©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM
Louisiana Personal Lines Insurance Exam
Practice Questions and Answers (100% Pass)
Driver A has a personal auto policy with Part C: UM/UIM limits of
100/300. He is injured by Driver B who has Part A: Bodily Injury Liability
limits of 50/100. It is determined that Driver B is at fault for the accident.
Driver A has $125,000 in medical expenses. How much will his Part C:
UM/UIM coverage pay?
a) $125,000
b) $75,000
c) $50,000
d) $25,000 - Answer✔️✔️-c) $50,000
Underinsured motorist coverage acts as excess over the at-fault motorist's
coverage. It will pay the difference between the insured's UIM limits and
the at-fault driver's bodily injury limits (in this scenario, $100,000 of the
insured's coverage minus $50,000 of the other driver's). Because of the per
person limits of Driver A's underinsured motorist coverage, the policy will
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pay the amount necessary to bring payment up to the per person limit. The
policy will not pay more than the limits of liability.
Because an insured owns a lot of expensive jewelry, her insurance agent
has advised her to purchase a scheduled personal property endorsement. If
the insured adds this endorsement to her homeowners policy, which of the
following statements would be correct?
a) The endorsement becomes primary coverage and the HO contract is
secondary.
b) Coverage C limits will no longer apply to the jewelry insured by the
endorsement.
c) The amount of coverage will be doubled.
d) The endorsement becomes excess coverage. - Answer✔️✔️-b) Coverage C
limits will no longer apply to the jewelry insured by the endorsement.
When items are scheduled, they are excluded from Coverage C as insured
items, and are covered only under the scheduled personal property
endorsement.
Which of the following statements is NOT true regarding a personal
umbrella liability policy?
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a) It provides excess liability coverage over underlying personal liability.
b) It provides errors and omissions coverage for an agency.
c) It may cover certain exposures not provided under the primary layer.
d) It may require the payment of a self-insured retention. - Answer✔️✔️-b) It
provides errors and omissions coverage for an agency.
Personal umbrella policies cover the personal exposure of the insured.
Errors and omissions coverage is provided only in a professional liability
policy.
A mortgage company is named as a loss payee on the insured's
homeowners policy, under the standard mortgage clause. If the insured
suffers a loss due to a fire, which of the following is true?
a) The entire loss is payable to the insured.
b) The loss is payable to the insured and the mortgagee.
c) The mortgagee should submit a claim to its insurer, and the insured
should submit a claim to the HO policy.
d) The entire loss is payable to the mortgagee. - Answer✔️✔️-b) The loss is
payable to the insured and the mortgagee.
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Loss is payable to the insured and mortgagee to protect the mortgage
company's interest. This prevents the insured from cashing the check and
not completing repairs.
In a personal auto policy, the medical payments coverage is similar to
a) Accident insurance, because it pays medical expenses regardless of fault.
b) Accident insurance, because it has the same limits.
c) Bodily injury coverage, because it pays the insured's doctor bills.
d) Bodily injury coverage, because it provides legal protection if the
insured causes injuries to others. - Answer✔️✔️-a) Accident insurance,
because it pays medical expenses regardless of fault.
Medical payments will pay for accidental bodily injury of an insured,
regardless of fault or auto. It will pay medical expenses of others occupying
the insured auto.
All of the following are true of Coverage B - Other Structures EXCEPT
a) It must be added by endorsement to a homeowners policy.
b) This coverage is not applicable on the HO-4 policy form.
c) The amount of coverage provided by Coverage B is an amount equal to
10% of Coverage A.
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Louisiana Personal Lines Insurance Exam
Practice Questions and Answers (100% Pass)
Driver A has a personal auto policy with Part C: UM/UIM limits of
100/300. He is injured by Driver B who has Part A: Bodily Injury Liability
limits of 50/100. It is determined that Driver B is at fault for the accident.
Driver A has $125,000 in medical expenses. How much will his Part C:
UM/UIM coverage pay?
a) $125,000
b) $75,000
c) $50,000
d) $25,000 - Answer✔️✔️-c) $50,000
Underinsured motorist coverage acts as excess over the at-fault motorist's
coverage. It will pay the difference between the insured's UIM limits and
the at-fault driver's bodily injury limits (in this scenario, $100,000 of the
insured's coverage minus $50,000 of the other driver's). Because of the per
person limits of Driver A's underinsured motorist coverage, the policy will
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,©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM
pay the amount necessary to bring payment up to the per person limit. The
policy will not pay more than the limits of liability.
Because an insured owns a lot of expensive jewelry, her insurance agent
has advised her to purchase a scheduled personal property endorsement. If
the insured adds this endorsement to her homeowners policy, which of the
following statements would be correct?
a) The endorsement becomes primary coverage and the HO contract is
secondary.
b) Coverage C limits will no longer apply to the jewelry insured by the
endorsement.
c) The amount of coverage will be doubled.
d) The endorsement becomes excess coverage. - Answer✔️✔️-b) Coverage C
limits will no longer apply to the jewelry insured by the endorsement.
When items are scheduled, they are excluded from Coverage C as insured
items, and are covered only under the scheduled personal property
endorsement.
Which of the following statements is NOT true regarding a personal
umbrella liability policy?
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,©SOPHIABENNETT@2024-2025 Monday, August 19, 2024 12:35 AM
a) It provides excess liability coverage over underlying personal liability.
b) It provides errors and omissions coverage for an agency.
c) It may cover certain exposures not provided under the primary layer.
d) It may require the payment of a self-insured retention. - Answer✔️✔️-b) It
provides errors and omissions coverage for an agency.
Personal umbrella policies cover the personal exposure of the insured.
Errors and omissions coverage is provided only in a professional liability
policy.
A mortgage company is named as a loss payee on the insured's
homeowners policy, under the standard mortgage clause. If the insured
suffers a loss due to a fire, which of the following is true?
a) The entire loss is payable to the insured.
b) The loss is payable to the insured and the mortgagee.
c) The mortgagee should submit a claim to its insurer, and the insured
should submit a claim to the HO policy.
d) The entire loss is payable to the mortgagee. - Answer✔️✔️-b) The loss is
payable to the insured and the mortgagee.
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Loss is payable to the insured and mortgagee to protect the mortgage
company's interest. This prevents the insured from cashing the check and
not completing repairs.
In a personal auto policy, the medical payments coverage is similar to
a) Accident insurance, because it pays medical expenses regardless of fault.
b) Accident insurance, because it has the same limits.
c) Bodily injury coverage, because it pays the insured's doctor bills.
d) Bodily injury coverage, because it provides legal protection if the
insured causes injuries to others. - Answer✔️✔️-a) Accident insurance,
because it pays medical expenses regardless of fault.
Medical payments will pay for accidental bodily injury of an insured,
regardless of fault or auto. It will pay medical expenses of others occupying
the insured auto.
All of the following are true of Coverage B - Other Structures EXCEPT
a) It must be added by endorsement to a homeowners policy.
b) This coverage is not applicable on the HO-4 policy form.
c) The amount of coverage provided by Coverage B is an amount equal to
10% of Coverage A.
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