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Wyoming Property & Casualty Practice Exam

20 exam-style questions drawn from the same bank as our full Wyoming Property & Casualty course (Wyoming Insurance Producer — Property and Casualty — Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. A personal umbrella has a $500 Self-Insured Retention (SIR). The insured is sued for libel (a personal-injury offense), a loss NOT covered by the underlying HO. The umbrella DOES cover libel. Damages are $75,000. How does the umbrella respond?
The umbrella pays nothing because the underlying HO did not pay first.The insured must sue the libel victim to trigger coverage before the umbrella responds.The umbrella pays $75,000 with no retention, the SIR applies only to claims shared with the underlying.The umbrella requires the insured to pay the $500 SIR first; the umbrella then pays the remaining $74,500.
2. An insured's DP-3 covers a rental property. The tenant's personal property is destroyed by a covered fire. Who, if anyone, will the DP-3 pay for the tenant's lost property?
No one, the tenant's personal property is not covered on the landlord's DP-3The mortgagee, under the loss payable clauseThe landlord, the landlord can claim the tenant's property under Coverage CThe tenant, Coverage C will pay up to the scheduled limit
3. When a Wyoming insurer denies a claim, W.S. 26-13-124 lists it as a prohibited practice to fail to give the insured:
A written offer of appraisal signed by an independent Wyoming umpireA referral to the Wyoming Insurance Department Consumer Services unitA copy of the full internal claim file, including all adjuster notesA reasonable explanation of the policy basis in relation to the facts
4. A store clerk is held at gunpoint and forced to hand over cash from the register. Under standard crime policy definitions, this is:
Mysterious disappearance.Robbery.Theft.Burglary.
5. A jury awards an injured motorist the following amounts after a covered auto accident: $70,000 in medical bills, $25,000 in lost wages, and $90,000 for pain and suffering. Which amounts are classified as SPECIAL damages?
The $90,000 for pain and suffering onlyOnly the $70,000 in medical bills, because lost wages are general damagesAll three amounts, because the jury verdict makes them objectiveThe $70,000 medical bills and the $25,000 lost wages
6. Insurance is based on the LAW OF LARGE NUMBERS, which means:
The greater the number of similar exposure units, the more predictable losses become, allowing accurate rate-setting.Each insured's losses can be predicted exactly once enough data is collected about that individual.The more policies an insurer writes, the higher its total premium, regardless of the losses that occur in the pool.Insurers must write a minimum number of policies in each state before they may file rates with regulators.
7. An insured owns a 1910 Victorian whose replacement cost is $1.2M and market value is $380,000. If the home is written on an HO-8 and suffers a total loss, how will the dwelling claim be settled?
Full replacement cost using like kind and quality materials matching the original Victorian construction, provided the insured carried at least 80% to valueActual cash value only on both partial and total losses, with depreciation calculated using the home's 1910 original construction dateThe cost to repair with common construction materials and methods functionally equivalent to the original, up to the policy limitMarket value at the time of loss, with no adjustment for the spread between replacement cost and the home's depressed real-estate value
8. A personal auto policy's 'policy territory' generally covers:
The United States, its territories and possessions, Puerto Rico, and Canada; limited coverage while being transported between.Only the contiguous continental United States and explicitly not Alaska, Hawaii, Puerto Rico, or Canada, a narrowing that no standard ISO Personal Auto Policy actually adopts in its territory clauseAnywhere in the world without any geographic restriction at all, an unrestricted worldwide territory that the standard ISO Personal Auto Policy does not actually adopt under any current editionOnly the single state where the policy was issued and not any other state, a parochial restriction not actually imposed under any standard ISO Personal Auto Policy form in current use
9. Under the PAP, an 'insured' for liability coverage (Part A) includes:
Only the named insured and spouse; family members and permissive drivers must each be specifically listed on the declarations page.The named insured, spouse, family members, and any person using the covered auto with the named insured's permission.The named insured only, while any other driver of the covered auto must rely on that driver's own personal auto policy for coverage.The named insured and any person who resides in the same state, whether or not that person had permission to use the covered auto.
10. Under the PAP's Part E (Duties After an Accident or Loss), the insured must generally do which of the following?
Promptly notify the insurer, cooperate in investigation, submit to examinations under oath, protect the property from further damage, and provide requested documents and authorizations.Retain a personal attorney at the insured's own expense, refuse examinations under oath, and keep damaged property until the insured's own appraiser inspects it.File a police report within 24 hours, obtain three repair estimates before contacting the insurer, and pay the other driver's damages to preserve coverage.Notify the insurer only if the loss exceeds the deductible, negotiate directly with the other driver, and settle any claim made against the insured without waiting for the insurer.
