Virginia Property & Casualty Insurance Practice Exam Free - 2026

• A. may omit UM coverage if the insured signs a waiver
• B. must offer UM coverage, which the insured may fully reject
• C. must include UM coverage; a named insured may only reject the additional coverage above the statutory minimum limits
• D. must include UM coverage only for bodily injury, never property damage

Correct answer: C. must include UM coverage; a named insured may only reject the additional coverage above the statutory minimum limits

Explanation: Every Virginia auto liability policy must contain uninsured motorist coverage with limits equal to the policy's liability limits, unless a named insured rejects the additional coverage; UM coverage cannot be rejected below the statutory minimum limits, and it includes property damage. See Va. Code § 38.2-2206.

• A. No deductible ever applies to UM claims
• B. $500
• C. $1,000
• D. $200, because the owner or operator of the uninsured vehicle is unidentifiable

Correct answer: D. $200, because the owner or operator of the uninsured vehicle is unidentifiable

Explanation: Uninsured motorist property damage coverage in Virginia is subject to a $200 deductible when the owner or operator of the vehicle causing the damage is not identifiable, as with a hit-and-run. See Va. Code § 38.2-2206.

• A. the fee is still available and costs $500 per year
• B. the option was eliminated effective July 1, 2024; all registered vehicles must now carry insurance meeting Virginia's minimum limits
• C. the fee is available only to drivers with clean records
• D. the fee was raised to $600 per year but remains available

Correct answer: B. the option was eliminated effective July 1, 2024; all registered vehicles must now carry insurance meeting Virginia's minimum limits

Explanation: Virginia repealed the $500 uninsured motor vehicle fee effective July 1, 2024. Registration now requires proof of insurance (or self-insurance), and § 46.2-706 no longer provides an uninsured motor vehicle fee option. See Va. Code § 46.2-706 (as amended effective July 1, 2024).

• A. The named insured's driver's license was suspended during the policy period
• B. The insured filed two not-at-fault claims
• C. The insured had a single at-fault accident
• D. The insurer decided to reduce business in the insured's territory

Correct answer: A. The named insured's driver's license was suspended during the policy period

Explanation: Once a Virginia auto policy has been in effect 60 days or is a renewal, midterm cancellation is limited to grounds such as nonpayment of premium or suspension or revocation of the driver's license of the named insured or a driver resident in the household or who customarily operates the vehicle during the policy period. See Va. Code § 38.2-2212.

• 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.