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 AZ P&C exam has 150 questions and runs 2 hours 30 minutes.
These 10 free AZ P&C questions are organized by exam domain, so you can see how each part of the Arizona Examination for Property and Casualty Insurance Producer blueprint is tested. Reveal the answer and explanation under each question.
A licensed Arizona producer lets an unlicensed account assistant gather renewal dates and schedule calls. The assistant then recommends liability limits, compares endorsement terms, and receives 10% of each resulting commission. Under Arizona law, what is the central problem?
Correct answer: B - The assistant negotiated insurance and received commission without the required license
A general and temporary condition caused by rapid accumulation of surface water inundates 0.7 acre of normally dry land and affects two adjoining properties, one of which is insured. How is the event treated under the National Flood Insurance Program definition of flood?
Correct answer: A - It qualifies because two or more properties are affected and one is insured
An insurer terminates a producer's express appointment but leaves the producer on its public agent locator, permits continued use of branded forms, and does nothing when customers are served from an office displaying its sign. A customer reasonably relies on those appearances. What type of authority is most directly implicated?
Correct answer: D - Apparent authority
An applicant is directly asked about prior fire losses. Without making a false statement, the applicant intentionally withholds a known major fire because disclosure would affect the insurer's decision. Which doctrine most specifically describes the omission itself?
Correct answer: C - Concealment
A commercial building is worth $800,000 at the time of loss and is subject to an 80% coinsurance clause. The insured carries a $480,000 limit. A covered partial loss is $160,000, the deductible is $2,000, and the policy limit is otherwise sufficient. What is the insurer's payment?
Correct answer: B - $118,000
After firefighters declare a damaged building safe to enter, a roof opening remains and heavy rain is forecast before the adjuster can arrive. Which response best satisfies the insured's post-loss duties?
Correct answer: A - Arrange reasonable temporary protection, preserve evidence when practicable, and keep expense records
A named insured intentionally sets fire to a mortgaged building. The mortgagee neither knew of nor participated in the act and has complied with its own policy duties. Which provision most directly preserves the mortgagee's ability to recover despite the insured's conduct?
Correct answer: D - Standard mortgage clause
An owner rents out a one-family house and wants property coverage that applies open-peril protection to the dwelling while covering the landlord's personal property against broad named perils. The closest standard form is:
Correct answer: C - DP-3 Special
An unscheduled $7,000 watch is destroyed in a covered house fire under an HO-3 policy with a $100,000 Coverage C limit. The policy also has the standard $1,500 special limit for theft of jewelry and watches. How should the watch loss be adjusted?
Correct answer: B - Apply the normal Coverage C limit, subject to valuation and deductible, because the $1,500 limit is theft-specific
A visiting neighbor slips on the insured location and incurs necessary medical expenses. The insured wants the policy to pay eligible expenses without first establishing negligence. Which homeowners coverage is designed for this purpose?
Correct answer: A - Coverage F - Medical Payments to Others
The AZ P&C exam also covers these domains. Drill them in the full free practice test:
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