Personal Lines Insurance Exam
Questions with Correct Answers
Pass the Exam, 100% Verified
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Aleatory Contract - 🧠 ANSWER ✔✔The exchange of value is unequal.
Insured's premium payment if less than the potential benefit to be received
in the event of a loss. The insurer's payment in the event of a loss may be
much greater, or much less, than the insured's premium payment.
Valued Contract - 🧠 ANSWER ✔✔A contract that pays a stated amount in
the event of a loss. Most policies are NOT valued contracts.
, Indemnity Contract - 🧠 ANSWER ✔✔An agreement to pay on behalf of
another party under specified circumstances, such as when a loss occurs.
Applicant - 🧠 ANSWER ✔✔The party submitting an application for
insurance.
Application - 🧠 ANSWER ✔✔A document submitted by an applicant to an
insurer that provides information needed for the insurer to underwrite a risk;
becomes part of the insurance contract. Most applications require
statements on the application to be true to the best knowledge and belief of
the applicant.
Endorsement - 🧠 ANSWER ✔✔A policy form that alters or adds to the
provisions of a property and casualty insurance contract.
Personal Contract - 🧠 ANSWER ✔✔Owner cannot transfer or assign
ownership of an insurance policy (property and casualty) to another person
Non-Personal Contract - 🧠 ANSWER ✔✔Owner may transfer or assign
ownership of a life or health insurance policy to another person.
Questions with Correct Answers
Pass the Exam, 100% Verified
() Graded A+
Aleatory Contract - 🧠 ANSWER ✔✔The exchange of value is unequal.
Insured's premium payment if less than the potential benefit to be received
in the event of a loss. The insurer's payment in the event of a loss may be
much greater, or much less, than the insured's premium payment.
Valued Contract - 🧠 ANSWER ✔✔A contract that pays a stated amount in
the event of a loss. Most policies are NOT valued contracts.
, Indemnity Contract - 🧠 ANSWER ✔✔An agreement to pay on behalf of
another party under specified circumstances, such as when a loss occurs.
Applicant - 🧠 ANSWER ✔✔The party submitting an application for
insurance.
Application - 🧠 ANSWER ✔✔A document submitted by an applicant to an
insurer that provides information needed for the insurer to underwrite a risk;
becomes part of the insurance contract. Most applications require
statements on the application to be true to the best knowledge and belief of
the applicant.
Endorsement - 🧠 ANSWER ✔✔A policy form that alters or adds to the
provisions of a property and casualty insurance contract.
Personal Contract - 🧠 ANSWER ✔✔Owner cannot transfer or assign
ownership of an insurance policy (property and casualty) to another person
Non-Personal Contract - 🧠 ANSWER ✔✔Owner may transfer or assign
ownership of a life or health insurance policy to another person.
