PERSONAL LINES UPDATED EXAM MANUAL QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔Which dwelling form(s) pay losses to the dwelling on an actual cash value basis? -
✔✔Basic DP-1
✔✔If an insured increases the deductible on their homeowner insurance policy from
$250 to $500, this will help likely reduce: - ✔✔Their premium and the number of small
claims to the insurer
✔✔Joe has $50,000 of coverage under and HOW-5 policy. After a fire, it was
determined that the loss has an actual cash value of $10,000 and a replacement cost
value of $12,000. How much will the insurer pay for the loss if the full replacement cost
of the home was $10,000 at the time of the loss? Ignore any deductible that may apply.
- ✔✔$10,000
✔✔While joe is driving his daughter and her friend to school one morning, he
accidentally runs into Jan's car. What part of Joe's Personal Auto Policy would cover
Jan's injuries? - ✔✔Part A
✔✔Joe is driving his daughter and her friend to school one morning. Joe accidentally
runs into Jan's car. What part of Joe's personal auto policy would cover her bodily injury
to Joe and his passengers? - ✔✔Part B
✔✔All of the following are correct concerning Med Pay EXCEPT - ✔✔Med Pay covers
the other driver's bodily injury and property damage.
✔✔Joe is driving the family car with his wife, Jane, son Joe Jr. and their daughter,
Janie. He has Med Pay limits of $5,000. If Joe and his passengers were injured into an
auto accident, what is the maximum that his Personal Auto policy will pay? -
✔✔$20,000
✔✔Joe's auto was hit by a driver who had liability coverage, but not enough to meet the
state's financial responsibility requirement. The driver has liability limits of 10/15/5. Joe's
underinsured motorists limits are 100/300/50 and he sustains bodily injury in the amount
of $125,000. What total amount will all policies pay? - ✔✔$110,000
✔✔What process is used when the insured and the insurance company cannot agree
on a claim settlement amount? - ✔✔Appraisal
✔✔Uninsured motorists coverage defines an uninsured motor vehicle as all of the
following EXCEPT: - ✔✔Has liability coverage but not enough to pay the full amount of
the loss.
, ✔✔Under the physical damage portion of a personal auto policy, coverage for
transportation expenses behind joe long after the theft of a covered auto? - ✔✔48 hours
✔✔Which of the following losses is covered under the Physical Damage coverage of a
Personal Auto Policy? - ✔✔Damage to a CD player installed in the dash of the auto
✔✔Under a personal auto policy, all of the following would be an insured for liability
coverage EXCEPT - ✔✔An employee of the named insured while transporting
passengers for a fee
✔✔If an insured is required to attend a hearing or trial related to a covered accident, the
personal auto policy provides supplementary payments for loss of earnings of: -
✔✔$200 a day
✔✔Under a personal auto policy, which of the following is NOT a collision loss? -
✔✔Impact between the coveted auto and a deer
✔✔While driving to work one day, Roy was hit by a car that ran a stop sign. Roy's
medical bills were $40,000 as a result of the accident. The other driver, who was at
fault, carries the state's required limit of $25,000. Roy carries $100,000 of underinsured
motorist coverage. How will Roy's medical bills be paid? - ✔✔The other driver's insurer
will pay $25,000; Roy's underinsured motorist coverage will pay $15,000
✔✔Which of the following would be covered under the personal auto policy liability
coverage? - ✔✔John looks away from the road for a few seconds and accidentally
strikes a pedestrian
✔✔Which of the following losses would be covered under a Part A liability Coverage of
a personal auto policy? - ✔✔Bodily injury arising out of the use of a rented golf cart
✔✔When automobile limits of liability are expressed as 15/30/10, this describes what
type of coverage? - ✔✔$15,000 bodily injury for each person, $30,000 bodily injury
each accident, $10,000 property damage each accident
✔✔The minimum auto bodily injury liability limits for a particular state are 20/40. Janie is
driving with the minimum limits of 20/40. She causes an accident with John in which he
suffers bodily injury in the amount of $120,000. John has non-stacked underinsured
motorists limits of 100/300. How much will his policy toward his injuries? - ✔✔$80,000
✔✔Of the following vehicles, which is considered a temporary substitute auto under a
personal auto policy? - ✔✔An auto rented by an insured after the insurers left his car at
a garage for repairs
AND SOLUTIONS GUARANTEE A+
✔✔Which dwelling form(s) pay losses to the dwelling on an actual cash value basis? -
✔✔Basic DP-1
✔✔If an insured increases the deductible on their homeowner insurance policy from
$250 to $500, this will help likely reduce: - ✔✔Their premium and the number of small
claims to the insurer
✔✔Joe has $50,000 of coverage under and HOW-5 policy. After a fire, it was
determined that the loss has an actual cash value of $10,000 and a replacement cost
value of $12,000. How much will the insurer pay for the loss if the full replacement cost
of the home was $10,000 at the time of the loss? Ignore any deductible that may apply.
