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2024 PERSONAL LINES FINAL EXAM WITH CORRECT ANSWERS
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2024 PERSONAL LINES FINAL EXAM WITH CORRECT ANSWERS
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2024 PERSONAL LINES FINALEXAM WITH CORRECT ANSWERS
The definition of Risk is:
A. Uncertainty regarding loss
B. A chance of gain
C. Uncertainty regarding gain or profit
D. Intended unforseen damage to property for gain or profit - CORRECT
ANSWERS-A. Uncertainty regarding loss
How soon does flood insurance take effect?
A. 30 days
B. 31 days
C. 60 days
D. Immediately - CORRECT ANSWERS-A. 30 days
An agent who misrepresents a policy to convince an insured to replace an
existing policy is an example of:
A. Rebating
B. Coercion
C. Fraud
D. Twisting - CORRECT ANSWERS-D. Twisting
An insurer owned by its policyholders who share profits in the form of
dvidends, best describes:
A. A stock company
B. A domestic company
C. A mutual company
D. An authorized company - CORRECT ANSWERS-C. A mutual company
Statements made in the application are considered:
A. Warranties
B. Representations
C. Possible Concealments
D. None of the Above - CORRECT ANSWERS-B. Representations
,Notice of nonrenewable must be provided by an auto insurer within how may
days of the effective date:
A. Ten
B. Twenty
C. Thirty
D. Sixty - CORRECT ANSWERS-C. Thirty
What does the liberalization clause do?
A. Limits coverage
B. Expands coverage
C. Excludes certain coverages
D. Makes you vote Republican - CORRECT ANSWERS-B. Expands coverage
Which of the following may be purchased by an insured to protect his
property from destruction or damage as a result of the collapse of
underground coal mines?
A. Mine sibsidization
B. Earthquake insurance
C. Federal collapse insurance
D. Mine Subsidence insurance - CORRECT ANSWERS-D. Mine subsidence
insurance
Yacht policies do not provide coverage for:
A. Worker's compensation
B. Hull damage
C. Tender and life boat
D. Factory installed equipment - CORRECT ANSWERS-A. Worker's
compensation
John has shingles delivered in his back yard to roof his home. A tornado
blows them away. Which coverage under homeowners would pay for the
shingles?
A. Coverage A
B. Coverage B
C. Coverage C
D. Shingles are not covered - CORRECT ANSWERS-A. Coverage A
A financial device for transferring or shifting risk from an individual or entity
to a large group with the same risk is the definition of:
, A. Avoidance
B. Retention
C. Transfer
D. Insurance - CORRECT ANSWERS-D. Insurance
Hazards include which of the following:
1. Unintended oily rags stacked in a corner
2. A homeowner's carelessness because he has insurance
A. 1 only
B. 2 only
C. Both 1 & 2
D. Neither 1 or 2 - CORRECT ANSWERS-C. Both 1 & 2
The mortgage condition in a property policy:
1. Guarantees that the lending institutions may act for itself in paying a
premium
2. Guarantees claim payments will be divided as the interests of the
insurance and mortgagee appear
A. 1 only
B. 2 only
C. Both 1 & 2
D. Neither 1 nor 2 - CORRECT ANSWERS-C. Both 1 & 2
Which of the following situations does NOT create an insurable interest?
A. Being named in someone's will as an heir
B. Holding a mortgage or lien on property
C. Having custody or control of someone else's property
D. Owning property - CORRECT ANSWERS-A. Being named in someone's will
as an heir
The plumbing in Mrs. Ward's home suddenly burst and the ceilings were
damaged by water. Which of the following homeowner forms would cover the
loss?
A. HO1
B. HO2
C. HO4
D. HO7` - CORRECT ANSWERS-B. HO2
Nicole has a Personal Auto policy with limits of 10/20/10 for liability
coverage. She causes an accident that results in $12,000 bodily injury
damages to the other driver and $5,000 in property damage to the other
driver's car. How much would Nicole's policy pay for the the BI and PD
losses?
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