10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The VT P&C exam has 150 questions and runs 2 hours 30 minutes.
These 10 free VT P&C questions are organized by exam domain, so you can see how each part of the Vermont Producer's Examination for Property and Casualty Insurance blueprint is tested. Reveal the answer and explanation under each question.
A Vermont producer receives an applicant's premium on Monday and knows it will not be remitted to the insurer that day or the next business day. How should the producer handle the funds?
Correct answer: B - Deposit them in a separate premium or trust account until they are properly remitted
An insurer receives a properly executed proof of loss on a first-party property claim but cannot complete its investigation immediately. What must the insurer do under Vermont's claim-handling timetable?
Correct answer: D - Within 15 business days, tell the claimant more time is needed and explain why
An insurer gives a producer company signs, applications, and binding materials and has repeatedly honored similar binders. The agency contract privately withholds binding authority, but an applicant reasonably relies on the insurer's conduct. The insurer may be bound under the doctrine of:
Correct answer: A - Apparent authority
A carrier automatically cedes 30% of the premium and 30% of every covered loss for all policies in a defined class under a standing agreement. This arrangement is:
Correct answer: C - Treaty pro rata (quota-share) reinsurance
An insurer defines its loss ratio as incurred losses and loss-adjustment expense divided by earned premium, and its expense ratio as underwriting expenses divided by earned premium. During the year it records $1.56 million in incurred losses and LAE, $2.40 million in earned premium, and $720,000 in underwriting expenses. The figures produce:
Correct answer: C - A 95% combined ratio and an underwriting gain before investment income
Assume an 80% coinsurance clause and the formula (limit carried ÷ limit required) × covered loss, followed by a $5,000 deductible. A building has an $800,000 replacement value, carries a $480,000 limit, and sustains a $200,000 covered partial loss. What is the insurer's payment?
Correct answer: B - $145,000, after the coinsurance calculation and deductible
An owner has a standard DP-3 Special Form with no Broad Theft Coverage endorsement. A burglar pries open an exterior door and steals the insured's living-room furniture. How is the loss treated?
Correct answer: D - The damaged door is covered, but the stolen furniture is not
A homeowner wants one policy that provides open-peril coverage on the dwelling, other structures, and personal property, subject to exclusions. The appropriate homeowners form is:
Correct answer: A - HO-5 Comprehensive Form
Assume a homeowners policy applies a $1,500 Coverage C special limit to theft of jewelry. A $4,000 unscheduled ring is destroyed in a covered house fire, and the overall Coverage C limit is adequate. What effect does the jewelry theft limit have?
Correct answer: B - It does not apply because the loss was caused by fire, not theft
During a windstorm, part of an insured home's roof is torn away and rain is entering the rooms. The insurer has been notified, but an adjuster has not yet arrived. Assuming it can be done safely, what should the insured do next?
Correct answer: C - Make reasonable temporary repairs, preserve evidence, and keep expense records
The VT P&C exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more VT P&C questions with explanations.
Continue in the free practice test →
View plans