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Free Casualty Producer Examination Practice Questions

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Sample Practice Questions

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

  1. 1A customer slips beside a store display while employees are operating the store. Which CGL hazard best describes the resulting bodily injury claim?

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

    Answer: B

    Explanation: "Premises liability covers liability for accidental injury or property damage that results from either a condition on your premises or your operations in progress" The injury arises from a condition of the operating premises, rather than a product or completed job.

    Reference: California Department of Insurance, Commercial Insurance Guide — Commercial General Liability, premises liability

  2. 2A business can either have no fire loss this year or suffer a major fire loss. Which insurance concept describes the uncertainty of an adverse outcome?

    1. A. A hazard
    2. B. A peril
    3. C. A risk
    4. D. A deductible

    Answer: C

    Explanation: "Risk arises when there is the possibility of more than one outcome and one of these possible outcomes has negative consequences" Risk refers to uncertainty with a potentially adverse outcome, not the cause or an aggravating condition.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — NAIC, A Regulator's Introduction to the Insurance Industry, risk

  3. 3An insured needs to confirm a policy's effective date and stated liability limit before advising a client. Which policy section ordinarily contains both entries?

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

    Answer: A

    Explanation: "contains the full legal name of the insurance company, the policy number, effective and expiration dates, premium payable, the amount and types of coverage, and the deductibles." The declarations list the policy dates and coverage amounts; the other sections describe grants, restrictions, and duties.

    Reference: California Department of Insurance, Commercial Insurance Guide — Glossary, Declarations

  4. 4Which New Jersey official may investigate suspected producer licensing violations?

    1. A. Banking and Insurance Commissioner
    2. B. County clerk
    3. C. Tax Court
    4. D. Municipal consumer office

    Answer: A

    Explanation: The Commissioner controls the investigation. The official text says: "The commissioner shall have the power to conduct investigations".

    Reference: P.L.2001, c.210 (S2428 1R) — C.17:22A-45(a)

  5. 5What is New Jersey's 2026 Standard Policy per-person bodily-injury minimum?

    1. A. $15,000
    2. B. $25,000
    3. C. $35,000
    4. D. $70,000

    Answer: C

    Explanation: The statute lists $35,000 "for plans issued or renewed on or after January 1, 2026" for injury to or death of one person.

    Reference: P.L. 2022, c.087 (S481 1R) — Section 3(a), Compulsory automobile liability limits

  6. 6A contractor finishes a railing installation and leaves. Days later, the completed railing fails and injures a visitor. Which CGL hazard fits the claim?

    1. A. Premises liability
    2. B. Advertising injury liability
    3. C. Completed operations liability
    4. D. Employee injury liability

    Answer: C

    Explanation: "Completed operations covers your potential liability for bodily injury or property damage that arises out of your completed work." The work was finished before the injury, so the completed operations hazard is the relevant one.

    Reference: California Department of Insurance, Commercial Insurance Guide — Commercial General Liability, completed operations

  7. 7A warehouse stores flammable packaging beside its heating equipment, increasing the chance or severity of fire loss. What is the packaging condition?

    1. A. The peril
    2. B. The hazard
    3. C. The loss
    4. D. The indemnity

    Answer: B

    Explanation: "Hazard - circumstance which tends to increase the probability or severity of a loss." The condition raises the likelihood or severity of loss; fire itself would be the peril.

    Reference: NAIC, Glossary of Insurance Terms — NAIC Glossary, Hazard

  8. 8A producer must locate the policy language stating what peril and property the insurer has agreed to cover. Which section supplies that coverage grant?

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

    Answer: C

    Explanation: "The portion of an insurance contract that describes what is covered." The insuring agreement states the grant, while declarations provide variables and conditions set duties.

    Reference: California Department of Insurance, Commercial Insurance Guide — Glossary, Insuring Agreement

  9. 9During a New Jersey producer investigation, what may the Commissioner do?

    1. A. Enter a criminal conviction
    2. B. Administer oaths and interrogate witnesses
    3. C. Revoke a driver's license
    4. D. Award jury damages

    Answer: B

    Explanation: Sworn investigative powers apply. The official text authorizes the Commissioner "to administer oaths, to interrogate licensees and others".

    Reference: P.L.2001, c.210 (S2428 1R) — C.17:22A-45(a)

  10. 10What property-damage limit applies to New Jersey's Basic automobile policy?

    1. A. $5,000 per accident
    2. B. $15,000 per accident
    3. C. $25,000 per accident
    4. D. $35,000 per accident

    Answer: A

    Explanation: The statute sets "an amount or limit of $5,000" for property damage in any one accident.

