North Dakota Property & Casualty Insurance Practice Exam Free - 2026

• A. Yes; claims may be filed within two years after the injury
• B. Yes; there is no filing deadline as long as the employer had notice
• C. No; claims must be filed within 90 days of the injury
• D. No; an original claim must be filed within one year after the injury (two years after a death)

Correct answer: D. No; an original claim must be filed within one year after the injury (two years after a death)

Explanation: All original claims for benefits must be filed by the injured employee, or someone on the employee's behalf, within one year after the injury or within two years after the death; the injury date is the first date a reasonable person knew of a work-related injury with lost wages or medical treatment. A applies the death period to an injury claim; B is wrong because the statute bars benefits without a timely written claim (unless the employer's willful conduct prevented filing); ninety days is not the North Dakota deadline. See N.D.C.C. § 65-05-01.

• A. Not more than $1,000
• B. Not more than $10,000
• C. Not more than $25,000
• D. Not more than $50,000

Correct answer: B. Not more than $10,000

Explanation: Any person violating the insurance producers and consultants chapter may, after hearing, be subject to a civil fine not to exceed ten thousand dollars for each violation, in addition to or in lieu of denial, suspension, or revocation of the license; accepting business from an unlicensed individual is a listed ground under § 26.1-26-42. One thousand dollars per act is the base unfair-trade-practice penalty under § 26.1-04-13; $50,000 is that statute's six-month aggregate for knowing violations; $25,000 is not a North Dakota figure. See N.D.C.C. § 26.1-26-50.

• A. $25,000 per person / $50,000 per accident bodily injury / $25,000 property damage
• B. $25,000 / $50,000 / $15,000
• C. $30,000 / $60,000 / $25,000
• D. $50,000 / $100,000 / $25,000

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

Explanation: A North Dakota motor vehicle liability policy must insure against liability of twenty-five thousand dollars for bodily injury or death of one person, fifty thousand dollars for bodily injury or death of two or more persons in one accident, and twenty-five thousand dollars for property damage in one accident. B uses a $15,000 property damage figure from other states; $30,000 is the basic no-fault benefit maximum under § 26.1-41-01, not a liability limit; D overstates the required limits. See N.D.C.C. § 39-16.1-11.

• A. $10,000
• B. $20,000
• C. $30,000
• D. $50,000

Correct answer: C. $30,000

Explanation: Basic no-fault benefits for economic loss from accidental bodily injury to any one person from any one accident may not exceed thirty thousand dollars, regardless of the number of persons entitled or insurers obligated; within that cap, work loss is limited to $150 per week and funeral expenses to $3,500. Ten and twenty thousand dollars are not North Dakota figures, and fifty thousand dollars is the two-or-more-persons bodily injury liability limit under § 39-16.1-11. See N.D.C.C. § 26.1-41-01.

• A. Coverage for ships, cargo, and related maritime exposures
• B. Flood insurance for coastal areas
• C. Coverage for marine animals
• D. Insurance for ocean-view properties

Correct answer: A. Coverage for ships, cargo, and related maritime exposures

Explanation: Ocean marine insurance covers ships (hull coverage), cargo being transported by water, freight charges, and liability for damage to others' property or vessels.

• A. Coverage protecting the corporation itself against bodily injury claims arising on its business premises
• B. Coverage protecting corporate directors and officers from personal liability for decisions
• C. Coverage protecting employee benefit plan trustees from claims of plan mismanagement
• D. Coverage protecting employers from claims of discrimination or wrongful termination

Correct answer: B. Coverage protecting corporate directors and officers from personal liability for decisions

Explanation: D&O liability insurance protects directors and officers of a company from personal liability when sued for alleged wrongful acts in managing the company, such as breach of fiduciary duty.

• A. Protection against claims of mismanagement against a company's directors and officers
• B. Protection paying medical and wage benefits to employees injured on the job
• C. Protection against claims of wrongful employment practices like harassment or discrimination
• D. Protection against claims that an employee benefit plan was administered negligently

Correct answer: C. Protection against claims of wrongful employment practices like harassment or discrimination

Explanation: EPL insurance protects employers against claims by employees alleging wrongful employment practices such as discrimination, sexual harassment, wrongful termination, or retaliation.

• A. Coverage for physical damage to computers and servers from fire or theft
• B. Coverage for a software developer's errors in the products it designs
• C. Coverage for the theft of cash and securities by a dishonest employee
• D. Coverage for data breaches, cyberattacks, and related exposures

Correct answer: D. Coverage for data breaches, cyberattacks, and related exposures

Explanation: Cyber liability insurance covers losses from data breaches, cyberattacks, network damage, and related liabilities including notification costs, credit monitoring, and legal expenses.

• A. Liability coverage for businesses that service, sell, or store vehicles
• B. Physical damage coverage for customers' vehicles left in the insured's care
• C. Liability coverage for a homeowner's detached garage and other structures
• D. Liability coverage for businesses that haul goods or passengers for hire

Correct answer: A. Liability coverage for businesses that service, sell, or store vehicles

Explanation: Garage liability insurance provides liability coverage for auto dealerships, repair shops, service stations, and other businesses that work with vehicles, covering both premises and auto liability exposures.

• A. Coverage for the cost of withdrawing a defective product from the market before anyone is hurt
• B. Coverage for claims arising from injuries or damage caused by products sold or manufactured
• C. Coverage for damage to the insured's own inventory while it is stored in the warehouse
• D. Coverage for claims arising from injuries occurring on the insured's premises during business hours

Correct answer: B. Coverage for claims arising from injuries or damage caused by products sold or manufactured

Explanation: Products liability insurance covers claims arising from bodily injury or property damage caused by products that a business manufactures, sells, or distributes.

• A. Coverage for liability arising from work while it is still in progress at a job site
• B. Coverage for the cost of redoing the insured's own defective work
• C. Coverage for liability arising from work after it has been completed
• D. Coverage for injuries to the insured's employees while finishing a job

Correct answer: C. Coverage for liability arising from work after it has been completed

Explanation: Completed operations coverage protects contractors and others against liability for bodily injury or property damage arising from work after it has been completed and handed over to the customer.

• A. Coverage for the insured's own property while it is loaned to another party
• B. A surety bond guaranteeing a defendant will appear in court when required
• C. Coverage for a landlord's liability for injuries to tenants on the premises
• D. Coverage for damage to property in someone's care, custody, or control

Correct answer: D. Coverage for damage to property in someone's care, custody, or control

Explanation: Bailee coverage applies to property of others in the insured's care, custody, or control, such as customer goods held by a repair shop or dry cleaner. Bailee legal liability forms pay only when the bailee is legally liable, while bailees customers forms pay for damage to customers' property whether or not the bailee is legally liable. The insured's own property is covered under its ordinary property insurance instead.