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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 visitor slips on a wet floor while a shop is open for business. Which CGL exposure best fits the resulting injury claim?

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

    Answer: A

    Explanation: "Premises and Operations - policies covering the liability of an insured" The wet-floor injury arises from ongoing premises activity, so premises and operations is the relevant exposure. Completed operations concerns finished work; the other categories involve personal injury or medical payments.

    Reference: NAIC Glossary of Insurance Terms — Premises and Operations

  2. 2A customer pays a premium so an insurer will bear specified covered losses. Which insurance function is illustrated?

    1. A. Risk transfer
    2. B. Loss retention
    3. C. Risk avoidance
    4. D. Risk assumption by the insured

    Answer: A

    Explanation: "a contract to transfer risk from individuals to an insurance company" Insurance transfers specified risk to the insurer for a premium; retention and avoidance leave the loss risk with the customer or remove the activity.

    Reference: Washington Insurance Commissioner Consumer Glossary — Insurance

  3. 3A producer needs to verify the insured's name, policy dates, and liability limits on an issued auto policy. Which section should be checked first?

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

    Answer: D

    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." The requested policyholder, dates, and limits are declaration facts. Insuring agreement, conditions, and exclusions have other functions.

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

  4. 4A Wyoming resident applies for a casualty producer license. Unless exempt, which examination must the applicant pass?

    1. A. A written examination
    2. B. A physical skills examination
    3. C. An oral board examination
    4. D. No examination

    Answer: A

    Explanation: W.S. 26-9-205(a) states: "A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to W.S. 26-9-209."

    Reference: Title 26 — W.S. 26-9-205(a)

  5. 5A Wyoming property insurer seeks to cancel a policy halfway through its term. Which stated reason is expressly permitted by the cited cancellation statute?

    1. A. A request for a new certificate of insurance
    2. B. An insured's covered claim last month
    3. C. Failure to pay a premium when due
    4. D. A routine change in mailing address

    Answer: C

    Explanation: "Failure to pay a premium when due;" Nonpayment when due is an express midterm cancellation ground, subject to required notice. The other events alone do not satisfy a listed ground.

    Reference: Wyoming Insurance Code, Title 26 — W.S. 26-35-202(a)(i)

  6. 6Wyoming's division mandatorily suspends a vehicle owner's license. Absent maintained proof of financial responsibility, what must happen to vehicles registered in that person's name?

    1. A. They remain registered until policy renewal
    2. B. Their registrations are also suspended
    3. C. They receive only an insurance surcharge
    4. D. They are transferred to an assigned risk plan

    Answer: B

    Explanation: "division shall also suspend the registration for all motor vehicles registered in the name of the person" The division must also suspend the person's vehicle registrations unless proof is given and maintained. Renewal charges or assigned-risk placement do not substitute for the statutory consequence.

    Reference: Wyoming Motor Vehicles Code, Title 31 — W.S. 31-9-401(a)

  7. 7Months after a contractor finishes a repair, defective work at the customer's site injures a visitor. Which CGL exposure fits?

    1. A. Premises and operations liability
    2. B. Products and completed operations liability
    3. C. Personal and advertising injury liability
    4. D. Damage to premises rented to you coverage

    Answer: B

    Explanation: "Completed Operations Liability - policies covering the liability of contractors" Defective work caused harm after completion away from the contractor's premises. That is completed operations, while the other coverages apply to different exposures.

    Reference: NAIC Glossary of Insurance Terms — Completed Operations Liability

  8. 8An insured routinely leaves a storeroom unlocked through simple carelessness, increasing the chance of loss. Which hazard classification best describes this behavior?

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

    Answer: B

    Explanation: "negligence or disregard on the part of the insured" Careless disregard is a morale hazard. A moral hazard concerns characteristics such as deliberate conduct motivated by coverage; physical and legal hazards are different sources of loss.

    Reference: NAIC Glossary of Insurance Terms — Morale Hazard

  9. 9A claims adjuster must identify the perils and risks the insurer promised to cover under an auto policy. Which section states that promise?

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

    Answer: A

    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 insurer's coverage promise. The declarations identify policy specifics, conditions prescribe duties, and exclusions narrow coverage.

