Free MD-PC Practice Questions

Question 1

Effective August 1, 2024, a Maryland private-passenger policy carries an applicable $100,000 per-person bodily injury liability limit and a $100,000 per-person enhanced underinsured motorist (EUIM) limit. The first named insured did not waive EUIM. An insured sustains $120,000 in compensatory bodily injury damages, and the at-fault driver's insurer pays its $30,000 limit. Assuming liability is established and no other reductions apply, what is the most the EUIM insurer can pay for this loss?

Accepted Answer

$90,000, because EUIM is not offset but recovery cannot exceed the damages

Answer

$30,000, matching the at-fault insurer's payment

Answer

$70,000, because the liability payment offsets the EUIM limit

Answer

$100,000, because the entire EUIM limit is payable on top of all damages

Question 2

During a dinner at an insured residence, a guest trips on an uneven step and incurs $1,800 in necessary medical expenses. The cause of the fall is disputed, and the guest has not established negligence. Which homeowners coverage is designed to respond without requiring proof that the insured is legally liable?

Accepted Answer

Coverage F - Medical Payments to Others

Answer

Coverage E - Personal Liability and defense for covered damages

Answer

Damage to Property of Others

Answer

First-Aid Expenses

Question 3

Consider a claims-made CGL policy running from January 1 through December 31, 2026 with a January 1, 2024 retroactive date. A customer was injured by the insured's product in February 2025, but the claim was first made and reported in June 2026. No exclusion applies. How should the claim be evaluated?

Accepted Answer

Cover it because the injury followed the retroactive date and the claim was made and reported during the policy period

Answer

Deny it because the injury predates the 2026 policy period

Answer

Deny it unless a supplemental reporting period was purchased

Answer

Cover it only if the retroactive date is changed to January 1, 2026

Question 4

At the time of a covered partial loss, a commercial building has a replacement value of $500,000 and a market value of $350,000. The policy has an 80% coinsurance clause, a $300,000 building limit, and a $1,000 deductible. A covered partial loss is $100,000. What amount is payable after applying coinsurance and the deductible?

Accepted Answer

$74,000

Answer

$75,000

Answer

$99,000

Answer

$59,000

Question 5

While swerving to avoid a deer, a driver never contacts the animal but strikes a guardrail. Under the standard Personal Auto Policy, how is damage to the insured vehicle classified?

Accepted Answer

Collision, because the vehicle struck an object

Answer

Other-than-collision, because an animal caused the emergency

Answer

Other-than-collision, because no other vehicle was involved

Answer

Comprehensive only if the driver was not at fault

Question 6

In November 2026, a 24-year-old Maryland resident with no insurance experience seeks Property and Casualty producer authority and has not completed an approved prelicensing course. Her current licensing route is to:

Accepted Answer

Take exam 2032 without a mandatory course and apply after passing

Answer

Complete an approved course before scheduling exam 2032

Answer

Buy an exam-preparation course and receive an examination waiver

Answer

Pass exam 2032 and begin acting immediately without a license application

Question 7

Under an unendorsed DP-3, a rental dwelling and an insured-owned sofa inside it are covered property. A can of paint is accidentally knocked over, staining the hardwood floor and the sofa. The loss is not otherwise excluded. The resulting coverage is:

Accepted Answer

The floor is covered, but the sofa is not

Answer

Both the floor and the sofa are covered

Answer

The sofa is covered, but the floor is not

Answer

Neither item is covered because paint is not a named peril

Question 8

Although an insurer terminates a producer's actual authority, it leaves the producer listed as authorized on its website and allows continued use of insurer-branded application materials. An applicant reasonably relies on those representations. Which agency doctrine is most relevant?

Accepted Answer

Apparent authority

Answer

Express authority

Answer

Implied authority

Answer

Waiver and estoppel

Question 9

For 75 consecutive days before an otherwise covered fire, a commercial building met the policy definition of vacant. Under the standard commercial property vacancy condition, the insurer should:

Accepted Answer

Cover the fire loss but reduce the payment by 15%

Answer

Deny the entire claim because vacancy exceeded 60 days

Answer

Pay the fire loss in full because vacancy affects only theft

Answer

Ignore vacancy once firefighters enter the premises

Question 10

By the close of the fifth business day after receiving a client's premium, a Maryland producer has not remitted it. Compliance now requires the producer to:

Accepted Answer

Place the funds in a separate premium account and preserve the required balance

Answer

Hold the funds in the office safe until the monthly accounting closes

Answer

Deposit the funds in the agency operating account and track them on a ledger

Answer

Use the funds for payroll if they are restored before the insurer requests payment

Free MD-PC Practice Questions

Domain 1: Insurance Regulation 30% of exam

Question 1

Question 2

Question 3

Domain 2: General Insurance 7% of exam

Question 4

Domain 3: Property and Casualty Insurance Basics 13% of exam

Question 5

Domain 4: Dwelling Policy 8% of exam

Question 6

Domain 5: Homeowners Policy 13% of exam

Question 7

Domain 6: Auto Insurance 8% of exam

Question 8

Domain 7: Commercial Package Policy (CPP) 13% of exam

Question 9

Question 10

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