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FREE Property and Casualty Practice Quiz — Your P&C Cheat Sheet With Detailed Answer Explanations + BONUS Video Review!

Updated: Jan 14

P&CP is the top rated program to help students pass their property and casualty exam

Studying for your Property & Casualty Insurance License Exam can feel overwhelming — with so much material and tricky concepts to remember. That’s why we created this FREE P&C Practice Quiz — Get the Answer Key & Video Breakdown via Email !



This isn’t just any quiz — once you take it, enter your email below to get:

  • FREE Expert Answer Key — step-by-step explanations of every question

  • FREE Video Breakdown — see exactly why each answer is correct

  • Tips & Tricks — understand the nuances that trip most students on the real exam


✏️ Keep your momentum going—unlock our full practice exam and study guide bundle complete with 100+ additional questions, full video lesson, and comprehensive study guide!



📋 Real exam-style questions

▶️ Instant answers with full note style expert explanations

🎥 Free video walkthrough included


✏️ Take the Free Practice Quiz

Enter your email for instant access to the video review & detailed answer key! If you don’t see the email right away, please check your spam or promotions folder.


1. What is the purpose of the Declarations Page in an insurance policy?

A) To explain exclusions

B) To list covered perils

C) To summarize key policy facts like name, coverage, limits, and premiums

D) To define legal terms



2. Which of the following best describes an “Occurrence” in liability insurance?

A) A sudden, unexpected event only

B) A repeated act over time

C) A loss that occurs gradually

D) An accident or continuous exposure to harmful conditions



3. Property and Casualty Practice Quiz: Which of the following is a moral hazard ?

A) Leaving a stove on by accident

B) Failing to repair a broken step

C) Intentionally damaging your own property for a payout

D) Living in a flood-prone area



4. A binder in insurance is:

A) A cancellation form

B) Temporary proof of insurance

C) An endorsement

D) A coverage exclusion


Once you've completed the quiz, enter your email below for instant access to P&CP's Property and Casualty Practice Quiz to see exactly why each answer is correct and learn the key concepts to boost your exam score! 


5. What is the purpose of the insuring agreement?

A) To limit coverage

B) To define terms

C) To list who is insured

D) To outline what the insurer promises to cover



6. Which of the following is NOT typically covered by a personal umbrella policy?

A) Libel

B) Auto liability

C) Business losses

D) Bodily injury



7. What is the difference between an open-peril and named-peril policy?

A) Open-peril covers only fire; named-peril covers all risks

B) Named-peril covers more than open-peril

C) Open-peril covers all risks except exclusions; named-peril only covers listed risks

D) There is no difference



8. Which type of coverage would protect a business from losses due to a building fire shutting it down temporarily?

A) General liability

B) Inland marine

C) Business income coverage

D) Equipment breakdown


Pro Tip: We recommend writing down your answers to P&CP's Property & Casualty Practice Quiz before checking the answer key. This way, you can see exactly how you did and identify the areas you need to focus on!

9. What type of liability applies regardless of fault or negligence?

A) Strict liability

B) Vicarious liability

C) Comparative negligence

D) Contractual liability



10. In a personal auto policy, collision coverage pays for damage to your vehicle when:

A) It’s damaged by hail

B) It’s stolen

C) You hit another car or object

D) Someone else hits your parked car and drives away



11. Which commercial policy covers goods in transit?

A) Business income

B) Inland marine

C) Equipment breakdown

D) Commercial property



12. An additional insured on a liability policy:

A) Has no coverage

B) Is not listed in the policy

C) Is added by endorsement and has coverage under the policy

D) Pays a separate premium



13. What does indemnification mean in insurance?

A) Suing the insurer

B) Restoring the insured to their original financial position

C) Paying punitive damages

D) Avoiding responsibility for a loss



14. Which of the following best defines replacement cost coverage?

A) Cost to replace property minus depreciation

B) Actual market value

C) The original purchase price

D) Cost to replace with new, similar property without depreciation



15. What is the function of the conditions section in an insurance policy?

A) Defines perils

B) Lists premiums

C) Lists rules both parties must follow for the contract to remain valid

D) Identifies the named insured





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P&CP's On-Demand Program — Top-rated Prep Course Redefines how P&C Exam Preparation should feel. Passing the Property and Casualty Exam requires more than just flipping through course material from a generic pre-licensing program. That’s why our team invested countless hours dissecting exam content to build a comprehensive, easy-to-understand curriculum that prepares you to confidently pass the property and casualty insurance exam!

Included is Over 10 hours of On-Demand Videos of all 12 Chapters:  All course videos are designed to highlight the most important concepts & test-worthy material.




At P&CP, we offer:

✅ On-Demand Courses – Study at your own pace, anytime, anywhere

✅ Practice Exam + Study Guide Bundle – Includes 100+ practice questions and a full study guide with all must know information for each chapter

✅ Proven strategies to help you understand key concepts — not just memorize them


Our full Property and Casualty Programs are designed to get you to the finish line so you can PASS the Exam and start your Career!




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