1|Page
PERSONAL LINES INSURANCE EXAM AND PRACTICE
EXAM NEWEST 2026 TEST BANK| STATE PERSONAL
LINES INSURANCE TEST PREP WITH COMPLETE 450
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
Which one of the following dwellings would a HO-3 Homeowners Form
cover?
A) Condominium
B) Office building
C) Single-family home
D) Apartment building - Correct Answer - C) Single-family home
HO-3 Homeowners Form covers owner-occupied single family
dwellings. Condominiums are covered by the HO-6. Office and
apartment buildings would be covered by a commercial policy.
Which of the following coverages is NOT included in a
boatowners/watercraft package policy?
A) Medical payments
B) Liability
C) Longshore and harbor workers' compensation insurance
D) Property - Correct Answer - C) Longshore and harbor workers'
compensation insurance
Boatowners/watercraft package policies were developed by individual
insurance companies and they combine property, liability, and medical
payments insurance on an open peril basis. Longshore and harbor
workers' compensation insurance is found in personal yacht policies,
pg. 1
,2|Page
which are used to insure larger vessels than those covered under
boatowners policies.
An insured owns a pet lion that is caged on the homeowner's property.
The owner takes great care to warn neighbors of the possible danger by
posting signs, fencing the yard, and locking the cage at all times. When a
neighbor's child manages to open the cage and is bitten, what type of
liability would apply to the lion owner?
A) Absolute liability
B) Contractual liability
C) Premises liability
D) Vicarious liability - Correct Answer - A) Absolute liability
The law imposes strict or absolute liability for specific situations or
activities that pose threats to the safety of others. People who own
dangerous animals are held to a higher standard of care. Absolute
liability applies when a person is liable for a dangerous condition,
regardless of the amount of care taken.
Which of the following terms is used to describe an empty building that
is not being used?
A) Vacated
B) Absent
C) Unoccupied
D) Vacant - Correct Answer - D) Vacant
A building that is not currently in use and does not have enough
furnishings to function in its normal capacity is considered vacant. A
building is unoccupied if no one is currently in it, but furnishings are
present and the occupants intended to return, as is the case when the
residents are out of town on vacation.
pg. 2
,3|Page
The agent has many responsibilities to the applicant. One involves a
trust relationship between the agent and the insured regarding the
insured's finances and confidentiality. In this case, the agent acts in what
capacity?
A) Fiduciary
B) Consultant
C) Attorney-in-fact
D) Special agent - Correct Answer - A) Fiduciary
Agents have the duty to act in a fiduciary capacity that requires a high
degree of trust and confidence. This duty deals with the agent's dealings
with both the insured and the insurer. The agent is expected to be
trustworthy, act in good faith, and preserve confidential information.
Which of the following items could be insured under Coverage C of a
homeowners policy?
A) Exotic birds
B) Motorized go-kart
C) Snowmobile
D) Personal property usually located in a secondary residence - Correct
Answer - D) Personal property usually located in a secondary residence
Coverage C covers personal property under a homeowners policy.
Personal property usually located in a secondary residence may be
insured under Coverage C. In addition, the following personal property
is covered: personal property the insured owns or uses that is located
anywhere in the world; personal property of others while it is in the
portion of the residence the insured occupies; and personal property of a
guest or employee while it is located in any resident the insured
occupies. Animals and motorized vehicles are excluded.
pg. 3
, 4|Page
The insured's home is insured under an HO-3 with a $100,000 Coverage
A limit. A tornado destroys the home and uproots a tree valued at
$5,000. How much would the insurance company pay for the loss to the
insured's home and tree? Ignore any deductible that would apply.
A) $105,000
B) 95,000
C) $100,500
D) $100,000 - Correct Answer - C) $100,500
The trees, shrubs, and other plants additional coverage does not cover
damage caused by certain perils, such as wind. It covers damage caused
by fire, lightning, explosion, riot, aircraft, vehicles not owned or
operated by a resident, theft, and vandalism or malicious mischief.
Coverage is limited to 5% of the Coverage A limit and a maximum of
$500 for any one tree, shrub, or plant.
An insured has a $60,000 Special Form (DP-3). When a covered loss in
the amount of $10,000 damages the attached garage, how much of that
amount is paid under the Coverage B-Other Structures?
A) $0
B) $10,000
C) $1,000
D) $6,000 - Correct Answer - A) $0
The attached garage is considered part of the dwelling, so the $10,000 is
paid under Coverage A-Dwelling. Real property located on the described
property and separated from the dwelling by clear space is covered by
Coverage B-Other Structures.
