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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 retailer sells a defective blender that injures a customer at home. Which CGL exposure best matches the claim?

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

    Answer: B

    Explanation: "if a customer is hurt by a product you sell, you can be held responsible" and "premises/operations sub-line and products/completed operations sub-line." The blender injury arose from a sold product after it left the store, fitting the products/completed-operations exposure rather than premises activity, advertising injury, or medical payments.

    Reference: NAIC Small Business Insurance — What's general liability insurance?

  2. 2A business owner becomes careless about locking a storage room because insurance will replace stolen goods, but does not intend a theft. Which hazard best describes this disregard?

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

    Answer: B

    Explanation: "Morale Hazard - negligence or disregard on the part of the insured which could lead to probable loss." The stated carelessness without deliberate loss creation matches morale hazard. Moral hazard concerns dishonest incentives, physical hazard a tangible condition, and legal hazard a change in legal exposure.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Morale Hazard

  3. 3A policyholder wants to confirm the named insured, policy term, and purchased liability limit on an auto policy. Which part should the producer inspect first?

    1. A. The declarations page of the policy
    2. B. The general conditions of the policy
    3. C. The exclusions section of the policy
    4. D. The insuring agreement of the policy

    Answer: A

    Explanation: "information including the policy term, coverage limits, and information about the insured" Those individualized facts appear on declarations. Conditions, exclusions, and the insuring agreement serve different policy functions.

    Reference: NAIC Auto Insurance — Understanding Your Auto Insurance Policy, Declarations Page

  4. 4To carry out Rhode Island's fire and marine insurance rating chapter, what regulatory authority does the commissioner have?

    1. A. Issue reasonable rules needed to carry out the chapter
    2. B. Set every insurer's rate without a filing
    3. C. Waive statutory capital requirements
    4. D. Delegate final orders to an insurer

    Answer: A

    Explanation: The statute says, "The commissioner may make reasonable rules and regulations necessary to effect the purposes of this chapter." That authority supports issuing rules needed to carry out the chapter.

    Reference: Title 27 Insurance — R.I. Gen. Laws § 27-6-44

  5. 5For whom is the Rhode Island Automobile Insurance Plan primarily intended?

    1. A. Applicants who can obtain voluntary-market coverage at standard terms
    2. B. Applicants unable to obtain automobile insurance in the voluntary market
    3. C. Only insurers seeking reinsurance
    4. D. Only owners of uninsured real estate

    Answer: B

    Explanation: The Plan's purpose is to "Make automobile insurance available to eligible applicants who have been unable to secure such insurance in the voluntary market." Thus option B identifies its intended applicants.

    Reference: Rhode Island Automobile Insurance Plan (formerly Insurance Regulation 98) (230-RICR-20-05-8) - Rhode Island Department of State — 230-RICR-20-05-8, § 8.2(A)(1)

  6. 6A claims-made CGL policy runs January through December 2026 and has a January 2025 retroactive date. An accident happens in June 2025 and the first claim is reported in March 2026. Which timing rule supports coverage, assuming all other terms are met?

    1. A. The injury happened during the 2026 policy term and was reported after it.
    2. B. The claim was first reported during the 2026 term, after an event later than the retroactive date.
    3. C. The claim was first reported after the 2026 term, following an event before the retroactive date.
    4. D. The injury happened before the 2026 term, so only the prior occurrence policy can respond.

    Answer: B

    Explanation: "that are first reported during the policy period, provided the losscausing event occurred after the retroactive date (if any) stated in the policy." The March 2026 report is within the claims-made term and the June 2025 accident follows January 2025; an occurrence policy instead looks to injury during its own term.

    Reference: NAIC A Regulator's Introduction to the Insurance Industry — Glossary of Terms, Claims-Made Policy

  7. 7An insured suffers a covered $8,000 property loss with no deductible and enough policy limit. Under indemnity, what is the highest payment consistent with restoring the insured's preloss financial position?

