PERSONAL LINES FINAL EXAM QUESTIONS WITH 100% CORRECT ANSWERS/NEWEST UPDATE/GRADE A+ ASSURED

PERSONAL LINES FINAL EXAM QUESTIONS WITH
100% CORRECT ANSWERS/NEWEST
UPDATE/GRADE A+ ASSURED


What part of the policy lists the rules, duties, and obligations of the insured and insurer?
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A) Declarations Page
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B) Insuring Agreement
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C) conditions
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D) exclusions - ans-C) Conditions
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The directive that states the violation committed and requires an agent to stop the illegal aci
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tivity is called:cv cv cv




A) show cause order
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B) subpoena
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C) tort
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D) cease and desist order - ans-D) cease and desist order
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Extended Coverage (EC) include all of the following perils, EXCEPT:
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A) wind
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B) riot
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C) smoke
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D) vandalism - ans-D) vandalism
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A device which is used to minimize small nuisance claims, lower insurance premiums, and r
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educe morale hazards is called:
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A) arbitration
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B) deductible
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C) valued policy
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D) coinsurance - ans-Deductible
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All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF), EXCE
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PT:
A) inherent vice
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B) flood
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C) Earthquake
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D) theft - ans-A) Inherent vice
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The policyholder has a liability of $300,000 and caused an accident injuring one person in t
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he amount of $250,000 and another person in the amount of $150,000. What limit of covera
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ge applies to the loss?
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A) $150,000
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B) $300,000
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C) $250,000
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, D) $400,000 - ans-B) $300,000
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Eligible vehicles are described in the Personal Auto Policy. Which of the following vehicles i
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s NOT eligible?
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A) A newly acquired sedan
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B) an owned SUV
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C) A van used as a temporary substitute
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D) a truck used to make deliveries - ans-D) a truck used to make deliveries
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What is the deductible in an UNINSURED MOTORIST CLAIM?
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A) $100 cv




B) $200 cv




C) $250 cv




D) $500 - ans-B) $200
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In order for an insurer to meet their obligation to an insured, "insurable interest" must exist:
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A) At the time the loss occurs
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B) At the time the application is made for the insurance
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C) At the time of application or at the time of loss
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D) at the time of application and at the time of loss - ans-A) At the time the loss occurs
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A customer's response to a question to the best of their knowledge or belief is called:
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A) warranty
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B) Material fact
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C) Misrepresentation
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D) Representation - ans-D) Representation
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In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
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A) available on all auto policies
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B) Only available by endorsement
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C) Required to exclude drivers on the policy
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D) Not available on an auto policy - ans-D) Not available on an auto policy
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The purpose of the FAIR plan is to:
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A) give the federal government a major role in providing insurance
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B) Make property insurance available for high risk property owners.
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C) Require complete disclosure of the reasons for cancellations
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D) Force all insurance companies to participate in an insurance pool. - ans-
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B) make property insurance available for high risk property owners.
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Which type of watercraft is insurable on a yacht policy?
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A) bargecv




B) cruise ship
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C) sailboatcv




D) chartered fishing boat - ans-C) sailboat
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