Evergreen Insurance Prep

Indiana Property & Casualty Insurance License, Practice Exams

Indiana Property and Casualty producer licensing (Pearson VUE). National P&C insurance knowledge plus Indiana law (25/50/25 auto financial responsibility under Title 9, uninsured/underinsured motorist coverage, the guaranty association, cancellation/nonrenewal and workers compensation under Title 22), authored from public-domain statutes.
Content last updated 17 July 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Indiana exam you need 70% on each section.

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The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Indiana producer licensing exam structured?

Indiana licenses Property and Casualty producers through Pearson VUE, with a national section and an Indiana state-law section, requiring 70% to pass. This bank covers the national property & casualty material plus Indiana law - the 25/50/25 compulsory auto financial-responsibility limits and uninsured/underinsured motorist coverage, the guaranty association, surplus lines, residential and commercial cancellation/nonrenewal, and workers compensation (Title 22).

What score do I need to pass?

You need 70% on each section. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Indiana Code (Titles 27, 9 and 22) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Indiana bank contains 992 questions (general insurance plus Indiana law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

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Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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Sample Indiana Property & Casualty Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

Under IC 27-1-15.6-23, a person may not concurrently hold a consultant license and:

  1. A producer or surplus lines license ✓
  2. A real estate broker license
  3. A CPA certificate
  4. A law license

Why: IC 27-1-15.6-23(d) prohibits holding a consultant license concurrently with a producer, surplus lines, or limited lines license — therefore that answer.

A stock insurer is owned by its:

  1. Stockholders ✓
  2. State insurance department
  3. Policyholders
  4. Board of agents

Why: A stock insurer is owned by stockholders, who supply capital and receive dividends; policyholders are not owners.

A contractor's CGL would NOT cover which of the following because of the 'your work' exclusion?

  1. Medical payments to an injured visitor
  2. The cost to repair the contractor's own defective workmanship on the completed project ✓
  3. Property damage to a neighbor's building
  4. Bodily injury to a passerby from falling debris unless an exception clearly applies for the coverage that is in force

Why: The 'your work' exclusion bars coverage for damage to the insured's own completed work; the CGL is not a warranty of workmanship.

Show more sample questions with answers & explanations

A key distinction between the Jones Act and the LHWCA is that:

  1. Both require proof of employer negligence
  2. The Jones Act covers seamen on a fault (negligence) basis, while LHWCA covers maritime/dock workers on a no-fault basis ✓
  3. Both are no-fault programs
  4. The Jones Act is no-fault while LHWCA requires proof of negligence unless an exception clearly applies for the coverage that is in force

Why: The Jones Act lets seamen sue for negligence (fault-based), whereas the LHWCA is a no-fault compensation system for longshore and harbor workers who are not seamen.

Glass breakage to a covered building under broad and special homeowners forms is generally:

  1. Covered only under DP-1 unless an exception clearly applies for the coverage that is in force
  2. Part of liability
  3. Excluded entirely
  4. Covered, though restricted if the dwelling has been vacant beyond the allowed period ✓

Why: Breakage of glass is a covered additional coverage/peril under broad and special forms, but coverage may be suspended when the dwelling has been vacant beyond the stated period.

Under IC 27-1-2-3, 'agency billed' refers to a system in which an insured pays a premium:

  1. Directly to the state guaranty fund
  2. Through a premium finance company
  3. Directly to an insurance agency ✓
  4. Into a producer's fiduciary trust

Why: IC 27-1-2-3 defines 'agency billed' as a system in which an insured pays a premium directly to an insurance agency — therefore that is correct.

A false statement maliciously critical of an insurer's financial condition, calculated to injure it, is defined by IC 27-4-1-4 as:

  1. Coercion
  2. Twisting
  3. Unfair discrimination
  4. Defamation ✓

Why: IC 27-4-1-4(a)(3) defines defamation of an insurer's financial condition as an unfair practice.

A deductible in a property policy is the portion of a loss that:

  1. The insurer pays first
  2. Is paid as salvage
  3. The insured retains/pays before the insurer pays ✓
  4. Is added to the premium in that particular circumstance

Why: A deductible is the amount the insured must absorb on a covered loss before insurance benefits apply.

