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Free Casualty - Series 105 Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Casualty - Series 105 practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A Louisiana resident applies for an individual casualty producer license. What is the minimum statutory age?

    1. A. 18 years
    2. B. 19 years
    3. C. 20 years
    4. D. 21 years

    Answer: A

    Explanation: R.S. 22:1546(A)(1) requires that the applicant "Is at least eighteen years of age." Therefore 18 is the minimum.

    Reference: La Insurance Code — R.S. 22:1546(A)(1)

  2. 2An insurer relies partly on a consumer report in deciding an application. Which action requires an FCRA adverse-action notice to the applicant?

    1. A. Charging a higher premium because the report indicates increased risk.
    2. B. Issuing the requested coverage at the quoted rate after reviewing the report.
    3. C. Reducing the premium because the report indicates reduced risk.
    4. D. Renewing the policy unchanged after reviewing the report.

    Answer: A

    Explanation: "requires you to provide a notice of the adverse action to the consumer" A higher premium based partly on a consumer report is adverse action, so the insurer must notify the applicant.

    Reference: FTC, Consumer Reports: What Insurers Need to Know — FTC guidance, adverse action notices

  3. 3A warehouse owner faces uncertain fire loss with no possibility of financial gain from the event. Which classification fits that exposure?

    1. A. Pure risk, involving loss or no loss.
    2. B. Speculative risk, involving possible gain or loss.
    3. C. Entrepreneurial risk, involving possible gain or loss.
    4. D. Investment risk, involving possible gain or loss.

    Answer: A

    Explanation: "Pure risk involves no chance of economic gain" Fire presents only possible financial loss, which is the pure-risk distinction.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — Risk and insurance, pure risk

  4. 4A court awards a claimant money for actual hospital bills after a covered injury. What is the award's purpose?

    1. A. Compensatory damages for the claimant's loss.
    2. B. Punitive damages for the defendant's conduct.
    3. C. Nominal damages for violation without material loss.
    4. D. Liquidated damages fixed in advance by contract.

    Answer: A

    Explanation: "Compensatory damages, financial losses" Hospital bills are financial losses for which compensatory damages make the injured claimant whole.

    Reference: NAIC, Small Business Insurance — Business liability, types of damages

  5. 5A driver negligently injures a pedestrian while driving an insured personal auto. Which coverage responds to the pedestrian's bodily injury claim against the driver?

    1. A. Bodily injury liability coverage for injury to another person.
    2. B. Medical payments coverage for injury to the insured's passenger.
    3. C. Collision coverage for damage to the insured vehicle.
    4. D. Uninsured motorist coverage for injury by an uninsured driver.

    Answer: A

    Explanation: "claims of other people who are injured in an accident for which you were at fault" The injured pedestrian is a third party claiming against the at-fault insured driver.

    Reference: NAIC, Consumer Auto Insurance — Auto coverage, bodily injury liability

  6. 6A company employee drives her own car on an assigned sales visit and injures a third party. Which commercial-auto exposure should the employer assess?

    1. A. Owned-auto liability from a vehicle titled to the company.
    2. B. Non-owned-auto liability from an employee's car used for business.
    3. C. Garagekeepers liability for a customer's car in the company's care.
    4. D. Motor-carrier liability from transporting property for hire.

    Answer: B

    Explanation: "other non-owned vehicles, including employees’ cars driven for company business" An employee-owned car used on company business creates a non-owned auto exposure for the employer.

    Reference: NAIC, Small Business Insurance — Commercial auto, non-owned vehicles

  7. 7A store customer suffers bodily injury from a wet floor and sues the store. Which CGL coverage category addresses the customer's liability claim?

    1. A. Bodily injury and property damage liability.
    2. B. Personal and advertising injury liability.
    3. C. Medical payments without regard to fault.
    4. D. Damage to premises rented to the insured.

    Answer: A

    Explanation: "damages because of “bodily injury” or “property damage”" The customer's liability suit seeks damages because of bodily injury, the Coverage A category.

    Reference: NAIC, Insurance for Social Media Liability — CGL Coverage A, Insuring Agreement 1(a)

  8. 8A bookkeeper steals funds from the employer during assigned accounting duties. Which commercial crime insuring agreement matches the cause of loss?