    Reference: P.L.2003, c.089 (S63 SCS) — Section 4(b), Basic-policy property-damage coverage

Topics in this practice bank

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

  • Types of Policies, Bonds, and Related Terms (23 Items)
    • 1.1 Commercial General Liability
    • 1.1 Basic Hazards — Premises and Operations
    • 1.1 Basic Hazards — Products and Completed Operations
    • 1.1 Basic Hazards — Independent Contractors
    • 1.1 Basic Hazards — Insured Contracts
    • 1.1 Commercial General Liability Coverage Forms — Coverage A: Bodily Injury and Property Damage Liability
    • 1.1 Coverage A — Occurrence
    • 1.1 Coverage A — Claims Made
    • 1.1 Claims Made — Extended Reporting Periods: Basic and Supplemental
    • 1.1 Claims Made — Retroactive Date
    • 1.1 Coverage B: Personal Injury and Advertising Injury
    • 1.1 Coverage C: Medical Payments
    • 1.1 Supplemental Payments
    • 1.1 Who is an insured
    • 1.1 Limits
    • 1.1 Conditions (The candidate also should be familiar with ISO’s Common Policy Conditions)
    • 1.1 Definitions
    • 1.2 Automotive: Personal Auto and Business Auto
    • 1.2 Liability
    • 1.2 Medical Payments
    • 1.2 Physical damage (collision and other than collision/comprehensive)
    • 1.2 Uninsured motorists
    • 1.2 Underinsured motorists
    • 1.2 Who is an insured
    • 1.2 Types of Auto — Owned
    • 1.2 Types of Auto — Non-owned
    • 1.2 Types of Auto — Hired
    • 1.2 Types of Auto — Temporary Substitute
    • 1.2 Garage Coverage Form, including Garagekeepers insurance
    • 1.3 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.)
    • 1.3 Standard policy concepts
    • 1.3 Work-related vs. non-work-related
    • 1.3 Other states’ insurance
    • 1.4 Crime — Employee Theft
    • 1.4 Crime — Inside the Premises-Theft of Money and Securities
    • 1.4 Crime — Inside the Premises-Robbery or Safe Burglary of Other Property
    • 1.4 Crime — Inside the Premises-Robbery or Burglary of Other Property
    • 1.5 Surety Bonding — Definitions: Obligee
    • 1.5 Surety Bonding — Definitions: Principal
    • 1.5 Surety Bonding — Definitions: Surety
    • 1.6 Professional Liability — Errors and Omissions
    • 1.7 Umbrella/Excess Liability
  • Insurance Terms and Related Concepts (15 Items)
    • 2.1 Risk
    • 2.2 Hazard
    • 2.3 Indemnity
    • 2.4 Insurable Interest
    • 2.5 Actual Cash Value
    • 2.6 Negligence
    • 2.7 Liability
    • 2.8 Accident
    • 2.9 Occurrence
    • 2.10 Burglary
    • 2.11 Robbery
    • 2.12 Theft
    • 2.13 Mysterious Disappearance
    • 2.14 Binders
    • 2.15 Warranties
    • 2.16 Representations
    • 2.17 Concealment
    • 2.18 Bodily Injury Liability
    • 2.19 Property Damage Liability
    • 2.20 Personal Injury Liability
    • 2.21 Limits of Liability
    • 2.22 Deductibles
    • 2.23 Insured Contract
    • 2.24 Deposit Premium/Audit
    • 2.25 Certificate of Insurance
  • Policy Provisions (12 Items)
    • 3.1 Declarations
    • 3.2 Insuring Agreement
    • 3.3 Conditions
    • 3.4 Exclusions and Limitations
    • 3.5 Definition of the Insured
    • 3.6 Duties of the Insured After a Loss
    • 3.7 Cancellation and Nonrenewal Provisions
    • 3.8 Additional (Supplementary) Payments
    • 3.9 Proof of Loss
    • 3.10 Notice of Claim
    • 3.11 Arbitration
    • 3.12 Other Insurance
    • 3.13 Subrogation
    • 3.14 Compliance with Provisions of Fair Credit Reporting Act
    • 3.15 Claims Made Policy Form
    • 3.16 Salvage
    • 3.17 Loss Settlement Provisions Including Consent to Settle a Loss
  • New Jersey Laws, Rules, and Regulations Common to Life, Accident and Health, Property, and Casualty Insurance (25 Items)
    • 4.1 State Regulatory Jurisdiction
    • 4.1 Legislation — State Laws
    • 4.1 Legislation — Court Action: Interpretations
    • 4.1 Legislation — Court Action: Effect on Law and Policy Forms
    • 4.1 Legislation — Related Federal Laws and court Cases: Paul v. Virginia
    • 4.1 Legislation — Related Federal Laws and court Cases: US v. South-Eastern Underwriters Assoc.
    • 4.1 Legislation — Related Federal Laws and court Cases: McCarran-Ferguson Act/Public Law 15
    • 4.1 Commissioner/Dept. of Banking and Insurance — Broad Powers of Commissioner
    • 4.1 Commissioner/Dept. of Banking and Insurance — Notice and Hearing
    • 4.1 Commissioner/Dept. of Banking and Insurance — Penalties
