Poll: Would This Claim Be Covered? Test Your P&C Instincts

Poll: Would This Claim Be Covered? — Test Your P&C Instincts

The P&C exam loves scenario-based questions. They do not just test whether you memorized a definition — they test whether you can apply it to a real situation. That is exactly what this poll-style post does.

Read each scenario below, decide: covered or not covered? Then check the answer and explanation.

Scenario 1: The Borrowed Car

Your insured lends their car to a friend for the weekend. The friend causes an accident that injures someone. The insured's Personal Auto Policy has liability coverage. Does the policy respond?

Vote: Covered or Not Covered?

Answer: Covered. Under the Personal Auto Policy, liability coverage follows the vehicle, not just the driver. The insured's policy provides liability coverage for any person using the covered auto with permission. This is a classic exam question — the key phrase is "with permission."

Scenario 2: The Stolen Laptop

A tenant in a rental property has a DP-1 policy with no endorsements. A burglar steals their laptop from the dwelling. Does DP-1 cover the theft?

Vote: Covered or Not Covered?

Answer: Not covered. DP-1 is a basic named-perils form and does NOT include theft by default. Theft can be added by endorsement, but without it, there is no coverage for stolen personal property. This is one of the most common DP-1 exam traps.

Scenario 3: The Flooded Basement

A homeowner has an HO-3 policy. Heavy rain causes water to back up through the basement floor drain, flooding the basement. Does the HO-3 cover the water damage?

Vote: Covered or Not Covered?

Answer: Not covered. An HO-3 excludes water that backs up through sewers or drains. This requires a separate water backup endorsement. Flood from surface water is also excluded under HO-3 and requires a separate flood policy through the NFIP or a private carrier. The exam tests both exclusions — know the difference between backup and flood.

Scenario 4: The Hot Coffee Burn

A customer in a retail store spills hot coffee on themselves and suffers burns. The store has a Commercial General Liability (CGL) policy. Does the CGL cover the customer's medical expenses?

Vote: Covered or Not Covered?

Answer: Covered. This falls under bodily injury liability in the CGL. The customer is a member of the public (not an employee), and the injury occurred on the premises. Medical payments coverage would also apply for minor injuries regardless of fault, but the bodily injury liability coverage is the primary response for a claim of this nature.

Scenario 5: The Vacant Dwelling Fire

A dwelling has been vacant for 75 days. It is insured under a DP-3 policy. A fire causes significant damage to the structure. Does DP-3 cover the fire loss?

Vote: Covered or Not Covered?

Answer: Covered, but with a caveat. Fire is a covered peril under DP-3's open-perils dwelling coverage. However, many dwelling policies include a vacancy condition — if the dwelling has been vacant for more than 60 days, coverage may be limited or certain perils may be excluded. Fire is typically still covered, but the payout could be reduced. Always check the specific vacancy provisions in the policy. For the exam, know that vacancy affects coverage — the 60-day rule is the most commonly tested threshold.

How Did You Score?

If you got 4 or 5 right, your instincts are sharp — you are in good shape for scenario questions on exam day. If you got 2 or 3 right, go back and review the specific policy forms you missed. The explanations above highlight the exact rules the exam tests.

Share this with a study partner and compare answers — teaching someone else is one of the fastest ways to lock in what you know.

Need extra help to PASS your Property and Casualty exam? Get our on-demand program here: https://www.pandcpacademy.com/pass-your-exam-now