    1. A. Employee theft or dishonesty.
    2. B. Forgery or alteration.
    3. C. Theft of money inside premises by a customer.
    4. D. Computer fraud by an outside hacker.

    Answer: A

    Explanation: "covering an employer's loss resulting from an employee's dishonest act" The actor is an employee committing a dishonest act, which is the employee-theft exposure.

    Reference: NAIC, Glossary of Insurance Terms — Fidelity

  9. 9A Louisiana worker reports shoulder pain after operating machinery. Which additional fact supports classifying the injury as a statutory accident rather than a gradual condition?

    1. A. The pain accumulated from repeated motions across several months.
    2. B. A machine jam caused an identifiable injury during one shift.
    3. C. The shoulder deteriorated progressively without one event.
    4. D. Symptoms appeared years after repeated occupational exposure.

    Answer: B

    Explanation: "unexpected or unforeseen actual, identifiable, precipitous event happening suddenly or violently" An identifiable, sudden machine-jam event meets the accident feature; the alternatives describe gradual or delayed conditions.

    Reference: Louisiana Legislature, R.S. 23:1021 — R.S. 23:1021(1), Accident

  10. 10A corporate officer faces a suit alleging wrongful conduct in the officer's management duties. Which specialty liability form addresses this?

    1. A. Directors and officers liability.
    2. B. Professional errors and omissions liability.
    3. C. Employment practices liability.
    4. D. Fiduciary liability insurance.

    Answer: A

    Explanation: "protecting directors or officers of a corporation" D&O liability protects corporate directors and officers for covered duty-related claims.

    Reference: NAIC, Glossary of Insurance Terms — Directors & Officers Liability

Topics in this practice bank

These topics describe the available practice for Casualty - Series 105. Review the examination outline and its sources for scope and allocation details.