Which of the following is NOT an eligibility requirement for a
homeowners policy?
pg. 4
PERSONAL LINES INSURANCE EXAM AND PRACTICE
EXAM NEWEST 2026 TEST BANK| STATE PERSONAL
LINES INSURANCE TEST PREP WITH COMPLETE 450
REAL EXAM QUESTIONS AND CORRECT VERIFIED
ANSWERS/ ALREADY GRADED A+ (MOST RECENT!!)
Which one of the following dwellings would a HO-3 Homeowners Form
cover?
A) Condominium
B) Office building
C) Single-family home
D) Apartment building - Correct Answer - C) Single-family home
HO-3 Homeowners Form covers owner-occupied single family
dwellings. Condominiums are covered by the HO-6. Office and
apartment buildings would be covered by a commercial policy.
Which of the following coverages is NOT included in a
boatowners/watercraft package policy?
A) Medical payments
B) Liability
C) Longshore and harbor workers' compensation insurance
D) Property - Correct Answer - C) Longshore and harbor workers'
compensation insurance
Boatowners/watercraft package policies were developed by individual
insurance companies and they combine property, liability, and medical
payments insurance on an open peril basis. Longshore and harbor
workers' compensation insurance is found in personal yacht policies,
pg. 1
,2|Page
which are used to insure larger vessels than those covered under
boatowners policies.
An insured owns a pet lion that is caged on the homeowner's property.
The owner takes great care to warn neighbors of the possible danger by
posting signs, fencing the yard, and locking the cage at all times. When a
neighbor's child manages to open the cage and is bitten, what type of
liability would apply to the lion owner?
A) Absolute liability
B) Contractual liability
C) Premises liability
D) Vicarious liability - Correct Answer - A) Absolute liability
The law imposes strict or absolute liability for specific situations or
activities that pose threats to the safety of others. People who own
dangerous animals are held to a higher standard of care. Absolute
liability applies when a person is liable for a dangerous condition,
regardless of the amount of care taken.
Which of the following terms is used to describe an empty building that
is not being used?
A) Vacated
B) Absent
C) Unoccupied
D) Vacant - Correct Answer - D) Vacant
A building that is not currently in use and does not have enough
furnishings to function in its normal capacity is considered vacant. A
building is unoccupied if no one is currently in it, but furnishings are
present and the occupants intended to return, as is the case when the
residents are out of town on vacation.
pg. 2
,3|Page
The agent has many responsibilities to the applicant. One involves a
trust relationship between the agent and the insured regarding the
insured's finances and confidentiality. In this case, the agent acts in what
capacity?
A) Fiduciary
B) Consultant
C) Attorney-in-fact
D) Special agent - Correct Answer - A) Fiduciary
Agents have the duty to act in a fiduciary capacity that requires a high
degree of trust and confidence. This duty deals with the agent's dealings
with both the insured and the insurer. The agent is expected to be
trustworthy, act in good faith, and preserve confidential information.
Which of the following items could be insured under Coverage C of a
homeowners policy?
A) Exotic birds
B) Motorized go-kart
C) Snowmobile
D) Personal property usually located in a secondary residence - Correct
Answer - D) Personal property usually located in a secondary residence
Coverage C covers personal property under a homeowners policy.
Personal property usually located in a secondary residence may be
insured under Coverage C. In addition, the following personal property
is covered: personal property the insured owns or uses that is located
anywhere in the world; personal property of others while it is in the
portion of the residence the insured occupies; and personal property of a
guest or employee while it is located in any resident the insured
occupies. Animals and motorized vehicles are excluded.
pg. 3
, 4|Page
The insured's home is insured under an HO-3 with a $100,000 Coverage
A limit. A tornado destroys the home and uproots a tree valued at
$5,000. How much would the insurance company pay for the loss to the
insured's home and tree? Ignore any deductible that would apply.
A) $105,000
B) 95,000
C) $100,500
D) $100,000 - Correct Answer - C) $100,500
The trees, shrubs, and other plants additional coverage does not cover
damage caused by certain perils, such as wind. It covers damage caused
by fire, lightning, explosion, riot, aircraft, vehicles not owned or
operated by a resident, theft, and vandalism or malicious mischief.
Coverage is limited to 5% of the Coverage A limit and a maximum of
$500 for any one tree, shrub, or plant.
An insured has a $60,000 Special Form (DP-3). When a covered loss in
the amount of $10,000 damages the attached garage, how much of that
amount is paid under the Coverage B-Other Structures?
A) $0
B) $10,000
C) $1,000
D) $6,000 - Correct Answer - A) $0
The attached garage is considered part of the dwelling, so the $10,000 is
paid under Coverage A-Dwelling. Real property located on the described
property and separated from the dwelling by clear space is covered by
Coverage B-Other Structures.
Which of the following is NOT an eligibility requirement for a
homeowners policy?
pg. 4
