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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Unlock the full question bank

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.

Can I use it on more than one device?

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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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

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 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 IC 27-7-12-4, notice of nonrenewal of a residential policy must be mailed at least:

  1. Twenty (20) days before expiration ✓
  2. Ten (10) days before expiration
  3. Thirty (30) days before expiration
  4. Forty-five (45) days before expiration

Why: IC 27-7-12-4(a)(5) requires nonrenewal notice at least twenty days before the current policy period expires.

Under IC 27-1-15.6-13, renewal or deferred commissions may still be paid to a person if that person:

  1. Was licensed at the time of the sale ✓
  2. Later obtains a producer license
  3. Now holds a consultant license
  4. Is later appointed by the paying insurer

Why: IC 27-1-15.6-13 allows renewal or deferred commissions if the person was required to be licensed and was licensed at the time of the sale — therefore that is correct.

Show more sample questions with answers & explanations

Under IC 22-3-3-10, for injuries on or after July 1, 1991, scheduled PPI is paid in addition to TTD benefits not exceeding:

  1. 52 weeks
  2. 78 weeks
  3. 104 weeks
  4. 125 weeks ✓

Why: IC 22-3-3-10(f) pays scheduled impairment in addition to TTD benefits not exceeding 125 weeks — therefore 125 weeks.

Under IC 27-4-1-5.6, each insurer must give current policyholders:

  1. A quarterly summary of all claim activity
  2. A copy of the state guaranty association law
  3. An annual refund of a portion of premium
  4. A one-time written notice of remedies ✓

Why: IC 27-4-1-5.6(f) requires each insurer to give current policyholders a one-time written notice of the remedies under the section.

Under IC 27-1-15.8-1, for an insured the term 'home state' generally means the state where the insured:

  1. Was incorporated
  2. Files its federal income tax return
  3. Takes policy delivery
  4. Maintains its principal place of business ✓

Why: IC 27-1-15.8-1(e) defines home state as where the insured maintains its principal place of business (or, for an individual, principal residence) — therefore that answer.

Under IC 27-4-1.5-3, in the auto repair claims settlement chapter, 'insured' means a person who:

  1. Owns an auto repair shop
  2. Is named as the loss payee
  3. Filed a claim in good faith
  4. Is entitled to coverage under a policy ✓

Why: IC 27-4-1.5-3 defines 'insured' as a person entitled to the coverage provided by an insurance policy — therefore that answer.

The characteristic that requires certain acts, such as paying premium and providing proof of loss, before the insurer must pay a claim is that insurance is a contract of:

  1. Aleatory nature
  2. Conditional nature ✓
  3. Indemnity
  4. Adhesion

Why: Insurance is a conditional contract because both parties must meet certain conditions before the contract can be enforced.

Under IC 27-7-6-4, the restriction limiting cancellation to specified reasons does NOT apply to a new policy in effect:

  1. More than one full year
  2. For over six (6) months
  3. Through any renewal term
  4. Less than sixty (60) days ✓

Why: IC 27-7-6-4 does not apply to a policy in effect less than 60 days (unless a renewal), so the reason limits attach after 60 days — therefore less than sixty days.

A named insured rejects UM/UIM in writing. Under IC 27-7-5-2, this rejection applies to:

  1. Only the named insured who signed
  2. All insureds under the policy ✓
  3. Only drivers over age 25
  4. No one until board approval

Why: IC 27-7-5-2(b) makes a named insured's rejection a rejection on behalf of all insureds and persons entitled to coverage — therefore all insureds.

A Value Reporting form differs from a standard policy in that:

  1. Premium is based on values the insured reports rather than a fixed limit ✓
  2. It never requires coinsurance unless an exception clearly applies for the coverage that is in force
  3. It only covers liability
  4. It excludes fire

Why: Value Reporting forms adjust premium based on reported values; failure to report accurately can trigger a penalty (full reporting clause).

Because insurance contracts are drafted by the insurer and the insured must accept them as written, they are characterized as contracts of:

  1. Utmost good faith
  2. Adhesion ✓
  3. Indemnity
  4. Aleatory nature

Why: A contract of adhesion is prepared by one party, the insurer, and offered on a take-it-or-leave-it basis; ambiguities are construed against the drafter.

Under IC 27-7-5-3, the UM property damage deductible is waived when the insured vehicle is:

  1. Legally parked and unoccupied ✓
  2. Driven by a family member
  3. Less than one year old
  4. Registered out of state

Why: IC 27-7-5-3(a) waives the deductible for collision damage when the insured vehicle is legally parked and unoccupied — therefore that condition.

The 'Separation of Insureds' condition in the CGL means that:

  1. Each insured has separate limits
  2. Claims between insureds are always covered unless an exception clearly applies for the coverage that is in force
  3. The policy applies separately to each insured as though each were the only insured, except as to the limits ✓
  4. The aggregate is doubled

Why: Separation of insureds applies the coverage separately to each insured (except for the shared limits), as if each were separately insured.

Under PAP Part F, the policy territory generally includes:

  1. Only the state of issue
  2. Only North America including Mexico unless an exception clearly applies for the coverage that is in force
  3. The United States, its territories/possessions, Puerto Rico, and Canada ✓
  4. Worldwide with no exception

Why: The policy territory is the U.S., its territories and possessions, Puerto Rico, and Canada; Mexico is generally not included.