  • Louisiana Insurance Regulation
    • Licensing
    • Licensing / Types of licenses (22:1547, 1962(F))
    • Licensing / Types of licenses (22:1547, 1962(F)) / Individual producer (22:1542(6), 1546(A))
    • Licensing / Types of licenses (22:1547, 1962(F)) / Business entity (22:1542(2), 1546(B))
    • Licensing / Types of licenses (22:1547, 1962(F)) / Resident versus nonresident (22:1546, 1548, 1560)
    • Licensing / Types of licenses (22:1547, 1962(F)) / Temporary (22:1553)
    • Licensing / Maintenance and duration
    • Licensing / Maintenance and duration / Expiration (22:1547(B))
    • Licensing / Maintenance and duration / Renewal/nonrenewal (22:1547(C); 22:1142; 22:887)
    • Licensing / Maintenance and duration / Change of name, address, telephone number (22:1547(G))
    • Licensing / Maintenance and duration / Assumed names (22:1552)
    • Licensing / Maintenance and duration / Reporting of actions (22:1563)
    • Licensing / Maintenance and duration / Continuing education requirements including exemptions and penalties (37:XI:10.703, .705 & Rule 10.711)
    • Licensing / Maintenance and duration / Inactivity due to extenuating circumstances
    • Licensing / Maintenance and duration / Inactivity due to military service
    • Licensing / Disciplinary actions
    • Licensing / Disciplinary actions / Hearings (22:1968, 2191, 2193-2195, 2197, 2198, 2204-2208)
    • Licensing / Disciplinary actions / Cease and desist order (22:1969)
    • Licensing / Disciplinary actions / License probation, suspension, revocation, or refusal to issue or renew (22:1554)
    • Licensing / Disciplinary actions / Penalties/fines (22:1969-1970)
    • State regulation
    • State regulation / Commissioner's general duties and powers (22:2, 1967)
    • State regulation / Acts constituting insurance transaction (22:23; 22:1542(6)
    • State regulation / Acts constituting insurance transaction (22:23; 22:1542(6) / Negotiate (22:23; 22:1542(6)
    • State regulation / Acts constituting insurance transaction (22:23; 22:1542(6) / Sell (22:23; 22:1542(6)
    • State regulation / Acts constituting insurance transaction (22:23; 22:1542(6) / Solicit (22:23; 22:1542(6)
    • State regulation / Company regulation
    • State regulation / Company regulation / Certificate of authority (22:65, 66)
    • State regulation / Company regulation / Solvency (22:571)
    • State regulation / Company regulation / Financial requirements (22:571)
    • State regulation / Company regulation / Records maintenance (22:68)
    • State regulation / Company regulation / Unfair claims settlement practices (22:1964(14))
    • State regulation / Company regulation / Appointment (22:1558)
    • State regulation / Company regulation / Termination of appointment (22:1559)
    • State regulation / Company regulation / Policy forms/rates/exceptions (22:864)
    • State regulation / Company regulation / State of domicile
    • State regulation / Producer regulation
    • State regulation / Producer regulation / Controlled business (22:1544(C))
    • State regulation / Producer regulation / Policy and application signatures (R.S. 9:2605)
    • State regulation / Producer regulation / Shared commissions (22:1557)
    • State regulation / Producer regulation / Payment to unlicensed entities (22:1562)
    • State regulation / Producer regulation / Commissions/compensations/fees ((22:1542 (3); 22:1557)
    • State regulation / Unfair trade practices (22:1964)
    • State regulation / Unfair trade practices (22:1964) / Misrepresentation (22:1964(1, 18))
    • State regulation / Unfair trade practices (22:1964) / False or deceptive advertising (22:1964(2))
    • State regulation / Unfair trade practices (22:1964) / Defamation (22:1964(3))
    • State regulation / Unfair trade practices (22:1964) / Boycott, coercion and intimidation (22:1964(4))
    • State regulation / Unfair trade practices (22:1964) / False financial statements (22:1964(5))
    • State regulation / Unfair trade practices (22:1964) / Unfair discrimination (22:1964(7); 22:34)
    • State regulation / Unfair trade practices (22:1964) / Rebating and twisting (22:1964(8); 37:XIII.575 (B)(1)
    • State regulation / Unfair trade practices (22:1964) / Prohibited fees/premium/extra charges
    • State regulation / Examination of books and records (22:1967, 1981, 1990)
    • State regulation / Insurance fraud (22:1964(13), 1921–1929)
    • State regulation / Privacy of Consumer Financial Information (37:XIII.9903– .9953)
    • Louisiana State Specific Property and Casualty Laws and Regulations
    • Louisiana State Specific Property and Casualty Laws and Regulations / Louisiana Valued Policy Law (22:1318)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Louisiana Insurance Guaranty Association (22:2051–2070)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Louisiana standard fire insurance policy (22:1311)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Wind and Hail Associations
