Connecticut Property & Casualty Insurance Practice Exam Free - 2026

• A. 10 percent of the annual premium; earned premium equal to one month's premium
• B. 20 percent of the annual premium; no minimum earned premium
• C. 25 percent of the annual premium, and the minimum earned premium equals the down payment
• D. 50 percent of the annual premium; earned premium is fully refundable

Correct answer: C. 25 percent of the annual premium, and the minimum earned premium equals the down payment

Explanation: Connecticut's residual market plan for automobile insurance must provide that the minimum down payment is twenty-five percent of the annual premium and that the minimum earned premium equals the down payment, with the policy not terminating before the period covered by the down payment ends; the plan also allows a $35 producer service fee on each initial policy and must offer limits up to 250/500/100. Ten, 20 and 50 percent are not the statutory figures. See Conn. Gen. Stat. § 38a-329.

• A. Yes, prior residual market coverage is a legitimate underwriting factor
• B. Yes, provided 60 days' notice is given
• C. Yes, if the company's rating plan justifies it
• D. No; Connecticut prohibits declining, cancelling or nonrenewing a private passenger auto policy because the applicant or insured previously obtained coverage through a residual market

Correct answer: D. No; Connecticut prohibits declining, cancelling or nonrenewing a private passenger auto policy because the applicant or insured previously obtained coverage through a residual market

Explanation: Connecticut prohibits the declination, cancellation or nonrenewal of a private passenger nonfleet auto policy based on the fact that the applicant or insured previously obtained coverage through a residual market, along with race, religion, nationality, lawful occupation, a prior insurer's declination, the first or second not-at-fault accident, or credit history alone. Because the ground itself is illegal, giving 60 days' notice or citing a rating plan does not make the nonrenewal lawful. See Conn. Gen. Stat. § 38a-358.

• A. 75 percent of his average weekly earnings after deduction of federal and state taxes and FICA, subject to the state maximum weekly rate
• B. 66 2/3 percent of his gross average weekly wage
• C. 80 percent of his gross average weekly wage
• D. 100 percent of his after-tax wage for the first 26 weeks

Correct answer: A. 75 percent of his average weekly earnings after deduction of federal and state taxes and FICA, subject to the state maximum weekly rate

Explanation: Connecticut pays total incapacity compensation equal to seventy-five percent of the injured employee's average weekly earnings after those earnings are reduced by federal and state taxes and FICA, capped at the maximum weekly benefit rate under section 31-309 and not less than 20 percent of that maximum. Two-thirds of gross wages is the formula used in many other states, 80 percent is not Connecticut's rate, and 100 percent applies only when the injury results from an uncorrected cited safety violation. See Conn. Gen. Stat. § 31-307.

• A. Immediately, from the day of injury, regardless of how long she is out
• B. No compensation unless she is incapacitated more than 3 days; if the incapacity lasts 7 days, compensation runs from the date of injury
• C. After a 7-day waiting period, retroactive only if the incapacity lasts 14 days
• D. After a 5-day waiting period that is never retroactive

Correct answer: B. No compensation unless she is incapacitated more than 3 days; if the incapacity lasts 7 days, compensation runs from the date of injury

Explanation: Connecticut pays no compensation for total or partial incapacity unless the injury incapacitates the employee for more than three days; if incapacity continues more than three but fewer than seven days, compensation begins after the first three days, and if it continues for seven days, compensation begins from the date of injury. The employee also receives full wages for the day of injury, which is not counted. A 7-day/14-day or 5-day waiting period is not Connecticut's rule. See Conn. Gen. Stat. § 31-295.

• A. Paying for damage you cause to a rental car while driving it on vacation
• B. Paying the balance owed on a lease when a rented vehicle is declared a total loss
• C. Paying for a rental car while your vehicle is being repaired after a covered loss
• D. Paying for towing and roadside labor when your vehicle breaks down away from home

Correct answer: C. Paying for a rental car while your vehicle is being repaired after a covered loss

Explanation: Rental reimbursement coverage pays for a rental car while your vehicle is being repaired after a covered loss, up to a daily and total limit specified in the policy.

• A. Coverage for mechanical repairs performed at a shop after the vehicle breaks down
• B. Coverage for a rental vehicle while the insured's car is out of service
• C. Liability coverage for a tow truck operator who damages a customer's vehicle
• D. Coverage for towing costs and minor roadside labor like flat tire changes

Correct answer: D. Coverage for towing costs and minor roadside labor like flat tire changes

Explanation: Towing and labor coverage pays for towing services and minor roadside assistance labor (like changing a flat tire or jump-starting a battery) when your vehicle is disabled.

• A. A single coverage amount applying to multiple properties or items
• B. A separate coverage amount stated for each building or item on the schedule
• C. Coverage written on an open-perils basis for all property at one location
• D. A coverage amount that rises automatically each year to keep pace with inflation

Correct answer: A. A single coverage amount applying to multiple properties or items

Explanation: Blanket coverage provides a single sum of insurance that applies across multiple properties or items rather than specifying separate limits for each. It offers flexibility in covering shifting values.

• A. State laws requiring insurers to pay actual cash value regardless of the policy limit
• B. State laws requiring insurers to pay the full policy limit for total losses
• C. State laws requiring insureds to carry coverage equal to a percentage of property value
• D. State laws requiring insurers to reappraise insured property each time a policy renews

Correct answer: B. State laws requiring insurers to pay the full policy limit for total losses

Explanation: Valued policy laws in some states require insurers to pay the full face amount of a property insurance policy in case of total loss, regardless of the actual cash value at the time of loss.

• A. Coverage for the net income a business loses while its premises are being restored
• B. Coverage for costs that exceed the policy limit on a large property loss
• C. Coverage for additional costs to continue operations after a covered loss
• D. Coverage for additional costs of rebuilding to meet current building codes

Correct answer: C. Coverage for additional costs to continue operations after a covered loss

Explanation: Extra expense coverage pays for additional costs incurred to continue business operations after a covered loss, such as renting temporary facilities or equipment while repairs are made.

• A. Garage liability coverage
• B. Commercial property coverage
• C. Garagekeepers coverage
• D. The customers' own collision coverage

Correct answer: C. Garagekeepers coverage

Explanation: Garagekeepers coverage insures damage to customers' autos in the care, custody, and control of a garage business - an exposure that garage liability and standard property forms exclude. Garage liability instead covers the business's own operations and autos. Customers' own policies might respond, but the shop buys garagekeepers so claims can be paid without pushing customers onto their own insurance.

• A. Civil authority coverage
• B. Builders risk insurance
• C. Equipment breakdown coverage
• D. Ordinance or law coverage

Correct answer: A. Civil authority coverage

Explanation: Civil authority coverage extends business income and extra expense protection when a government order - not damage to the insured's own property - bars access to the premises because of covered physical damage nearby. Coverage typically begins after a short waiting period following the order and lasts for a limited number of weeks stated in the form.

• A. General liability coverage for bodily injury occurring on a professional's premises
• B. Professional liability coverage for mistakes or failures in professional services
• C. Coverage for a company's directors and officers against claims of mismanagement
• D. Fidelity coverage for losses caused by the dishonest acts of a professional's employees

Correct answer: B. Professional liability coverage for mistakes or failures in professional services

Explanation: E&O insurance is professional liability coverage protecting against claims of negligence, errors, or omissions in providing professional services. It's commonly carried by insurance agents, lawyers, and consultants.