Download Personal Lines Exam Questions And 100% Correct Answers Latest Update 2025 and more Exams Advanced Education in PDF only on Docsity!
Personal Lines Exam Questions And 100% Correct
Answers Latest Update 2025
Since Kenny and Laura's new home is mortgaged, what would need to appear on thedeclarations page? - Answer C The mortgagee's name and address
Which section of a homeowners insurance policy serves to identify and personalize thecontract? - Answer Declarations
The following are responsibilities of the insurer that would be located in the conditionsof a homeowner's property policy except - Answer notify the insured in the case of a financial hardship What is the basic limit under coverage F medical payments to others on in HO policy? -Answer A $500 Per person
B $1,000 Per person C $5,000 Per person****************** D $10,000 Per person Nestor's living room flooded due to a burst pipe. Nestor's has a homeowners policy thatcovers personal property. Which of the following would not be covered under the contents provisions of Nester's policy? A) Damages resulting from the interruption ofutilities B) Damage to the building while being repaired C) Theft of backup disks stored off the premises D) Damage done to the floors and walls A) Accrued interest Whichinterest is awarded to an insured by a court for damages under the part a liability coverage of a personal auto policy? A) Accrued interest B) Court judgments against theinsured C) Legal interest D) Underinsured motorist interest
B savings interest C prejudgment interest*************** D deffered interestBART lives near a nuclear power plant. There is a terrible accident, and a reactor explodes, causing a great deal of damage to surrounding homes including parts.Regarding medical coverage is provided by section 2, coverages E and F, which of the following is true? - Answer A this incident would be covered for 100% of the medicalcost
B this incident would not be covered**************** C this incident not be covered up to $20, D this incident would be covered up to $50, Which of the following is a covered peril under a homeowners policy if it is caused Thecollapse of a building? - Answer A Hidden Decay**************
B shrinking of clay bases C settling of the foundation D cracking of exterior walls Which of the following parts of a policy is preceded by a statement that describes whatan insurance company will do in return for paying premiums as set forth in the policy? -Answer agreement
If an auto policy limits are expressed as 20/50/10, a maximum of $50,000 would beattribute it to - Answer Bodily injury for the entire accident
Because an insured has a substantial amount of jewelry that is very valuable, herinsurance agent has recommended that it be covered on a schedule personal property endorsement. If the insured added the endorsement to her homeowners policy, which ofthe following would be CORRECT? - Answer It becomes excess coverage*****************
No coverage then exists under the HO contract, coverage C, on the specificallyscheduled items of the insured
The coverage is doubled It becomes primary coverage, and the HO contract is secondary Jimmy has a dwelling policy for his rented house and stores personal watercraft in thegarage. One evening while he was attending a workshop, someone broke into the garage and damaged the personal watercraft. What coverage will Jimmy have on hisdwelling policy for this damage? - Answer Coverage will be limited to $500 on a dwelling policy And unlimited level of coverage for the watercraft, subject to replacement cost The same $1500 watercraft coverage provided on a standard HO policy
There will be no coverage for this loss provided on a dwelling policy form Max has a DP-00-03 policy on his bachelors pad. He recently had a break-in where manythings were stolen. What coverage will max have under cover c of the DP3 policy? - Answer He will be covered for damage done by that believes but not the actual theft ofpersonal property that they stole
He will be covered for both the personal property stolen and the damages caused to hisapartment by thieves.********
He will be covered for the stolen property, but not the damaged one He will not be covered for the property stolen or the damages because the DP threeexcludes this type of loss
The limit of insurance for coverage de loss of use is based on the - Answer The amountof coverage on the dwelling
Which of the following perils is not covered under coverage C of a HO policy - AnswerWar
Peter and his family were forced to move out of their house following a fire. They havebeen living in a motel room and eating meals at restaurants near the motel. What type of HO coverage pays for these expenses that Peter and his family are in case you're Peterand his family were forced to move out of their house following a fire. They have been living in a motel room and eating meals at restaurants near the motel. What type ofHecho coverage pays for these expenses that Peter and his family are inccuring? - Answer Coverage de loss of use The principle of negligence is defined as - Answer The failure to use the care that areasonable person would have taken under the similar circumstances
