exclusions section

    Answer: C

    Explanation: The NAIC explains that the insuring agreement gives "a broad statement listing the perils and risks covered under the contract." Declarations identify policy particulars, a territory clause limits geography, and exclusions remove specified matters.

    Reference: NAIC, Consumer's Guide to Auto Insurance — Insuring Agreement

  9. 9Which credential authorizes an individual to sell, solicit, or negotiate casualty insurance?

    1. A. A public-adjuster license
    2. B. A producer license with casualty authority
    3. C. An insurer certificate of authority
    4. D. A damage-appraiser license

    Answer: B

    Explanation: Massachusetts grants transaction authority by the line carried on the producer license. The controlling text states: "Casualty, insurance coverage against legal liability".

    Reference: General Law - Part I, Title XXII, Chapter 175, Section 162M — §162M

  10. 10Is the Massachusetts Insurers Insolvency Fund obligated to pay a first-party claim by a high-net-worth insured?

    1. A. Yes, without any statutory limitation
    2. B. Yes, but only up to $50,000
    3. C. No, such first-party claims are excluded
    4. D. Yes, but only for unearned premium

    Answer: C

    Explanation: Section 12 states that the Fund is not obligated to pay first-party claims by a high-net-worth insured. The controlling text states: "The Fund shall not be obligated to pay any first-party claims by a high net worth insured".

    Reference: General Law - Part I, Title XXII, Chapter 175D, Section 12 — M.G.L. c. 175D, §12(b)(2)

