Casualty Insurance Producer Examination

1.A customer slips on an unmarked wet grocery aisle and breaks a wrist. Which elements must the customer prove to recover for negligence?

2.Luis has liability coverage on his sedan and no physical damage coverage. He skids into a concrete barrier and crumples his own hood. What will liability pay toward that hood?

3.A personal auto declarations page shows split limits of 100/300/50. What do those three figures mean?

4.A mail carrier's personal car strikes a bridge support. The carrier has collision coverage. Which loss is collision designed to cover?

5.Hail batters a florist's parked van. Repairs are estimated at $2,000, and the comprehensive deductible is $500. What is payable?

6.Elena is injured by a driver whose auto liability policy was cancelled before the crash. Elena has uninsured motorist coverage. When does that coverage apply?

7.Malik's damages from a crash exceed the liability insurance the at-fault driver actually carries. Malik bought underinsured motorist coverage. Which coverage matches his shortfall?

8.After a wreck, both the named insured and a passenger need emergency care. The auto policy includes medical payments. How does that coverage respond?

9.Jonah lets a neighbor borrow his pickup to haul mulch. The neighbor is not an excluded driver and negligently hits a fence. Which liability statement is accurate?

10.A consultant buys a $500,000 combined single limit rather than split limits. One crash causes both bodily injury and property damage. What does that limit supply?

11.In a comparative-negligence state, a jury finds Adele 20 percent at fault and another driver 80 percent at fault. Adele's damages are $10,000. What can she recover?

12.A hardware store buys commercial general liability coverage that includes Coverage A. What does Coverage A insure?

13.A bakery's website ad falsely says a rival bakery uses spoiled ingredients. The rival sues over that ad. No one is physically hurt. Which coverage fits?

14.A guest scrapes a knee in a hotel lobby and asks the hotel to pay the clinic bill without a lawsuit. The hotel's commercial general liability policy includes Coverage C. What is Coverage C?

15.A tool maker sells a drill that injures a buyer after the sale. The commercial general liability policy lists a products-completed operations aggregate. Which statement is right?

16.A visitor is hurt on June 3 while an occurrence commercial general liability policy is active. The visitor sues the next spring, after that policy has expired. What does occurrence coverage use?

17.A claims-made policy is in effect when a claimant first submits a claim. The injury occurred earlier, but after the policy's retroactive date. Which description is correct?

18.A line cook is burned while lifting a pan during a shift. The restaurant has workers compensation. What must the cook prove about the employer's fault?

19.After a covered job injury, a warehouse clerk wants to sue the employer in tort for that same injury. How is workers compensation generally treated?

20.A producer is asked to quote one weekly workers compensation wage cap that applies as national law in every state. What is the sound reply?

21.Petra maintains the auto liability limit required by her personal umbrella. A covered judgment against her is larger than that auto limit. What is the umbrella's job?

22.A printing company's commercial umbrella follows its required underlying liability policies. One covered claim lands where no underlying coverage applies. What can apply then?

23.A roofing firm must give the project owner a bond promising the work will be finished. Which parties are on that surety bond?

24.A surety pays the project owner after the contractor, who is the principal, walks off the job. What does the surety usually expect next?

25.A liability insurer pays a covered settlement for a florist who caused a crash. How is that payment different from a surety's payment?

26.After paying its insured for collision damage, an insurer pursues the driver who caused the crash. What is that recovery right?

27.A courier company owes other road users a duty of reasonable care. Its driver is reading a phone and rear-ends a scooter. What negligence element is the phone use?

28.A theater leaves an open orchestra-pit edge unmarked. A patron steps off, and doctors tie a torn knee to that fall. Duty and breach are shown. What else do those facts support?

29.A driver runs a stop sign but stops short of any contact. No one is hurt and no property is damaged. A nearby walker sues for negligence. What is missing?

30.Split limits are 100/300/50. In an accident that injures only Cole, his bodily injury award is $140,000. How much bodily injury liability is payable for Cole?

31.Split limits are 100/300/50. Bodily injury awards are $90,000 to one person and $80,000 to another. Nothing else is damaged. How much bodily injury liability is payable?

32.Split limits are 100/300/50. The insured knocks down a neighbor's wall and ruins a lawn, totaling $70,000 of property damage. No one is injured. How much property-damage liability is payable?

33.Collision coverage carries a $500 deductible. After a driver hits a parking bollard, repairs to the insured's car cost $3,200. How much does collision pay?

34.A deer bolts from a ditch and strikes the side of Lena's moving sedan, caving in two doors. She did not hit another vehicle. She has comprehensive coverage. Which coverage applies?

35.Thieves take Marco's sedan from a restaurant lot, and the car is never found. He bought comprehensive coverage and did not buy collision. Which statement is correct?

36.A garage fire spreads to Nina's parked convertible and destroys it. Her auto policy includes comprehensive coverage. Which statement fits the fire?

37.A stone flung from the road cracks Owen's windshield. No crash occurs, and the rest of the car is undamaged. Comprehensive coverage is on the policy. What responds to the glass?

