Delaware Property and Casualty Insurance Practice Exam Free 2026

• A. Completed project insurance
• B. Hazardous products insurance
• C. Product manufacturing coverage
• D. Liability for injury or damage arising from products sold or work completed away from premises

Correct answer: D. Liability for injury or damage arising from products sold or work completed away from premises

Explanation: Products-completed operations hazard refers to liability for bodily injury or property damage arising from the insured's products after they leave the insured's control or from completed work away from the premises.

• A. Real estate coverage
• B. Coverage for operating equipment
• C. Liability coverage for injuries or damage occurring on insured premises or from ongoing operations
• D. Surgical operation coverage

Correct answer: C. Liability coverage for injuries or damage occurring on insured premises or from ongoing operations

Explanation: Premises and operations coverage is part of general liability insurance that covers bodily injury or property damage occurring on the insured's premises or arising from the insured's ongoing business operations.

• A. Coverage for offenses like libel, slander, false arrest, and copyright infringement in advertising
• B. Personal injury protection
• C. Marketing expense coverage
• D. Coverage for personal ads

Correct answer: A. Coverage for offenses like libel, slander, false arrest, and copyright infringement in advertising

Explanation: Personal and advertising injury coverage in CGL policies covers offenses including false arrest, libel, slander, invasion of privacy, and copyright infringement committed in the course of advertising.

• A. Multiple policy coverage
• B. Coverage for rain damage
• C. Excess liability coverage that provides additional limits above underlying policies
• D. Insurance for umbrella manufacturers

Correct answer: C. Excess liability coverage that provides additional limits above underlying policies

Explanation: Umbrella liability provides excess coverage above the limits of underlying liability policies. It may also cover some claims not covered by underlying policies, subject to a self-insured retention.

• A. Over-insurance protection
• B. Coverage that pays only after underlying policy limits are exhausted
• C. Insurance for excessive claims
• D. Surplus lines coverage

Correct answer: B. Coverage that pays only after underlying policy limits are exhausted

Explanation: Excess liability insurance provides additional limits above an underlying policy but follows the same terms and conditions. Unlike umbrella policies, it typically doesn't broaden coverage.

• A. Coverage for rental cars only
• B. Liability coverage for vehicles used for business that aren't owned by the insured
• C. Company car insurance
• D. Coverage for employee-owned vehicles

Correct answer: B. Liability coverage for vehicles used for business that aren't owned by the insured

Explanation: Hired and non-owned auto coverage provides liability protection when employees use rented vehicles (hired) or their personal vehicles (non-owned) for business purposes.

• A. Motorcycle insurance
• B. Insurance for car carriers
• C. Moving company coverage
• D. Commercial auto coverage required for businesses transporting goods or passengers for hire

Correct answer: D. Commercial auto coverage required for businesses transporting goods or passengers for hire

Explanation: Motor carrier insurance is specialized commercial auto coverage for trucking companies and other businesses that transport goods or passengers for hire, meeting DOT and state requirements.

• A. Coverage for goods being transported against loss or damage during transit
• B. Airport cargo coverage
• C. Insurance for cargo shorts
• D. Shipping container insurance

Correct answer: A. Coverage for goods being transported against loss or damage during transit

Explanation: Cargo insurance covers goods while being transported from one location to another against loss or damage during transit. It can cover various modes including truck, rail, air, and ocean shipping.

• A. Insurance for bailiffs
• B. Coverage for bail bonds
• C. Legal defense coverage
• D. Coverage for property of others in the insured's care, custody, or control

Correct answer: D. Coverage for property of others in the insured's care, custody, or control

Explanation: Bailee coverage protects businesses that have custody of customer property (like dry cleaners or repair shops) against liability for loss or damage to that property while in their care.

• A. Environmental consulting coverage
• B. Industrial waste insurance
• C. Coverage for cleanup costs and third-party damages from pollution incidents
• D. Insurance against air quality fines

Correct answer: C. Coverage for cleanup costs and third-party damages from pollution incidents

Explanation: Pollution liability insurance covers cleanup costs and third-party liability for bodily injury and property damage arising from pollution incidents, which are typically excluded from standard liability policies.

• A. Coverage for contract disputes
• B. Legal contract protection
• C. Business contract insurance
• D. Coverage for liability assumed under a contract that would otherwise be the other party's responsibility

Correct answer: D. Coverage for liability assumed under a contract that would otherwise be the other party's responsibility

Explanation: Contractual liability coverage protects the insured when they assume another party's liability through a contract, such as a hold harmless or indemnification agreement in a lease or service contract.

• A. Liability for the actions of another person for whom one is responsible
• B. Liability for being victorious
• C. Direct personal liability
• D. Criminal liability

Correct answer: A. Liability for the actions of another person for whom one is responsible

Explanation: Vicarious liability holds one party responsible for the actions of another, such as an employer being liable for an employee's negligent acts within the scope of employment.

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

Delaware Department 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: NIPR Delaware says licensing exams are scheduled through Pearson VUE, and Pearson VUE hosts Delaware insurance candidate handbook and content outlines.

Review property insurance, casualty insurance, liability, auto, homeowners, commercial lines, policy provisions, claims basics, producer duties, state law, and unfair trade practices plus the Delaware-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 approval.