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Property and Casualty Insurance Producer Exam

Casualty policies and bonds: practice questions

Our Property & Casualty Insurance bank has 93 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

Workers' compensation insurance should be bought from:

  1. Any surplus lines carrier
  2. An insurer licensed in the state
  3. An alternative benefit plan
  4. The employer's health insurer
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B. An insurer licensed in the state — TDI: a policy from an unlicensed company doesn't count as workers' compensation under state law.

Question 2

An experience modification on a workers' compensation policy:

  1. Sets the benefit levels that the state requires for all employers
  2. Measures the employee's average wage
  3. Adjusts premium up or down based on the employer's losses
  4. Applies only to self-insurers
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C. Adjusts premium up or down based on the employer's losses — It is the percentage increase or decrease in premium depending on the employer's amount of loss.

Question 3

In a 30/60/25 auto liability policy, how much is available for damage to other people's property in one accident?

  1. $25,000
  2. $30,000
  3. $60,000
  4. $115,000
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A. $25,000 — The last number is property damage per accident.

Question 4

A claims-made liability policy generally covers a claim only if:

  1. The injury occurred at any time in the past, if the claim is reported within one year
  2. The claim is made after the policy expires
  3. The injury is after the retro date and the claim is made in the policy period
  4. The insured had no prior policy
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C. The injury is after the retro date and the claim is made in the policy period — Claims-made policies cover claims for injury after the retro date that are reported during the policy period.

Question 5

Employment practices liability insurance (EPLI) covers employers against claims by employees for:

  1. On-the-job injuries and occupational diseases of employees
  2. Theft of company money
  3. Discrimination, harassment or wrongful firing
  4. Damage to company cars
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C. Discrimination, harassment or wrongful firing — EPLI covers liability claims from employees for discrimination, sexual harassment, wrongful termination and similar claims.

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