    1. A. $2,000 for the covered loss
    2. B. $8,000 for the covered loss
    3. C. $10,000 for the covered loss
    4. D. $16,000 for the covered loss

    Answer: B

    Explanation: "restored to the approximate financial position he or she was in prior to the loss" Paying $8,000 offsets the actual $8,000 loss without profit. Greater values exceed indemnity; $2,000 leaves a portion unreimbursed and is not the highest permitted by the facts.

    Reference: NAIC Glossary of Insurance Terms — Glossary, Indemnity, Principle of

  8. 8A producer needs to locate the broad statement of which perils and risks an auto policy covers. Which policy part supplies that coverage grant?

    1. A. The policy's declarations page
    2. B. The policy's insuring agreement
    3. C. The policy's general conditions
    4. D. The policy's premium receipt

    Answer: B

    Explanation: "a broad statement listing the perils and risks covered under the contract" The insuring agreement states the broad coverage grant. Declarations supply individualized facts, conditions govern duties, and a premium receipt records payment.

    Reference: NAIC Auto Insurance — Understanding Your Auto Insurance Policy, Insuring Agreement

  9. 9What must a Rhode Island producer of record keep in the file for each policy sold?

    1. A. Only the declarations page
    2. B. All work papers and written communications in the producer's possession concerning the policy
    3. C. Only premium receipts
    4. D. Only communications sent by the insurer

    Answer: B

    Explanation: The rule says the file "shall contain all work papers and written communications in his or her possession pertaining to the policy documented therein." Therefore the complete set described in option B must be kept.

    Reference: Record Retention (230-RICR-20-60-4) - Rhode Island Department of State — 230-RICR-20-60-4, § 4.4(D)

  10. 10How does Rhode Island distribute responsibility for assigned-risk automobile insurance among authorized insurers?

    1. A. Only one insurer participates permanently
    2. B. Participation is voluntary for each insurer
    3. C. Authorized automobile insurers participate in the statutory plan
    4. D. The insured chooses an insurer that need not participate

    Answer: C

    Explanation: Once a plan is approved, "all the insurance companies shall subscribe to it or them and participate with respect to those types of insurance which they write in the state." Therefore authorized auto insurers participate.

    Reference: Title 31 Motor and Other Vehicles — R.I. Gen. Laws § 31-33-8(c)

