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Free Casualty Insurance Producer Practice Questions

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Sample Practice Questions

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

  1. 1A manufacturer is sued after a customer is injured by a defect in a machine that was sold and installed weeks earlier. Which CGL exposure most directly describes this claim?

    1. A. Premises and operations liability
    2. B. Products and completed operations liability
    3. C. Personal and advertising injury liability
    4. D. Coverage C medical payments

    Answer: B

    Explanation: The NAIC describes CGL as having a "products/completed operations sub-line." Injury from a defective machine after sale fits that exposure. Premises/operations applies to ongoing activity; personal/advertising injury and medical payments address different CGL categories.

    Reference: NAIC Glossary of Insurance Terms — Commercial General Liability entry

  2. 2A producer reviewing a casualty policy needs to find the provision stating what losses the insurer promises to cover. Which policy part supplies that affirmative coverage promise?

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

    Answer: B

    Explanation: Missouri DCI says, "The insuring agreement states what losses the policy will cover." Declarations identify policy details, conditions impose duties, and exclusions remove specified losses.

    Reference: Missouri Department of Commerce and Insurance, Understanding Your Automobile Insurance Policy — Understanding Your Automobile Insurance Policy, insuring agreement

  3. 3Who appoints Missouri's Director of the Department of Commerce and Insurance, subject to the required confirmation?

    1. A. The governor, with the advice and consent of the senate
    2. B. The state treasurer, with approval of the house
    3. C. The attorney general, with approval of the governor
    4. D. The senate president, with consent of the governor

    Answer: A

    Explanation: The controlling provision says the director is "appointed by the governor, by and with the advice and consent of the senate"; therefore A states both the appointing authority and confirmation requirement.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 374.020 — RSMo 374.020.1

  4. 4For Missouri unfair-practices law, which communication qualifies as a complaint?

    1. A. A written communication primarily expressing a grievance
    2. B. Any oral request for a premium quote
    3. C. Any insurer advertisement seen by a consumer
    4. D. A producer's internal sales forecast

    Answer: A

    Explanation: The statute defines complaint as "any written communication primarily expressing a grievance". A contains both required elements.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 375.936 — RSMo 375.936

  5. 5May an insurance company ordinarily transact insurance business in Missouri without the director's certificate of authority?

    1. A. Yes, if it uses only licensed producers
    2. B. Yes, for the first ninety days
    3. C. Yes, if it is incorporated in another state
    4. D. No, except for the statute's stated exceptions

    Answer: D

    Explanation: Missouri declares, "It is unlawful for any insurance company to transact insurance business in this state ... without a certificate of authority from the director" subject to listed exceptions. D is correct.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 375.786 — RSMo 375.786.1

  6. 6To whom may a Missouri insurer pay commissions for negotiating or placing insurance contracts?

    1. A. Any referral source
    2. B. A duly licensed insurance producer
    3. C. Any salaried applicant
    4. D. Only an attorney

    Answer: B

    Explanation: The compensation statute permits commissions "to a duly licensed insurance producer" for negotiating, placing, soliciting, or effecting contracts. B is correct.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 375.116 — RSMo 375.116.1

  7. 7What type of legal entity is the Missouri Property and Casualty Insurance Guaranty Association?

    1. A. A for-profit stock corporation
    2. B. A state executive department
    3. C. A federal receivership fund
    4. D. A nonprofit unincorporated legal entity

    Answer: D

    Explanation: The statute creates the association as "a nonprofit unincorporated legal entity". D is its legal form.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 375.772 — RSMo 375.772.1

  8. 8Which policy fits Missouri's definition of commercial casualty insurance?

    1. A. Casualty insurance for business interests issued as a policy, not merely a binder
    2. B. Personal auto insurance for household use
    3. C. A homeowners policy for a family residence
    4. D. A temporary binder for a nonprofit's risk

    Answer: A

    Explanation: Commercial casualty means insurance for business or nonprofit interests "which is not for personal, family or household purposes, and which is provided by issuance of a policy of insurance and not merely a binder". A fits.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 379.882 — RSMo 379.882

  9. 9Under Missouri's claim-settlement regulation, who is a first-party claimant?

