Personal Lines Comprehensive Exam: A.D. Banker UPDATED
ACTUAL Questions and CORRECT Answers
For a claim to be paid, insurable interest for a property or loss
casualty contract must exist at the time of:
If the insured doesn't agree with the insurer's decision arbitration
regarding a claim, this process helps decide the outcome
Continuous exposure to the same harmful conditions occurrence
A policyholder has 2 policies that provide coverage for a primary policy
covered loss.
Policy A responds before Policy B, which only provides
coverage if the loss exhausts Policy A's limit.
Policy A is the:
Part of a property policy that gives basic info (named declarations
insured, description and location of the property, and the
amount of premium involved)
All of these statements regarding the structure of a A. Additional Coverages are added to the policy for an additional premium
property policy are correct, except:
A. Additional Coverages are added to the policy for an
additional premium
B. The insured's duties and obligations are listed in the
Conditions section
C. The Insuring Agreement describes the perils that are
covered under the policy
D. The Declarations page lists other parties that have an
insurable interest in the property
All of the following statements about binders are correct, A. A binder must be written in order to be valid
except:
A. A binder must be written in order to be valid.
B. Binders list the policy's insurer and insureds
C. A binder will be terminated when the full insurance
policy is issued
D. Binder offer temporary coverage
Statements that are believed to be true to the best of the representations
applicant's knowledge and belief
The person specifically designated in the policy as the named insured
person with whom the contract of insurance has been
made
, May broaden the coverage found in an insurance policy endorsements
Describes the situation when 2 policies covering the non-currency
same property contain different policy periods
If an insurance company makes a promise to fulfill an unilateral
obligation by paying a future covered claim, the contract
is:
Type of contract where both parties must perform conditional contract
certain duties in order to make the contract enforceable
The insurer's promise to pay a covered loss and the consideration
insured's payment of the first premium are examples of:
Method where primary policies from different insurers contribution by equal shares
apply to the same covered loss, and the insurers agree to
pay = amounts until policy limits are exhausted
Refers to when claims are only paid out in proportion to pro rata
the insurance interest in the asset
Policy condition that gives the insurer the right to take right of salvage
possession of damaged property after paying the loss
Which of the following best describes a direct loss? D. Water damage resulting from a burst pipe
A. Loss of rental income from a dwelling following a fire
loss
B. Transportation expenses after a personal auto loss
C. Increased living expenses following a fire loss
D. Water damage resulting from a burst pipe
Stipulates that coverage will not benefit a party that is no benefit to bailee
holding, storing, or moving insured property for a fee
An insured owns a home with a replacement cost of the policy limit
$300,000 and a market value of $250,000. What is the
most a valued policy will pay in the event of a total loss
without a deductible?
When filing a property insurance claim, the insured is D. Hire an appraiser
required to do all of the following, except:
A. Submit to an examination under oath at the insurer's
request
B. Protect property from further damage
C. Give notice of loss as soon as possible
D. Hire an appraiser
ACTUAL Questions and CORRECT Answers
For a claim to be paid, insurable interest for a property or loss
casualty contract must exist at the time of:
If the insured doesn't agree with the insurer's decision arbitration
regarding a claim, this process helps decide the outcome
Continuous exposure to the same harmful conditions occurrence
A policyholder has 2 policies that provide coverage for a primary policy
covered loss.
Policy A responds before Policy B, which only provides
coverage if the loss exhausts Policy A's limit.
Policy A is the:
Part of a property policy that gives basic info (named declarations
insured, description and location of the property, and the
amount of premium involved)
All of these statements regarding the structure of a A. Additional Coverages are added to the policy for an additional premium
property policy are correct, except:
A. Additional Coverages are added to the policy for an
additional premium
B. The insured's duties and obligations are listed in the
Conditions section
C. The Insuring Agreement describes the perils that are
covered under the policy
D. The Declarations page lists other parties that have an
insurable interest in the property
All of the following statements about binders are correct, A. A binder must be written in order to be valid
except:
A. A binder must be written in order to be valid.
B. Binders list the policy's insurer and insureds
C. A binder will be terminated when the full insurance
policy is issued
D. Binder offer temporary coverage
Statements that are believed to be true to the best of the representations
applicant's knowledge and belief
The person specifically designated in the policy as the named insured
person with whom the contract of insurance has been
made
, May broaden the coverage found in an insurance policy endorsements
Describes the situation when 2 policies covering the non-currency
same property contain different policy periods
If an insurance company makes a promise to fulfill an unilateral
obligation by paying a future covered claim, the contract
is:
Type of contract where both parties must perform conditional contract
certain duties in order to make the contract enforceable
The insurer's promise to pay a covered loss and the consideration
insured's payment of the first premium are examples of:
Method where primary policies from different insurers contribution by equal shares
apply to the same covered loss, and the insurers agree to
pay = amounts until policy limits are exhausted
Refers to when claims are only paid out in proportion to pro rata
the insurance interest in the asset
Policy condition that gives the insurer the right to take right of salvage
possession of damaged property after paying the loss
Which of the following best describes a direct loss? D. Water damage resulting from a burst pipe
A. Loss of rental income from a dwelling following a fire
loss
B. Transportation expenses after a personal auto loss
C. Increased living expenses following a fire loss
D. Water damage resulting from a burst pipe
Stipulates that coverage will not benefit a party that is no benefit to bailee
holding, storing, or moving insured property for a fee
An insured owns a home with a replacement cost of the policy limit
$300,000 and a market value of $250,000. What is the
most a valued policy will pay in the event of a total loss
without a deductible?
When filing a property insurance claim, the insured is D. Hire an appraiser
required to do all of the following, except:
A. Submit to an examination under oath at the insurer's
request
B. Protect property from further damage
C. Give notice of loss as soon as possible
D. Hire an appraiser