- ✔✔$10,000
✔✔While joe is driving his daughter and her friend to school one morning, he
accidentally runs into Jan's car. What part of Joe's Personal Auto Policy would cover
Jan's injuries? - ✔✔Part A
✔✔Joe is driving his daughter and her friend to school one morning. Joe accidentally
runs into Jan's car. What part of Joe's personal auto policy would cover her bodily injury
to Joe and his passengers? - ✔✔Part B
✔✔All of the following are correct concerning Med Pay EXCEPT - ✔✔Med Pay covers
the other driver's bodily injury and property damage.
✔✔Joe is driving the family car with his wife, Jane, son Joe Jr. and their daughter,
Janie. He has Med Pay limits of $5,000. If Joe and his passengers were injured into an
auto accident, what is the maximum that his Personal Auto policy will pay? -
✔✔$20,000
✔✔Joe's auto was hit by a driver who had liability coverage, but not enough to meet the
state's financial responsibility requirement. The driver has liability limits of 10/15/5. Joe's
underinsured motorists limits are 100/300/50 and he sustains bodily injury in the amount
of $125,000. What total amount will all policies pay? - ✔✔$110,000
✔✔What process is used when the insured and the insurance company cannot agree
on a claim settlement amount? - ✔✔Appraisal
✔✔Uninsured motorists coverage defines an uninsured motor vehicle as all of the
following EXCEPT: - ✔✔Has liability coverage but not enough to pay the full amount of
the loss.
, ✔✔Under the physical damage portion of a personal auto policy, coverage for
transportation expenses behind joe long after the theft of a covered auto? - ✔✔48 hours
✔✔Which of the following losses is covered under the Physical Damage coverage of a
Personal Auto Policy? - ✔✔Damage to a CD player installed in the dash of the auto
✔✔Under a personal auto policy, all of the following would be an insured for liability
coverage EXCEPT - ✔✔An employee of the named insured while transporting
passengers for a fee
✔✔If an insured is required to attend a hearing or trial related to a covered accident, the
personal auto policy provides supplementary payments for loss of earnings of: -
✔✔$200 a day
✔✔Under a personal auto policy, which of the following is NOT a collision loss? -
✔✔Impact between the coveted auto and a deer
✔✔While driving to work one day, Roy was hit by a car that ran a stop sign. Roy's
medical bills were $40,000 as a result of the accident. The other driver, who was at
fault, carries the state's required limit of $25,000. Roy carries $100,000 of underinsured
motorist coverage. How will Roy's medical bills be paid? - ✔✔The other driver's insurer
will pay $25,000; Roy's underinsured motorist coverage will pay $15,000
✔✔Which of the following would be covered under the personal auto policy liability
coverage? - ✔✔John looks away from the road for a few seconds and accidentally
strikes a pedestrian
✔✔Which of the following losses would be covered under a Part A liability Coverage of
a personal auto policy? - ✔✔Bodily injury arising out of the use of a rented golf cart
✔✔When automobile limits of liability are expressed as 15/30/10, this describes what
type of coverage? - ✔✔$15,000 bodily injury for each person, $30,000 bodily injury
each accident, $10,000 property damage each accident
✔✔The minimum auto bodily injury liability limits for a particular state are 20/40. Janie is
driving with the minimum limits of 20/40. She causes an accident with John in which he
suffers bodily injury in the amount of $120,000. John has non-stacked underinsured
motorists limits of 100/300. How much will his policy toward his injuries? - ✔✔$80,000
✔✔Of the following vehicles, which is considered a temporary substitute auto under a
personal auto policy? - ✔✔An auto rented by an insured after the insurers left his car at
a garage for repairs
