Wyoming Property & Casualty Insurance Practice Exam Free - 2026

• A. Yes, because physical contact is the standard proof of a hit-and-run
• B. Yes, if the insured fails to report the accident to police within 24 hours
• C. No; hit-and-run UM coverage may not be restricted to injuries resulting from actual physical contact with the hit-and-run vehicle
• D. No, but only for policies with UM limits above the statutory minimum

Correct answer: C. No; hit-and-run UM coverage may not be restricted to injuries resulting from actual physical contact with the hit-and-run vehicle

Explanation: Wyoming Insurance Department Rules chapter 23, section 4(a) provides that uninsured motorist endorsements covering bodily injury inflicted by a hit-and-run motorist shall not restrict coverage to injuries resulting from actual physical contact with the hit-and-run vehicle; sections 4(b) and (c) further require reporting and statement deadlines to be softened by the phrases 'or as soon thereafter as is practicable' and 'after request for the same is made by the insurer'. A and B state restrictions the rule prohibits or softens. D invents a limits condition that is not in the rule. See Wyo. Insurance Dept. Rules ch. 23, § 4.

• A. Hold the check in her operating account until the policy is issued, then forward it
• B. Deposit it in any account, so long as she remits within 90 days
• C. Forward it to the insurer within 15 days; no trust account is required
• D. Deposit it in her separate premium trust account by the close of the fifth business day after receipt, and remit to the insurer within 45 days

Correct answer: D. Deposit it in her separate premium trust account by the close of the fifth business day after receipt, and remit to the insurer within 45 days

Explanation: Wyo. Stat. § 26-9-229 makes premiums received by a producer trust funds held in a fiduciary capacity that must be kept in a separate trust account and not commingled with the producer's own funds, and Wyoming Insurance Department Rules chapter 46, section 4 requires premiums to be remitted, credited, or deposited in the trust account by the close of the fifth business day after receipt and remitted to the insurer on or before the contractual due date or within forty-five days after receipt if there is no due date. A commingles funds in violation of § 26-9-229(b). B's 90 days and C's 15 days are not the rule's figures, and C wrongly dispenses with the trust account when the check is payable to the agency. See Wyo. Insurance Dept. Rules ch. 46, § 4.

• A. $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage per accident
• B. $25,000 bodily injury per person, $50,000 per accident, and $25,000 property damage
• C. $20,000 bodily injury per person, $40,000 per accident, and $10,000 property damage
• D. $30,000 bodily injury per person, $60,000 per accident, and $25,000 property damage

Correct answer: A. $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage per accident

Explanation: Wyo. Stat. § 31-9-405(b)(ii) requires an owner's policy to insure against liability with limits of $25,000 for bodily injury to or death of one person in any one accident, $50,000 for two or more persons, and $20,000 for injury to or destruction of property of others in one accident, and § 31-9-102(a)(xi) defines proof of financial responsibility with the same figures. B uses a $25,000 property damage figure that belongs to neighboring states, not Wyoming. C and D state limits that appear nowhere in the Wyoming statute. See Wyo. Stat. § 31-9-405.

• A. Yes; UM coverage must be included in every renewal regardless of prior rejection
• B. No; once rejected, UM coverage need not be provided in a renewal by the same insurer unless the named insured requests it in writing
• C. No; Wyoming does not require insurers to offer UM coverage at all
• D. Yes, but only at the minimum 25/50 limits

Correct answer: B. No; once rejected, UM coverage need not be provided in a renewal by the same insurer unless the named insured requests it in writing

Explanation: Wyo. Stat. § 31-10-101 requires every auto bodily injury liability policy on a vehicle registered or principally garaged in Wyoming to include uninsured motorist coverage at the financial responsibility limits unless the named insured rejects it, and provides that unless the named insured requests the coverage in writing, it need not be provided in a renewal policy where the insured had rejected it on the prior policy from the same insurer. A ignores the renewal carve-out. C is wrong because the coverage must be provided unless rejected. D invents a limits condition not in the statute. See Wyo. Stat. § 31-10-101.

• A. equipment breakdown with spoilage coverage
• B. business income with an ordinance or law endorsement
• C. commercial property with fire legal liability
• D. products liability with a recall expense endorsement

Correct answer: A. equipment breakdown with spoilage coverage

Explanation: Equipment breakdown and spoilage coverage may address mechanical failure and resulting spoilage if included in the policy.

• A. non-owned auto coverage for employee vehicles
• B. hired auto liability and physical damage needs
• C. garagekeepers legal liability for customer vehicles
• D. uninsured motorist coverage on the owned fleet

Correct answer: B. hired auto liability and physical damage needs

Explanation: A rented vehicle creates a hired auto exposure. The business should review both liability and physical damage coverage needs.

• A. the deductible disappears
• B. the claim must be paid under auto liability
• C. the loss may require separate flood coverage
• D. the exclusion automatically becomes invalid

Correct answer: C. the loss may require separate flood coverage

Explanation: Flood is commonly excluded or limited in many property policies and may require separate flood coverage or endorsement.

• A. they extend coverage to any newly acquired location for a full year
• B. they eliminate the coinsurance requirement for scheduled locations
• C. they allow the insured to move limits between locations after a loss
• D. coverage and limits may apply differently by listed location

Correct answer: D. coverage and limits may apply differently by listed location

Explanation: Commercial property policies often identify covered locations, buildings, and limits. Unlisted or newly acquired locations may have limited coverage.

• A. CGL addresses liability claims, while inland marine may cover tools or equipment in transit or at job sites
• B. CGL covers tools and equipment at job sites, while inland marine addresses liability for injury to others
• C. CGL covers work performed on the premises, while inland marine covers liability arising off the premises
• D. CGL covers the contractor's own building and contents, while inland marine covers vehicles used on the job

Correct answer: A. CGL addresses liability claims, while inland marine may cover tools or equipment in transit or at job sites

Explanation: Contractors often have liability exposures and mobile property exposures. These are commonly handled by different coverage forms.

• A. adding comprehensive auto coverage to a personal car
• B. an extended reporting period if available
• C. naming a life insurance beneficiary
• D. changing the building deductible

Correct answer: B. an extended reporting period if available

Explanation: Claims-made policies can leave reporting gaps after cancellation. An extended reporting period may allow certain later-reported claims to be submitted.

• A. to one specifically described item at a stated insurance amount
• B. to all locations, but at no more than the value of any one
• C. over more than one item or location, depending on policy wording
• D. to property away from the premises for a stated period of days

Correct answer: C. over more than one item or location, depending on policy wording

Explanation: Blanket coverage can apply one limit across multiple covered items or locations, subject to policy terms.

• A. the insurer may pay more than the face limit when values rise
• B. the insured is required to pay a share of every loss regardless of limit
• C. premium credits apply once the insured value exceeds the coinsurance amount
• D. underinsurance may reduce claim payment after a partial loss

Correct answer: D. underinsurance may reduce claim payment after a partial loss

Explanation: A coinsurance clause can penalize the insured for carrying less insurance than required by the policy formula.