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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 customer slips on a wet floor while a retailer is open for business and alleges bodily injury. Which CGL exposure most directly fits the accident?

    1. A. Premises and operations liability
    2. B. Products and completed operations liability
    3. C. Personal and advertising injury liability
    4. D. Professional errors and omissions liability

    Answer: A

    Explanation: "Premises/operations coverage pays for bodily injury or property damage that occurs on your premises or as a result of your business operations." The injury arose at the business premises during ongoing operations.

    Reference: Texas Department of Insurance, Commercial general liability insurance — What is commercial general liability insurance?

  2. 2A warehouse owner weighs several uncertain financial exposures. Which one is a pure risk rather than a speculative risk?

    1. A. Inventory value lost if an accidental fire destroys stored goods
    2. B. Inventory value gained or lost as resale prices change
    3. C. Import cost gained or lost as exchange rates change
    4. D. Investment value gained or lost as bond prices change

    Answer: A

    Explanation: "Pure risk involves no chance of economic gain" Accidental property loss has a loss-or-no-loss outcome; the other choices can produce an investment gain.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — Important Insurance Concepts, Pure and speculative risk

  3. 3A customer checks an auto policy for its effective dates, liability limits, named insured, and listed car. Which policy part should contain these details?

    1. A. The declarations page
    2. B. The insuring agreement
    3. C. The exclusions section
    4. D. The claims conditions section

    Answer: A

    Explanation: "information including the policy term, coverage limits, and information about the insured." Declarations identify the insured, term, limits, and covered vehicles.

    Reference: NAIC, Consumer Auto Insurance — Declarations Page

  4. 4The Minnesota commissioner suspects an insurance-law violation whose relevant conduct occurred partly outside Minnesota. What investigative reach does the commissioner have?

    1. A. Only conduct occurring inside Minnesota may be investigated
    2. B. A public or private investigation may be conducted within or outside Minnesota
    3. C. An out-of-state investigation requires a final court judgment first
    4. D. Only another state's insurance commissioner may investigate the outside conduct

    Answer: B

    Explanation: Minn. Stat. § 45.027, subd. 1 authorizes the commissioner to "make public or private investigations within or without this state" when necessary to determine whether a person violated or is about to violate a relevant law, rule, or order.

    Reference: Mn Statutes 45 — Minn. Stat. § 45.027, subd. 1(a)(1)

  5. 5Which objective is expressly stated in the Minnesota No-Fault Automobile Insurance Act?

    1. A. Prompt basic economic-loss payments without regard to who caused the accident
    2. B. Elimination of all residual-liability coverage
    3. C. Replacement of every auto claim with a criminal proceeding
    4. D. Payment of property damage only after proof of negligence

    Answer: A

    Explanation: Minn. Stat. § 65B.42 identifies the purpose of providing "prompt payment of specified basic economic loss benefits to victims of automobile accidents without regard to whose fault caused the accident."

    Reference: Mn Statutes 65B — Minn. Stat. § 65B.42(1)

  6. 6Months after a contractor finishes installing a railing, it fails at the customer's building and injures a visitor. Which CGL exposure addresses the completed work?

    1. A. Premises and operations liability
    2. B. Products and completed operations liability
    3. C. Personal and advertising injury liability
    4. D. Employer's liability for employee injury

    Answer: B

    Explanation: "Products/completed operations coverage pays for bodily injury and property damage that occurs away from your business premises and is caused by your products or completed work." The work was complete and the injury occurred away from the contractor's premises.

    Reference: Texas Department of Insurance, Commercial general liability insurance — What is commercial general liability insurance?

  7. 7An underwriter needs to identify a moral hazard among several business insurance exposures. Which applicant fact is the moral hazard?

    1. A. The owner leaves a stockroom unlocked after insuring its contents.
    2. B. The owner conceals recent fire claims on a signed application.
    3. C. The stockroom has a damaged electrical panel near supplies.
    4. D. The stockroom stores solvents beside an ignition source.

    Answer: B

    Explanation: "dishonesty or character defects in an individual that increase the chance" Dishonesty is the distinguishing moral-hazard feature; mere carelessness is morale hazard.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — Glossary, Moral Hazard

  8. 8A producer wants to locate the policy's broad promise identifying the perils and risks the insurer covers. Which provision contains that promise?

    1. A. The declarations page
    2. B. The insuring agreement
    3. C. The exclusions section
    4. D. The other-insurance clause

    Answer: B

    Explanation: "a broad statement listing the perils and risks covered under the contract." The insuring agreement states the broad covered-risk promise.

    Reference: NAIC, Consumer Auto Insurance — Insuring Agreement

  9. 9The Department of Commerce mails a licensed producer a document request but states no response deadline. By when must the producer comply?

    1. A. Within 10 days of mailing
    2. B. Within 15 days of mailing
    3. C. Within 30 days of mailing
    4. D. Within 60 days of mailing

    Answer: C

    Explanation: Under Minn. Stat. § 45.027, subd. 1a, a person subject to the commissioner's jurisdiction must comply "if no time is specified, within 30 days of the mailing of the request by the department."