The property policy condition that automatically provides broader coverage when an
Standard fire policies cover the peril of lightning****************** Under what legal defense does one have a % of damages assigned to negligence basedupon the degree of fault of each party involved in an accident? - Answer Comparative negligence*********** Absolute liability Contributory negligence Intervening cause Thomas has been in dispute with his insurer over a claim that he submitted and forwhich the insured made a settlement offer that Thomas rejected. Thomas wants to sue the insurer for breach of contract and loss of use, but what must occur before Thomascan bring such an action? - Solution The insurance company and Thomas Thomas agree in writing that Thomas has paid any duty imposed under the policy There are no special restrictions upon a private party bringing a lawsuit against anycompany that provides services for a fee
The claim shall be settled through arbitration by the insurer. Thomas shall reimburse all costs incurred so far by the insured in the settlement. Nathan was the victim of a hit and run accident. What action is Nathan take to ensurethat the insured will except the claim? - Answer Notify the police immediately and to the best of his ability give a detailed description of the vehicle involved and thecircumstances leading up to the collision
Under section B medical payments coverage which of the following would not beconsidered an insured? - Answer A pedestrian struck by the policy owner's vehicle
Which of the following is considered apparel under party physical damage? - AnswerFreezing
Vandalism War Nuclear hazard Which of the following people would not use an H04 policy? - Answer Doug just boughthis first house
Maurice caused a traffic accident, injuring Bernie. At the time, Maurice had allowed hisinsurance to lapse because he had just lost his job. Bernie was faced with his medical bills and the cost to fix his car oh to him. What Kimberly expect when he notifies hisinsurance? - Answer Full payment for damage to his vehicle only
Definitely nothing Payment for his injuries and his vehicle, subject to parts he limits of his policy The insurer will pay for the bodily injury portion of Bernie's claim subject to his personlimit in parts of his policy
Which of the following is not an example of a motor vehicle for which an insuredhomeowner would be covered for liability is resulting from its use? - Answer A 4 wheel
lapse in 20 days. Which of the following is not a reason an insurer could cancel for? -Answer He gave a false impression of his true driving record to the agent at the time he applied for the policy He failed to pay his vehicle parking in moving violation fines on time He failed to pay his premium on time He had his drivers license suspended for reckless driving By definition and uninsured motor vehicle includes all the following except - Answer Thevehicle has no liability bond or insurance in force
A vehicle being used by a government agency The accident was a hit and run The insurance company denies coverage And insured dies in an automobile accident. Which of the following coverage parts willpay for funeral expenses resulting from the insured's death? - Answer Medical payments part B If an insured up change other insurance for a personal automobile through a lower costensure, what will happen to the coverage provided by the previous insured? - Answer The similar coverage under the old policy will automatically terminate on the date thatthe new policy becomes effective
The coverage from the new insured will supersede the old policy regardless of the timein which book policies are in effect
The insurance company will offer the insured the opportunity to extend the coverage tothe next renewal date of the policy, thus providing him with the duplicate coverage in the event of an accident. The coverage will continue until the premiums previously paid are used up and will lapseat that time.
Janet has applied for coverage under an assigned risk plan. Knowing nothing aboutJanet other than this fact, what can you conclude about her driving history? - Answer He has an excellent driving record She may be a new driver or may have a poor driving history Has no drivers license Income is poverty level To arbitrators, selected by both the insured and insurer, disagree on the selection of athird arbitrator. After 30 days, who may the two arbitrators consult to appoint the third?
- Answer A third-party insurance company And adjuster The department of insurance A judge And insured is driving on the freeway when another car suddenly merges lanes causingan accident. The at fault driver speed off. The at fault driver would be considered an - Answer Uninsured motorist