A common carrier's legal liability for cargo it transports is generally:

  1. The same as a bailee for hire's unless an exception clearly applies for the coverage that is in force
  2. Nonexistent
  3. Limited and based on negligence, with several exceptions like acts of God ✓
  4. Absolute and unlimited

Why: Common carriers have a high but not absolute liability for goods; they are excused for losses from acts of God, public enemy, inherent vice, shipper's fault, and public authority.

Which Causes of Loss form provides the narrowest coverage, listing named perils such as fire, lightning, windstorm, and vandalism?

  1. Broad form
  2. Open perils form
  3. Basic form ✓
  4. Special form

Why: The Basic Causes of Loss form covers a limited list of named perils and provides the narrowest protection of the three forms.

An agreement that tends to result in unreasonable restraint of or monopoly in the business of insurance is enumerated by IC 27-4-1-4 as:

  1. Boycott, coercion, and intimidation ✓
  2. A false financial statement
  3. Illegal rebating
  4. Unfair claim settlement

Why: IC 27-4-1-4(a)(4) lists boycott, coercion, and intimidation resulting in unreasonable restraint or monopoly.

Under IC 22-3-6-1, 'injury' or 'personal injury' for worker's compensation means:

  1. Any illness contracted at work
  2. Only injuries needing surgery
  3. Stress from ordinary job duties
  4. Injury by accident arising from employment ✓

Why: IC 22-3-6-1(e) defines injury as only injury by accident arising out of and in the course of employment (excluding disease except as it results from the injury) — therefore injury by accident arising from employment.

A mobile-home policy is most similar to which standard form, with endorsements addressing the unique nature of the dwelling?

  1. A commercial package policy
  2. A surety bond
  3. A homeowners policy ✓
  4. A workers compensation policy

Why: Mobile-home coverage is generally written as a modified homeowners policy with endorsements addressing transportation, tie-downs, and the structure's mobility.

If an injured worker's average weekly wage is $900, the IC 22-3-3-8 temporary total disability benefit (66 2/3%) is:

  1. $450
  2. $540
  3. $600 ✓
  4. $675

Why: IC 22-3-3-8 pays 66 2/3% of AWW; $900 x 2/3 = $600 — therefore $600 (subject to statutory maximums).

Choosing a high deductible and paying small losses out of pocket is an example of which method of handling risk?

  1. Retention ✓
  2. Avoidance
  3. Transfer
  4. Sharing

Why: Retention means accepting responsibility for some or all of a loss, such as through deductibles or self-insurance.

Which of the following is paid IN ADDITION to the policy limits under the CGL Supplementary Payments provision?

  1. Damage to the insured's own product unless an exception clearly applies for the coverage that is in force
  2. Punitive damages
  3. Lost wages of an injured employee
  4. The cost of bonds to release attachments and reasonable expenses incurred at the insurer's request ✓

Why: Supplementary Payments — including defense costs, bond premiums, and expenses at the insurer's request — are paid in addition to the limits of insurance.

An injured interstate railroad worker wishes to recover for an on-the-job injury. Which law governs the claim, and on what basis?

  1. FELA, requiring proof of employer negligence (fault-based) ✓
  2. The Jones Act, on a no-fault basis in that particular circumstance
  3. FECA, on a no-fault basis
  4. The LHWCA, on a no-fault basis

Why: The Federal Employers' Liability Act (FELA) covers interstate railroad workers and is fault-based, requiring the worker to prove employer negligence rather than providing automatic no-fault benefits.

Under IC 22-3-3-13, the penalty for failing to pay a Second Injury Fund assessment within 30 days is:

  1. 2.5%
  2. 5%
  3. 1%
  4. 10% ✓

Why: IC 22-3-3-13(c) imposes a 10% penalty on the amount owed if payment is not made within 30 days of the date set by the board — therefore 10%.

Under PAP Part A, punitive or exemplary damages are:

  1. Always covered like compensatory damages unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Often excluded or not covered, as the policy responds to compensatory damages the insured is legally liable for ✓
  3. Paid as supplementary payments
  4. Covered only under Part B

Why: Liability coverage responds to compensatory damages; punitive damages are commonly excluded or unenforceable under the policy and many states' public policy.