Topics in this practice bank

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

  • GENERAL KNOWLEDGE I. CASUALTY: TYPES OF POLICIES, BONDS, AND RELATED TERMS
    • A. Commercial general liability
    • A. Commercial general liability > 1. Exposures
    • A. Commercial general liability > 1. Exposures > a. Premises and Operations
    • A. Commercial general liability > 1. Exposures > b. Products and Completed Operations
    • A. Commercial general liability > 2. Coverage
    • A. Commercial general liability > 2. Coverage > a. Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • A. Commercial general liability > 2. Coverage > b. Coverage B: Personal Injury and Advertising Injury
    • A. Commercial general liability > 2. Coverage > c. Coverage C: Medical Payments
    • A. Commercial general liability > 2. Coverage > d. Supplemental Payments
    • A. Commercial general liability > 2. Coverage > e. Who is an insured
    • A. Commercial general liability > 2. Coverage > f. First named insured
    • A. Commercial general liability > 2. Coverage > g. Limits (Per occurrence, Annual Aggregate)
    • A. Commercial general liability > 2. Coverage > h. Damage to Property of Others
    • B. Automobile: personal auto and business auto
    • B. Automobile: personal auto and business auto > 1. Liability
    • B. Automobile: personal auto and business auto > 1. Liability > a. Bodily Injury
    • B. Automobile: personal auto and business auto > 1. Liability > b. Property Damage
    • B. Automobile: personal auto and business auto > 1. Liability > c. Split Limits
    • B. Automobile: personal auto and business auto > 1. Liability > d. Combined Single Limit
    • B. Automobile: personal auto and business auto > 2. Medical Payments
    • B. Automobile: personal auto and business auto > 3. Physical Damage (collision; other than collision; specified perils)
    • B. Automobile: personal auto and business auto > 4. Uninsured motorists
    • B. Automobile: personal auto and business auto > 5. Underinsured motorists
    • B. Automobile: personal auto and business auto > 6. Who is an insured
    • B. Automobile: personal auto and business auto > 7. Types of Auto
    • B. Automobile: personal auto and business auto > 7. Types of Auto > a. Owned
    • B. Automobile: personal auto and business auto > 7. Types of Auto > b. Non-owned
    • B. Automobile: personal auto and business auto > 7. Types of Auto > c. Hired
    • B. Automobile: personal auto and business auto > 7. Types of Auto > d. Temporary Substitute
    • B. Automobile: personal auto and business auto > 7. Types of Auto > e. Newly Acquired Autos
    • B. Automobile: personal auto and business auto > 7. Types of Auto > f. Transportation Expense and Rental Reimbursement Expense
    • B. Automobile: personal auto and business auto > 8. Auto Dealers Coverage Form, including Garagekeepers Insurance
    • B. Automobile: personal auto and business auto > 9. Exclusions
    • B. Automobile: personal auto and business auto > 10. Individual Named Insured and Drive Other Car (DOC)
    • B. Automobile: personal auto and business auto > 11. Mobile equipment
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 1. Standard policy concepts
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 1. Standard policy concepts > a. Who is an employee/employer
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 1. Standard policy concepts > b. Compensation
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 2. Work-related vs. non-work-related
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 3. Other states’ insurance
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 4. Employers Liability
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 5. Exclusive remedy
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues > 6. Premium Determination
    • D. Crime
    • D. Crime > 1. Employee Dishonesty
    • D. Crime > 2. Theft
    • D. Crime > 3. Robbery
    • D. Crime > 4. Burglary
    • D. Crime > 5. Forgery and Alteration
    • D. Crime > 6. Mysterious disappearance
    • E. Bonds
    • E. Bonds > 1. Surety
    • E. Bonds > 2. Fidelity
    • F. Professional liability
    • F. Professional liability > 1. Errors and Omissions
    • F. Professional liability > 2. Medical Malpractice
    • F. Professional liability > 3. Directors and Officers (D&O)
    • F. Professional liability > 4. Employment Practices Liability (EPLI)
    • F. Professional liability > 5. Cyber liability and data breach, funds transfer
    • F. Professional liability > 6. Liquor liability
    • G. Umbrella/Excess Liability
    • H. Business Owners Policy (BOP)
  • GENERAL KNOWLEDGE II. CASUALTY: INSURANCE TERMS AND RELATED CONCEPTS
    • A. Risk
    • B. Hazards
    • B. Hazards > 1. Moral
    • B. Hazards > 2. Morale
    • B. Hazards > 3. Physical
    • C. Indemnity
    • D. Insurable interest
