Kansas Property & Casualty Insurance Practice Exam Free - 2026

• A. $25,000 per person / $50,000 per accident bodily injury; $10,000 property damage
• B. $25,000 per person / $50,000 per accident bodily injury; $25,000 property damage
• C. $30,000 per person / $60,000 per accident bodily injury; $25,000 property damage
• D. $50,000 per person / $100,000 per accident bodily injury; $25,000 property damage

Correct answer: B. $25,000 per person / $50,000 per accident bodily injury; $25,000 property damage

Explanation: K.S.A. 40-3107(e) requires every Kansas motor vehicle liability policy to carry limits of not less than $25,000 for bodily injury to or death of one person, $50,000 for two or more persons in one accident, and $25,000 for damage to property of others in one accident, plus personal injury protection benefits. $10,000 property damage was the pre-2017 Kansas figure and is used by other states; 30/60 and 50/100 exceed the statutory minimums and are not what the act requires. See K.S.A. 40-3107.

• A. $2,000
• B. $900
• C. $4,500
• D. $10,000

Correct answer: C. $4,500

Explanation: K.S.A. 40-3103(k) defines PIP medical benefits as allowances for all reasonable expenses, up to a limit of not less than $4,500, for necessary health care, surgical, x-ray, dental, prosthetic, ambulance, hospital and nursing services (rehabilitation benefits carry a separate $4,500 minimum). $2,000 is the maximum PIP funeral benefit, $900 is the minimum monthly disability and survivors' benefit, and $10,000 is not a Kansas PIP figure. See K.S.A. 40-3103.

• A. Overdue if not paid within 30 days after written notice; 18% simple interest per annum
• B. Overdue if not paid within 15 days after written notice; 12% simple interest per annum
• C. Overdue if not paid within 45 days after written notice; 10% simple interest per annum
• D. Overdue if not paid within 60 days after written notice; 18% simple interest per annum

Correct answer: A. Overdue if not paid within 30 days after written notice; 18% simple interest per annum

Explanation: K.S.A. 40-3110(b) provides that PIP benefits are overdue if not paid within 30 days after the insurer is furnished written notice of the fact and amount of a covered loss (disability benefits must be paid at least every two weeks), and all overdue payments bear simple interest at 18% per annum; the statute also bars PIP claims made more than two years after the injury. Fifteen, 45 and 60 days and 10% or 12% interest are not the Kansas figures. See K.S.A. 40-3110.

• A. UM/UIM at any limit the insurer chooses; Nadia may reject all UM/UIM coverage in writing
• B. UM/UIM at $25,000/$50,000 only; no rejection is allowed
• C. UM/UIM equal to $100,000/$300,000; no rejection of any amount is allowed
• D. UM/UIM equal to $100,000/$300,000; Nadia may reject in writing only the amount above the $25,000/$50,000 statutory minimum

Correct answer: D. UM/UIM equal to $100,000/$300,000; Nadia may reject in writing only the amount above the $25,000/$50,000 statutory minimum

Explanation: K.S.A. 40-284(a) requires every Kansas auto liability policy to include uninsured motorist coverage with limits equal to the policy's bodily injury liability limits, and subsection (b) requires an underinsured motorist provision; subsection (c) lets the named insured reject in writing only the UM/UIM coverage in excess of the K.S.A. 40-3107 minimums, and the rejection binds all insureds and carries forward to later policies with the same insurer. Complete rejection is not allowed, the insurer cannot pick a lower limit, and minimum-only coverage with no rejection right misstates the statute. See K.S.A. 40-284.

• A. business income coverage
• B. employee dishonesty bond only
• C. life settlement option
• D. personal auto liability

Correct answer: A. business income coverage

Explanation: Business income coverage may help replace lost income during a covered suspension caused by a covered cause of loss.

• A. employee injuries arising in the course of employment
• B. bodily injury, property damage, and personal/advertising injury
• C. damage to the insured's own building, stock, and equipment
• D. professional errors and omissions in services to clients

Correct answer: B. bodily injury, property damage, and personal/advertising injury

Explanation: BOP liability coverage is intended for common third-party liability claims, subject to exclusions and conditions.

• A. a small retail store
• B. a small office tenant
• C. a high-hazard manufacturing operation
• D. a neighborhood barber shop

Correct answer: C. a high-hazard manufacturing operation

Explanation: BOP eligibility is often limited by business type, size, revenue, premises, and risk characteristics. Higher-hazard operations may require different coverage.

• A. business income coverage when the premises are shut down by a covered loss
• B. general liability coverage for slip-and-fall claims by customers on the premises
• C. business personal property coverage for stock and equipment at the premises
• D. workers compensation when employees are subject to workers compensation law

Correct answer: D. workers compensation when employees are subject to workers compensation law

Explanation: Workers compensation is usually written separately and is not replaced by a BOP.

• A. covered buildings and business personal property
• B. the insured's liability to customers and guests
• C. employee injuries and occupational diseases
• D. the insured's owned and hired business vehicles

Correct answer: A. covered buildings and business personal property

Explanation: The BOP property section addresses covered business property, such as buildings and contents, subject to policy terms.

• A. cancel the policy and issue a replacement contract
• B. modify coverage, limits, conditions, or exclusions
• C. restate the declarations without changing coverage
• D. summarize the policy's key terms for the insured's records

Correct answer: B. modify coverage, limits, conditions, or exclusions

Explanation: Endorsements change the policy. They may add, limit, or clarify coverage depending on the wording.

• A. exclusions are automatically waived when a claim is filed on time
• B. exclusions determine the premium refund on early cancellation
• C. some exposures may require separate policies or endorsements
• D. excluded losses are still paid, but at actual cash value

Correct answer: C. some exposures may require separate policies or endorsements

Explanation: Exclusions identify losses or exposures not covered by the policy. A business may need endorsements or separate policies for those exposures.

• A. federally subsidized crop yield guarantees
• B. personal auto and recreational vehicle risks
• C. commercial trucking and cargo hauling risks
• D. farm property and farm liability risks

Correct answer: D. farm property and farm liability risks

Explanation: Farm policies are designed for agricultural property and liability exposures that may not fit standard homeowners or commercial forms.