    • 4.2 Definitions — Insurance-related conduct
    • 4.2 Definitions — Domestic, foreign, and alien companies
    • 4.2 Definitions — Stock and mutual
    • 4.2 Definitions — Reinsurance
    • 4.2 Definitions — Certificate of authority
    • 4.2 A producer acting as — Insurance Agent
    • 4.2 A producer acting as — Insurance Broker
    • 4.2 A producer acting as — Insurance Consultant
    • 4.2 “Sell, Solicit, and Negotiate”
    • 4.3 Licensing — Types of licenses/authorities/requirements: Producer
    • 4.3 Licensing — Types of licenses/authorities/requirements: Business entity
    • 4.3 Licensing — Types of licenses/authorities/requirements: Nonresident Producer
    • 4.3 Licensing — Types of licenses/authorities/requirements: Nonresident Business Entity
    • 4.3 Licensing — Types of licenses/authorities/requirements: Prelicensing requirements
    • 4.3 Licensing — Types of licenses/authorities/requirements: Surplus lines
    • 4.3 Licensing — Temporary work authority
    • 4.3 Licensing — Contractual relationships: Company/producer
    • 4.3 Licensing — Contractual relationships: Producer substituting for or taking over the business of a disabled/deceased producer
    • 4.3 Licensing — Maintenance and duration of license
    • 4.3 Licensing — Renewal
    • 4.3 Licensing — Certification of license status
    • 4.3 Licensing — License refusal/termination: Denial
    • 4.3 Licensing — License refusal/termination: Cancellation/reinstatement
    • 4.3 Licensing — License refusal/termination: Revocation/suspension
    • 4.4 Trade Practices — Prohibited practices
    • 4.4 Trade Practices — Licensee responsibilities (Reporting information to the Department of Banking and Insurance): Business names (including fictitious)
    • 4.4 Trade Practices — Licensee responsibilities: Branch offices
    • 4.4 Trade Practices — Licensee responsibilities: Change of address
    • 4.4 Trade Practices — Licensee responsibilities: Standards of conduct
    • 4.5 Fraud
    • 4.6 Ethics
    • 4.7 Information Privacy
  • New Jersey Laws, Rules, and Regulations Pertinent to Casualty Insurance Only (16 Items)
    • 5.1 Auto Insurance — Requirements: Bodily Injury and Property Damage
    • 5.1 Auto Insurance — Requirements: Uninsured and underinsured Motorists
    • 5.1 Auto Insurance — Requirements: Evidence of insurance/identification cards
    • 5.1 Auto Insurance — Personal Injury Protection (PIP): Definitions
    • 5.1 Auto Insurance — Personal Injury Protection (PIP): Benefits
    • 5.1 Auto Insurance — Personal Injury Protection (PIP): Primacy of coverage
    • 5.1 Auto Insurance — Personal Injury Protection (PIP): Exclusions/deductibles
    • 5.1 Auto Insurance — Personal Injury Protection (PIP): Tort options
    • 5.1 Auto Insurance — New Jersey Automobile Residual Market Personal Automobile Insurance Plan (PAIP): Purpose
    • 5.1 Auto Insurance — PAIP: Rates
    • 5.1 Auto Insurance — PAIP: Servicing carriers
    • 5.1 Auto Insurance — PAIP: Available coverages
    • 5.1 Auto Insurance — UEZ Program
    • 5.1 Auto Insurance — Commercial Automobile Insurance Plan (CAIP): Purpose
    • 5.1 Auto Insurance — CAIP: Rates
    • 5.1 Auto Insurance — CAIP: Servicing carriers
    • 5.1 Auto Insurance — CAIP: Available coverages
    • 5.1 Auto Insurance — Basic Auto Insurance Policy
    • 5.1 Auto Insurance — Special Auto Insurance Policy (SAIP)
    • 5.2 Workers' Compensation — Commercial coverage: Purpose
    • 5.2 Workers' Compensation — Commercial coverage: Definitions
    • 5.2 Workers' Compensation — Commercial coverage: Requirements
    • 5.2 Workers' Compensation — Commercial coverage: Benefits
    • 5.2 Workers' Compensation — Commercial coverage: Defenses
    • 5.2 Workers' Compensation — Commercial coverage: Ratings Plans
    • 5.2 Workers' Compensation — Commercial coverage: Assigned Risk Plan (Workers Compensation Insurance Plan)
    • 5.2 Workers' Compensation — Commercial coverage: Surcharges
    • 5.2 Workers' Compensation — Commercial coverage: Compensation Rating and Inspection Bureau (CRIB)
    • 5.2 Workers' Compensation — Domestic employee coverage (Homeowners)
    • 5.3 Commercial Insurance Deregulation
    • 5.4 Cancellation and Nonrenewal
    • 5.5 Surplus Lines — Certificate of diligent effort
    • 5.5 Surplus Lines — Exportable list
    • 5.6 Certificates of Insurance

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