    • Louisiana State Specific Property and Casualty Laws and Regulations / Cancellation and nonrenewal (22:887)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Commercial (22:1267)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Homeowners (22:1265, 1333, 1335, 1336)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Binders (22:870, 1555)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Loss payment (22:1892)
    • Louisiana State Specific Property and Casualty Laws and Regulations / Certificates of Insurance (22:890)
    • Federal regulation
    • Federal regulation / Other federal regulations (e.g.Do Not Call List) (https://www.donotcall.gov)
  • Licensing and Regulation
    • Federal Regulation
    • Federal Regulation / Fair Credit Reporting Act
    • Federal Regulation / Fraud and False Statements (18 USC Sections 1033 and 1034)
    • Federal Regulation / Privacy (Gramm Leach Bliley)
    • Federal Regulation / Motor Carrier Act (MCS-90 and others)
  • General Insurance Concepts
    • Risk
    • Risk / Methods of Handling Risk (e.g., Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk / Elements of Insurable Risks
    • Risk / Definitions (e.g., Risk, Hazard, Peril, Loss)
    • Classifications of Insurers
    • Classifications of Insurers / Mutual, Stock
    • Classifications of Insurers / Admitted, Non-Admitted
    • Classifications of Insurers / Foreign, Domestic, Alien
    • Elements of a Contract
    • Elements of a Contract / Consideration
    • Elements of a Contract / Competent Parties
    • Elements of a Contract / Legal Purpose
    • Elements of a Contract / Offer
    • Elements of a Contract / Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers / Express
    • Authority and Powers of Producers / Implied
    • Authority and Powers of Producers / Apparent
    • Authority and Powers of Producers / The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts / Reasonable Expectations
    • Legal Interpretations Affecting Contracts / Indemnity
    • Legal Interpretations Affecting Contracts / Good Faith
    • Legal Interpretations Affecting Contracts / Fraud
    • Legal Interpretations Affecting Contracts / Warranties, Representations, Misrepresentations, and Concealment
  • Casualty Insurance Basics
    • Damages
    • Damages / Compensatory versus Punitive
    • Damages / General versus Special
    • Liability
    • Liability / Absolute
    • Liability / Strict
    • Liability / Vicarious
    • Underwriting
    • Underwriting / Purpose
    • Underwriting / Process
    • Underwriting / Results
    • Rate Development
    • Rate Development / Types
    • Rate Development / Components
    • Rate Development / Basis
    • Types of Hazards
    • Negligence
    • Negligence / Torts
    • Negligence / Elements of a Negligent Act
    • Negligence / Defense Against Negligence
    • Accident versus Occurrence
    • Policy Structure
    • Policy Structure / Declarations
    • Policy Structure / Definitions
    • Policy Structure / Insuring Agreement
    • Policy Structure / Supplementary Coverage
    • Policy Structure / Conditions
    • Policy Structure / Exclusions
    • Policy Structure / Endorsements
    • Policy Conditions
    • Policy Conditions / Insureds
    • Policy Conditions / Policy Period
    • Policy Conditions / Policy Territory
    • Policy Conditions / Cancellation and Non-Renewal
    • Policy Conditions / Deductibles/Self-Insured Retention
    • Policy Conditions / Other Insurance (e.g. Primary and Excess, Pro Rata, Nonconcurrency, Contribution by Equal Shares)
    • Limits of Liability
    • Limits of Liability / Per Accident
    • Limits of Liability / Per Occurrence
    • Limits of Liability / Per Person
    • Limits of Liability / Aggregate
    • Limits of Liability / Split
    • Limits of Liability / Combined Single Limit
    • Named Insured Provisions
    • Named Insured Provisions / First Named Insured versus Other Insureds
    • Named Insured Provisions / Duties After Loss
    • Named Insured Provisions / Assignment
    • Named Insured Provisions / Waiver of Rights
    • Insurer Provisions
    • Insurer Provisions / Liberalization
    • Insurer Provisions / Subrogation
    • Insurer Provisions / Claim Settlement Options
    • Insurer Provisions / Duty to Defend
    • Third-Party Provisions
    • Third-Party Provisions / Standard Mortgage Clause
    • Third-Party Provisions / Loss Payable Clause
    • Third-Party Provisions / No Benefit to the Bailee
  • Personal Automobile Policy
    • Personal Automobile Policy
    • Personal Automobile Policy / Definitions
    • Personal Automobile Policy / General provisions
    • Personal Automobile Policy / Conditions
    • Personal Automobile Policy / Duties After an Accident
    • Personal Automobile Policy / Endorsements
    • Personal Automobile Policy / Endorsements / Amendment of policy provisions — Louisiana (PP 01 95) 02/12
    • Personal Automobile Policy / Endorsements / Extended non-owned coverage (PP 03 06) 01/05
    • Personal Automobile Policy / Endorsements / Miscellaneous type vehicle (PP 03 23) 01/05
    • Personal Automobile Policy / Endorsements / Joint ownership coverage (PP 03 34) 01/05
    • Personal Automobile Policy / Endorsements / Named driver exclusion — Louisiana (PP 13 43) 09/06
