17 Free Pennsylvania Property & Casualty Practice Questions: Workers' Compensation & Other Lines (2026)
How to Use This Workers' Compensation and Other Lines Set
This set covers workers' compensation and the other types of property and casualty insurance. On the Pennsylvania Property and Casualty exam, Workers' Compensation Insurance is 5% (7-8 items) and Other Types of Property and Casualty Insurance is 8% (12 items).
The other-lines section is a collection, so the questions here range from farm coverage to personal watercraft, risk groups and a business-protection question. Take each stem on its own terms and note which statute or policy form the scenario points to.
Practice Questions 1-6: Workers' Compensation Basics and Other Coverages
Repetitive trauma, coverage for an injury in another state, independent contractors, permanent partial disability, a business-protection question and personal watercraft.
Question 1 (Chapter 6)
An employee of a Pennsylvania manufacturing company develops carpal tunnel syndrome after years of repetitive motion on an assembly line. The employee files a workers' compensation claim. How is this condition classified under the Pennsylvania Workers' Compensation Act?
- A) As a compensable work-related injury, because it arose in the course of employment even though no single traumatic event caused it.
- B) As an occupational disease only if carpal tunnel syndrome appears on the Act's schedule of listed diseases; otherwise it is not covered.
- C) As a non-compensable condition, because the Act covers only injuries caused by a specific accident.
- D) As a personal illness, because it developed gradually and is therefore not work-related.
Show answer & explanation
Answer: A
Under the Pennsylvania Workers' Compensation Act, an 'injury' includes conditions caused by cumulative or repetitive trauma at work, not only injuries from a single accident. Carpal tunnel syndrome caused by years of repetitive assembly-line work is therefore a compensable work injury. Option B is wrong because compensability does not depend on a schedule of listed diseases. Option C is wrong because Pennsylvania abandoned the requirement of a specific accident. Option D is wrong because the condition arose from the work itself. The exclusive remedy provision still applies, so the employee cannot sue the employer in tort for the condition.
Question 2 (Chapter 6)
A Pennsylvania-based trucking company has an employee who is injured in a work-related accident while making a delivery in West Virginia. The employer's workers' compensation policy includes an 'other states insurance' endorsement listing West Virginia. Which statement is true regarding the benefits payable for this injury?
- A) Benefits are paid according to Pennsylvania's workers' compensation schedule, regardless of where the injury occurred.
- B) The employee may choose to receive benefits under either Pennsylvania or West Virginia law, whichever is more favorable.
- C) No benefits are payable because 'other states insurance' only covers medical expenses, not wage loss.
- D) Benefits are paid according to West Virginia's workers' compensation laws, as the injury occurred there.
Show answer & explanation
Answer: D
When an employee is injured in a state covered by 'other states insurance,' the benefits payable are determined by the workers' compensation laws of the state where the injury occurred, not the employer's home state. This is because the endorsement extends coverage to comply with the other state's statutory requirements. Option A is incorrect because the home state's schedule does not apply. Option B is incorrect—there is no employee choice of law. Option C is incorrect because 'other states insurance' covers all benefits required by the other state's law, including wage loss and medical.
Question 3 (Chapter 6)
A Pennsylvania contractor hires an independent contractor to perform electrical work on a renovation project. The independent contractor is injured while working on the job site. Under the Pennsylvania Workers' Compensation Act, which statement is correct regarding the contractor's liability for workers' compensation benefits?
- A) The contractor is liable for workers' compensation benefits because the injury occurred on the contractor's job site.
- B) The contractor must pay workers' compensation benefits only if the independent contractor lacks their own workers' compensation insurance.
- C) The contractor is liable for 50% of the workers' compensation benefits, with the independent contractor responsible for the other 50%.
- D) The contractor is not liable for workers' compensation benefits if the independent contractor is truly independent and not an employee.
Show answer & explanation
Answer: D
Under the Pennsylvania Workers' Compensation Act, only employees are covered; independent contractors are not considered employees for workers' compensation purposes if they meet the legal criteria for independence (control over work, opportunity for profit/loss, etc.). Therefore, the hiring contractor is not liable for workers' compensation benefits for a bona fide independent contractor. Option A is incorrect because site control alone does not create an employment relationship. Option B is incorrect—the lack of insurance by the independent contractor does not transfer liability to the hiring contractor. Option C has no basis in the Act.
