PERSONAL LINES FINAL EXAM QUESTIONS WITH 100% CORRECT
ANSWERS/NEWEST UPDATE/GRADE A+ ASSURED.
1. What part of the policy lists the rules, duties, and obligations of the insured
and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions: C) Conditions
2. The directive that states the violation committed and requires an agent to
stop the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order: D) cease and desist order
3. Extended Coverage (EC) include all of the following perils, EXCEPT: A) wind
B) riot
C) smoke
D) vandalism: D) vandalism
4. A device which is used to minimize small nuisance claims, lower insurance
premiums, and reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance: Deductible
5. All of the following perils are covered, in a PERSONAL ARTICLES FLOATER
(PAF), EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft: A) Inherent vice
,6. The policyholder has a liability of $300,000 and caused an accident injuring
one person in the amount of $250,000 and another person in the amount of
$150,000. What limit of coverage applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000: B) $300,000
7. Eligible vehicles are described in the Personal Auto Policy. Which of the
following vehicles is NOT eligible?
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries: D) a truck used to make deliveries
8. What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
C) $250
D) $500: B) $200
9. In order for an insurer to meet their obligation to an insured, "insurable
interest" must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss: A) At the time the loss occurs
10. A customer's response to a question to the best of their knowledge or
belief is called:
A) warranty
B) Material fact
C) Misrepresentation
, D) Representation: D) Representation
11. In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy: D) Not available on an auto policy
12. The purpose of the FAIR plan is to:
A) give the federal government a major role in providing insurance
B) Make property insurance available for high risk property owners.
C) Require complete disclosure of the reasons for cancellations
D) Force all insurance companies to participate in an insurance pool.: B) make property
insurance available for high risk property owners.
13. Which type of watercraft is insurable on a yacht policy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat: C) sailboat
14. Which of the following is NOT a direct loss?
A) fire damage
B) water damage as a result of putting out the fire
C) Hotel expenses as a result of moving out because of the fire
D) smoke damage resulting from the fire: C) hotel expenses as a result of moving out
because of the fire
15. The right of the insurer to take over the insured's rights to recover fro an
at-fault party is known as:
A) subrogation
B) restitution
C) Recovery
D) Indemnification: A) subrogation
ANSWERS/NEWEST UPDATE/GRADE A+ ASSURED.
1. What part of the policy lists the rules, duties, and obligations of the insured
and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions: C) Conditions
2. The directive that states the violation committed and requires an agent to
stop the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order: D) cease and desist order
3. Extended Coverage (EC) include all of the following perils, EXCEPT: A) wind
B) riot
C) smoke
D) vandalism: D) vandalism
4. A device which is used to minimize small nuisance claims, lower insurance
premiums, and reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance: Deductible
5. All of the following perils are covered, in a PERSONAL ARTICLES FLOATER
(PAF), EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft: A) Inherent vice
,6. The policyholder has a liability of $300,000 and caused an accident injuring
one person in the amount of $250,000 and another person in the amount of
$150,000. What limit of coverage applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000: B) $300,000
7. Eligible vehicles are described in the Personal Auto Policy. Which of the
following vehicles is NOT eligible?
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries: D) a truck used to make deliveries
8. What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
C) $250
D) $500: B) $200
9. In order for an insurer to meet their obligation to an insured, "insurable
interest" must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss: A) At the time the loss occurs
10. A customer's response to a question to the best of their knowledge or
belief is called:
A) warranty
B) Material fact
C) Misrepresentation
, D) Representation: D) Representation
11. In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy: D) Not available on an auto policy
12. The purpose of the FAIR plan is to:
A) give the federal government a major role in providing insurance
B) Make property insurance available for high risk property owners.
C) Require complete disclosure of the reasons for cancellations
D) Force all insurance companies to participate in an insurance pool.: B) make property
insurance available for high risk property owners.
13. Which type of watercraft is insurable on a yacht policy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat: C) sailboat
14. Which of the following is NOT a direct loss?
A) fire damage
B) water damage as a result of putting out the fire
C) Hotel expenses as a result of moving out because of the fire
D) smoke damage resulting from the fire: C) hotel expenses as a result of moving out
because of the fire
15. The right of the insurer to take over the insured's rights to recover fro an
at-fault party is known as:
A) subrogation
B) restitution
C) Recovery
D) Indemnification: A) subrogation
