Alaska Property and Casualty Insurance Practice Exam Free 2026

• A. Medical payments coverage
• B. Coverage for your own injuries
• C. Workers compensation
• D. Coverage for legal liability when you injure someone else

Correct answer: D. Coverage for legal liability when you injure someone else

Explanation: Bodily injury liability coverage protects the insured when legally responsible for injuring another person. It pays for medical expenses, lost wages, pain and suffering, and legal defense costs.

• A. Collision coverage
• B. Comprehensive coverage
• C. Coverage for legal liability when you damage someone else's property
• D. Coverage for damage to your property

Correct answer: C. Coverage for legal liability when you damage someone else's property

Explanation: Property damage liability coverage protects the insured when legally responsible for damaging another person's property, such as their vehicle, home, or belongings.

• A. Coverage for personal vehicles
• B. Coverage for personal property
• C. Coverage protecting against claims of bodily injury or property damage caused by the insured
• D. Coverage for personal loans

Correct answer: C. Coverage protecting against claims of bodily injury or property damage caused by the insured

Explanation: Personal liability coverage in a homeowners policy protects the insured against claims alleging they caused bodily injury or property damage to others, covering legal defense costs and damages up to policy limits.

• A. Excess liability coverage above underlying primary policies
• B. Coverage for rain damage
• C. A comprehensive homeowners policy
• D. Insurance for umbrella manufacturers

Correct answer: A. Excess liability coverage above underlying primary policies

Explanation: An umbrella policy provides excess liability coverage above the limits of underlying primary policies (auto, homeowners). It also may cover claims excluded by underlying policies.

• A. Ignoring policy terms
• B. Failure to exercise reasonable care, resulting in harm to others
• C. Intentional harm
• D. Refusing to pay premiums

Correct answer: B. Failure to exercise reasonable care, resulting in harm to others

Explanation: Negligence is the failure to exercise the degree of care that a reasonable person would exercise under similar circumstances, resulting in harm or damage to another person or property.

• A. Contract and consideration
• B. Liability and premium payment
• C. Intent and malice
• D. Duty, breach of duty, proximate cause, and damages

Correct answer: D. Duty, breach of duty, proximate cause, and damages

Explanation: To prove negligence, a plaintiff must establish four elements: (1) the defendant had a duty of care, (2) the defendant breached that duty, (3) the breach was the proximate cause of injury, and (4) actual damages resulted.

• A. Theft of your vehicle
• B. Mechanical breakdowns
• C. Your own vehicle
• D. Claims from others you injure or whose property you damage

Correct answer: D. Claims from others you injure or whose property you damage

Explanation: Auto liability coverage protects you financially when you're legally responsible for injuring others or damaging their property in an accident. It pays their medical bills, property damage, and legal defense costs.

• A. Coverage for towing after a collision
• B. Coverage for liability in a collision
• C. Coverage for damage to your vehicle from colliding with another object
• D. Coverage when vehicles are in a demolition derby

Correct answer: C. Coverage for damage to your vehicle from colliding with another object

Explanation: Collision coverage pays for damage to your own vehicle when it collides with another vehicle or object (like a tree or guardrail), regardless of who is at fault.

• A. All-inclusive collision coverage
• B. Full liability coverage
• C. Coverage for damage from non-collision events like theft, fire, or hail
• D. Coverage for all drivers

Correct answer: C. Coverage for damage from non-collision events like theft, fire, or hail

Explanation: Comprehensive coverage pays for damage to your vehicle from causes other than collision, such as theft, vandalism, fire, natural disasters, hitting an animal, or falling objects.

• A. Coverage for unlicensed drivers
• B. Coverage for driving without insurance
• C. Coverage for injuries caused by a driver who has no insurance
• D. Coverage for rental cars

Correct answer: C. Coverage for injuries caused by a driver who has no insurance

Explanation: Uninsured motorist coverage protects you if you're injured by a driver who has no liability insurance or in a hit-and-run accident. It covers your medical expenses and damages.

• A. Coverage when the at-fault driver's insurance is insufficient to cover your damages
• B. Low-cost basic insurance
• C. Coverage for drivers under 21
• D. Coverage for underpaid claims

Correct answer: A. Coverage when the at-fault driver's insurance is insufficient to cover your damages

Explanation: Underinsured motorist coverage pays the difference when the at-fault driver's liability limits are not enough to cover your damages. It fills the gap between their coverage and your actual losses.

• A. Liability coverage for medical expenses
• B. Coverage that pays medical bills for you and passengers regardless of fault
• C. Health insurance for drivers
• D. Coverage for medical equipment in vehicles

Correct answer: B. Coverage that pays medical bills for you and passengers regardless of fault

Explanation: Medical payments coverage pays for medical expenses for you and your passengers injured in an auto accident, regardless of who caused the accident. It's no-fault coverage with relatively low limits.

No. This is an independent study resource. Use it with the official Alaska regulator and exam-vendor resources before scheduling or testing.

Alaska Division of Insurance is the regulator/source authority referenced for this page. Always verify current licensing rules directly with official sources.

The current vendor/source note used on this page is: Pearson VUE hosts Alaska insurance licensing exam resources, including candidate handbook and content-outline downloads for life, health, property, and casualty exam preparation.

Review property insurance, casualty insurance, liability, auto, homeowners, commercial lines, policy provisions, claims basics, producer duties, state law, and unfair trade practices plus the Alaska-specific law and regulation sections in the official candidate handbook or content outline.

No. It can help you review concepts and identify weak areas, but it cannot guarantee exam results, licensing eligibility, or licensing approval.