Question 4 (Chapter 6)
A Pennsylvania business owner wants to protect against financial loss if a key employee dies unexpectedly. Which type of business insurance is most appropriate for this purpose?
- A) Directors and officers (D&O) liability insurance
- B) Professional liability (errors and omissions) insurance
- C) Employment practices liability insurance (EPLI)
- D) Key person life insurance
Show answer & explanation
Answer: D
The scenario describes a need to protect against financial loss from the death of a key employee, which is addressed by key person life insurance (also called key man insurance). This is a life insurance policy owned by the business on the life of a key employee, with the business as beneficiary. It is not a liability insurance policy. Options A, B, and C are liability coverages: D&O protects directors and officers from claims of mismanagement, professional liability covers claims of inadequate work or negligence in professional services, and EPLI covers claims related to employment practices (e.g., discrimination, wrongful termination). None of these address the financial impact of a key employee's death.
Question 5 (Chapter 6)
Under the Pennsylvania Workers' Compensation Act, an employee suffers a permanent partial disability that results in an impairment rating of 25% of the body as a whole. How is wage loss compensation typically calculated for this type of disability?
- A) The employee receives 66 2/3% of their average weekly wage multiplied by the impairment percentage (25%) for a period determined by the schedule of losses.
- B) The employee receives 66 2/3% of their average weekly wage for the duration of the impairment, regardless of actual wage loss.
- C) The employee receives the full difference between pre-injury and post-injury earning power for as long as the disability lasts.
- D) The employee receives a lump sum equal to 25% of their annual salary multiplied by their life expectancy.
Show answer & explanation
Answer: A
For permanent partial disability (PPD) under the Pennsylvania Workers' Compensation Act, wage loss benefits are calculated as 66 2/3% of the employee's average weekly wage multiplied by the impairment rating percentage, payable for a duration based on the specific body part affected and the schedule of losses in Section 306(c). Option B incorrectly ignores the impairment multiplier and duration limits. Option C describes total disability benefits, not PPD. Option D is not how benefits are calculated; lump sums are not standard and life expectancy is not a factor.
Question 6 (Chapter 6)
A Pennsylvania resident purchases a personal watercraft (PWC) insurance policy. Which of the following coverages is typically included under a standard PWC policy?
- A) Coverage for damage to the PWC caused by wear and tear or mechanical breakdown.
- B) Coverage for lost or stolen personal watercraft accessories, regardless of whether they are attached to the PWC at the time of loss.
- C) Liability coverage for bodily injury or property damage caused by the PWC to others.
- D) Coverage for the PWC while it is being used for commercial charter fishing operations.
Show answer & explanation
Answer: C
Standard personal watercraft (PWC) insurance policies include liability coverage for bodily injury or property damage caused to others while operating the PWC, similar to boatowners policies. They do not cover wear and tear or mechanical breakdown (Option A), accessories typically require specific scheduling and may not be covered if unattached (Option B), and commercial use like charter fishing is excluded unless specifically endorsed (Option D).
Get the 25-question sample set by email
Want a full-exam practice set to study offline? Drop your email — we'll send 25 questions across every content area, each with the answer and explanation.
No spam. Just the questions and one optional follow-up.
Practice Questions 7-12: Farm Coverage, Nonrenewal, Self-Insurance, Longshore, Crime and Risk Retention
The dwelling coverage in a farmowners policy, a valid reason for nonrenewal, what backs a self-insured employer, who falls outside the longshore act, a crime deductible and a risk retention group.
Question 7 (Chapter 6)
A Pennsylvania farmer is considering a farmowners policy. Which of the following is typically covered under the Coverage A (dwelling) section of a standard farmowners policy?
- A) Coverage for the farmer's personal residence and attached structures.
- B) Coverage for farm machinery and equipment stored in a machine shed.
- C) Coverage for livestock housed in a barn on the premises.