38.Floodwater soaks the interior of Paul's parked car. The comprehensive loss is $300, and the comprehensive deductible is $500. He did not hit anything. What is payable?

39.A driver with no liability insurance strikes Quinn and leaves. Quinn is hurt, and his fender is crushed. He has uninsured motorist coverage and collision with a deductible. Which pairing fits?

40.The at-fault driver pays a full $25,000 bodily injury liability limit. Rosa's damages are $60,000. Her underinsured motorist limit is $100,000. How much of the unpaid damages can that coverage pay?

41.Steven rides as a passenger in his friend Tina's car. Tina causes the crash, and Steven is hurt. Steven's own auto policy includes medical payments. Which statement is correct?

42.Auto medical payments are $5,000 per person. The insured's covered bills are $2,000. A passenger's covered bills are $6,500. Fault is still disputed. How much is payable altogether?

43.The insurer pays a shop for the other driver's car and pays that driver's injury settlement. It declines to fix the insured's cracked bumper. Why is the bumper declined?

44.One accident is insured by a $300,000 combined single limit. Bodily injury claims are $220,000 and property damage is $40,000. How much can that single limit pay?

45.A combined single limit is $100,000. One wreck produces $80,000 of bodily injury and $50,000 of property damage. What is payable under that limit?

46.The declarations name the insured's teenage child as an excluded driver. The child takes the car and causes a liability loss. Which statement should a producer rely on?

47.An occurrence policy is in force on the March afternoon when a shopper is injured by a falling display. Suit is served two years later. Which fact sets the occurrence trigger?

48.A claims-made policy shows a retroactive date of January 1, 2024. During the policy period, a claim is first made for an injury on June 1, 2023. What is the result?

49.A carpenter finishes a deck and leaves. Days later a guest leans on a rail from that work and is hurt. Two aggregates appear on the policy. Which one usually applies to the injury?

50.While carrying a ladder on a sidewalk, a painter strikes a stranger's parked car and dents a door. No one is hurt. The painter's commercial general liability policy includes Coverage A. What is the dent?

51.A clinic's newsletter falsely attacks a neighboring clinic's reputation. The neighbor sues. Nobody seeks care for a physical injury. Which coverage is the match?

52.A museum visitor twists an ankle on a gallery step and submits a modest urgent-care bill. The museum would like to pay that bill promptly. Which coverage is built for this?

53.A machinist breaks an arm while running an assigned press. Workers compensation is in force. Stated generally, what can it pay?

54.A covered employee has received workers compensation and then sues the employer for additional pain and suffering from that same injury. What is the general result?

55.A new business owner asks which single number of days every state waits before workers compensation wage benefits begin. How should the producer answer?

56.Helen's auto liability limit is $300,000. Her personal umbrella limit is $1,000,000 and requires at least $300,000 underlying. A covered auto judgment is $450,000. What can the umbrella pay?

57.A commercial umbrella has a $1,000,000 limit and a $10,000 self-insured retention when no underlying coverage applies. A covered $40,000 loss has no underlying policy. How much can the umbrella pay?

58.On a performance bond, the contractor is the principal, the city is the obligee, and a bonding company is the surety. How many parties does this bond have?

59.After the surety pays the obligee, the principal hopes the payment wiped out any duty to the surety. What is the usual surety expectation?

60.A collision insurer pays $4,000 to its insured. Another driver caused the entire crash and is able to pay. What can subrogation do with that payment?

61.In a comparative-negligence state, Ben is 40 percent at fault and the other driver is 60 percent at fault. Ben's damages are $20,000. What is Ben's reduced recovery?

62.A cafe owes guests a duty to keep the floor reasonably safe. Employees see a spilled smoothie and leave it for an hour. A guest falls and is hurt. What element is the untouched spill?

63.A motorist is speeding. A pedestrian's broken arm came from a fall at home the day before their near miss. The pedestrian sues the motorist for that arm. What fails?

64.Ida's parked hatchback is crumpled by another vehicle that drives away. She wants that damage fixed under the physical damage coverage she bought. Which coverage is this impact?

65.Overnight hail pocks the hood of Jorge's car in his driveway. No vehicle touched it. He asks which physical damage coverage is designed for hail.

66.Kim is driving her own car when a motorist who has no liability insurance hits her. Kim's policy includes uninsured motorist coverage. When does that coverage apply?

67.Lee's injury damages are higher than the bodily injury liability limit of the driver who caused the crash. That driver does have insurance. Lee bought underinsured motorist coverage. Which label is correct?

68.Split limits are 100/300/50. Three injured people each have a $100,000 bodily injury award. How much bodily injury liability is payable?

69.Split limits are 100/300/50. One person has a $120,000 bodily injury award, and property damage is $20,000. How much is payable in total under those limits?

70.The insured causes a crash. The other car needs $4,000 of repairs, and the insured's car needs $2,500. The insured has liability plus collision with a $500 deductible. What does collision address?

71.River water climbs into a parking garage and floods Ruth's car up to the seats. She did not strike a vehicle or an object. Which physical damage coverage applies?

72.Seth swerves to miss a dog, does not touch the dog, and slams his fender into a tree. Which coverage fits the fender damage?

