Illinois Property & Casualty Insurance Practice Exam Free - 2026

• A. Payroll by classification
• B. The owner's personal credit card rewards
• C. The number of life insurance beneficiaries
• D. The homeowner's roof age only

Correct answer: A. Payroll by classification

Explanation: Workers compensation premiums commonly consider payroll, job classification, rates, and experience modification factors where applicable.

• A. The employer's loss experience compared with similar employers
• B. The insured's age only
• C. The number of automobiles on a policy
• D. The size of a home deductible

Correct answer: A. The employer's loss experience compared with similar employers

Explanation: An experience modification factor adjusts premium based on an employer's loss experience compared with expected losses for similar businesses.

• A. Medical benefits for covered work-related injuries
• B. Collision repair for the employee's personal car after any accident
• C. A guaranteed retirement annuity
• D. Homeowners liability coverage

Correct answer: A. Medical benefits for covered work-related injuries

Explanation: Workers compensation commonly includes medical benefits for covered work-related injuries and may also include disability, rehabilitation, or death benefits depending on the law.

• A. Movable property, property in transit, or specialized property exposures
• B. Only ocean-going ships
• C. Life insurance cash values
• D. Employee medical expenses only

Correct answer: A. Movable property, property in transit, or specialized property exposures

Explanation: Inland marine coverage is often used for movable property, property in transit, contractors equipment, fine arts, and other specialized property exposures.

• A. Mobile tools and equipment used by a contractor
• B. A homeowner's personal liability only
• C. A restaurant's employee health benefits
• D. A personal auto liability exposure

Correct answer: A. Mobile tools and equipment used by a contractor

Explanation: A contractors equipment floater can insure mobile equipment and tools used at job sites, in transit, or at temporary locations, subject to policy terms.

• A. Covered records of amounts owed to the insured are damaged or destroyed
• B. A customer sues for bodily injury
• C. An employee needs dental insurance
• D. A private passenger auto is stolen

Correct answer: A. Covered records of amounts owed to the insured are damaged or destroyed

Explanation: Accounts receivable coverage can help when records of amounts owed to the insured are damaged by a covered loss, making collection difficult or impossible.

• A. The cost to research, replace, or restore important documents after covered loss
• B. The insured's professional liability for bad advice
• C. A private auto's collision damage
• D. Workers compensation medical benefits

Correct answer: A. The cost to research, replace, or restore important documents after covered loss

Explanation: Valuable papers coverage can pay costs to research, replace, or restore valuable documents and records after covered damage or loss.

• A. Property while being transported
• B. Employee retirement income
• C. Homeowners medical payments only
• D. Personal liability for libel

Correct answer: A. Property while being transported

Explanation: A transportation floater is an inland marine form that can cover property while it is in transit, subject to policy conditions.

• A. Employee theft or certain theft-related losses
• B. Ordinary wear and tear to a building
• C. Life insurance mortality risk
• D. Flood damage to a dwelling only

Correct answer: A. Employee theft or certain theft-related losses

Explanation: Commercial crime coverage can protect against certain theft-related losses, including employee theft, forgery, or money and securities losses depending on the form.

• A. Covered dishonest acts committed by employees
• B. Injuries to employees at work only
• C. A customer's auto accident
• D. Hail damage to the roof

Correct answer: A. Covered dishonest acts committed by employees

Explanation: Employee theft coverage applies to covered dishonest acts by employees, such as stealing money, securities, or other property, subject to policy definitions and limits.

• A. Insured, claimant, adjuster
• B. Principal, obligee, surety
• C. Owner, beneficiary, annuitant
• D. Driver, passenger, mechanic

Correct answer: B. Principal, obligee, surety

Explanation: A surety bond involves the principal who must perform, the obligee who requires the bond, and the surety that guarantees the principal's obligation.

• A. A contractor will perform according to the contract
• B. An employee will never resign
• C. A homeowner will avoid all property losses
• D. A car will not depreciate

Correct answer: A. A contractor will perform according to the contract

Explanation: A performance bond guarantees that the principal will complete work according to contract terms, protecting the obligee if the principal fails to perform.

No. This page is an independent study resource and is not an official exam from Illinois Department of Insurance, Pearson VUE, Pearson VUE, PSI, Prometric, NIPR, NAIC, or any other regulator or exam administrator.

Start with the current candidate handbook or content outline, then review property insurance, casualty insurance, liability, auto, homeowners, commercial coverage, claims basics, ethics, and state-specific insurance rules.

No. Practice questions can help you find weak areas, but they do not guarantee passing, licensing eligibility, or application approval.

Verify scheduling, fees, identification, prelicensing, retake, fingerprinting, and application rules through Illinois Department of Insurance and the current exam-vendor resources.

Take a practice set, review missed explanations, compare weak topics against the official Illinois outline, and re-test only after reviewing the relevant coverage concepts and state rules.