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.
These 10 free KY-PC questions are organized by exam domain, so you can see how each part of the Kentucky Property and Casualty Insurance Agent Exam blueprint is tested. Reveal the answer and explanation under each question.
A restaurant has frayed wiring near a deep fryer. An electrical short ignites a fire and closes the restaurant for two weeks. Which classification is correct?
Correct answer: C - The fire is the peril, and the frayed wiring is a physical hazard
A policy's printed form excludes water backup, but a signed endorsement specifically adds water-backup coverage with a $15,000 limit. A covered backup causes $12,000 in damage. Which provision controls?
Correct answer: A - The endorsement controls because it specifically changes the printed policy
An insurer increases a homeowner's premium after relying partly on a consumer report. Which notice best satisfies the Fair Credit Reporting Act adverse-action requirements?
Correct answer: D - Give the agency's name, address, and phone; state it did not decide; explain dispute and 60-day free-report rights
A warehouse is valued at $800,000 and carries a 90% coinsurance clause. The insured carries $540,000. A covered fire causes $200,000 in damage, and the deductible is $2,000. Assuming the limit is otherwise sufficient, how much is payable?
Correct answer: B - $148,000, after the coinsurance penalty and deductible
A client owns and occupies a condominium unit. The association insures the building's common elements, while the client wants coverage for personal property, interior improvements, loss of use, and personal liability. Which homeowners form is designed for this exposure?
Correct answer: A - HO-6 Unit-Owners Form
A driver swerves to avoid a deer, never strikes the animal, and hits a guardrail. Under Part D of the Personal Auto Policy, the vehicle damage is classified as:
Correct answer: D - Collision because the auto struck an object
After unusually rapid runoff, 1.5 acres of normally dry land are inundated, including the insured home and a neighboring property. No water entered through wind damage. Under the NFIP definition, this event is:
Correct answer: B - A flood because two properties are inundated and one is the insured property
A fire shuts down a printing company. To keep customer orders moving, the company immediately leases temporary production equipment at another location. Which coverage is intended primarily for that added cost?
Correct answer: C - Extra expense, because the cost reduces or avoids the suspension
A criminal impersonates a company officer and sends the company's bank a fraudulent instruction directing a wire transfer to an outside account. The bank accepts the instruction; the company's own computer system was not accessed. Which crime coverage most directly fits?
Correct answer: D - Funds-transfer fraud
After a covered Kentucky wind loss, matching shingles are no longer available. Replacing only the damaged shingles would leave a visibly inconsistent roof area. What settlement approach best reflects Kentucky's matching rule?
Correct answer: A - Replace enough of the affected area to create a reasonably uniform appearance
The KY-PC exam also covers these domains. Drill them in the full free practice test:
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