P&C Cheat Sheet 2026

The 30 highest-yield P&C facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following locations would typically NOT be considered an "insured location" for liability coverage under a standard Homeowners (HO-3) policy? → An unlisted commercial property owned by the insured where they operate a business.
2. Which of the following is NOT one of the four main categories of workers' compensation benefits? → Life insurance benefits
3. An insurance contract is considered aleatory. This means that: → The contract's performance depends upon an uncertain future event.
4. An occurrence-based liability policy covers claims for injuries that: → Occur during the policy period regardless of when they are reported
5. The principle of 'utmost good faith' (uberrimae fidei) in insurance requires that: → Both the insured and the insurer must disclose all material facts relevant to the policy
6. Which type of specialty insurance covers crops against losses caused by adverse weather, insects, disease, or other unavoidable perils? → Crop insurance (Multiple Peril Crop Insurance)
7. Which of the following injuries would typically be covered under workers' compensation? → A delivery driver injured in a traffic accident while making work deliveries
8. Insurance is primarily regulated at the state level because of: → The McCarran-Ferguson Act of 1945
9. Valuable Papers and Records inland marine coverage typically pays for: → The cost to reconstruct or reproduce documents that have been destroyed
10. Which of the following is a valid reason for a state insurance department to deny a producer's license application? → The applicant was convicted of a felony involving dishonesty within the past 10 years
11. Workers' compensation premium rates are primarily based on: → Job classification codes and the employer's past claims experience
12. The Jewelers Block policy is a specialized inland marine form that covers jewelry: → While on display in the store, in transit, or secured in a vault
13. The following exposures can all be covered by a personal articles floater, which can be a standalone insurance or an endorsement to a homeowners policy, EXCEPT: → Fixtures
14. Under the Building and Personal Property (BPP) coverage form, which of the following is considered 'business personal property'? → Furniture, fixtures, and inventory owned by the insured
15. In a personal auto policy, Part D (Physical Damage) includes which two coverages? → Collision and other-than-collision (comprehensive)
16. Under state law, a property and casualty insurance policy may be cancelled by the insurer for non-payment of premium with a minimum notice of: → 10 days (most states)
17. An 'endorsement' to an insurance policy: → Modifies the terms of the original policy by adding, deleting, or changing coverage
18. Which of the following would NOT typically be classified under inland marine insurance? → Commercial Building coverage for a permanently attached structure
19. An 'aleatory' contract, such as an insurance policy, is one in which: → One party may receive considerably more or less than they give, depending on chance
20. A Commercial General Liability (CGL) policy provides coverage for which of the following? → Bodily injury and property damage arising from business operations
21. All of the following are typically included under Supplementary Payments in a Commercial General Liability policy EXCEPT: → Settlement amounts or judgments up to the policy limit.
22. A 'floater' policy in inland marine insurance is best described as: → A policy that covers property wherever it may be located
23. Which of the following acts is an example of 'unfair claims settlement practices'? → Failing to promptly investigate or pay undisputed claims
24. Cyber liability insurance is most commonly purchased to protect businesses against which type of loss? → Costs associated with data breaches, network failures, and privacy liability
25. In ocean marine insurance, 'hull' coverage refers to: → The physical vessel itself, including its machinery and equipment
26. Can an employee sue their employer under employer liability insurance in addition to making a workers' compensation claim? → Yes, under a dual capacity claim
27. Under workers' compensation, death benefits typically include: → Burial expenses and ongoing income benefits paid to qualifying surviving dependents
28. Private Mortgage Insurance (PMI) is designed primarily to protect which party? → The lender in the event the borrower defaults on the mortgage
29. The 'law of large numbers' is the statistical principle that allows insurers to: → Predict losses with greater accuracy as the number of similar exposure units increases
30. Which organization publishes the Nationwide Marine Definition that establishes what qualifies as inland marine insurance? → NAIC (National Association of Insurance Commissioners)