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: I. Types of Policies, Bonds, and Related Terms
    • A. Commercial general liability
    • A.1. Commercial general liability / Exposures
    • A.1.a. Commercial general liability / Exposures / Premises and Operations
    • A.1.b. Commercial general liability / Exposures / Products and Completed Operations
    • A.2. Commercial general liability / Coverage
    • A.2.a. Commercial general liability / Coverage / Coverage A: Bodily Injury and Property Damage Liability (Occurrence, Claims made including Retroactive Date)
    • A.2.b. Commercial general liability / Coverage / Coverage B: Personal Injury and Advertising Injury
    • A.2.c. Commercial general liability / Coverage / Coverage C: Medical Payments
    • A.2.d. Commercial general liability / Coverage / Supplemental Payments
    • A.2.e. Commercial general liability / Coverage / Who is an insured
    • A.2.f. Commercial general liability / Coverage / First named insured
    • A.2.g. Commercial general liability / Coverage / Limits (Per occurrence, Annual Aggregate)
    • A.2.h. Commercial general liability / Coverage / Damage to Property of Others
    • B. Automobile: personal auto and business auto
    • B.1. Automobile: personal auto and business auto / Liability
    • B.1.a. Automobile: personal auto and business auto / Liability / Bodily Injury
    • B.1.b. Automobile: personal auto and business auto / Liability / Property Damage
    • B.1.c. Automobile: personal auto and business auto / Liability / Split Limits
    • B.1.d. Automobile: personal auto and business auto / Liability / Combined Single Limit
    • B.2. Automobile: personal auto and business auto / Medical Payments
    • B.3. Automobile: personal auto and business auto / Physical Damage (collision; other than collision; specified perils)
    • B.4. Automobile: personal auto and business auto / Uninsured motorists
    • B.5. Automobile: personal auto and business auto / Underinsured motorists
    • B.6. Automobile: personal auto and business auto / Who is an insured
    • B.7. Automobile: personal auto and business auto / Types of Auto
    • B.7.a. Automobile: personal auto and business auto / Types of Auto / Owned
    • B.7.b. Automobile: personal auto and business auto / Types of Auto / Non-owned
    • B.7.c. Automobile: personal auto and business auto / Types of Auto / Hired
    • B.7.d. Automobile: personal auto and business auto / Types of Auto / Temporary Substitute
    • B.7.e. Automobile: personal auto and business auto / Types of Auto / Newly Acquired Autos
    • B.7.f. Automobile: personal auto and business auto / Types of Auto / Transportation Expense and Rental Reimbursement Expense
    • B.8. Automobile: personal auto and business auto / Auto Dealers Coverage Form, including Garagekeepers Insurance
    • B.9. Automobile: personal auto and business auto / Exclusions
    • B.10. Automobile: personal auto and business auto / Individual Insured and Drive Other Car (DOC)
    • B.11. Automobile: personal auto and business auto / 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.1. 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.) / Standard policy concepts
    • C.1.a. 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.) / Standard policy concepts / Who is an employee/employer
    • C.1.b. 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.) / Standard policy concepts / Compensation
    • C.2. 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.) / Work-related vs. non-work-related
    • C.3. 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.) / Other states’ insurance
    • C.4. 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.) / Employers Liability
    • C.5. 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.) / Exclusive remedy
    • C.6. 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.) / Premium Determination
    • D. Crime
    • D.1. Crime / Employee Dishonesty
    • D.2. Crime / Theft
    • D.3. Crime / Robbery
    • D.4. Crime / Burglary
    • D.5. Crime / Forgery and Alteration
    • D.6. Crime / Mysterious disappearance
    • E. Bonds
    • E.1. Bonds / Surety
    • E.2. Bonds / Fidelity
    • F. Professional liability
    • F.1. Professional liability / Errors and Omissions
    • F.2. Professional liability / Medical Malpractice
    • F.3. Professional liability / Directors and Officers (D&O)
    • F.4. Professional liability / Employment Practices Liability (EPLI)
    • F.5. Professional liability / Cyber liability and data breach, funds transfer
    • F.6. Professional liability / Liquor liability
    • G. Umbrella/Excess Liability
    • H. Businessowners Policy (BOP)
  • Casualty — General Knowledge: II. Insurance Terms and Related Concepts
    • A. Risk
    • B. Hazards
    • B.1. Hazards / Moral
    • B.2. Hazards / Morale
    • B.3. Hazards / Physical
    • C. Indemnity
    • D. Insurable interest
    • E. Loss valuation
    • E.1. Loss valuation / Actual cash value
    • E.2. Loss valuation / Replacement cost
    • E.3. Loss valuation / Market value
    • E.4. Loss valuation / Stated/agreed value
    • E.5. Loss valuation / 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.1. Damages / Compensatory
    • R.1.a. Damages / Compensatory / General