    1. A. Only a natural person injured by a third party
    2. B. An entity asserting a right to payment from a covered contingency or loss
    3. C. Only the named insured who paid the premium
    4. D. Any person demanding payment from an uninsured tortfeasor

    Answer: B

    Explanation: The rule labels this person a "First-party claimant" and defines it as an individual or legal entity asserting a right to policy payment arising from a covered contingency or loss. B tracks that definition.

    Reference: Missouri Secretary of State: Code of State Regulations — 20 CSR 100-1.020(2)(D)

  10. 10Under Missouri's joint-underwriting-association statute, what does medical malpractice insurance cover?

    1. A. Only damage to a provider's office building
    2. B. Only employee wage loss
    3. C. A provider's legal liability and related loss or expense from death or injury caused by professional negligence or malpractice
    4. D. Only disciplinary fines imposed on a provider

    Answer: C

    Explanation: The definition covers "the legal liability of the insured and ... loss, damage, or expense incident to a claim" arising from death or injury caused by professional negligence or malpractice. C captures the definition.

    Reference: Missouri Revisor of Statutes - Revised Statutes of Missouri, RSMo Section 383.150 — RSMo 383.150

Topics in this practice bank

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

  • General knowledge — I. 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 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
    • F. Professional liability / 6. Liquor liability
    • G. Umbrella/Excess Liability
    • H. Business Owners Policy (BOP)
  • General knowledge — II. 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. 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)
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — I. DIRECTOR OF COMMERCE AND INSURANCE
    • A. General powers and duties
    • B. Examination of records
    • C. Cease and desist orders
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — II. LICENSING REQUIREMENTS
    • A. Persons required to be licensed
    • A. Persons required to be licensed / 1. Producer
    • A. Persons required to be licensed / 2. Nonresident producer
    • A. Persons required to be licensed / 3. Surplus lines producer
    • B. Obtaining a license
    • B. Obtaining a license / 1. Qualifications
    • B. Obtaining a license / 2. Examinations
    • C. Maintaining a license
    • C. Maintaining a license / 1. Continuing education
    • C. Maintaining a license / 2. Change of address
    • C. Maintaining a license / 3. Renewal
    • C. Maintaining a license / 4. Temporary
    • D. License suspension, revocation, denial, cancellation
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — III. MARKETING PRACTICES
    • A. Unfair and deceptive practices
    • B. Rebating
    • C. Misrepresentation
    • D. Defamation
    • E. Unfair discrimination
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — IV. CERTIFICATE OF AUTHORITY
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — V. FIDUCIARY RESPONSIBILITIES
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — VI. COMMISSIONS AND COMPENSATION
  • Missouri statutes, rules, and regulations — COMMON TO ALL LINES — VII. MISSOURI INSURANCE GUARANTY ASSOCIATION
  • Missouri statutes, rules, and regulations — PERTINENT TO CASUALTY INSURANCE ONLY — I. MOTOR VEHICLE INSURANCE
    • A. Missouri Automobile Insurance Plan (AIP)
    • B. Financial responsibility
    • B. Financial responsibility / 1. Transportation network companies
    • C. Uninsured motorist/underinsured
    • D. Cancellation/nonrenewal
    • E. Peer-to-peer car sharing
  • Missouri statutes, rules, and regulations — PERTINENT TO CASUALTY INSURANCE ONLY — II. COMMERCIAL POLICIES
  • Missouri statutes, rules, and regulations — PERTINENT TO CASUALTY INSURANCE ONLY — III. CLAIM SETTLEMENT PRACTICES
    • A. Definitions
    • B. Misrepresentation of provisions
    • C. General standards
  • Missouri statutes, rules, and regulations — PERTINENT TO CASUALTY INSURANCE ONLY — IV. WORKERS COMPENSATION
  • Missouri statutes, rules, and regulations — PERTINENT TO CASUALTY INSURANCE ONLY — V. MEDICAL MALPRACTICE INSURANCE

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