Home › Free questions › NY Property and Casualty Insurance
Free · no account, no card

Free NY Property and Casualty Insurance Practice Test

Ten questions from our 17-56 Property and Casualty practice exams: homeowners, auto, commercial lines and workers compensation. The home and auto questions also cover the 17-54 personal lines exam.

Take these as an interactive quiz The full NY Property and Casualty Insurance exams

Question 1 · Property and Casualty Insurance (Series 17-56)

Which part of a policy names the insured, the property and the limits?
  1. A. The insuring agreement
  2. B. The conditions
  3. C. The declarations
  4. D. The endorsements attached to the policy at the time it was issued to the named insured by the company
Show the answer

The answer is C. The declarations are the particulars of this contract. The insuring agreement is the promise, the conditions are the rules and the exclusions cut it back.

  • A is wrong: The insuring agreement states what is promised.
  • B is wrong: The conditions set out the duties of both parties.
  • D is wrong: Endorsements change the standard wording.

Question 2 · Property and Casualty Insurance (Series 17-56)

What distinguishes the special form homeowners policy from the broad form?
  1. A. The dwelling is covered on an open peril basis rather than named perils
  2. B. Personal property is covered on an open peril basis, like the dwelling itself
  3. C. Liability limits are higher
  4. D. The special form covers the dwelling and the broad form covers the dwelling and the other structures on the premises as well
Show the answer

The answer is A. Under the commonest form the building is open peril and the contents remain named peril, which surprises many insureds at claim.

  • B is wrong: Contents usually stay on a named peril basis.
  • C is wrong: Liability limits are chosen rather than set by form.
  • D is wrong: Both forms cover other structures.

Question 3 · Property and Casualty Insurance (Series 17-56)

Who is a homeowners policy for when written as a tenant form?
  1. A. An owner of a rented-out house
  2. B. A renter, covering their property and liability but not the building
  3. C. A condominium unit owner
  4. D. A person who owns a house jointly with another party and occupies only part of it while letting the remainder to a tenant
Show the answer

The answer is B. The landlord insures the building. The tenant form covers what the tenant owns and what they may be held responsible for.

  • A is wrong: The owner of a rented house uses a dwelling policy.
  • C is wrong: A unit owner uses the condominium form.
  • D is wrong: Joint ownership does not by itself call for a tenant form.

Question 4 · Property and Casualty Insurance (Series 17-56)

A dwelling policy leaves out something a homeowners policy includes as standard. Which coverage?
  1. A. Coverage on the dwelling building itself and its structure
  2. B. Personal liability coverage as standard
  3. C. Coverage for other structures
  4. D. Coverage for the additional living costs the insured incurs while the damaged dwelling is being repaired or rebuilt
Show the answer

The answer is B. Liability can be added by endorsement, but a dwelling policy is a property contract first and is often used where the owner does not live there.

  • A is wrong: The dwelling is the policy's main subject.
  • C is wrong: Other structures is one of its coverages.
  • D is wrong: Additional living expense is available under it.

Question 5 · Property and Casualty Insurance (Series 17-56)

Part A of a personal auto policy provides which coverage?
  1. A. Liability coverage for bodily injury and property damage to others
  2. B. Coverage for damage to the insured's own car
  3. C. Medical payments for the insured
  4. D. Coverage for injury by a driver with no insurance
Show the answer

The answer is A. The four parts run liability, medical payments, uninsured motorists and damage to your auto, and each answers a different exposure.

  • B is wrong: Damage to the insured's own car is Part D.
  • C is wrong: Medical payments is Part B.
  • D is wrong: Injury by an uninsured driver is Part C.

Question 6 · Property and Casualty Insurance (Series 17-56)

Uninsured motorists coverage responds to what?
  1. A. Damage to the insured's own car by any cause
  2. B. Injury the insured causes to others
  3. C. Injury by a driver whose limits are below the loss
  4. D. Injury caused by a driver who has no liability insurance or cannot be identified
Show the answer

The answer is D. Underinsured motorists coverage answers the last of those, where the at-fault driver has coverage but not enough of it.

  • A is wrong: Own damage is collision or other than collision.
  • B is wrong: Injury the insured causes is liability coverage.
  • C is wrong: Inadequate limits is the underinsured motorists question.

Question 7 · Property and Casualty Insurance (Series 17-56)

What holds a commercial package policy together?
  1. A. A common declarations page and common policy conditions, with coverage parts attached
  2. B. A single coverage form covering every exposure
  3. C. Separate policies filed together
  4. D. An agreement letting the insured move limits between parts
Show the answer

The answer is A. Property, general liability, crime, inland marine, auto and boiler and machinery can each be a part, and any two of them make a package.

  • B is wrong: A package is built from several forms rather than one.
  • C is wrong: They are parts of one policy rather than separate contracts.
  • D is wrong: Limits belong to their own coverage parts.

Question 8 · Property and Casualty Insurance (Series 17-56)

A businessowners policy brings which two coverages into one contract?
  1. A. Property and liability coverage for a small business in one contract
  2. B. Property coverage alone
  3. C. Liability and auto coverage
  4. D. Property, liability, commercial auto and workers compensation coverage for a small business within a single set of policy documents
Show the answer

The answer is A. Auto and workers compensation stay outside it, which is the most important thing to tell a small business owner buying one.

  • B is wrong: Liability is included as well as property.
  • C is wrong: Property is included and auto is not.
  • D is wrong: Auto and workers compensation are written separately.

Question 9 · Property and Casualty Insurance (Series 17-56)

What is the exclusive remedy principle in workers compensation?
  1. A. The employee may sue instead of claiming benefits
  2. B. The employer may choose for itself whether to provide the benefits at all
  3. C. The employee must first claim the benefits and may then sue the employer for any part of the loss those benefits did not cover
  4. D. The statutory benefits replace the employee's right to sue the employer
Show the answer

The answer is D. It is the bargain the whole system rests on: benefits without proving fault, in place of a lawsuit.

  • A is wrong: The right to sue the employer is given up.
  • B is wrong: Coverage is compulsory rather than optional.
  • C is wrong: Topping up by suit is what the principle prevents.

Question 10 · Property and Casualty Insurance (Series 17-56)

An owner sells a warehouse and keeps the policy on it in force. Why can they not collect when it burns down a month later?
  1. A. At the time the policy is applied for only
  2. B. At the time the loss occurs, whether or not it existed before
  3. C. At both the time of application and the time of loss, in every case
  4. D. At the time the policy is issued and continuously throughout the period for which the coverage remains in force under that contract
Show the answer

The answer is B. This is the opposite of life insurance, where the interest must exist at inception and need not continue. Selling the property ends the interest.

  • A is wrong: Interest at application alone would let a seller collect after selling.
  • C is wrong: Property insurance looks to the moment of loss.
  • D is wrong: Continuous interest is not what the rule requires.
Before the real one

Read next

The NY Property and Casualty Insurance practice exams See what an exam costs