    Reference: Mn Statutes 45 — Minn. Stat. § 45.027, subd. 1a

  10. 10When must a Minnesota automobile insurer provide an insurance identification card for each covered vehicle?

    1. A. Only after the first claim
    2. B. At policy initiation and at renewal
    3. C. Only after a traffic citation
    4. D. At cancellation and nonrenewal

    Answer: B

    Explanation: Minn. Stat. § 65B.482, subd. 1 requires a card "at the time of initiating each policy of automobile insurance ... and at the time of policy renewal."

    Reference: Mn Statutes 65B — Minn. Stat. § 65B.482, subd. 1

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.

  • Casualty — General Knowledge — Product Knowledge, Terms, and Concepts — Types of Policies, Bonds, and Related Terms - 23 items
    • Commercial General Liability
    • Commercial General Liability — Exposures
    • Commercial General Liability — Exposures — Premises and Operations
    • Commercial General Liability — Exposures — Products and Completed Operations
    • Commercial General Liability — Coverage
    • Commercial General Liability — Coverage — Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • Commercial General Liability — Coverage — Coverage B: Personal Injury and Advertising Injury
    • Commercial General Liability — Coverage — Coverage C: Medical Payments
    • Commercial General Liability — Coverage — Supplemental Payments
    • Commercial General Liability — Coverage — Who is an Insured
    • Commercial General Liability — Coverage — First named insured
    • Commercial General Liability — Coverage — Limits (Per occurrence, Annual Aggregate)
    • Commercial General Liability — Coverage — Damage to Property of Others
    • Automobile: Personal Auto and Business Auto
    • Automobile: Personal Auto and Business Auto — Liability
    • Automobile: Personal Auto and Business Auto — Liability — Bodily Injury
    • Automobile: Personal Auto and Business Auto — Liability — Property Damage
    • Automobile: Personal Auto and Business Auto — Liability — Split Limits
    • Automobile: Personal Auto and Business Auto — Liability — Combined Single Limit
    • Automobile: Personal Auto and Business Auto — Medical Payments
    • Automobile: Personal Auto and Business Auto — Physical Damage (collision; other than collision; specified perils)
    • Automobile: Personal Auto and Business Auto — Uninsured Motorists
    • Automobile: Personal Auto and Business Auto — Underinsured Motorists
    • Automobile: Personal Auto and Business Auto — Who is an Insured
    • Automobile: Personal Auto and Business Auto — Types of Auto
    • Automobile: Personal Auto and Business Auto — Types of Auto — Owned
    • Automobile: Personal Auto and Business Auto — Types of Auto — Non-Owned
    • Automobile: Personal Auto and Business Auto — Types of Auto — Hired
    • Automobile: Personal Auto and Business Auto — Types of Auto — Temporary Substitute
    • Automobile: Personal Auto and Business Auto — Types of Auto — Newly Acquired Autos
    • Automobile: Personal Auto and Business Auto — Types of Auto — Transportation Expense and Rental Reimbursement Expense
    • Automobile: Personal Auto and Business Auto — Auto Dealers Coverage Form, including Garagekeepers Insurance
    • Automobile: Personal Auto and Business Auto — Exclusions
    • Automobile: Personal Auto and Business Auto — Individual Insured and Drive Other Car (DOC)
    • Automobile: Personal Auto and Business Auto — Mobile equipment
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Standard Policy Concepts
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Standard Policy Concepts — Who is an employee/employer
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Standard Policy Concepts — Compensation
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Work-Related vs. Non-Work-Related
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Other States' Insurance
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Employers Liability
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Exclusive remedy
    • Workers' Compensation Insurance, Employers Liability Insurance, and Related Issues — Premium Determination
    • Crime
    • Crime — Employee Dishonesty
    • Crime — Theft
    • Crime — Robbery
    • Crime — Burglary
    • Crime — Forgery and Alteration
    • Crime — Mysterious disappearance
    • Bonds
    • Bonds — Surety
    • Bonds — Fidelity
    • Professional liability
    • Professional liability — Errors and Omissions
    • Professional liability — Medical Malpractice
    • Professional liability — Directors and Officers (D&O)
    • Professional liability — Employment Practices Liability (EPLI)
    • Professional liability — Cyber liability and data breach, funds transfer
    • Professional liability — Liquor liability
    • Umbrella/Excess Liability
    • Businessowners Policy (BOP)
  • Casualty — General Knowledge — Product Knowledge, Terms, and Concepts — Insurance Terms and Related Concepts - 15 items
    • Risk
    • Hazards
    • Hazards — Moral
    • Hazards — Morale
    • Hazards — Physical
    • Indemnity
    • Insurable Interest
    • Loss Valuation
    • Loss Valuation — Actual Cash Value
    • Loss Valuation — Replacement Cost
    • Loss Valuation — Market value
    • Loss Valuation — Stated/agreed value
    • Loss Valuation — Salvage value
    • Negligence
    • Liability
    • Occurrence
    • Binders
    • Warranties
    • Representations