11. Which of the following losses is specifically EXCLUDED under the NFIP Standard Flood Insurance Policy Dwelling Form?
Finished walls, floors, ceilings, and personal property in a basementLoss of personal property in a basement that was covered by a partial wall collapseMudflow caused by floodTidal water overflow reaching the insured structure
12. An insured's home is damaged by a negligent contractor. The insurer pays the $40,000 repair under the homeowners policy and then sues the contractor to recover what it paid. What doctrine allows this?
SubrogationEstoppelAssignmentAbandonment
13. What does W.S. 26-14-104 presume about the Wyoming insurance market, and what does that presumption do to an insurer's filing obligation?
It presumes nothing about the market, so every insurer files every Wyoming rate thirty days before useIt presumes a competitive market, so rates are maintained and produced to the Commissioner on requestIt presumes a competitive market, so no Wyoming insurer need keep any rate information whatsoeverIt presumes a noncompetitive market, so every Wyoming rate must be approved before it may be used at all
14. Over three years, a manufacturing plant discharges small amounts of a contaminant into the groundwater beneath the facility. Five neighboring property owners later sue for damages. Under the standard CGL definition of 'occurrence,' how many occurrences has the facility caused?
Zero occurrences, a slow release is not accidental and therefore is not an occurrence.One occurrence, continuous or repeated exposure to substantially the same general harmful conditions.Three occurrences, one per year of discharge.Five occurrences, one per claimant.
15. A family of four is sued for $3,000,000 after a covered auto accident. The insured has a $250,000 PAP limit and a $2,000,000 umbrella sitting over it. Defense costs run to $150,000, paid by the PAP. How does the umbrella typically handle defense costs on this claim?
The umbrella reimburses the PAP for the $150,000 in defense costs it paid and deducts that amount from its own limit, leaving $1,850,000 available to pay damages.Personal umbrellas never pay defense costs under any circumstances; the insured must hire and pay for a defense attorney once the underlying PAP limit is exhausted by payment.The umbrella pays defense costs only up to 10 percent of its limit, with any defense costs above $200,000 paid personally by the insured family out of pocket.Most personal umbrellas provide defense costs OUTSIDE the limit of liability when the underlying is exhausted and the umbrella takes over the defense, preserving the full $2,000,000 for damages.
16. On the Business Auto Coverage Form, covered 'autos' are identified by NUMERIC SYMBOLS in the declarations. Symbol 1 means:
Only autos leased to the insured.Only autos owned by the insured.Only autos specifically described in the policy.Any auto, owned, leased, hired, or borrowed.
17. A 'USL&H' endorsement on a WC policy extends coverage to:
Employees of US embassies abroad in foreign service positions, an exposure addressed by the Defense Base Act rather than by USL&H under the federal longshore-and-harbor-workers frameworkLongshore and harbor workers covered by the federal Longshore and Harbor Workers' Compensation Act, those injured over navigable waters or adjoining areas.Only employees injured while working aboard cruise ships in territorial waters, a narrow framing that misstates the federal LHWCA scope of covered maritime employment under 33 USC §902 (3)Only employees working exclusively outside the United States in foreign jurisdictions, which is the function of a Foreign Voluntary Compensation endorsement rather than USL&H
18. A contractor installs a gas water heater incorrectly. Three weeks after the job is complete, the water heater explodes, injuring the homeowner. The contractor's CGL responds under which coverage category?
Products-completed operations.Employer's liability.Personal injury (Coverage B).Premises/operations.
19. A contractor applies for a CGL and fails to disclose a prior $150,000 bodily injury loss when the application asks for all losses in the last five years. Which hazard category does this BEST represent?
Morale hazard (carelessness or indifference toward loss prevention)Physical hazard (a tangible condition that increases risk)Moral hazard (concealment/fraud intended to get coverage or better terms)Legal hazard (court rulings that expand an insured's liability)
20. The PAP typically excludes use of the insured vehicle:
Outside the state where the auto is principally garaged, unless the named insured notifies the insurer in writing before the trip begins and pays an additional premium.As a public or livery conveyance (carrying persons or property for a fee), with a narrow exception for ride-sharing arrangements not covered by the policy.By any family member under age 25 who is not specifically listed as a driver on the declarations page, even when that person has the named insured's permission.For any business purpose at all, including commuting to work, since personal auto coverage applies only while the auto is used for recreation and household errands.

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