CISR PERSONAL LINES MISCELLANEOUS EXAM ACTUAL
EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |AGRADE
Which of the following would be eligible under a dwelling policy?
A-Four-dwelling unit with 6 boarders
B-Rental house occupied by tenant
C-3 acre farm
D-A motor home - ANSWER: B-Rental house occupied by tenant
Rates that cannot be used until the Department or Division of Insurance approves
them are referred to as:A-Use and file rates
B-File and use rates
C-Open competition rates D-Prior approval rate - ANSWER: D-Prior approval rate
Which is true regarding Dwelling policies?
A-Coverage C includes coverage for personal property of tenants and boarders
B-Coverage B would cover an attached garage
C-Coverage D is considered a direct loss coverage
D-Coverage C applies while insured property is located at the described location -
ANSWER: D-Coverage C applies while insured property is located at the described
location
When applying for Homeowners insurance, Mr. Applebee tells his agent that the
home is used strictly as a residence. Actually, he manufactures fireworks in the
basement at the home. What will happen if the insurance company discovers Mr.
Applebee's misrepresentation after the policy is issued?
A-It will void the policy because Mr. Applebee misrepresented a material fact
B-Nothing, because the agent should have been more thorough in completing the
application
C-None of the answers listed
D-Nothing, because the policy is considered a non-cancelable type policy - ANSWER:
A-It will void the policy because Mr. Applebee misrepresented a material fact
Which of the following is not true about medical payments under the Personal Auto
Policy?
A-The coverage limit applies per person, per accident
B-Coverage applies only for medical expenses incurred within one year of the
accident
C-Medical expenses of the insured and family members are covered
D-Medical expenses of all persons occupying the insured auto are covered -
ANSWER: B-Coverage applies only for medical expenses incurred within one year of
the accident
Which of the following is true regarding coverage of trees, shrubs or plants under
the Dwelling policies?
,A-Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
B-Theft of shrubs and plants is covered
C-All vehicle damage to trees, shrubs, or plants is covered
D-The Limit of Liability is $1,000 for any tree, shrub, or plant - ANSWER: A-Damage to
plants by wind, hail, weight of ice, snow or sleet is not covered
Choose the statement that is false about the FAIR plan.
A-It provides basic property coverage to those who have been rejected in the
standard market
B-Agents cannot bind FAIR plan coverage
C-It provides property coverage to both residential and farm dwellings
D-FAIR means Fair Access to Insurance Requirements - ANSWER: C-It provides
property coverage to both residential and farm dwellings
Policyholder M insures her owner-occupied single family residence under a dwelling
property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire,
what policy coverage will pay for M's extra costs to stay in a motel and board her
pets while the fire damage is being repaired?
A-Coverage E
B-Coverage C
C-Coverage B
D-Coverage D - ANSWER: A-Coverage E
Each of the following business occupancies would be permitted in a dwelling insured
under a Dwelling form, EXCEPT:
A-A professional office providing services to clients
B-A photographic studio
C-A beauty shop run by the insured and her daughter
D-A small store selling musical instruments to the general public at retail - ANSWER:
D-A small store selling musical instruments to the general public at retail
Under the Homeowners policy, which coverage provides indirect loss coverage?
A-Coverage B
B-Coverage C
C-Coverage D
D-Coverage A - ANSWER: C-Coverage D
Choose the true statement about the Basic Dwelling Form.
A-The Basic Form covers loss to trees, shrubs and plants
B-The Basic Form covers contents on an open perils basis
C-The Basic Form automatically covers contents for theft
D-The Basic Form covers internal explosion - ANSWER: D-The Basic Form covers
internal explosion
Under a Homeowners Policy, how much coverage is provided for theft or
unauthorized use of a credit card?
A-$1,000
, B-$2,500
C-The Coverage C Limit of Insurance
D-$500 - ANSWER: D-$500
Which of the following reduces an award in proportion to the amount of negligence?
A-Comparative risk
B-Contributory risk
C-Contributory negligence
D-Comparative negligence - ANSWER: D-Comparative negligence
An insured has auto insurance with both Company A and Company B; how much will
Company B have to pay for a covered loss of $3,000 if Company A's Limit of Liability
is $100,000 and Company B's is $200,000?
A-$3,000
B-$1,000
C-$500
D-$2,000 - ANSWER: D-$2,000
Which of the following losses would be covered under the Dwelling Policy DP-1?
A-Damage caused by a backup of the sewer pipes
B-Collapse caused by insect damage
C-Fire damage to building materials on the insured premises
D-Land subsidence of the insured's land - ANSWER: C-Fire damage to building
materials on the insured premises
Which of the following has the primary responsibility of determining acceptable
risks?
A-Auditor
B-Producer
C-Adjuster
D-Underwriter - ANSWER: D-Underwriter
Choose the true statement regarding Out of State Coverage in the Personal Auto
Policy.
A-The liability limits of the policy will be the lesser of home state coverage or the
minimum liability requirement of the state in which the vehicle is being used
B-The limit of liability will be the same as the coverage provided in the home state or
the minimum liability requirements in the state where the covered auto is being
used, whichever is greater
C-The insured should be sure that the liability limits of the policy equal or exceed the
minimum limits of the compulsory insurance or financial responsibility laws of any
other state where the vehicle might travel
D-When being used in any state other than the one in which the vehicle is licensed,
the liability limits are automatically the minimum financial responsibility limits of the
state in which the vehicle is licensed - ANSWER: B-The limit of liability will be the
same as the coverage provided in the home state or the minimum liability
requirements in the state where the covered auto is being used, whichever is greater
EXAM 100 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES |AGRADE
Which of the following would be eligible under a dwelling policy?