    • E. Loss valuation
    • E. Loss valuation > 1. Actual cash value
    • E. Loss valuation > 2. Replacement cost
    • E. Loss valuation > 3. Market value
    • E. Loss valuation > 4. Stated/agreed value
    • E. Loss valuation > 5. Salvage value
    • F. Negligence
    • G. Liability
    • H. Occurrence
    • I. Binders
    • J. Warranties
    • K. Representations
    • L. Concealment
    • M. Deposit Premium/Audit
    • N. Certificate of Insurance
    • O. Law of Large Numbers
    • P. Pure vs. Speculative Risk
    • Q. Endorsements
    • R. Damages
    • R. Damages > 1. Compensatory
    • R. Damages > 1. Compensatory > a. General
    • R. Damages > 1. Compensatory > b. Special
    • R. Damages > 2. Punitive
    • S. Compliance with provisions of Fair Credit Reporting Act
  • GENERAL KNOWLEDGE III. CASUALTY: POLICY PROVISIONS
    • A. Declarations
    • B. Insuring agreement
    • C. Conditions
    • D. Exclusions and Limitations
    • E. Definition of the insured
    • F. Duties of the insured after a loss
    • G. Cancellation and nonrenewal provisions
    • H. Supplementary payments
    • I. Proof of loss
    • J. Notice of claim
    • K. Arbitration
    • L. Other insurance
    • M. Subrogation
    • N. Loss settlement provisions including consent to settle a loss
    • O. Terrorism Risk Insurance Act (TRIA)
  • MASSACHUSETTS SPECIFIC I. MASSACHUSETTS LAWS AND RULES PERTINENT TO ALL LINES OF INSURANCE
    • A. Licensing
    • A. Licensing > 1. Process
    • A. Licensing > 2. Types of licenses
    • A. Licensing > 2. Types of licenses > a. Producers
    • A. Licensing > 2. Types of licenses > c. Business entity producers
    • A. Licensing > 2. Types of licenses > d. Nonresident producers
    • A. Licensing > 2. Types of licenses > e. Temporary
    • A. Licensing > 2. Types of licenses > f. Special brokers
    • A. Licensing > 2. Types of licenses > g. Advisers
    • A. Licensing > 2. Types of licenses > h. Public insurance adjusters
    • A. Licensing > 2. Types of licenses > i. Reinsurance intermediaries
    • A. Licensing > 2. Types of licenses > j. Exemptions
    • A. Licensing > 3. Maintenance and duration
    • A. Licensing > 3. Maintenance and duration > a. Reinstatement and renewal
    • A. Licensing > 3. Maintenance and duration > b. Address change
    • A. Licensing > 3. Maintenance and duration > c. Reporting of actions
    • A. Licensing > 3. Maintenance and duration > d. Assumed names
    • A. Licensing > 3. Maintenance and duration > e. Continuing education requirements, exemptions and penalties
    • A. Licensing > 4. Disciplinary actions
    • A. Licensing > 4. Disciplinary actions > a. Cease and desist order
    • A. Licensing > 4. Disciplinary actions > b. Hearings
    • A. Licensing > 4. Disciplinary actions > c. Probation, suspension, revocation, refusal to issue or renew
    • A. Licensing > 4. Disciplinary actions > d. Penalties and fines
    • B. State Regulation
    • B. State Regulation > 1. Commissioner’s general duties and powers
    • B. State Regulation > 2. Company regulation
    • B. State Regulation > 2. Company regulation > a. Certificate of authority
    • B. State Regulation > 2. Company regulation > b. Solvency
    • B. State Regulation > 2. Company regulation > c. Policy forms
    • B. State Regulation > 2. Company regulation > d. Examination of books and records
    • B. State Regulation > 2. Company regulation > e. Producer appointments
    • B. State Regulation > 2. Company regulation > f. Termination of producer appointment
    • B. State Regulation > 3. Producer regulation
    • B. State Regulation > 3. Producer regulation > a. Impersonation
    • B. State Regulation > 3. Producer regulation > b. Larceny
    • B. State Regulation > 3. Producer regulation > c. Unlicensed persons compensation
    • B. State Regulation > 3. Producer regulation > d. Commissions
    • B. State Regulation > 3. Producer regulation > e. Records retention
    • B. State Regulation > 3. Producer regulation > f. Insurance transactions
    • B. State Regulation > 4. Unfair or deceptive practices
    • B. State Regulation > 4. Unfair or deceptive practices > a. Misrepresentation
    • B. State Regulation > 4. Unfair or deceptive practices > b. False advertising
    • B. State Regulation > 4. Unfair or deceptive practices > c. Defamation of insurer
    • B. State Regulation > 4. Unfair or deceptive practices > d. Boycott, coercion, intimidation
    • B. State Regulation > 4. Unfair or deceptive practices > e. False financial statements
    • B. State Regulation > 4. Unfair or deceptive practices > f. Failure to maintain a complaint record
    • B. State Regulation > 4. Unfair or deceptive practices > g. Unfair discrimination
    • B. State Regulation > 4. Unfair or deceptive practices > h. Unfair claims settlement practices
    • B. State Regulation > 4. Unfair or deceptive practices > i. Rebating
