A commercial general liability (CGL) policy is written on an occurrence basis. A policy is in force from January 1, 2023, to January 1, 2024. A product manufactured and sold by the insured on July 15, 2023, causes injury to a third party on March 10, 2024. Under which policy period would this claim be covered, assuming no policy renewals or changes?

The policy in force on March 10, 2024, the date the injury occurred.. An occurrence-based CGL policy covers bodily injury or property damage that happens during the policy period, regardless of when the claim is reported. Since the injury occurred on March 10, 2024, it falls within the policy period that was active on that date (assuming a renewal policy was in place or the claim falls under a tail coverage provision). The date of sale is irrelevant for an occurrence policy.

A business owner is reviewing their commercial property insurance policy. The policy has a special form (all-risk) coverage with a $100,000 limit and a $5,000 deductible. A covered peril causes $50,000 in damage to the building and $20,000 in damage to business personal property. How much will the insurance company pay for this loss?

$65,000. The total direct loss is $50,000 (building) + $20,000 (personal property) = $70,000. Since the policy limit of $100,000 is not exceeded, the deductible is applied to the total loss. The insurer will pay $70,000 - $5,000 (deductible) = $65,000.

Which of the following best describes the 'actual cash value' (ACV) of a damaged commercial property item for insurance purposes?

The replacement cost of the item minus depreciation.. Actual Cash Value (ACV) is typically calculated as the replacement cost of an item minus depreciation. Depreciation accounts for the item's age, wear and tear, and obsolescence. Replacement cost is the cost to buy a new item, and market value or repair cost are different valuation methods.

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Free Wisconsin Property & Casualty Insurance License Exam practice test with 50 realistic multiple-choice questions, instant grading, and explanations. Study with drill mode, category score reports, and a personalized review plan.

Exam format

50 multiple-choice practice questions
Drill mode with instant feedback and explanations after each answer

Study tips

Review the official exam content outline before your first practice run.
Take the full practice exam once to establish a baseline score by category.
Focus review on categories where you score below the passing threshold.
Re-take missed questions in drill mode until you can explain each correct answer.
Schedule the real exam only after consistent passing scores on practice tests.

Sample WI P&C practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

Question 1Commercial General Liability
A commercial general liability (CGL) policy is written on an occurrence basis. A policy is in force from January 1, 2023, to January 1, 2024. A product manufactured and sold by the insured on July 15, 2023, causes injury to a third party on March 10, 2024. Under which policy period would this claim be covered, assuming no policy renewals or changes?
- A.The policy in force on March 10, 2024, the date the injury occurred.(Correct)
- B.The policy in force on July 15, 2023, the date the product was sold.
- C.Neither policy would respond, as the claim falls between policy periods.
- D.The policy in force on January 1, 2024, the date the policy expired.
Explanation
An occurrence-based CGL policy covers bodily injury or property damage that happens during the policy period, regardless of when the claim is reported. Since the injury occurred on March 10, 2024, it falls within the policy period that was active on that date (assuming a renewal policy was in place or the claim falls under a tail coverage provision). The date of sale is irrelevant for an occurrence policy.
Question 2Commercial Property Insurance
A business owner is reviewing their commercial property insurance policy. The policy has a special form (all-risk) coverage with a $100,000 limit and a $5,000 deductible. A covered peril causes $50,000 in damage to the building and $20,000 in damage to business personal property. How much will the insurance company pay for this loss?
- A.$65,000(Correct)
- B.$70,000
- C.$55,000
- D.$60,000
Explanation
The total direct loss is $50,000 (building) + $20,000 (personal property) = $70,000. Since the policy limit of $100,000 is not exceeded, the deductible is applied to the total loss. The insurer will pay $70,000 - $5,000 (deductible) = $65,000.
Question 3Property Valuation Methods
Which of the following best describes the 'actual cash value' (ACV) of a damaged commercial property item for insurance purposes?
- A.The cost to repair the item to its pre-loss condition.
- B.The replacement cost of the item minus depreciation.(Correct)
- C.The market value of the item immediately before the loss.
- D.The cost to replace the item with a new, similar item.
Explanation
Actual Cash Value (ACV) is typically calculated as the replacement cost of an item minus depreciation. Depreciation accounts for the item's age, wear and tear, and obsolescence. Replacement cost is the cost to buy a new item, and market value or repair cost are different valuation methods.

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Frequently asked questions

How many questions are on this WI P&C practice test?

This practice test includes 50 multiple-choice questions designed to mirror the format and difficulty of the real Wisconsin Property & Casualty Insurance License Exam.

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Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.

Do I get explanations after each question?

Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.

How should I use this practice test to prepare?

Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.

Does this replace official exam materials?

No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.

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