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Personal Lines Practice Exam 2 Questions And Answers With Verified Solutions Already Passed!!!
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Personal Lines Practice Exam 2 Questions And Answers With Verified Solutions Already Passed!!!
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Personal Lines Practice Exam 2Questions And Answers With Verified
Solutions Already Passed!!!
Which of the following would be considered covered auto on your personal auto
policy?
A- Your pickup truck used for deliveries of your retail business
B-Your farm tractor
C-Your farm wagon being towed by your tractor
D-Your farm wagon being towed by your pick up truck - ANSWERS✔✔D-Your
farm wagon being towed by your pick up truck
During the 120-day period after receiving notice of cancelling of an agency
contract, the agency can continue to perform which of the following transactions?
A-Appoint agent
B-Bind coverage
C-Write new business
D-Perform routine adjustments of losses - ANSWERS✔✔D-Perform routine
adjustments of losses
Which of the following would be an example of an insurer participating in the
unfair trade practice of discrimination?
A-Charging the insured higher premiums based on her race
B-Making malicious statements about the insured based on his race
C-Charging different premium rates to the insureds in different insuring classes
D-Charging the insured higher premiums based on life expectancy -
ANSWERS✔✔A-Charging the insured higher premiums based on her race
,To be valid, an insurance policy must have all of the following EXCEPT?
A-Acceptance
B-Consideration
C-Offer
D-Countersignature - ANSWERS✔✔D-Countersignature
For an insurance contract, the principle of utmost good faith means?
A-The contract involves only the policyowner and the insurer
B-Each party is equally responsible for the value of the policy
C-The policyowner will be indemnified in case of loss
D-Each party relies upon the truthfulness of the other - ANSWERS✔✔D-Each
party relies upon the truthfulness of the other
After a covered loss on a homeowners policy, the insured must do all of the
following EXCEPT?
A-Allow the insurer to inspect the property as often as reasonably necessary
B-If requested, submit to an examination under oath
C-Prepare an inventory of damaged and undamaged property, including bills,
receipts, and related documentation
D-Abandon the property involved to the insurer - ANSWERS✔✔D-Abandon the
property involved to the insurer
In order to get a nonresident license in this state, a licensed producer from another
state must
A-Apply for a nonresident license and pay a fee
B-Pass the nonresident state exam
C-Represent an agency located in this state
, D-Surrender his or her license in the state of residence - ANSWERS✔✔A-Apply
for a nonresident license and pay a fee
Which of the following is NOT an indicator of a competent party?
A-Comprehension of contract
B-Business profession
C-Legal Age
D-Mental proficiency - ANSWERS✔✔B-Business profession
In a DP-1, if the insured elects to apply Coverage B to a detached garage,
Coverage A will?
A-Only be applicable if the insured pays a higher deductible
B-Only be applicable if the insured pays an additional premium
C-Be increased by 10%
D-Be reduced by 10% - ANSWERS✔✔D-Be reduced by 10%
An insured has decided to never drive another vehicle and wants to transfer his
auto insurance policy to his wife. What does the insured need to transfer the
policy?
A-The written consent of the insurer
B-An auto policy cannot be transferred
C-Nothing, because the wife is automatically included as an insured
D-The written consent of all other insureds covered by the policy -
ANSWERS✔✔A-The written consent of the insurer
Which method of dealing with risk is applied when insurance is purchased?
A-Transfer
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