73.The named insured causes a collision and is injured, as are two passengers in that car. Auto medical payments are on the policy. Which statement is correct?

74.Anita allows a coworker to drive Anita's car to a job site. The coworker is not an excluded driver and negligently injures a pedestrian. Which liability statement is fair?

75.A claims-made policy period contains both the injury and the first presentation of the claim, and the injury is after the retroactive date. What does that policy require?

76.An occurrence liability policy ends on December 31. A customer was injured on December 15, and the claim letter arrives in February. Is the injury inside the occurrence trigger?

77.A stock clerk is injured when a case of bottles falls while the clerk is stacking a shelf. The employer was not negligent. Can workers compensation still respond?

78.An employee accepts workers compensation for a covered injury and then files a negligence action against the employer for that injury. What is the general rule?

79.A restaurant carries commercial general liability and a commercial umbrella that requires that underlying policy. A covered judgment exceeds the general liability limit. What does the umbrella add?

80.A commercial umbrella states a self-insured retention for a loss when no underlying liability policy applies. What does the insured do with that retention?

81.A liability insurer pays a $15,000 covered settlement on behalf of its insured. The insured asks whether that $15,000 must be paid back to the insurer. What is the answer?

82.A bonding company pays $20,000 to a project owner because the principal left the project unfinished. What usually follows that bond payment?

83.Comprehensive coverage pays $1,800 to replace the insured's windshield after a neighbor breaks it. The neighbor is identified and was at fault. What can subrogation allow?

84.A visitor shows that a building owner had a duty to maintain the steps, that a broken handrail was left unrepaired, and that the visitor fell and was hurt because of it. Which list is the negligence test those facts address?

85.In a comparative-negligence state, Cara is 10 percent at fault and the other driver is 90 percent at fault. Cara's damages are $5,000. How much is her reduced recovery?

86.A landscaper's pickup has split limits of 100/300/50. The truck topples a client's mailbox and fence. Property damage is $42,000, and nobody is hurt. How much property-damage liability is payable?

87.Split limits are 100/300/50. Four people have bodily injury awards of $80,000, $70,000, $60,000, and $50,000. No property is damaged. How much bodily injury liability is payable?

88.Split limits are 100/300/50. One claimant's bodily injury award is $180,000, and there is no other injury or damage. How much of that award remains unpaid by this bodily injury coverage?

89.A photo studio insures its van with a $1,000,000 combined single limit. One crash injures a pedestrian and destroys a client's lighting cart. How does that limit apply?

90.A bakery truck has liability coverage and no collision coverage. The driver hits a parked sedan and also bends the truck's own fender. What can liability pay?

91.A catering van slides on ice into a steel guardrail. No other vehicle is involved, and the van has collision coverage. What is covered?

92.Overnight, someone steals a surveyor's car from a driveway. The surveyor purchased comprehensive coverage and declined collision. Which statement is correct?

93.An engine fire burns Dana's parked car. She has comprehensive coverage, and no collision occurred. Which description is right?

94.The at-fault driver admits his auto liability policy lapsed the week before he caused the crash. The injured person has uninsured motorist coverage. Which statement is correct?

95.The at-fault driver carries a small bodily injury limit, and the injured driver's damages are higher. The injured driver bought underinsured motorist coverage. What is that coverage for?

96.Medical payments coverage is $1,000 per person. The insured's covered medical bill after a crash is $1,400. Fault has not been decided. How much can medical payments pay for the insured?

97.Four passengers are hurt in the insured's car. Each has $800 of covered medical bills. Medical payments are $1,000 per person. The insured is not hurt. How much is payable for the passengers?

98.Greg lets his sister use his car for a weekend trip. She is licensed, has his permission, and is not an excluded driver. She causes a liability loss. Which description fits her?

99.A policy lists one household member as an excluded driver. That person causes a crash in the insured car. A relative says everyone in the house is covered. What is the sound response?

100.A food company sells jars of sauce. Months later a customer is injured by the product. The commercial general liability policy shows a separate products-completed operations aggregate. Why check that aggregate?

101.An electrician finishes a kitchen and leaves. A week later a fixture from that job fails and injures the homeowner. Which aggregate is usually the one involved?

102.A clothing-store shelf tips and injures a shopper. The store's commercial general liability policy includes Coverage A. Which part of that event belongs to Coverage A?

103.A software firm runs an ad falsely claiming a rival's program steals client data. The rival sues. No one suffers a physical injury. Which coverage matches the suit?

104.A shoe store wants coverage that can pay a customer's small clinic bill without a fight about legal liability. Which commercial general liability coverage is aimed at that bill?

105.A painter's occurrence policy was in force on the day a falling ladder injured a client. The client first makes a claim eight months after that policy ended. Which description fits?

106.A caterer's claims-made policy receives a claim on a day the policy is in force. The injury date is after the retroactive date. Which description fits?

107.An employee is hurt while doing assigned work and asks whether the employer must have been negligent for benefits to exist. What is accurate?

108.Nora keeps the auto liability limit that her personal umbrella requires. A covered auto liability loss is larger than that underlying limit. What can the umbrella do?