Evergreen Insurance Prep

Property & Casualty Insurance Exam, General, Practice Exams

The national portion shared by every state's Property & Casualty producer exam: general insurance concepts, property and casualty basics, dwelling and homeowners, personal and commercial auto, commercial property and liability, workers' compensation, and federal regulation. Original questions with explanations. State-specific P&C law sections are being added.
Content last updated 2 July 2026

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Each module is scored separately so you know exactly where you stand. The general section is the bulk of every state exam; most states require about 70% to pass.

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Unlock the full question bank

The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

Who is the general Property & Casualty bank for?

It covers the national, general-knowledge portion shared by every U.S. state's Property & Casualty producer exam - property, casualty, auto, homeowners, commercial lines, workers' compensation and federal regulation. It is the bulk of the exam and is ideal before you add your state's law section.

Will this alone qualify me for my state licence?

It covers the national portion, not your state's insurance-law section. Every state P&C exam also has a state-specific part. As we add dedicated state P&C exams, use yours for full coverage; until then this gives you a strong head start on the majority of the material.

What score do I need to pass?

Most states require about 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question is original, written to the standard national P&C content outline and the standard ISO policy forms, with a plain-English explanation.

How many practice questions are included?

The full general P&C bank contains 708 questions across all the core property and casualty topics, with written explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access - and it includes every state and line we add later, at no extra charge. No subscription.

Can I use it on more than one device?

Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet. Your progress is saved on each device.

Do I need to create an account?

No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample Property & Casualty Insurance Exam, General practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Under the FCRA, before an insurer obtains an investigative consumer report on an applicant, it must:

  1. Notify FEMA
  2. Get a court order
  3. Cancel any existing policy unless an exception clearly applies for the coverage that is in force
  4. Clearly and accurately disclose to the consumer that such a report may be obtained ✓

Why: The FCRA requires advance written disclosure to the consumer that an investigative consumer report may be requested, along with a description of the consumer's rights.

Actual cash value is generally calculated as:

  1. The face amount of the policy
  2. Market value plus profit
  3. Replacement cost minus depreciation ✓
  4. Replacement cost plus appreciation

Why: ACV is typically replacement cost less depreciation, reflecting the property's depreciated value at the time of loss.

A heating contractor ships and installs a new furnace; the equipment is stolen from the job site before acceptance. Best coverage:

  1. Installation floater ✓
  2. Accounts receivable
  3. Ocean marine cargo
  4. Jewelers block

Why: An Installation floater covers materials and equipment during transit, storage, and installation until the work is accepted by the owner.

Show more sample questions with answers & explanations

An insurer knowingly accepts a late premium payment without objection on several occasions, then later tries to deny a claim because a payment was late. The insurer is most likely prevented from doing so by:

  1. Waiver and estoppel ✓
  2. Insurable interest
  3. Indemnity
  4. Subrogation

Why: By repeatedly accepting late payments (waiver), the insurer may be estopped from later denying coverage based on the very right it gave up.

Builders Risk coverage is designed to insure:

  1. Loss of rents only
  2. A completed and occupied office tower
  3. A structure during the course of construction ✓
  4. Tools owned by a contractor at home

Why: Builders Risk insures buildings or structures while under construction, including materials and supplies intended to become part of the structure.

A combined single limit (CSL) of $300,000 means:

  1. One total limit covering both bodily injury and property damage per occurrence ✓
  2. An annual aggregate only
  3. Separate limits for BI and PD unless an exception clearly applies for the coverage that is in force
  4. A per-person cap of $300,000

Why: A combined single limit provides one shared limit for both bodily injury and property damage arising from a single occurrence.

The Miscellaneous Type Vehicle endorsement to the PAP can extend coverage to:

  1. Aircraft
  2. A commercial dump truck unless an exception clearly applies for the coverage that is in force
  3. Motorcycles, motor homes, golf carts, or all-terrain vehicles ✓
  4. Watercraft over 40 feet

Why: The Miscellaneous Type Vehicle endorsement provides PAP coverage for vehicles such as motorcycles, motor homes, dune buggies, golf carts, and ATVs.

