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. Under the personal auto policy (PAP), which coverage pays for damage to the insured's own vehicle caused by a collision with another car? → Collision coverage
3. Which type of insurance policy covers the insured's legal liability for bodily injury or property damage caused to third parties? → Liability coverage
4. Which of the following is NOT one of the four main categories of workers' compensation benefits? → Life insurance benefits
5. An insurance contract is considered aleatory. This means that: → The contract's performance depends upon an uncertain future event.
6. The 'vacancy clause' in a commercial property policy typically suspends or limits certain coverages if a building has been vacant for more than: → 60 consecutive days
7. An occurrence-based liability policy covers claims for injuries that: → Occur during the policy period regardless of when they are reported
8. 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
9. A property insurer cancels a policy mid-term for non-payment of premium. The return premium is calculated on a: → Short-rate basis
10. 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)
11. Which of the following injuries would typically be covered under workers' compensation? → A delivery driver injured in a traffic accident while making work deliveries
12. Insurance is primarily regulated at the state level because of: → The McCarran-Ferguson Act of 1945
13. Valuable Papers and Records inland marine coverage typically pays for: → The cost to reconstruct or reproduce documents that have been destroyed
14. 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
15. Workers' compensation premium rates are primarily based on: → Job classification codes and the employer's past claims experience
16. Which of the following perils is typically EXCLUDED from a standard homeowners policy? → Flood
17. Which of the following losses would MOST LIKELY be covered under the 'comprehensive' portion of a personal auto policy? → A tree falls on the insured's parked car during a windstorm
18. 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
19. 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
20. A garage owner's policy (garage policy) is specifically designed to cover: → Auto dealerships, service stations, and repair shops
21. 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
22. In a personal auto policy, Part D (Physical Damage) includes which two coverages? → Collision and other-than-collision (comprehensive)
23. Which of the following best describes the principle of indemnity in property and casualty insurance? → The insured is restored to the same financial position as before the loss
24. 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)
25. An 'endorsement' to an insurance policy: → Modifies the terms of the original policy by adding, deleting, or changing coverage
26. What does the term 'named perils' mean in a property insurance policy? → The policy only covers losses caused by perils explicitly listed in the policy
27. Which of the following describes 'adverse selection' in insurance underwriting? → High-risk individuals are more likely to seek insurance than low-risk individuals
28. Which of the following would NOT typically be classified under inland marine insurance? → Commercial Building coverage for a permanently attached structure
29. 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
30. A Commercial General Liability (CGL) policy provides coverage for which of the following? → Bodily injury and property damage arising from business operations