P&C Exam Q&A: Test Yourself on These 5 Practice Questions

P&C Exam Practice Questions — Can You Answer These? Test yourself before your exam. Answers and explanations are below each question. Q1: What does "pro-rata cancellation" mean? Answer: The insurer refunds the unused premium on a proportional basis, without any penalty to the insured. This is typically used when the insurer cancels the policy. Q2: Which principle states that the insured should not profit from a loss? Answer: The Principle of Indemnity. Insurance is meant to restore — not reward. Q3: What is a "binder"? Answer: A binder is a temporary insurance contract that provides immediate coverage while the formal policy is being issued. Q4: Under a standard homeowners policy, which of the following is NOT covered? Answer: Flood damage. Standard HO policies exclude flood — you need a separate NFIP policy for that. Q5: What is the difference between "void" and "voidable" in a contract? Answer: A void contract has no legal effect from the start. A voidable contract is valid but can be cancelled by one party (e.g., due to misrepresentation). How did you do? If any of these tripped you up, now you know what to review. Need extra help to PASS your Property and Casualty exam? Get our on-demand program here: https://www.pandcpacademy.com/pass-your-exam-now