Personal Lines FINAL EXAM
questions with 100% correct
answers with
Rationales(GUARANTEED
SUCCESSS)
What part of the policy lists the rules, duties, and
obligations of the insured and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions - answer C) Conditions
The directive that states the violation committed and
requires an agent to stop the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order - answer D) cease and desist
order
,Extended Coverage (EC) include all of the following perils,
EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - answer D) vandalism
A device which is used to minimize small nuisance claims,
lower insurance premiums, and reduce morale hazards is
called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - answer Deductible
All of the following perils are covered, in a PERSONAL
ARTICLES FLOATER (PAF), EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - answer A) Inherent vice
,The policyholder has a liability of $300,000 and caused
an accident injuring one person in the amount of
$250,000 and another person in the amount of $150,000.
What limit of coverage applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000 - answer B) $300,000
Eligible vehicles are described in the Personal Auto Policy.
Which of the following vehicles is NOT eligible?
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries - answer D) a truck
used to make deliveries
What is the deductible in an UNINSURED MOTORIST
CLAIM?
A) $100
B) $200
C) $250
D) $500 - answer B) $200
, In order for an insurer to meet their obligation to an
insured, "insurable interest" must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss -
answer A) At the time the loss occurs
A customer's response to a question to the best of their
knowledge or belief is called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation - answer D) Representation
In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy - answer D) Not
available on an auto policy
The purpose of the FAIR plan is to:
questions with 100% correct
answers with
Rationales(GUARANTEED
SUCCESSS)
What part of the policy lists the rules, duties, and
obligations of the insured and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions - answer C) Conditions
The directive that states the violation committed and
requires an agent to stop the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order - answer D) cease and desist
order
,Extended Coverage (EC) include all of the following perils,
EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - answer D) vandalism
A device which is used to minimize small nuisance claims,
lower insurance premiums, and reduce morale hazards is
called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - answer Deductible
All of the following perils are covered, in a PERSONAL
ARTICLES FLOATER (PAF), EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - answer A) Inherent vice
,The policyholder has a liability of $300,000 and caused
an accident injuring one person in the amount of
$250,000 and another person in the amount of $150,000.
What limit of coverage applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000 - answer B) $300,000
Eligible vehicles are described in the Personal Auto Policy.
Which of the following vehicles is NOT eligible?
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries - answer D) a truck
used to make deliveries
What is the deductible in an UNINSURED MOTORIST
CLAIM?
A) $100
B) $200
C) $250
D) $500 - answer B) $200
, In order for an insurer to meet their obligation to an
insured, "insurable interest" must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss -
answer A) At the time the loss occurs
A customer's response to a question to the best of their
knowledge or belief is called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation - answer D) Representation
In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy - answer D) Not
available on an auto policy
The purpose of the FAIR plan is to:
