Ohio Property & Casualty Insurance Practice Exam Free - 2026

• A. The amount the insured must absorb before the policy pays a covered loss
• B. The insurer's maximum liability for the policy period
• C. A producer's commission only
• D. The total premium for all policies

Correct answer: A. The amount the insured must absorb before the policy pays a covered loss

Explanation: A deductible is the portion of a covered loss the insured is responsible for before insurance payment applies, subject to policy terms.

• A. Normal wear and tear
• B. Fire from lightning
• C. Wind damage during a covered storm
• D. Smoke damage from a covered fire

Correct answer: A. Normal wear and tear

Explanation: Normal wear and tear, deterioration, and maintenance-related problems are commonly excluded because insurance is intended for fortuitous losses, not ordinary upkeep.

• A. Give prompt notice of the loss to the insurer
• B. Admit liability to every claimant immediately
• C. Destroy damaged property before inspection in every case
• D. Refuse to cooperate with the insurer

Correct answer: A. Give prompt notice of the loss to the insurer

Explanation: Policies commonly require the insured to provide prompt notice, protect property from further damage, cooperate with the insurer, and submit requested documentation.

• A. How coverage applies when more than one policy may cover the same loss
• B. Which producer receives commission
• C. Whether the insured can buy health coverage
• D. The color of a covered auto

Correct answer: A. How coverage applies when more than one policy may cover the same loss

Explanation: Other insurance provisions explain how a loss is shared or coordinated when multiple policies may apply to the same covered claim.

• A. Only part of a matched pair or set is damaged
• B. Two auto policies renew on the same date
• C. An insured names two beneficiaries
• D. An employee has two jobs

Correct answer: A. Only part of a matched pair or set is damaged

Explanation: A pair or set condition addresses how payment is handled when only part of a matched pair or set is damaged, subject to policy wording.

• A. Indemnity
• B. Adhesion
• C. Aleatory contract
• D. Estoppel

Correct answer: A. Indemnity

Explanation: The principle of indemnity means insurance is intended to restore the insured after a covered loss, not create a profit from the claim.

• A. The cause of loss
• B. The chance of financial loss only
• C. The amount of premium
• D. The policy period

Correct answer: A. The cause of loss

Explanation: A peril is the cause of loss, such as fire, theft, windstorm, or collision. A hazard is a condition that increases the chance of loss.

• A. A condition that increases the chance or severity of loss
• B. The final amount paid by the insurer
• C. The policy's effective date
• D. The insurer's license number

Correct answer: A. A condition that increases the chance or severity of loss

Explanation: A hazard is a condition that increases the probability or severity of a loss. Hazards may be physical, moral, or morale hazards.

• A. Being careless because insurance is available
• B. A slippery floor with no warning sign
• C. Intentionally burning property for insurance money
• D. A hurricane approaching the coast

Correct answer: A. Being careless because insurance is available

Explanation: A morale hazard is carelessness or indifference to loss because insurance exists. Intentional misconduct would be a moral hazard.

• A. An insured intentionally causes a loss to collect insurance proceeds
• B. A tree falls during a storm
• C. A building has old wiring by accident
• D. A driver buys collision coverage

Correct answer: A. An insured intentionally causes a loss to collect insurance proceeds

Explanation: A moral hazard involves dishonest or intentional behavior that increases the chance of loss, such as deliberately causing a loss for financial gain.

• A. Commercial auto coverage
• B. Personal inland marine coverage
• C. Homeowners liability coverage
• D. A life insurance rider

Correct answer: A. Commercial auto coverage

Explanation: Commercial auto coverage addresses business vehicle liability and physical damage needs, depending on the selected forms and symbols.

• A. show which categories of autos are covered for a coverage
• B. set the producer commission rate
• C. name the loss payee only
• D. replace the declarations page

Correct answer: A. show which categories of autos are covered for a coverage

Explanation: Covered auto symbols indicate which types of autos apply to each coverage, such as owned, hired, or nonowned autos.

No. This page is an independent study resource and is not an official exam from Ohio Department of Insurance, PSI, 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 Ohio Department of Insurance and the current exam-vendor resources.

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