    • B. State Regulation > 5. Insurance fraud regulation
    • B. State Regulation > 6. Insurance Information and Privacy Protection
    • B. State Regulation > 7. Types of Insurers
    • B. State Regulation > 7. Types of Insurers > a. Foreign, alien, domestic
    • B. State Regulation > 7. Types of Insurers > b. Authorized and unauthorized insurers
    • B. State Regulation > 7. Types of Insurers > c. Stock and mutual insurers
  • MASSACHUSETTS SPECIFIC II. MASSACHUSETTS LAWS AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLY
    • A. Massachusetts laws, regulations, and required provisions
    • A. Massachusetts laws, regulations, and required provisions > 1. Massachusetts Insurers Insolvency Fund
    • A. Massachusetts laws, regulations, and required provisions > 2. Cancellation and nonrenewal
    • A. Massachusetts laws, regulations, and required provisions > 3. Concealment, misrepresentation, or fraud
    • A. Massachusetts laws, regulations, and required provisions > 4. Rates
    • B. Massachusetts law specific to auto insurance
    • B. Massachusetts law specific to auto insurance > 1. Massachusetts Compulsory Motor Vehicle Liability Insurance
    • B. Massachusetts law specific to auto insurance > 1. Massachusetts Compulsory Motor Vehicle Liability Insurance > a. Required limits of liability
    • B. Massachusetts law specific to auto insurance > 1. Massachusetts Compulsory Motor Vehicle Liability Insurance > b. Required proof of insurance
    • B. Massachusetts law specific to auto insurance > 2. Massachusetts Automobile Insurance Assigned Risk Plan (MAIP)/CAR
    • B. Massachusetts law specific to auto insurance > 2. Massachusetts Automobile Insurance Assigned Risk Plan (MAIP)/CAR > a. Notice of eligibility in the plan
    • B. Massachusetts law specific to auto insurance > 3. Personal injury protection
    • B. Massachusetts law specific to auto insurance > 3. Personal injury protection > a. Medical
    • B. Massachusetts law specific to auto insurance > 3. Personal injury protection > b. Loss of income/Lost Wages
    • B. Massachusetts law specific to auto insurance > 3. Personal injury protection > c. Death
    • B. Massachusetts law specific to auto insurance > 3. Personal injury protection > d. Funeral
    • B. Massachusetts law specific to auto insurance > 3. Personal injury protection > e. Replacement services
    • B. Massachusetts law specific to auto insurance > 4. Uninsured/underinsured motorist
    • B. Massachusetts law specific to auto insurance > 4. Uninsured/underinsured motorist > a. Bodily injury
    • B. Massachusetts law specific to auto insurance > 4. Uninsured/underinsured motorist > b. Required limits
    • B. Massachusetts law specific to auto insurance > 5. Cancellation/nonrenewal
    • B. Massachusetts law specific to auto insurance > 5. Cancellation/nonrenewal > a. Grounds
    • B. Massachusetts law specific to auto insurance > 5. Cancellation/nonrenewal > b. Notice
    • B. Massachusetts law specific to auto insurance > 6. Aftermarket parts regulation
    • B. Massachusetts law specific to auto insurance > 7. Regulation of rates for motor vehicle insurance
    • B. Massachusetts law specific to auto insurance > 8. Private passenger motor vehicle insurance rates
    • B. Massachusetts law specific to auto insurance > 9. Appraisal
    • C. Commercial general liability
    • C. Commercial general liability > 1. Defense within limits versus open limits
    • D. Workers’ Compensation
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > a. Exclusive remedy
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > b. Employment covered (required, voluntary)
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > c. Covered injuries
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > d. Occupational disease
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > e. Benefits provided
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > f. Subsequent injury fund
    • D. Workers’ Compensation > 1. Massachusetts Workers’ Compensation Act > g. Subrogation
    • D. Workers’ Compensation > 2. Other sources of coverage
    • D. Workers’ Compensation > 2. Other sources of coverage > a. Assigned risk plan
    • D. Workers’ Compensation > 2. Other sources of coverage > b. Self-insured employers and employer groups
    • D. Workers’ Compensation > 2. Other sources of coverage > c. Massachusetts Workers' Compensation Trust Fund
    • E. Other Coverages and Options
    • E. Other Coverages and Options > 1. Surplus lines
    • E. Other Coverages and Options > 1. Surplus lines > a. Definitions and markets
    • E. Other Coverages and Options > 2. Residual markets
    • E. Other Coverages and Options > 2. Residual markets > a. Hospitality Mutual (Joint Underwriting Association) – Liquor Liability

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