Nebraska Property & Casualty Practice Exam Free - 2026

• A. A law about valuable policies
• B. State laws requiring insurers to pay the full policy limit for total losses
• C. Regulations on valuable items
• D. Laws about policy values

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 excessive costs
• B. Extra premium payments
• C. Expenses beyond the deductible
• D. Coverage for additional costs to continue operations after a covered loss

Correct answer: D. 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. Coverage for buildings under construction against physical damage
• B. Insurance for construction workers
• C. Risk assessment for builders
• D. Liability insurance for contractors

Correct answer: A. Coverage for buildings under construction against physical damage

Explanation: Builders risk insurance covers buildings under construction against physical damage from covered perils like fire, wind, and vandalism. Coverage typically applies from groundbreaking until completion.

• A. Coverage for property in transit or at fixed locations not covered by standard property policies
• B. Insurance for inland waterways
• C. Marine life insurance
• D. Insurance for boats on rivers

Correct answer: A. Coverage for property in transit or at fixed locations not covered by standard property policies

Explanation: Inland marine insurance covers property in transit over land, mobile equipment, and certain types of property not adequately covered by standard property policies, including contractors' equipment and valuable papers.

• A. Error correction services
• B. Coverage for clerical errors
• C. Professional liability coverage for mistakes or failures in professional services
• D. Insurance for omitted coverage

Correct answer: C. 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.

• A. Insurance for movie directors
• B. Coverage for corporate leaders against claims of wrongful acts in their management capacity
• C. Officer health insurance
• D. Insurance for military officers

Correct answer: B. Coverage for corporate leaders against claims of wrongful acts in their management capacity

Explanation: D&O insurance protects corporate directors and officers from personal liability for alleged wrongful acts in managing the company, including breach of fiduciary duty, mismanagement, and regulatory violations.

• A. Employment agency insurance
• B. Liability for hiring practices
• C. Workers' compensation
• D. Coverage for claims by employees alleging discrimination, harassment, or wrongful termination

Correct answer: D. Coverage for claims by employees alleging discrimination, harassment, or wrongful termination

Explanation: EPLI protects employers against claims by employees alleging wrongful employment practices including discrimination, sexual harassment, wrongful termination, and failure to promote.

• A. Financial advisor insurance
• B. Trust fund protection
• C. Coverage for those managing employee benefit plans against claims of mismanagement
• D. Insurance for trustees

Correct answer: C. Coverage for those managing employee benefit plans against claims of mismanagement

Explanation: Fiduciary liability insurance protects plan administrators and other fiduciaries from personal liability for breaches of their duties in managing employee benefit plans covered by ERISA.

• A. Software warranty coverage
• B. Coverage for data breaches, cyber attacks, and related liability exposures
• C. Insurance for computers
• D. Internet service insurance

Correct answer: B. Coverage for data breaches, cyber attacks, and related liability exposures

Explanation: Cyber liability insurance covers expenses and liabilities arising from data breaches, cyber attacks, and related incidents including notification costs, credit monitoring, legal fees, and regulatory fines.

• A. Coverage for income loss when a key supplier's or customer's operations are disrupted
• B. Coverage during contingencies
• C. Backup business plans
• D. Temporary closure coverage

Correct answer: A. Coverage for income loss when a key supplier's or customer's operations are disrupted

Explanation: Contingent business interruption covers income loss when the insured's operations are affected by physical damage to a key supplier's or customer's property, even when the insured's property is undamaged.

• 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.