Free Commercial Lines — P&C License Exam Practice Test (2026)

150 questions · 180 min · 70% to pass

150 Questions · 180 Minutes · 70% to Pass

Question 1 of 5

Sample Questions

Question 1

What benefits does Part 1 (Workers Compensation) of the workers compensation policy provide?

Answer: Part 1 provides the statutory workers compensation benefits required by the state where the employee is injured, including medical care, disability income (temporary and permanent), rehabilitation, and death benefits. The insurer agrees to pay all amounts the employer is legally required to provide under applicable state WC laws, with no policy limit.

Question 2

What is covered under the liability section of a Commercial Auto policy?

Answer: The liability section of a commercial auto policy covers bodily injury and property damage for which the insured becomes legally responsible due to the ownership, maintenance, or use of covered autos. The insurer also provides a legal defense against covered claims and pays related defense costs.

Question 3

What perils are covered under the Basic Cause of Loss form for commercial property?

Answer: The Basic form covers a named list of perils including fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action. Only those perils specifically listed are covered; all others are excluded.

Question 4

What does Coverage A of the Commercial General Liability (CGL) policy cover?

Answer: Coverage A covers bodily injury and property damage liability arising from the insured's business operations, products, or completed work. The insurer agrees to pay sums the insured becomes legally obligated to pay as damages, and also provides a defense against covered claims.

Question 5

What is a Commercial Package Policy (CPP) and how is it structured?

Answer: A CPP combines two or more commercial coverage parts into a single policy using a common declarations page and conditions form. It allows businesses to customize coverage by selecting from available modules such as commercial property, general liability, commercial auto, and others.