A-Four-dwelling unit with 6 boarders
B-Rental house occupied by tenant
C-3 acre farm
D-A motor home - ANSWER: B-Rental house occupied by tenant
Rates that cannot be used until the Department or Division of Insurance approves
them are referred to as:A-Use and file rates
B-File and use rates
C-Open competition rates D-Prior approval rate - ANSWER: D-Prior approval rate
Which is true regarding Dwelling policies?
A-Coverage C includes coverage for personal property of tenants and boarders
B-Coverage B would cover an attached garage
C-Coverage D is considered a direct loss coverage
D-Coverage C applies while insured property is located at the described location -
ANSWER: D-Coverage C applies while insured property is located at the described
location
When applying for Homeowners insurance, Mr. Applebee tells his agent that the
home is used strictly as a residence. Actually, he manufactures fireworks in the
basement at the home. What will happen if the insurance company discovers Mr.
Applebee's misrepresentation after the policy is issued?
A-It will void the policy because Mr. Applebee misrepresented a material fact
B-Nothing, because the agent should have been more thorough in completing the
application
C-None of the answers listed
D-Nothing, because the policy is considered a non-cancelable type policy - ANSWER:
A-It will void the policy because Mr. Applebee misrepresented a material fact
Which of the following is not true about medical payments under the Personal Auto
Policy?
A-The coverage limit applies per person, per accident
B-Coverage applies only for medical expenses incurred within one year of the
accident
C-Medical expenses of the insured and family members are covered
D-Medical expenses of all persons occupying the insured auto are covered -
ANSWER: B-Coverage applies only for medical expenses incurred within one year of
the accident
Which of the following is true regarding coverage of trees, shrubs or plants under
the Dwelling policies?
,A-Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
B-Theft of shrubs and plants is covered
C-All vehicle damage to trees, shrubs, or plants is covered
D-The Limit of Liability is $1,000 for any tree, shrub, or plant - ANSWER: A-Damage to
plants by wind, hail, weight of ice, snow or sleet is not covered
Choose the statement that is false about the FAIR plan.
A-It provides basic property coverage to those who have been rejected in the
standard market
B-Agents cannot bind FAIR plan coverage
C-It provides property coverage to both residential and farm dwellings
D-FAIR means Fair Access to Insurance Requirements - ANSWER: C-It provides
property coverage to both residential and farm dwellings
Policyholder M insures her owner-occupied single family residence under a dwelling
property policy (DP-3) with a limit of $100,000. If the dwelling is damaged in a fire,
what policy coverage will pay for M's extra costs to stay in a motel and board her
pets while the fire damage is being repaired?
A-Coverage E
B-Coverage C
C-Coverage B
D-Coverage D - ANSWER: A-Coverage E
Each of the following business occupancies would be permitted in a dwelling insured
under a Dwelling form, EXCEPT:
A-A professional office providing services to clients
B-A photographic studio
C-A beauty shop run by the insured and her daughter
D-A small store selling musical instruments to the general public at retail - ANSWER:
D-A small store selling musical instruments to the general public at retail
Under the Homeowners policy, which coverage provides indirect loss coverage?
A-Coverage B
B-Coverage C
C-Coverage D
D-Coverage A - ANSWER: C-Coverage D
Choose the true statement about the Basic Dwelling Form.
A-The Basic Form covers loss to trees, shrubs and plants
B-The Basic Form covers contents on an open perils basis
C-The Basic Form automatically covers contents for theft
D-The Basic Form covers internal explosion - ANSWER: D-The Basic Form covers
internal explosion
Under a Homeowners Policy, how much coverage is provided for theft or
unauthorized use of a credit card?
A-$1,000
, B-$2,500
C-The Coverage C Limit of Insurance
D-$500 - ANSWER: D-$500
Which of the following reduces an award in proportion to the amount of negligence?
A-Comparative risk
B-Contributory risk
C-Contributory negligence
D-Comparative negligence - ANSWER: D-Comparative negligence
An insured has auto insurance with both Company A and Company B; how much will
Company B have to pay for a covered loss of $3,000 if Company A's Limit of Liability
is $100,000 and Company B's is $200,000?
A-$3,000
B-$1,000
C-$500
D-$2,000 - ANSWER: D-$2,000
Which of the following losses would be covered under the Dwelling Policy DP-1?
A-Damage caused by a backup of the sewer pipes
B-Collapse caused by insect damage
C-Fire damage to building materials on the insured premises
D-Land subsidence of the insured's land - ANSWER: C-Fire damage to building
materials on the insured premises
Which of the following has the primary responsibility of determining acceptable
risks?
A-Auditor
B-Producer
C-Adjuster
D-Underwriter - ANSWER: D-Underwriter
Choose the true statement regarding Out of State Coverage in the Personal Auto
Policy.
A-The liability limits of the policy will be the lesser of home state coverage or the
minimum liability requirement of the state in which the vehicle is being used
B-The limit of liability will be the same as the coverage provided in the home state or
the minimum liability requirements in the state where the covered auto is being
used, whichever is greater
C-The insured should be sure that the liability limits of the policy equal or exceed the
minimum limits of the compulsory insurance or financial responsibility laws of any
other state where the vehicle might travel
D-When being used in any state other than the one in which the vehicle is licensed,
the liability limits are automatically the minimum financial responsibility limits of the
state in which the vehicle is licensed - ANSWER: B-The limit of liability will be the
same as the coverage provided in the home state or the minimum liability
requirements in the state where the covered auto is being used, whichever is greater