- D) Coverage for liability arising from the sale of farm products at a roadside stand.
Show answer & explanation
Answer: A
Coverage A of a standard farmowners policy (similar to a homeowners policy) covers the dwelling, which includes the farmer's personal residence and any attached structures (like a garage or porch). Farm machinery and equipment are covered under Coverage C (personal property) or may require separate scheduling. Livestock is typically covered under Coverage C or a separate endorsement. Liability from product sales would fall under Coverage L (liability) but is not part of Coverage A. Option A correctly describes the dwelling coverage.
Question 8 (Chapter 6)
A Pennsylvania employer receives a notice that its workers' compensation policy will be nonrenewed. Under Pennsylvania law, which of the following is a valid reason for nonrenewal by the insurer?
- A) The employer filed a single workers' compensation claim during the policy period.
- B) The employer failed to pay the premium within the grace period specified in the policy.
- C) The employer's industry is classified as high-risk, and the insurer no longer wishes to write that class of business.
- D) The employer's experience modification factor increased slightly from 0.95 to 1.05.
Show answer & explanation
Answer: B
Under Pennsylvania law (specifically the Unfair Insurance Practices Act and related regulations), nonrenewal of a workers' compensation policy is permitted for nonpayment of premium. Options A, C, and D are not valid standalone reasons for nonrenewal: filing a claim is not grounds for nonrenewal, discontinuing an entire class of business requires advance notice and is subject to regulatory scrutiny, and a change in experience modification alone does not justify nonrenewal. Nonpayment of premium is a universally accepted and legally permissible reason.
Question 9 (Chapter 6)
A Pennsylvania employer with 20 employees in the construction industry is approved as a self-insured employer under 77 P.S. § 501. The employer fails to pay a workers’ compensation claim for an injured employee’s medical expenses within the statutory timeframe. Under Pennsylvania law, which of the following consequences applies?
- A) The employer's self-insurance approval is automatically revoked, and coverage reverts to the State Workers Insurance Fund (SWIF).
- B) The employer is fined but retains self-insurance status with no further consequence.
- C) The employer must purchase a commercial workers' compensation policy from a private insurer immediately.
- D) The bond or other security the employer posted to maintain self-insurance approval may be drawn upon to ensure the claim is paid.
Show answer & explanation
Answer: D
Self-insured employers must maintain a surety bond or other security approved by the Pennsylvania Department of Labor & Industry to guarantee payment of claims. If the employer fails to pay a claim within the statutory timeframe, that security may be drawn upon to ensure the injured employee is paid. Option A incorrectly assumes an automatic reversion to SWIF. Option B understates the consequence. Option C ignores the bond requirement that exists specifically to cover this situation.
Question 10 (Chapter 6)
Under the Longshore and Harbor Workers’ Compensation Act (LHWCA), which of the following individuals is not eligible for benefits?
- A) A dockworker injured while loading cargo onto a vessel in the Port of Philadelphia.
- B) A construction worker building a pier extension for a maritime terminal.
- C) A railroad employee injured while repairing tracks adjacent to a navigable waterway.
- D) A maritime pilot injured while guiding a vessel through a canal.
Show answer & explanation
Answer: C
LHWCA covers maritime workers (e.g., dockworkers, pilots, longshoremen) but excludes railroad employees, even if near waterways. Railroad workers fall under FELA or state workers’ comp. Distractors: A/B/D describe eligible LHWCA claimants.
Question 11 (Chapter 6)
A Pennsylvania business purchases a commercial crime policy with employee theft coverage. An employee steals $50,000 in company funds over 6 months. The policy has a $25,000 deductible and a $100,000 limit. How much will the policy pay?
- A) $0 (deductible exceeds the loss)
- B) $50,000
- C) $25,000
- D) $75,000
Show answer & explanation
Answer: C
The policy pays loss minus deductible: $50,000 – $25,000 = $25,000. The limit does not apply here. Distractors: A, B and D misapply the deductible or the limit.
Question 12 (Chapter 6)
A Pennsylvania employer is approved to self-insure its workers' compensation liability under 77 P.S. § 501. Which of the following is a requirement for maintaining this self-insurance authorization?