Under IC 27-4-1-3, no person may engage in this state in a trade practice that is defined in the chapter as:

  1. A rebate over twenty-five dollars in most situations
  2. An unfair method of competition or deceptive act ✓
  3. An unlicensed insurance sale
  4. A controlled business transaction

Why: IC 27-4-1-3 prohibits engaging in any trade practice defined as an unfair method of competition or an unfair or deceptive act — therefore that answer.

Which of the following best describes fraud in an insurance context?

  1. A clerical error by the insurer
  2. An ambiguous policy provision
  3. An honest mistake on the application unless an exception clearly applies for the coverage that is in force
  4. An intentional act of deception to induce the other party to part with something of value ✓

Why: Fraud is an intentional deception or misrepresentation made to gain an unfair or unlawful advantage.

Under IC 27-1-17-2, a foreign or alien company may not be admitted to transact a kind of insurance that:

  1. A domestic company is not permitted to transact ✓
  2. Exceeds its home state premium volume cap
  3. Was added to its charter after admission
  4. Requires a surplus lines endorsement

Why: IC 27-1-17-2 bars admission for any kind of insurance that a domestic company is not permitted to transact — therefore that is correct.

Under IC 22-3-3-7, the first weekly installment of temporary disability compensation is due how long after the disability begins?

  1. 14 days ✓
  2. 7 days
  3. 21 days
  4. 30 days

Why: IC 22-3-3-7(b) makes the first weekly installment due 14 days after the disability begins — therefore 14 days.

Under IC 27-1-15.6-16, a nonresident producer's home-state CE compliance satisfies Indiana's CE requirement if:

  1. The producer pays a waiver fee
  2. Home state reciprocally recognizes Indiana CE ✓
  3. Indiana approves each course
  4. The producer lives within 50 miles

Why: IC 27-1-15.6-16(b) recognizes home-state CE only where that state reciprocally recognizes Indiana producers' CE — therefore reciprocity.

A non-admitted (unauthorized) insurer is one that:

  1. Has no certificate of authority in the state where the risk is located ✓
  2. Can never legally write any business in the state under the policy's terms
  3. Is owned by the state
  4. Is always financially unsound

Why: A non-admitted insurer lacks a certificate of authority in that state, though it may write surplus lines business through licensed surplus lines brokers.

Under IC 9-25-4-5, Indiana's minimum motor vehicle liability limits (effective July 1, 2018) are:

  1. $25,000 / $50,000 / $25,000 ✓
  2. $15,000 / $30,000 / $10,000
  3. $50,000 / $100,000 / $25,000
  4. $25,000 / $50,000 / $10,000

Why: IC 9-25-4-5 sets $25,000 bodily injury per person, $50,000 per accident, and (beginning July 1, 2018) $25,000 property damage — therefore 25/50/25.

A clothing store's stock is destroyed by fire. The BPP with the Special Causes of Loss form is in force. Coverage applies because:

  1. The Basic form lists fire under the policy's terms
  2. Flood caused the fire
  3. Fire is not excluded under the open-perils form ✓
  4. Theft is the cause

Why: Under the open-perils Special form, fire is a covered cause of loss because it is a risk of direct physical loss that is not excluded.

The implied warranty of 'no deviation' means:

  1. The cargo cannot be repackaged unless an exception clearly applies for the coverage that is in force
  2. Premiums cannot change
  3. The vessel must not depart from the customary or agreed route without necessity ✓
  4. The ship must change its flag

Why: The warranty against deviation requires the vessel to follow the customary or agreed-upon route; unjustified departure can void coverage.

Which of the following is generally TRUE about the relationship between the surety and the principal after the surety pays a loss to the obligee?

  1. The obligee repays the surety
  2. The surety has the right to seek reimbursement (subrogation/indemnity) from the principal ✓
  3. The surety absorbs the loss with no recourse
  4. The bond is automatically cancelled with a refund unless an exception clearly applies for the coverage that is in force

Why: After paying the obligee, the surety has a right of indemnity/subrogation against the principal, reflecting surety's guarantee nature.

A reciprocal insurer is best described as:

  1. An insurer owned by the federal government unless an exception clearly applies for the coverage that is in force
  2. A corporation owned by stockholders
  3. An unincorporated group of subscribers who insure one another, managed by an attorney-in-fact ✓
  4. A foreign insurer writing surplus lines

Why: A reciprocal or interinsurance exchange is an unincorporated association of subscribers who exchange insurance among themselves, administered by an attorney-in-fact.