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

  10. 10A Wyoming insurance department employee asks who has the statutory duty to enforce the Insurance Code impartially. Which office holds that duty?

    1. A. Insurance commissioner
    2. B. Licensed insurer
    3. C. Insurance producer
    4. D. Guaranty association

    Answer: A

    Explanation: "Enforce this code with impartiality;" The commissioner enforces the Insurance Code; insurers, producers, and the guaranty association have different statutory roles.

    Reference: Wyoming Insurance Code, Title 26 — W.S. 26-2-109(a)(iii)

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.

  • 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)
  • 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
  • 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. Other insurance
    • L. Subrogation
    • M. Loss settlement provisions including consent to settle a loss
    • N. Terrorism Risk Insurance Act (TRIA)
  • WYOMING STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, ACCIDENT AND HEALTH, PROPERTY, AND CASUALTY INSURANCE
    • A. Insurance Commissioner
    • A. Insurance Commissioner / 1. Appointment Ref: 26-2-102
    • A. Insurance Commissioner / 2. General powers and duties Ref: 26-2-109 and 110
    • A. Insurance Commissioner / 3. Examinations Ref: 26-2-116 and 117
    • A. Insurance Commissioner / 4. Orders and hearings Ref: 16-3-103, 26-2-111 and 112, 26-1-107, 26-2-130
    • A. Insurance Commissioner / 5. Penalties Ref: 26-1-107, 26-2-112, 26-9-211
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210 / 1. Domestic company
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210 / 2. Foreign company
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210 / 3. Alien company
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210 / 4. Stock and mutual companies and reciprocals
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210 / 5. Reciprocal
    • B. Definitions Ref: 26-1-102; 26-3-101, 26-3-105, 26-29-201, 210 / 6. Certificate of authority
    • C. Licensing
    • C. Licensing / 1. Persons required to be licensed
    • C. Licensing / 1. Persons required to be licensed / a. Producer/business entity Ref: 26-9-203, 26-9-206, 26-9-207, 26-29-233
    • C. Licensing / 1. Persons required to be licensed / b. Producer acting as broker Ref: 26-1-102, 26-9-224 and 225
    • C. Licensing / 1. Persons required to be licensed / c. Consultant Ref: 26-9-220, Reg. Ch. 18, 26-9-231
    • C. Licensing / 1. Persons required to be licensed / d. Limited lines Ref: 26-9-202
    • C. Licensing / 1. Persons required to be licensed / e. Surplus lines broker Ref: 26-9-208, 26-11-103, 26-11-112
    • C. Licensing / 1. Persons required to be licensed / f. Nonresident Ref: 26-9-208, 215, 230
    • C. Licensing / 1. Persons required to be licensed / g. Temporary license Ref: 26-9-210
    • C. Licensing / 2. Agent appointment/termination of contract Ref: 26-9-213 and 214
    • C. Licensing / 3. Obtaining a license
    • C. Licensing / 3. Obtaining a license / a. Qualifications Ref: 26-9-206, Reg. Ch. 18
    • C. Licensing / 3. Obtaining a license / b. Exemptions/exceptions Ref: 26-9-204, 26-9-209
    • C. Licensing / 3. Obtaining a license / c. License denial Ref: 26-9-211
    • C. Licensing / 4. Maintaining a license
    • C. Licensing / 4. Maintaining a license / a. Continuing education Ref: 26-9-231, Reg. Ch. 20
    • C. Licensing / 4. Maintaining a license / b. Change of address Ref: 26-9-207, 26-9-228
    • C. Licensing / 4. Maintaining a license / c. Fees/renewal/reinstatement Ref: 26-9-207; 26-4-101
    • C. Licensing / 4. Maintaining a license / d. License expiration/termination Ref: 26-9-207, 26-9-232