- A) The employer must purchase excess insurance from the State Workers Insurance Fund (SWIF) to cover claims above a certain retention.
- B) The employer must cede 20% of its workers' compensation premium to the Pennsylvania Workers' Compensation Security Fund.
- C) The employer must provide coverage only for employees earning less than $50,000 annually.
- D) The employer must maintain a surety bond or other security approved by the Pennsylvania Department of Labor & Industry to guarantee payment of claims.
Show answer & explanation
Answer: D
Under 77 P.S. § 501, employers authorized to self-insure workers' compensation liability in Pennsylvania must maintain financial security, such as a surety bond, letter of credit, or other security approved by the Pennsylvania Department of Labor & Industry, to ensure payment of claims. This is a key requirement to protect employees if the employer becomes insolvent. Option A is incorrect because purchasing excess insurance from SWIF is not required; SWIF is a separate state fund for employers who cannot obtain coverage in the private market. Option B is incorrect—there is no requirement to cede premium to a security fund; the Security Fund is for uninsured employers. Option C is incorrect because self-insurance applies to all employees, regardless of earnings.
Practice Questions 13-17: Nonrenewal Reasons, Subcontractors, Risk Groups and Other-States Coverage
Another nonrenewal question, a subcontractor under a voluntary compensation plan, risk retention and purchasing groups and other-states coverage.
Question 13 (Chapter 6)
A Pennsylvania employer’s workers’ compensation policy is nonrenewed by the insurer. Under Pennsylvania law (31 Pa. Code § 59.6), which of the following is not a valid reason for nonrenewal?
- A) The employer's authorized representative recently filed an age-discrimination complaint against the insurer.
- B) The employer failed to pay premiums within 30 days of the due date.
- C) The employer misrepresented material facts on the application.
- D) The employer changed its business classification to a higher-risk industry.
Show answer & explanation
Answer: A
Insurers cannot nonrenew a policy in retaliation for a policyholder exercising a legal right, such as filing a discrimination complaint; doing so would itself violate Pennsylvania's Unfair Insurance Practices Act. Nonpayment of premium, material misrepresentation, and a material change in risk (such as a shift to a higher-risk classification) are all valid, permissible reasons for nonrenewal.
Question 14 (Chapter 6)
A longshoreman is injured while loading cargo onto a vessel in the Port of Philadelphia. Which federal workers' compensation law provides the primary remedy for this injury?
- A) The Federal Employers Liability Act (FELA), because the injury occurred in the course of railroad-related maritime activity.
- B) The Jones Act, because the employee was working on a navigable vessel.
- C) The Federal Mine Safety and Health Act, because cargo handling involves extractive industries.
- D) The Longshore and Harbor Workers' Compensation Act (LHWCA), because the injury occurred on the navigable waters of the United States or adjoining areas during maritime employment.
Show answer & explanation
Answer: D
The Longshore and Harbor Workers' Compensation Act (LHWCA) provides workers' compensation benefits to employees engaged in maritime employment, including longshoremen, harbor workers, and other individuals loading, unloading, repairing, or building vessels. The injury occurred on the navigable waters of the United States (the Delaware River) or adjoining areas (the port) during maritime employment, making LHWCA the exclusive remedy. Option A (FELA) applies only to railroad employees. Option B (Jones Act) applies to seamen (masters or members of a crew) on a vessel, not longshoremen. Option C is irrelevant to cargo handling.
Question 15 (Chapter 6)
A Pennsylvania farmer purchases a farmowners policy that includes coverage for the dwelling, barns, and personal property. Which of the following is typically NOT covered under a standard farmowners policy?
- A) Liability for bodily injury caused by the farmer's negligence to a visitor on the farm.
- B) Coverage for scheduled farm equipment, such as tractors and harvesters.
- C) Coverage for livestock owned by the farmer.
- D) Coverage for crop damage due to drought or flooding.