    • Concealment
    • Deposit Premium/Audit
    • Certificate of Insurance
    • Law of Large Numbers
    • Pure vs. Speculative Risk
    • Endorsements
    • Damages
    • Damages — Compensatory
    • Damages — Compensatory — General
    • Damages — Compensatory — Special
    • Damages — Punitive
    • Compliance with Provisions of Fair Credit Reporting Act
  • Casualty — General Knowledge — Product Knowledge, Terms, and Concepts — Policy Provisions - 12 items
    • Declarations
    • Insuring Agreement
    • Conditions
    • Exclusions and Limitations
    • Definition of the Insured
    • Duties of the Insured after a Loss
    • Cancellation and Nonrenewal Provisions
    • Supplementary Payments
    • Proof of Loss
    • Notice of Claim
    • Other Insurance
    • Subrogation
    • Loss Settlement Provisions including Consent to Settle a Loss
    • Terrorism Risk Insurance Act (TRIA)
  • Minnesota Specific — State Laws, Rules, and Regulations — Minnesota Laws, Rules, and Regulations Common to Life, Health, Property, and Casualty Insurance - 20 items
    • Powers and Duties of the Commissioner
    • Powers and Duties of the Commissioner — Broad Powers
    • Powers and Duties of the Commissioner — Examination of Records
    • Powers and Duties of the Commissioner — Notice and Hearing
    • Powers and Duties of the Commissioner — Forms and Rate Review
    • Definitions
    • Definitions — Domestic and Foreign
    • Definitions — Stock and Mutual
    • Definitions — Certificate of Authority
    • Licensing and Appointments
    • Licensing and Appointments — Educational Requirements
    • Licensing and Appointments — Educational Requirements — Prelicensing
    • Licensing and Appointments — Educational Requirements — Continuing Education
    • Licensing and Appointments — Educational Requirements — Flood
    • Licensing and Appointments — Types of Licenses
    • Licensing and Appointments — Types of Licenses — Producer
    • Licensing and Appointments — Types of Licenses — Temporary
    • Licensing and Appointments — Types of Licenses — Nonresident
    • Licensing and Appointments — Types of Licenses — Agency
    • Licensing and Appointments — Types of Licenses — Managing General Agent
    • Licensing and Appointments — Types of Licenses — Surplus Lines
    • Licensing and Appointments — Termination of License
    • Licensing and Appointments — Termination of License — Expiration
    • Licensing and Appointments — Termination of License — Revocation or Suspension
    • Licensing and Appointments — Appointment and termination of appointment
    • Licensing and Appointments — Maintenance and Duration of License
    • Trade Practices
    • Trade Practices — Prohibited Practices
    • Trade Practices — Prohibited Practices — Unfair Claims Settlement Methods and Practices
    • Trade Practices — Prohibited Practices — Rebating
    • Trade Practices — Prohibited Practices — Misrepresentation
    • Trade Practices — Prohibited Practices — Defamation
    • Trade Practices — Prohibited Practices — Discrimination
    • Trade Practices — Prohibited Practices — Penalties
    • Trade Practices — Prohibited Practices — Misappropriation or Conversion of Funds
    • Trade Practices — Prohibited Practices — Forgery
    • Trade Practices — Compensation of Licensees
    • Trade Practices — Compensation of Licensees — Commissions
    • Trade Practices — Compensation of Licensees — Fees for Service
    • Trade Practices — Advertising
    • Trade Practices — Agent Conduct and Insurance Marketing Standards
    • Trade Practices — Required Disclosures
    • Guaranty Association
    • Guaranty Association — Notice of Policyholder Rights
  • Minnesota Specific — State Laws, Rules, and Regulations — Minnesota Laws, Rules, and Regulations Pertinent to Casualty Insurance Only - 5 items
    • Automobile Insurance
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Purpose
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Proof of Insurance
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Required Limits and Coverages
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Required Limits and Coverages — Bodily Injury and Property Damage
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Required Limits and Coverages — Basic Economic Loss Benefits (personal injury protection)
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Required Limits and Coverages — Uninsured and Underinsured Motorists
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Right to Sue
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Payment of Claims
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Payment of Claims — Time Limitations
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Payment of Claims — Assigned Claims Plan
    • Automobile Insurance — Minnesota No-Fault Automobile Insurance Act — Payment of Claims — Primacy
    • Automobile Insurance — Renewal, Nonrenewal, and Cancellation
    • Automobile Insurance — Surcharge Disclosure
    • Automobile Insurance — Minnesota Automobile Insurance Plan (assigned risk)
    • Automobile Insurance — Comparative Negligence
    • Automobile Insurance — Auto Stacking
    • Workers' Compensation
    • Workers' Compensation — Purpose
    • Workers' Compensation — Definitions
    • Workers' Compensation — Requirements
    • Workers' Compensation — Benefits
    • Workers' Compensation — Assigned Risk Plan

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