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Free Casualty Producer Practice Questions

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Sample Practice Questions

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

  1. 1A customer slips on water tracked into a shop while the shop is open. Which CGL exposure best describes the source of the alleged bodily injury?

    1. A. Products and completed operations
    2. B. Premises and ongoing operations
    3. C. Personal and advertising injury
    4. D. Professional services errors

    Answer: B

    Explanation: "Premises liability covers liability for accidental injury or property damage" The unsafe condition at the operating premises creates a premises exposure; there is no sold product, completed work, professional service, or theft.

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

  2. 2An insured becomes casually inattentive to ordinary loss prevention but does not seek to cause a loss. What hazard classification best captures this careless attitude?

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

    Answer: B

    Explanation: "Morale Hazard - negligence or disregard on the part of the insured" Morale hazard concerns negligence or disregard by the insured; moral hazard concerns a different behavioral characteristic, and physical/legal hazards are different classifications.

    Reference: NAIC Glossary of Insurance Terms — Moral Hazard; Morale Hazard

  3. 3A producer needs the policy number, effective dates, limits, and listed insured vehicles before reviewing an auto claim. Which policy part should the producer consult first?

    1. A. Declarations
    2. B. Conditions
    3. C. Exclusions
    4. D. Endorsements

    Answer: A

    Explanation: "with a declarations page. This identifies the policy number and provides important information including the policy term, coverage limits, and information about the insured. It also contains a description of the vehicles covered under the policy." Those policy-specific details appear in the declarations.

    Reference: NAIC Auto Insurance — Understanding Your Auto Insurance Policy—Declarations Page

  4. 4Which official serves as the head of Maine's Bureau of Insurance?

    1. A. Attorney General
    2. B. Superintendent of Insurance
    3. C. Secretary of State
    4. D. State Treasurer

    Answer: B

    Explanation: Title 24-A §201 states: "The Superintendent of Insurance is the head of the Bureau of Insurance." Therefore the Superintendent, not another statewide official, heads the Bureau.

    Reference: Title 24 a — 24-A M.R.S. §201(1)

  5. 5A Maine auto liability policy covers a vehicle principally garaged in Maine. Whom must its uninsured vehicle coverage protect?

    1. A. Only the named insured's lienholder
    2. B. Insured persons legally entitled to recover bodily-injury damages from uninsured, underinsured, or hit-and-run motorists
    3. C. Only pedestrians who have no other insurance
    4. D. Property owners seeking damage to buildings

    Answer: B

    Explanation: Section 2902 protects persons insured under the policy who are "legally entitled to recover damages" from owners or operators of uninsured, underinsured, or hit-and-run vehicles for covered bodily injury, sickness, disease, or death.

    Reference: Title 24 a — 24-A M.R.S. §2902(1)

  6. 6Six months after a contractor finishes installing a staircase, it collapses and injures a visitor. Which CGL exposure describes the contractor's potential liability?

    1. A. Premises and ongoing operations
    2. B. Products and completed operations
    3. C. Personal and advertising injury
    4. D. Employers liability coverage

    Answer: B

    Explanation: "Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work." The injury arises from the contractor's finished work, which is the completed-operations hazard; the other choices describe different exposures.

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

  7. 7A producer reviews parties connected to a financed delivery van. Which creditor has an insurable interest in that van because its loss could cause a financial loss?

    1. A. The lender holding an unpaid lien on the van
    2. B. The lender holding an unpaid lien on another van
    3. C. The lender with an unsecured loan to the driver
    4. D. The lender whose van loan has been fully repaid

    Answer: A

    Explanation: "Insurable Interest - A right or relationship in regard to the subject matter of the insured contract such that the insured can suffer a financial loss from damage, loss or destruction to it." The unpaid lien on this van exposes lender A to a financial loss if it is destroyed. A lien on another van, an unsecured debt, or a discharged loan does not establish the same property interest in this van.

    Reference: NAIC Glossary of Insurance Terms — Insurable Interest

  8. 8A policyholder asks where the insurer's basic promise to cover specified risks is stated in the policy. Which part supplies that promise?

    1. A. Declarations
    2. B. Insuring agreement
    3. C. Conditions
    4. D. Exclusions

    Answer: B

    Explanation: "Your policy contains a general insuring agreement consisting of a broad statement listing the perils and risks covered under the contract." The insuring agreement states the coverage grant; the other policy parts have different jobs.

    Reference: NAIC Auto Insurance — Understanding Your Auto Insurance Policy—Insuring Agreement

  9. 9A producer is reviewing the statutory term of Maine's Superintendent of Insurance. What term does the Insurance Code prescribe?

    1. A. 3 years
    2. B. 4 years
    3. C. 5 years
    4. D. 6 years

    Answer: C

    Explanation: Section 201 provides that the superintendent "shall hold the superintendent's office for 5 years" or until a successor qualifies.

    Reference: Title 24 a — 24-A M.R.S. §201(3)

  10. 10A purchaser of a Maine personal auto policy wants uninsured vehicle limits below the policy's bodily injury liability limits. What makes that election effective?

    1. A. An oral request to the producer after issuance
    2. B. A signed and dated written rejection on the insurer's form before the effective date
    3. C. A waiver signed only by the insurer
    4. D. No action because lower limits apply automatically

    Answer: B

    Explanation: Section 2902 permits lower limits only "unless the purchaser expressly rejects such an amount." The rejection must be written on the insurer's form, signed, dated, and received before the policy's effective date; selected limits still may not fall below Maine's statutory minimum.