In a Homeowners policy, damage by a vehicle to the dwelling is:

  1. Covered only under auto policy unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Covered as a named peril (vehicles), with limited coverage for the insured's own vehicle to fences/driveways ✓
  3. Always excluded
  4. Covered under Coverage F

Why: Damage caused by vehicles is a named peril; however, there are limitations for vehicles owned or operated by a resident and for damage to certain property like driveways.

An insured has $1M/$2M CGL underlying and a $5M umbrella. A covered liability judgment is $4M for a single occurrence. After the CGL pays its $1M occurrence limit, the umbrella pays:

  1. $0
  2. $5,000,000
  3. $4,000,000
  4. $3,000,000 ✓

Why: The CGL pays its $1M occurrence limit; the umbrella pays the remaining $3M excess over the underlying.

Shareholders sue a corporation's board alleging mismanagement caused a stock drop. Which policy responds?

  1. CGL Coverage B
  2. Directors and Officers (D&O) Liability ✓
  3. Liquor liability under the policy's terms
  4. EPLI

Why: Claims against directors and officers for wrongful management acts are handled by D&O liability insurance.

A homeowner is sued because a visitor slipped on an icy walkway and was injured. The cost of the insurer defending this suit is:

  1. Provided in addition to the Coverage E limit as a supplementary/defense cost ✓
  2. Charged to the insured's limit unless an exception clearly applies for the coverage that is in force
  3. Excluded
  4. Paid under Coverage D

Why: Defense costs under Section II are generally provided in addition to the Coverage E limit of liability and continue until the limit is exhausted by settlement or judgment.

A PAP liability limit shown as 100/300/50 means:

  1. $100,000 per person BI, $300,000 per accident BI, $50,000 PD per accident ✓
  2. $100,000 PD, $300,000 BI per person, $50,000 medical under the policy's terms
  3. $100,000 combined for the whole accident
  4. $100,000 total with a $300 deductible

Why: Split limits 100/300/50 mean $100,000 bodily injury per person, $300,000 bodily injury per accident, and $50,000 property damage per accident.

An insured intentionally damages a third party's property. Under a standard liability policy, this loss is most likely:

  1. Covered as an occurrence
  2. Covered under supplementary payments in that particular circumstance
  3. Excluded because intentional/expected acts are not accidental ✓
  4. Covered under salvage

Why: Liability coverage applies to occurrences (accidents); intentional acts are typically excluded because they are not accidental.

When an insurer's actions lead an insured to believe a right exists, and the insurer is later prevented from denying that the right exists, the legal principle is:

  1. Indemnity
  2. Estoppel ✓
  3. Subrogation
  4. Waiver

Why: Estoppel prevents a party from asserting a right or fact inconsistent with a previous position when another party has relied on that position.

A non-admitted (unauthorized) insurer is one that:

  1. Has no certificate of authority in the state where the risk is located ✓
  2. Can never legally write any business in the state under the policy's terms
  3. Is owned by the state
  4. Is always financially unsound

Why: A non-admitted insurer lacks a certificate of authority in that state, though it may write surplus lines business through licensed surplus lines brokers.

In insurance terms, risk is best defined as:

  1. The financial value of a loss
  2. The certainty that a loss will occur
  3. The cause of a loss
  4. Uncertainty regarding the occurrence of a loss ✓

Why: Risk is the uncertainty about whether a loss will happen. Without uncertainty there is no insurable risk.

Which dwelling form would be most appropriate for the broadest property protection on an owner-occupied home?

  1. DP-2
  2. DP-3 ✓
  3. Personal Liability Supplement
  4. DP-1

Why: DP-3 provides open-perils coverage on the dwelling and is the broadest of the standard dwelling forms for the structure.

The Automatic Increase in Insurance (inflation guard) endorsement on a dwelling policy does what?

  1. Converts the policy to replacement cost for the coverage that is in force
  2. Periodically increases the Coverage A limit to keep pace with inflation ✓
  3. Adds theft coverage automatically
  4. Lowers the premium each year

Why: The inflation guard / automatic increase endorsement raises the dwelling limit at set intervals to help the amount of insurance keep up with rising construction costs.