    • R.1.b. Damages / Compensatory / Special
    • R.2. Damages / Punitive
    • S. Compliance with provisions of Fair Credit Reporting Act
  • Casualty — General Knowledge: III. 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)
  • I. Rhode Island Laws, Rules, and Regulations Common to Property and Casualty Insurance
    • A. Commissioner/Director
    • A.1. Commissioner/Director / Broad powers
    • A.2. Commissioner/Director / Examination of records/record retention
    • A.3. Commissioner/Director / Notice and hearing
    • A.4. Commissioner/Director / Penalties
    • B. Definitions
    • B.1. Definitions / Domestic, foreign, and alien companies
    • B.2. Definitions / Stock and mutual companies
    • B.2.a. Definitions / Stock and mutual companies / Definitions
    • B.2.b. Definitions / Stock and mutual companies / Ownership
    • B.3. Definitions / Binders/Certificates of Insurance
    • C. Licensing
    • C.1. Licensing / Licensing requirements for a producer
    • C.1.a. Licensing / Licensing requirements for a producer / Surplus lines broker
    • C.2. Licensing / Termination of license
    • C.2.a. Licensing / Termination of license / Revocation, suspension and nonrenewal
    • C.3. Licensing / Continuing Education
    • C.4. Licensing / Limited/temporary licenses
    • C.5. Licensing / Producer Compensation Disclosure
    • D. Unfair trade practices
    • D.1. Unfair trade practices / Unfair claims settlement practices
    • D.2. Unfair trade practices / Rebating
    • D.3. Unfair trade practices / Misrepresentation
    • D.4. Unfair trade practices / Defamation
    • D.5. Unfair trade practices / Unfair Discrimination
    • E. Fiduciary responsibilities
    • F. Rhode Island Property & Casualty Insurance Guaranty Association
    • F.1. Rhode Island Property & Casualty Insurance Guaranty Association / Purpose
    • F.2. Rhode Island Property & Casualty Insurance Guaranty Association / Scope
    • G. Premium financing
    • G.1. Premium financing / Definitions
    • G.2. Premium financing / Limitations on interest
    • G.3. Premium financing / Cancellation of insurance contract
    • H. Privacy of Consumer Information
  • II. Rhode Island Laws, Rules, and Regulations Pertinent to Casualty Insurance Only
    • A. Automobile insurance
    • A.1. Automobile insurance / Rhode Island Automobile Insurance Plan
    • A.1.a. Automobile insurance / Rhode Island Automobile Insurance Plan / Purpose
    • A.1.b. Automobile insurance / Rhode Island Automobile Insurance Plan / Applicants eligible for plan
    • A.1.c. Automobile insurance / Rhode Island Automobile Insurance Plan / Risks eligible for assignment
    • A.1.d. Automobile insurance / Rhode Island Automobile Insurance Plan / Application process/effective dates
    • A.1.e. Automobile insurance / Rhode Island Automobile Insurance Plan / Extent of coverage
    • A.2. Automobile insurance / Compulsory insurance
    • A.2.a. Automobile insurance / Compulsory insurance / Applicability
    • A.2.b. Automobile insurance / Compulsory insurance / Motor Vehicle Reparations Act
    • A.2.c. Automobile insurance / Compulsory insurance / Rental Vehicle Coverage
    • A.2.d. Automobile insurance / Compulsory insurance / Steering- Free Choice of Auto Repair Shop
    • A.3. Automobile insurance / Financial responsibility
    • A.3.a. Automobile insurance / Financial responsibility / Purpose and compliance
    • A.3.b. Automobile insurance / Financial responsibility / Required limits
    • A.3.c. Automobile insurance / Financial responsibility / Evidence of coverage
    • A.3.d. Automobile insurance / Financial responsibility / Uninsured motorist identification database
    • A.3.e. Automobile insurance / Financial responsibility / Definition of proof of financial responsibility and safety responsibility
    • A.4. Automobile insurance / Renewal, nonrenewal, and cancellation
    • A.4.a. Automobile insurance / Renewal, nonrenewal, and cancellation / Automobile, Liability & Property Damage: Limit on Cancellation
    • A.4.b. Automobile insurance / Renewal, nonrenewal, and cancellation / Personal Automobile Cancellation & Renewal
    • A.4.c. Automobile insurance / Renewal, nonrenewal, and cancellation / Commercial Insurance Cancellation, Nonrenewal & Premium or Coverage Changes
    • A.4.d. Automobile insurance / Renewal, nonrenewal, and cancellation / Personal Motor Vehicle, HO & Residential Fire
    • A.5. Automobile insurance / Uninsured/Underinsured motorists
    • B. Workers Compensation
    • B.1. Workers Compensation / Applicability
    • B.2. Workers Compensation / Benefits
    • B.3. Workers Compensation / Workers’ Compensation Insurance Fund
    • B.3.a. Workers Compensation / Workers’ Compensation Insurance Fund / Creation
    • B.3.b. Workers Compensation / Workers’ Compensation Insurance Fund / Insurance Coverage Program
    • C. Liability/Medical malpractice
    • C.1. Liability/Medical malpractice / Definition
    • C.2. Liability/Medical malpractice / Medical Malpractice Joint Underwriting Association (MMJUA)
    • C.3. Liability/Medical malpractice / Policy forms and rates
    • C.4. Liability/Medical malpractice / Procedures

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