Free Commercial Automobile Policy Practice Questions
Arkansas Property & Casualty exam — 38 practice questions.
Subtopics: Premium increase notice, Commercial auto cancellation, Covered auto symbols, Hired and non-owned, Federal motor carrier, Physical damage, Mobile equipment, Carrier regulations, Hired auto physical damage, Symbol 2 owned autos, Liability coverage, Trailer interchange, Garagekeepers, Drive other car, Rental reimbursement, Pollution liability, Who is an insured, Specified causes of loss, Symbol 8 hired autos, Newly acquired autos, Supplementary payments, Liability exclusions, Motor carriers
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Sample questions & answers
1. Under Arkansas law as amended in 2025, a 25%-or-greater premium increase on a commercial auto renewal (term of 12 months or less) caused by a rate revision requires notice to the agent at least:
60 days before renewal
Ark. Code 23-79-307(a)(6)(A), as amended by Act 22 of 2025: notice to the agent not less than 60 days and to the insured not less than 30 days before renewal.
2. Which statute governs mid-term cancellation of an Arkansas commercial property policy but does NOT govern personal auto policies?
Ark. Code 23-66-206(15)
Ark. Code 23-66-206(15)(D) excludes personal auto liability, physical damage and collision coverage, and workers' compensation, from its cancellation rules; personal auto cancellations are governed by 23-89-303 to 23-89-305.
3. On the Business Auto Coverage Form, covered-auto symbol 1 designates:
Any auto
Symbol 1 means any auto and provides the broadest description of covered autos, typically used for liability.
4. Coverage for autos that a business leases, hires, rents, or borrows from others is referred to as coverage for:
Hired autos
Hired auto coverage applies to vehicles the named insured leases, hires, rents, or borrows (excluding those from employees).
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Practice: Commercial Automobile Policy
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
