Personal Lines Final Exam, With All b b b b b
Grade A Solutions b b b
One bpurpose bof ba bdeductible bis bto b
b b b b b b b
A- bprevent bunderinsurance
b b
B- bEliminate bsmall bclaims b
b b b b
C- bPrevent bcatastrophic bclaims
b b b
D- bpenalize bthe binsured bfor bphysical bhazards b- b bcorrect banswer-B- bEliminate
b b b b b b b b b b b
bsmall bclaims
b b
An binsureds bHomeowners bBroad bform b(HO-2) bprovides b40,000 bcoverage bon bher
b b b b b b b b b b
bdwelling band b25,000 bcoverage bon bits bcontents. bIf bvandals bcut bdown ba btree bon
b b b b b b b b b b b b b b
bher bpropter bvalued bat b1000, bthe bmaximum bamount bshe bwill breceive bis bwhich bof
b b b b b b b b b b b b b b
bthe bfollowing, bassuming ba b250 bdeductible?
b b b b b b
A- b0
b
B- b250
b
C- b400
b
D- b500 b- b bcorrect banswer-D- b500
b b b b b b
Which bof bthe bfollowing bbest bdescribes bthe bconcept bof brisk?
b b b b b b b b b
A- bResult bof bloss
b b b
B- bAmount bof bloss
b b b
C- bUncertainty bof bloss b
b b b b
D- bCause bof bloss b- b bcorrect banswer-C- bUncertainty bof bloss
b b b b b b b b b b
Ten byears bago binsured bpurchases ba bbuilding bfor b50,000 bthat bwould bcost b100,000
b b b b b b b b b b b b
bto brebuild btoday. bIf bthe bphysical bvalue bof bthe bbuilding bhas bdepreciated b2,000
b b b b b b b b b b b b b
beach byear, bthe bbuildings bpresent badmitted bcash bvalue bis b
b b b b b b b b b b
A- b100,000 b
b b
B- b80,000
b
C- b50,000
b
D- b30,000 b- b bcorrect banswer-B- b80,000
b b b b b b
Additional bcoverages bin ba bhomeowners bpolicy bwould bcover
b b b b b b b
A- bthe bdwelling
b b
B- bmaterials band bsupplies
b b b
C- bother bstructures
b b
D- bdebris bremoval b- b bcorrect banswer-D- bdebris bremoval
b b b b b b b b
Which bof bthe bfollowing bwould bNOT bbe bcovered bunder bthe bSection b1 bof ban bHO-3
b b b b b b b b b b b b b b
bform?
b
, A- bThe binsureds b2000 bcollie b
b b b b b
B- bPersonal bproperty bof bthe binsureds bdaughter bwho bis baway bat bcollege b
b b b b b b b b b b b b
C- bThe binsureds bdriveway bif bdamaged bby ba bfalling bobject b
b b b b b b b b b b
D- bLosses bcaused bby bthe bsudden band baccidental bleaking bof ba bwater bheater b- b
b b b b b b b b b b b b b b
bcorrect banswer-A- bThe binsureds b2000 bcollie
b b b b b b
An binsured bcarries b25,000 bproperty binsurance bwith b80 bpercent bcoinsurance bon ba
b b b b b b b b b b b
bbuilding bworth b40,000. bhow bmuch bwould bshe bcollect bin bthe bevent bof ba btotal
b b b b b b b b b b b b b b
bloss?
b
A- b20,000 b
B- b25,000 b
C- b32,000 b
D- b40,000 b- b bcorrect banswer-B- b25,000
b b b b b b
A bperson bmay bbe bconsidered bnegligent bif bhe b
b b b b b b b b
A- bfails bto bdo bwhat ba breasonably bprudent bperson bwould bdo
b b b b b b b b b b
B- bcommits ba bdeliberate bact bthat binjures banother b
b b b b b b b b
C- binjures banother bperson beven bthough bhe bacted bprudently b
b b b b b b b b b
D- bassists bto bthe bbest bof bhis bability banother bperson bwho bis bin bdistress b- b bcorrect
b b b b b b b b b b b b b b b b
banswer-A- bfails bto bdo bwhat ba breasonably bprudent bperson bwould bdo
b b b b b b b b b b b
In bproperty binsurance, ba bloss bwould bonly bbe bpaid bif binsurable binterest bat bthe b
b b b b b b b b b b b b b b
A- binception bof bthe bpolicy b
b b b b b
B- btime bof bpremium bpayment b
b b b b b
C- btime bof bapplication b
b b b b
D- btime bof bloss b- b bcorrect banswer-D- btime bof bloss
b b b b b b b b b b
Which bof bthe bfollowing bis bNOT btrue bconcerning bExclusions
b b b b b b b b
A- bthey bexist bin bpart bto beliminate bcoverage bfor buninsurable bperils
b b b b b b b b b b
B- bThe bThe beliminate bcoverage bfor bcertain bkind bof blosses b
b b b b b b b b b b
C- bThey bare bcritical bimportance bin bterminating bwhat bis bcovered bunder ban bAll bRisk
b b b b b b b b b b b b b
bpolicy b
b b
D- bThere bare bno ballowable bexclusions bin ban bInland bMarine bpolicy b- b bcorrect
b b b b b b b b b b b b b
banswer-D- bThere bare bno ballowable bexclusions bin ban bInland bMarine bpolicy
b b b b b b b b b b b
A bhomeowner bwhose bhouse bsuffered ba b50,000 btotal bloss bwas binsured bfor b60,000.