Under IC 27-7-5-2, underinsured motorist coverage must be made available in limits of not less than:

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

Why: IC 27-7-5-2(a) requires UIM to be made available in limits not less than $50,000 and bars selling it below that — therefore $50,000.

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.

Under IC 9-25-4-7, proof of financial responsibility requested by a law enforcement officer may be provided:

  1. Only on the original paper card
  2. Only through the state bureau
  3. Only by a notarized affidavit
  4. In paper or electronic format ✓

Why: IC 9-25-4-7(b) allows proof to a law enforcement officer in paper or electronic format, including an image on a device — therefore paper or electronic.

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.

Under IC 27-1-15.6-29, a probationary-status notice is dated April 1. If the commissioner receives no bureau notice, the license is suspended on about:

  1. April 11 (after 10 days)
  2. April 21 (after 20 days) ✓
  3. May 1 (after 30 days)
  4. April 6 (after 5 days)

Why: IC 27-1-15.6-29 suspends the license if no bureau notice arrives within twenty (20) days after the notice; April 1 plus 20 days is about April 21.

"Your covered auto" under the PAP includes:

  1. Any car the insured drives anywhere
  2. Only leased vehicles
  3. Vehicles shown in the Declarations, newly acquired autos, trailers owned, and temporary substitutes (per terms) ✓
  4. Only the first vehicle on the policy unless an exception clearly applies for the coverage that is in force according to the insurer's rules

Why: "Your covered auto" encompasses vehicles in the Declarations, certain newly acquired autos, owned trailers, and qualifying temporary substitute autos.

The Basic Extended Reporting Period under the ISO claims-made CGL is automatically provided and typically lasts:

  1. 12 months for all claims
  2. 60 days for any claims, plus 5 years for claims from occurrences already reported during the policy ✓
  3. Only if an additional premium is paid unless an exception clearly applies for the coverage that is in force
  4. Indefinitely

Why: The basic ERP is automatic and free: a 60-day tail to report any claims, plus a 5-year tail for occurrences reported during the policy period.

Under IC 27-1-3.1-8, the commissioner must examine every insurer licensed in Indiana at least once every:

  1. Five (5) years ✓
  2. Three (3) years
  3. Two (2) years
  4. Ten (10) years

Why: IC 27-1-3.1-8 requires an examination of every licensed insurer at least once every five (5) years — therefore five years is correct.

Because the standard policy's Part One does not apply in monopolistic fund states (where coverage comes from the state fund), what does the policy still commonly provide for those states via endorsement?

  1. Part One statutory benefits
  2. Vocational rehabilitation
  3. Stop Gap / Employers Liability coverage ✓
  4. Other States Insurance

Why: In monopolistic states, the state fund provides statutory benefits but not employers liability; a stop gap (Employers Liability) endorsement fills that gap.

An insurer wants to cancel because another company previously declined the applicant. Under IC 27-7-12-7 this is:

  1. Allowed with proper notice
  2. Permitted underwriting
  3. Required by fair-plan rules
  4. A prohibited ground ✓

Why: IC 27-7-12-7(4) prohibits termination based solely on another insurer's prior declination or termination.

Under IC 27-1-3-10, the commissioner may revoke or suspend a company's authority to do business if the company:

  1. Refuses to permit an examination ✓
  2. Reports a small underwriting loss
  3. Changes its appointed producers
  4. Files its annual statement late

Why: IC 27-1-3-10 empowers the commissioner to revoke or suspend authority of a company that refuses an examination under IC 27-1-3.1 — therefore refusing an examination is correct.

A licensed producer dies. Under IC 27-1-15.6-11 the commissioner may issue a temporary producer license to:

  1. A newly hired unlicensed sales trainee
  2. The surviving spouse of the producer ✓
  3. An applicant who failed the exam
  4. A producer suspended for cause

Why: IC 27-1-15.6-11 permits a temporary license to the surviving spouse or personal representative of a producer who dies or becomes disabled — therefore that is correct.

Under IC 27-7-5-5, the UM/UIM coverage under a policy may in no event be less than:

  1. The insured's collision limit
  2. Double the policy premium
  3. The minimum set in IC 9-25-4-5 ✓
  4. The insurer's surplus lines cap

Why: IC 27-7-5-5(a) provides that coverage may in no event be less than the minimum set in IC 9-25-4-5 — therefore that statutory minimum.

Under IC 27-7-6-7, sufficient proof that a cancellation or nonrenewal notice was given is:

  1. A signed return receipt only
  2. The insured's acknowledgment
  3. Proof of mailing to the policy address ✓
  4. An affidavit filed with the board

Why: IC 27-7-6-7 provides that proof of mailing to the named insured at the address shown in the policy is sufficient proof of notice — therefore proof of mailing.

A newly hired staffer wants a surplus lines license. Under IC 27-1-15.8-3, the applicant must first be:

  1. A licensed public adjuster in Indiana
  2. Appointed by at least three admitted insurers
  3. A licensed Indiana insurance producer ✓
  4. An Indiana resident for at least five years

Why: IC 27-1-15.8-3(b) requires the applicant to be a licensed Indiana insurance producer qualified in the lines to be written.