7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
personal lines insurance Exam (Latest Update
2026) UPDATE!! comprehensive questions fully
solved & updated
Save Add to calendar
Play your way to mastery with fun games
Blast
Terms in this set (288)
Risk _________ is when one takes action Reduction
to prevent or reduce potential loss.
When the number of similar units Large Numbers
increases, the predictability of the
loss improves according to the rule
of _____ ________.
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 1/44
,7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
The insuring of risks that are more Adverse Selection
prone to losses than average risks is
known as?
A ___________ contract is an arrangement Reinsurance
where one insurer transfers or shares
risks with another insurer.
_____________ Reinsurance is accepted or Facultative
rejected by a case by case basis.
The fact that an insured would profit Indemnity
from a loss, would be a violation of
the principle of ___________.
The determination of acceptable Underwriter
risks is the primary function of the
___________ .
Underwriters like to select insureds True
who's actual losses will be similar to
expected losses. True or False?
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 2/44
,7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
When rates cannot be used until they Prior Approval
are improved by the department or
division of insurance, they are called
____ ________ rates.
The termination of a policy by either Cancellation
the insured or insurer before its
expiration date is known as ___________.
When the insurer cancels a property Pro Rata
policy, the unearned premium is
returned ___ ____.
When an insured requests Short Rate
cancellation of a policy, the
unearned premium is refunded to the
insured on a _____ _____.
A fire is considered to be a _____ of a Cause
potential loss.
A document that provides temporary Binder
insurance coverage until a policy is
issued is known as a ______.
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 3/44
, 7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
The process by which a disputed Arbitration
claim is decided by a neutral third
party is known as ___________.
_________ _________ is a situation where Concurrent Causation
there are two causes resulting in a
loss, with one of the causes
excluded and the other cause of loss
not excluded.
If two or more policies provide Concurrent
identical coverage for the same risk,
the policies are deemed to be
__________.
Policy A is written for $100,000, and A= $20,000 ; B= $0
an excess Policy B is written for
$200,000 on the same property. In
the event of a $20,000 loss, how
much will each policy pay?
A building that has neither occupants Vacant
nor personal property is ______.
When property is damaged by fire, Direct
the loss is said to be a(n) ______ loss.
If a fire on a premises caused a Indirect Loss
power outage, which caused meat in
the freezer to spoil, would the meat
spoilage be considered a direct loss
or indirect loss?
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 4/44
personal lines insurance Exam (Latest Update
2026) UPDATE!! comprehensive questions fully
solved & updated
Save Add to calendar
Play your way to mastery with fun games
Blast
Terms in this set (288)
Risk _________ is when one takes action Reduction
to prevent or reduce potential loss.
When the number of similar units Large Numbers
increases, the predictability of the
loss improves according to the rule
of _____ ________.
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 1/44
,7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
The insuring of risks that are more Adverse Selection
prone to losses than average risks is
known as?
A ___________ contract is an arrangement Reinsurance
where one insurer transfers or shares
risks with another insurer.
_____________ Reinsurance is accepted or Facultative
rejected by a case by case basis.
The fact that an insured would profit Indemnity
from a loss, would be a violation of
the principle of ___________.
The determination of acceptable Underwriter
risks is the primary function of the
___________ .
Underwriters like to select insureds True
who's actual losses will be similar to
expected losses. True or False?
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 2/44
,7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
When rates cannot be used until they Prior Approval
are improved by the department or
division of insurance, they are called
____ ________ rates.
The termination of a policy by either Cancellation
the insured or insurer before its
expiration date is known as ___________.
When the insurer cancels a property Pro Rata
policy, the unearned premium is
returned ___ ____.
When an insured requests Short Rate
cancellation of a policy, the
unearned premium is refunded to the
insured on a _____ _____.
A fire is considered to be a _____ of a Cause
potential loss.
A document that provides temporary Binder
insurance coverage until a policy is
issued is known as a ______.
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 3/44
, 7/19/26, 7:42 AM personal lines insurance Exam (Latest Update 2026) UPDATE!! comprehensive questions fully solved & updated Flashcards | Quizlet
The process by which a disputed Arbitration
claim is decided by a neutral third
party is known as ___________.
_________ _________ is a situation where Concurrent Causation
there are two causes resulting in a
loss, with one of the causes
excluded and the other cause of loss
not excluded.
If two or more policies provide Concurrent
identical coverage for the same risk,
the policies are deemed to be
__________.
Policy A is written for $100,000, and A= $20,000 ; B= $0
an excess Policy B is written for
$200,000 on the same property. In
the event of a $20,000 loss, how
much will each policy pay?
A building that has neither occupants Vacant
nor personal property is ______.
When property is damaged by fire, Direct
the loss is said to be a(n) ______ loss.
If a fire on a premises caused a Indirect Loss
power outage, which caused meat in
the freezer to spoil, would the meat
spoilage be considered a direct loss
or indirect loss?
https://quizlet.com/1195376773/personal-lines-insurance-exam-latest-update-2026-update-comprehensive-questions-fully-solved-updated-flash-cards… 4/44