The CAN-SPAM Act primarily regulates:

  1. In-person sales
  2. Flood policy issuance
  3. Commercial email messages, requiring honest headers, a valid opt-out, and a physical address ✓
  4. Telephone solicitations unless an exception clearly applies for the coverage that is in force according to the insurer's rules

Why: CAN-SPAM sets rules for commercial email, including truthful subject lines and sender information, a functioning opt-out, and inclusion of a valid postal address.

A Contractors Equipment floater typically covers:

  1. Completed buildings
  2. Mobile equipment and tools such as bulldozers and cranes used by a contractor ✓
  3. Office furniture only unless an exception clearly applies for the coverage that is in force
  4. Accounts receivable

Why: The Contractors Equipment floater is an inland marine form covering mobile tools, machinery, and equipment a contractor uses at various job sites.

In a surety bond, the party who is required to provide the bond and perform the obligation is the:

  1. Obligee
  2. Beneficiary
  3. Principal ✓
  4. Surety

Why: The principal is the party who must perform the obligation and is required to furnish the bond.

Unlike Part One, Part Two (Employers Liability) of the policy does include limits of liability. The three Part Two limits typically apply to:

  1. Medical, indemnity, and death benefits
  2. Temporary, permanent, and survivor benefits
  3. Per claim, per occurrence, and aggregate medical unless an exception clearly applies for the coverage that is in force
  4. Bodily injury by accident, bodily injury by disease per employee, and bodily injury by disease policy limit ✓

Why: Part Two shows three limits: bodily injury by accident (each accident), bodily injury by disease (policy limit), and bodily injury by disease (each employee).

A Homeowners insured suffers theft of firearms. The special Coverage C limit for theft of firearms is commonly:

  1. $2,500 ✓
  2. $200
  3. $5,000
  4. $1,500

Why: Theft of firearms is subject to a special sublimit (commonly $2,500) under Coverage C; collections worth more should be scheduled.

Suitability in insurance sales means a producer should:

  1. Always sell the highest-commission product in that particular circumstance
  2. Recommend products appropriate to the client's needs and circumstances ✓
  3. Sell only flood policies
  4. Avoid asking about the client's situation

Why: Suitability requires that recommendations fit the client's actual needs, financial situation, and objectives rather than the producer's compensation.

Which Part of the Workers Compensation and Employers Liability Policy pays the benefits required by the workers' compensation law of a listed state, with no dollar limit on the amount paid?

  1. Part Three — Other States Insurance
  2. Part One — Workers Compensation ✓
  3. Part Four — Your Duties
  4. Part Two — Employers Liability

Why: Part One pays promptly all benefits required by the workers' compensation law of the states listed; because the law sets the benefits, there is no policy limit on Part One.

A home has a replacement cost of $300,000 but a market value of $230,000. For insurance-to-value purposes, the amount of insurance should be based on:

  1. The original purchase price
  2. The land value
  3. Replacement cost of $300,000 ✓
  4. Market value of $230,000

Why: Insurance to value is based on the cost to rebuild (replacement cost), not market value, which includes land and location factors.

A client asks for flood coverage; the producer forgets to bind it, and a flood later destroys the home. This situation most directly creates exposure under:

  1. The producer's E&O (errors and omissions) coverage ✓
  2. The TRIA backstop
  3. Crop insurance
  4. The Do-Not-Call rules in that particular circumstance

Why: Failing to obtain requested coverage is a classic errors and omissions claim against the producer.

The maximum NFIP contents coverage available to a residential policyholder is:

  1. $250,000
  2. $50,000
  3. $500,000
  4. $100,000 ✓

Why: Residential contents coverage under the NFIP is capped at $100,000, separate from the building limit.

When an insurer transfers part of its risk on a policy to another insurer, this practice is called:

  1. Reinsurance ✓
  2. Coinsurance
  3. Retrocession to the insured
  4. Subrogation

Why: Reinsurance is the transfer of risk from the original ceding insurer to a reinsurer, allowing the insurer to spread large or numerous risks.

Personal property losses under most Homeowners forms are settled on what basis unless replacement cost is endorsed?

  1. Market value
  2. Replacement cost
  3. Agreed value
  4. Actual cash value (ACV) ✓

Why: Coverage C personal property is settled on an actual cash value basis (replacement cost minus depreciation) unless replacement cost coverage is added by endorsement.