    • C. Licensing / 4. Maintaining a license / e. Suspension or revocation of licenses Ref: 26-9-211
    • C. Licensing / 4. Maintaining a license / f. Reporting of actions Ref: 26-9-216
    • C. Licensing / 4. Maintaining a license / g. Penalties Ref: 26-1-107
    • D. Producer responsibilities
    • D. Producer responsibilities / 1. Fiduciary capacity Ref: 26-9-229, Reg. Ch. 46
    • D. Producer responsibilities / 1. Fiduciary capacity Ref: 26-9-229, Reg. Ch. 46 / a. Premium accountability
    • D. Producer responsibilities / 1. Fiduciary capacity Ref: 26-9-229, Reg. Ch. 46 / b. Separate account requirements
    • D. Producer responsibilities / 2. Commissions and compensation Ref: 26-9-212
    • D. Producer responsibilities / 3. Place of business of licensees/display of licenses/records Ref: 26-9-228
    • D. Producer responsibilities / 4. Agency vs. individual licensee
    • E. Unfair trade practices
    • E. Unfair trade practices / 1. Boycott, coercion, intimidation Ref: 26-13-108
    • E. Unfair trade practices / 2. Controlled business Ref: 26-9-226
    • E. Unfair trade practices / 3. Defamation Ref: 26-13-107
    • E. Unfair trade practices / 4. False advertising Ref: 26-13-103
    • E. Unfair trade practices / 5. False financial statements Ref: 26-13-106
    • E. Unfair trade practices / 6. Fraud Ref: 26-13-201 and 202
    • E. Unfair trade practices / 7. Misrepresentation Ref: 26-13-103
    • E. Unfair trade practices / 8. Rebates/illegal inducements Ref: 26-13-110
    • E. Unfair trade practices / 9. Unfair discrimination Ref: 26-13-109, 112(c)
    • E. Unfair trade practices / 10. Unfair claims settlement practices Ref: 26-13-124
    • F. Wyoming Insurance Guaranty Association Ref: 26-31-103, 26-31-106; 26-42-116(a); Reg. Ch. 43
    • G. Consumer privacy regulation Ref: Reg. Ch. 54
  • WYOMING STATUTES, RULES AND REGULATIONS PERTINENT TO PROPERTY AND CASUALTY INSURANCE ONLY
    • A. Renewal, Nonrenewal, Cancellation Ref: 26-35-202, 203, 26-23-403
    • B. Binders Ref: 26-15-119
    • C. Payment of claims Ref: 26-15-124
    • D. Terrorism Risk Insurance Act of 2002 and Extension Act of 2005 Ref: 15 USC 6701; S467
  • WYOMING STATUTES, RULES, AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLY
    • A. Automobile Insurance
    • A. Automobile Insurance / 1. Financial responsibility Ref: 31-9-401 through 31-9-413
    • A. Automobile Insurance / 1. Financial responsibility Ref: 31-9-401 through 31-9-413 / a. Proof of financial responsibility defined
    • A. Automobile Insurance / 1. Financial responsibility Ref: 31-9-401 through 31-9-413 / b. Persons required to show proof
    • A. Automobile Insurance / 1. Financial responsibility Ref: 31-9-401 through 31-9-413 / c. Penalty for noncompliance
    • A. Automobile Insurance / 1. Financial responsibility Ref: 31-9-401 through 31-9-413 / d. Methods of satisfying financial responsibility
    • A. Automobile Insurance / 2. Uninsured/underinsured motorists coverage Ref: 31-10-101 through 31-10-104; Reg. Ch. 23
    • A. Automobile Insurance / 2. Uninsured/underinsured motorists coverage Ref: 31-10-101 through 31-10-104; Reg. Ch. 23 / a. Required coverages
    • A. Automobile Insurance / 2. Uninsured/underinsured motorists coverage Ref: 31-10-101 through 31-10-104; Reg. Ch. 23 / a. Required coverages / (1). Bodily injury
    • A. Automobile Insurance / 2. Uninsured/underinsured motorists coverage Ref: 31-10-101 through 31-10-104; Reg. Ch. 23 / b. Option for additional coverage
    • A. Automobile Insurance / 3. Cancellation/nonrenewal Ref: Reg. Ch. 14
    • A. Automobile Insurance / 4. Wyoming Automobile Insurance (Assigned Risk) Plan...........................................
    • B. Workers’ Compensation

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