Show answer & explanation
Answer: D
A standard farmowners policy (similar to a homeowners policy but for farming operations) covers the dwelling, other structures (like barns), personal property, liability, and often scheduled farm equipment and livestock. However, it does not cover crop damage. Crop insurance is provided through the Federal Crop Insurance Program administered by the USDA's Risk Management Agency (RMA) or private insurers, not through a standard farmowners policy. Options A, B, and C are typically covered under farmowners forms.
Question 16 (Chapter 6)
A Pennsylvania employer’s workers’ compensation policy includes other states insurance for New York and Ohio. An employee is injured while working temporarily in Ohio but is not yet assigned to a permanent work location. The injury occurs in a company-owned vehicle while driving between job sites. Under Pennsylvania law and the policy terms, which statement is correct regarding coverage for this injury?
- A) The injury is covered under the Ohio endorsement because the employee was working in Ohio.
- B) The injury is covered under the Pennsylvania portion of the policy because the employee was not yet assigned to a permanent location.
- C) The injury is not covered because the employee was not assigned to a permanent work site in Ohio.
- D) The injury is covered under the Assigned Risk Fund because the policy excludes the location.
Show answer & explanation
Answer: A
Option A is correct because the injury occurred in Ohio, and the policy includes other states insurance for Ohio. Option B is incorrect because the Ohio endorsement applies when the employee is working in Ohio. Option C is incorrect because temporary work assignments are covered under the other states insurance. Option D is incorrect because the Assigned Risk Fund is not involved in this scenario.
Question 17 (Chapter 6)
Under the Pennsylvania Workers' Compensation Act, which of the following benefits is paid to the surviving spouse and children of an employee who dies as a result of a work-related injury?
- A) Vocational rehabilitation benefits
- B) Medical benefits
- C) Temporary total disability benefits
- D) Death benefits
Show answer & explanation
Answer: D
Under the Pennsylvania Workers' Compensation Act, death benefits are paid to the surviving dependents (such as a spouse and children) of an employee who dies due to a work-related injury or occupational disease. These benefits include a portion of the deceased worker's wages and may include burial expenses. Option A (vocational rehabilitation) is for injured workers returning to work. Option B (medical benefits) are for treatment of the injury and cease upon death. Option C (temporary total disability) is for wage loss during recovery and does not apply to deceased employees.
The Workers' Compensation and Other Lines Mistakes That Cost Marks
Requiring a single accident. Workers' compensation covers conditions that develop through repetitive work as well as one-off injuries.
Treating an independent contractor as an employee. A genuine independent contractor is not an employee, so the hiring contractor is not liable for workers' compensation benefits on that basis.
Forgetting the deductible arithmetic. A $50,000 employee theft loss with a $25,000 deductible and a $100,000 limit pays $25,000: the loss less the deductible.
Reading nonrenewal reasons too broadly. Nonpayment of premium is a valid reason. Filing a single claim is not.
Overlooking the line a risk group is limited to. Risk retention groups are limited to liability coverage.
Mixing up the federal act. The longshore act covers maritime workers such as dockworkers and pilots, not railroad employees.
Your Next Step
If these questions exposed a gap, listen to the matching lesson in the Pennsylvania Property & Casualty course preview, then come back and rework the questions you missed. For more topics, see all of our free Pennsylvania Property & Casualty practice questions.
Free: 25 Pennsylvania P&C practice questions
Liked this article? Get 25 exam-style questions emailed to you — with full answer explanations, no credit card. Closest thing to studying offline.
No spam. Just the questions and one optional follow-up.
Study this topic with LanePrep
Listen to these audio chapters on your commute — no screen required.
Related Articles
How to Pass the Pennsylvania Property & Casualty Exam on Your First Try (2026)
8 min read
$122.50 + Fingerprints: Pennsylvania P&C License Cost 2026
7 min read
25 Free Pennsylvania P&C Exam Practice Questions (2026)
25 min read
Is the Pennsylvania Property & Casualty Exam Hard? Pass Rates and Difficulty (2026)
6 min read
17 Free Pennsylvania Property & Casualty Practice Questions: Insurance Regulation & Producer Law (2026)
16 min read
17 Free Pennsylvania Property & Casualty Practice Questions: Pennsylvania Property & Casualty Law (2026)
16 min read