    • Personal Automobile Policy Liability
    • Personal Automobile Policy Liability / Bodily Injury and Property Damage
    • Personal Automobile Policy Liability / Supplementary Payments
    • Personal Automobile Policy Liability / Persons Insured
    • Personal Automobile Policy Liability / Exclusions
    • Expenses for Medical Services
    • Uninsured/Underinsured Motorist Coverage
    • Physical Damage
  • Commercial Automobile Policy
    • Commercial Automobile Policy
    • Commercial Automobile Policy / Definitions
    • Commercial Automobile Policy / Provisions and Conditions
    • Commercial Automobile Policy / Duties After an Accident
    • Commercial Automobile Policy / Endorsements
    • Commercial Automobile Policy / Endorsements / Louisiana – lessor – additional insured and loss payee (CA 04 13) 10/13
    • Commercial Automobile Policy / Endorsements / Mobile equipment (CA 20 15) 10/13
    • Commercial Automobile Policy / Endorsements / Auto medical payments coverage (CA 99 03) 10/13
    • Commercial Automobile Policy / Endorsements / Drive other car coverage (CA 99 10) 10/13
    • Commercial Automobile Policy / Endorsements / Employee as insured (CA 99 17) 10/13
    • Commercial Automobile Policy Liability
    • Commercial Automobile Policy Liability / Bodily Injury and Property Damage
    • Commercial Automobile Policy Liability / Supplementary Payments
    • Commercial Automobile Policy Liability / Persons Insured
    • Commercial Automobile Policy Liability / Exclusions
    • Physical Damage
    • Other Commercial Automobile forms (e.g., Motor Carrier, Auto Dealers)
  • Commercial General Liability
    • Commercial Policy Components
    • Commercial Policy Components / Declarations
    • Commercial Policy Components / Conditions
    • Commercial Policy Components / Interline Endorsements
    • Commercial General Liability Coverages
    • Commercial General Liability Coverages / Bodily Injury and Property Damage
    • Commercial General Liability Coverages / Personal and Advertising Injury
    • Commercial General Liability Coverages / Medical Payments
    • Commercial General Liability Coverages / Fire Damage
    • Commercial General Liability Coverages / Supplementary Payments
    • Elements of Commercial General Liability
    • Elements of Commercial General Liability / Conditions
    • Elements of Commercial General Liability / Definitions
    • Elements of Commercial General Liability / Exclusions
    • Occurrence versus Claims-Made
    • Claims-Made Features
    • Claims-Made Features / Trigger
    • Claims-Made Features / Retroactive Date
    • Claims-Made Features / Prior Acts
    • Claims-Made Features / Extended Reporting Periods
    • Claims-Made Features / Claim Information
    • Commercial General Liability Exposures
    • Commercial General Liability Exposures / Premises and Operations
    • Commercial General Liability Exposures / Products and Completed Operations
    • Commercial General Liability Exposures / Contractual Liability
  • Commercial Crime
    • Definitions
    • Insuring Agreements
    • Coverage form Classifications (types of coverage forms only)
  • Workers' Compensation Insurance
    • Definitions
    • Coverages
    • Coverages / Workers' Compensation Insurance
    • Coverages / Employers Liability Insurance
    • Coverages / Other States Insurance
    • Benefits
    • Benefits / Death
    • Benefits / Medical
    • Benefits / Survivor
    • Benefits / Rehabilitation
    • Benefits / Lost Wages
    • Levels of Disability
    • Levels of Disability / Permanent Partial
    • Levels of Disability / Permanent Total
    • Levels of Disability / Temporary Partial
    • Levels of Disability / Temporary Total
    • Levels of Disability / Impairment Rating
    • Accident versus Occupational Disease and Illness
    • Federal Laws
    • Federal Laws / Federal Employers Liability Act (FELA)
    • Federal Laws / Jones Act
    • Federal Laws / Longshore and Harbor Workers' Compensation Act
    • Federal Laws / Migrant Farm Workers
    • Rating and Job Classification
    • Rating and Job Classification / Experience Rating
    • Rating and Job Classification / Premium Basis
    • Claim Reporting Procedures
  • Other Types of Casualty Insurance
    • Specialty Liability Insurance
    • Specialty Liability Insurance / Directors and Officers
    • Specialty Liability Insurance / Professional/Errors and Omissions
    • Specialty Liability Insurance / Employment Practices
    • Specialty Liability Insurance / Employee Benefits
    • Specialty Liability Insurance / Internet Liability and Network Protection
    • Surety Bonds
    • Surety Bonds / Types
    • Surety Bonds / Parties to a Bond
    • Personal, Commercial Umbrella, and Excess Policies
    • Personal, Commercial Umbrella, and Excess Policies / Underlying Limits
    • Personal, Commercial Umbrella, and Excess Policies / Self-Insured Retention
    • Personal, Commercial Umbrella, and Excess Policies / Defense Costs
    • Personal, Commercial Umbrella, and Excess Policies / Follow Form

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