    Reference: Title 24 a — 24-A M.R.S. §2902(2)

Topics in this practice bank

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

  • CASUALTY – GENERAL KNOWLEDGE / I. TYPES OF POLICIES, BONDS, AND RELATED TERMS (23 scoreable questions)
    • 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 (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.)
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts / a. Who is an employee/employer
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 1. Standard policy concepts / b. Compensation
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 2. Work-related vs. non-work-related
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 3. Other states’ insurance
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 4. Employers Liability
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 5. Exclusive remedy
    • C. Workers Compensation Insurance, Employers Liability Insurance, and Related Issues (This section does not deal with specifics of state law, which are addressed elsewhere in this outline.) / 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)
  • CASUALTY – GENERAL KNOWLEDGE / II. INSURANCE TERMS AND RELATED CONCEPTS (15 scoreable questions)
    • 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
  • CASUALTY – GENERAL KNOWLEDGE / III. POLICY PROVISIONS (12 scoreable questions)
    • 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. Other insurance
    • L. Subrogation
    • M. Loss settlement provisions including consent to settle a loss
    • N. Terrorism Risk Insurance Act (TRIA)
  • CASUALTY — Maine-Specific State Laws and Rules / I. MAINE LAWS AND RULES COMMON TO PROPERTY AND CASUALTY INSURANCE (28 scoreable questions)
    • A. Superintendent of Insurance
    • A. Superintendent of Insurance / 1. Broad powers
    • A. Superintendent of Insurance / 2. Notice and hearing
    • B. Definitions
    • B. Definitions / 1. Authorized, unauthorized, and certificate of authority
    • B. Definitions / 2. Surplus Lines law
    • B. Definitions / 3. Domestic, foreign, and alien
    • B. Definitions / 4. Stock and mutual
    • B. Definitions / 5. Transacting insurance
    • B. Definitions / 6. Maine Insurance Guaranty Association
    • B. Definitions / 7. Subrogation
    • C. Licensing requirements and limitations
    • C. Licensing requirements and limitations / 1. Types of licenses
    • C. Licensing requirements and limitations / 1. Types of licenses / a. Producer
    • C. Licensing requirements and limitations / 1. Types of licenses / b. Consultant
    • C. Licensing requirements and limitations / 1. Types of licenses / c. Temporary
    • C. Licensing requirements and limitations / 1. Types of licenses / d. Nonresident
    • C. Licensing requirements and limitations / 1. Types of licenses / e. Adjuster
    • C. Licensing requirements and limitations / 1. Types of licenses / f. Business entity
    • C. Licensing requirements and limitations / 1. Types of licenses / g. Apprentice
    • C. Licensing requirements and limitations / 2. Exemptions/exceptions
    • C. Licensing requirements and limitations / 3. Appointment
    • C. Licensing requirements and limitations / 4. License refusal, termination, expiration, revocation, suspension, and nonrenewal
    • C. Licensing requirements and limitations / 5. Continuing Education
    • D. Marketing and underwriting practices
    • D. Marketing and underwriting practices / 1. Unfair practices
    • D. Marketing and underwriting practices / 1. Unfair practices / a. Claims methods and practices
    • D. Marketing and underwriting practices / 1. Unfair practices / b. Excess charges
    • D. Marketing and underwriting practices / 1. Unfair practices / c. Rebating
    • D. Marketing and underwriting practices / 1. Unfair practices / d. Discrimination
    • D. Marketing and underwriting practices / 1. Unfair practices / e. Misrepresentation
    • D. Marketing and underwriting practices / 1. Unfair practices / f. Defamation
    • D. Marketing and underwriting practices / 1. Unfair practices / g. False information and advertising
    • D. Marketing and underwriting practices / 1. Unfair practices / h. Twisting
    • D. Marketing and underwriting practices / 1. Unfair practices / i. Penalties
    • D. Marketing and underwriting practices / 2. Producer responsibilities
    • D. Marketing and underwriting practices / 3. Compensation of licensees
    • D. Marketing and underwriting practices / 4. Roll-on coverages
    • D. Marketing and underwriting practices / 5. Surplus Lines
    • D. Marketing and underwriting practices / 6. Privacy
    • D. Marketing and underwriting practices / 7. Credit Scoring
    • E. Cancellation and nonrenewal provisions
    • E. Cancellation and nonrenewal provisions / 1. Commercial lines
    • E. Cancellation and nonrenewal provisions / 2. Personal lines
  • CASUALTY — Maine-Specific State Laws and Rules / II. MAINE LAWS AND RULES PERTINENT TO CASUALTY INSURANCE (10 scoreable questions)
    • A. Automobile insurance
    • A. Automobile insurance / 1. Uninsured/Underinsured motorists
    • A. Automobile insurance / 2. Excluded member of household
    • A. Automobile insurance / 3. Financial responsibility
    • A. Automobile insurance / 4. Maine Automobile Insurance Plan
    • A. Automobile insurance / 4. Maine Automobile Insurance Plan / a. Personal auto
    • A. Automobile insurance / 4. Maine Automobile Insurance Plan / b. Commercial
    • A. Automobile insurance / 5. Rental vehicle coverage
    • A. Automobile insurance / 6. Transportation Network Company/ Peer to peer Coverage
    • B. Workers’ Compensation
    • B. Workers’ Compensation / 1. Definitions
    • B. Workers’ Compensation / 2. Requirements/Procedures
    • B. Workers’ Compensation / 3. Coverages/benefits

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