North Dakota Property and Casualty Insurance Practice Exam Free 2026

• 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.

• A. Employee dishonesty
• B. Earthquake damage
• C. Auto collision
• D. Life insurance lapse

Correct answer: A. Employee dishonesty

Explanation: Fidelity bonds are used to protect against certain dishonest acts by employees or other covered persons, depending on the bond or coverage form.

• A. The amount of loss
• B. Whether the insured is old enough for health insurance
• C. The identity of a life insurance beneficiary
• D. A workers compensation class code only

Correct answer: A. The amount of loss

Explanation: An appraisal condition is commonly used when the insurer and insured disagree about the amount of a covered property loss, not whether coverage exists.

• A. Automatic application of certain coverage broadening changes without additional premium for a specified period
• B. Automatic cancellation after every claim
• C. A larger deductible after renewal
• D. A guaranteed profit for the insurer

Correct answer: A. Automatic application of certain coverage broadening changes without additional premium for a specified period

Explanation: A liberalization condition can automatically extend certain broadened coverage changes to existing policies when conditions in the policy are met.

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

North Dakota Insurance Department 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: North Dakota Insurance Department states that exams are administered by PSI and that applicants must pass the appropriate exam for the requested lines of authority.

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