Free New York Property & Casualty Practice Exam 2026

New York property and casualty insurance exam sample questions and answers

6 of the 150 practice questions, one from each topic, with the answer explained.

1. 1. A driver hurt in a New York crash wants to sue the at-fault driver for pain and suffering. Under no-fault, she may do so only if she has:

   • A.Bills over $5,000
   • B.A serious injury
   • C.Any lost wages
   • D.A police report

   Answer: B. Insurance Law section 5104(a) bars recovery for noneconomic loss between covered persons except for a serious injury, which section 5102(d) defines to include death, dismemberment, significant disfigurement, a fracture and permanent loss of use of a body function. Lost wages are economic loss that no-fault itself pays.

2. 2. A commercial crime policy written on a discovery form covers losses that are:

   • A.Sustained during the policy period and reported within 24 hours
   • B.Caused only by outsiders
   • C.Reported to police within one business day
   • D.Discovered during the policy period

   Answer: D. The discovery form responds to losses discovered during the policy period or the extended discovery period, regardless of when they occurred, even if they began years earlier. The loss sustained form requires the loss to occur during the policy period.

3. 3. A New York broker who is not an excess line broker places a homeowners policy with an insurer not licensed in New York. This violates the law against:

   • A.Aiding an unauthorized insurer
   • B.Defaming a competing insurer
   • C.Writing controlled business
   • D.Rebating part of a premium

   Answer: A. Insurance Law section 2117 bars anyone from acting as agent for, or placing risks with, an insurer not authorized in New York, except under narrow exceptions such as a licensed excess line broker acting under sections 2105 and 2118. Controlled business is about the source of commissions, not the insurer's license.

4. 4. Under the New York standard fire policy, the insured must give the insurer a signed, sworn proof of loss within:

   • A.90 days of the loss
   • B.120 days of the loss
   • C.60 days of the loss
   • D.30 days of the loss

   Answer: C. The standard fire policy in Insurance Law section 3404 requires a sworn proof of loss within 60 days after the loss unless the insurer extends the time in writing. The loss is then payable 60 days after proof is received and the amount is ascertained.

5. 5. New York Paid Family Leave benefits are paid at what percentage of the employee's average weekly wage, up to the cap?

   • A.60 percent
   • B.100 percent
   • C.67 percent
   • D.50 percent

   Answer: C. Workers' Compensation Law section 204 pays family leave at 67 percent of the employee's average weekly wage, capped at 67 percent of the state average weekly wage, for up to 12 weeks in 52 weeks with no waiting period. Fifty percent was the 2018 starting rate and is still the disability benefit rate.

6. 6. Under the Terrorism Risk Insurance Act, insurers writing commercial property and casualty coverage must:

   • A.Offer terrorism coverage the insured may reject
   • B.Include terrorism coverage at no charge
   • C.Exclude terrorism entirely
   • D.Insure only buildings certified by the federal government

   Answer: A. TRIA requires a make-available offer of coverage for certified acts of terrorism with disclosure of the premium, and the federal government shares losses above a trigger. The insured can decline the coverage.