b b b b b b b b b b b b
bWhat bprinciple bwould bbe bviolated bof bher binsurance bcompany bpaid bher b60,000?
b b b b b b b b b b b b
A- bIndemnity b
b b
B- bNegligence b
b b
C- bLiability b
b b
D- bInsurable bInterest b- b bcorrect banswer-A- bIndemnity
b b b b b b b
Which bof bthe bfollowing bformulas bis bused bto bcalculate ba bclaim bpayment bwhen ba
b b b b b b b b b b b b b
bpolicy bcontains ba bCoinsurance bclause?
b b b b b
A- bInsurance bCarried bx bLoss= bAmount bPaid b
b b b b b b b
bInsurance brequired b
b b b
B- bInsurance bCarried bx bTotal bValue= bAmount bPaid
b b b b b b b
bInsurance brequired b
b b b
C- bInsurance brequired bx bLoss= bAmount bPaid b
b b b b b b b
b80% bof bCash bvalue b
b b b b b
Grade A Solutions b b b
One bpurpose bof ba bdeductible bis bto b
b b b b b b b
A- bprevent bunderinsurance
b b
B- bEliminate bsmall bclaims b
b b b b
C- bPrevent bcatastrophic bclaims
b b b
D- bpenalize bthe binsured bfor bphysical bhazards b- b bcorrect banswer-B- bEliminate
b b b b b b b b b b b
bsmall bclaims
b b
An binsureds bHomeowners bBroad bform b(HO-2) bprovides b40,000 bcoverage bon bher
b b b b b b b b b b
bdwelling band b25,000 bcoverage bon bits bcontents. bIf bvandals bcut bdown ba btree bon
b b b b b b b b b b b b b b
bher bpropter bvalued bat b1000, bthe bmaximum bamount bshe bwill breceive bis bwhich bof
b b b b b b b b b b b b b b
bthe bfollowing, bassuming ba b250 bdeductible?
b b b b b b
A- b0
b
B- b250
b
C- b400
b
D- b500 b- b bcorrect banswer-D- b500
b b b b b b
Which bof bthe bfollowing bbest bdescribes bthe bconcept bof brisk?
b b b b b b b b b
A- bResult bof bloss
b b b
B- bAmount bof bloss
b b b
C- bUncertainty bof bloss b
b b b b
D- bCause bof bloss b- b bcorrect banswer-C- bUncertainty bof bloss
b b b b b b b b b b
Ten byears bago binsured bpurchases ba bbuilding bfor b50,000 bthat bwould bcost b100,000
b b b b b b b b b b b b
bto brebuild btoday. bIf bthe bphysical bvalue bof bthe bbuilding bhas bdepreciated b2,000
b b b b b b b b b b b b b
beach byear, bthe bbuildings bpresent badmitted bcash bvalue bis b
b b b b b b b b b b
A- b100,000 b
b b
B- b80,000
b
C- b50,000
b
D- b30,000 b- b bcorrect banswer-B- b80,000
b b b b b b
Additional bcoverages bin ba bhomeowners bpolicy bwould bcover
b b b b b b b
A- bthe bdwelling
b b
B- bmaterials band bsupplies
b b b
C- bother bstructures
b b
D- bdebris bremoval b- b bcorrect banswer-D- bdebris bremoval
b b b b b b b b
Which bof bthe bfollowing bwould bNOT bbe bcovered bunder bthe bSection b1 bof ban bHO-3
b b b b b b b b b b b b b b
bform?
b
, A- bThe binsureds b2000 bcollie b
b b b b b
B- bPersonal bproperty bof bthe binsureds bdaughter bwho bis baway bat bcollege b
b b b b b b b b b b b b
C- bThe binsureds bdriveway bif bdamaged bby ba bfalling bobject b
b b b b b b b b b b
D- bLosses bcaused bby bthe bsudden band baccidental bleaking bof ba bwater bheater b- b
b b b b b b b b b b b b b b
bcorrect banswer-A- bThe binsureds b2000 bcollie
b b b b b b
An binsured bcarries b25,000 bproperty binsurance bwith b80 bpercent bcoinsurance bon ba
b b b b b b b b b b b
bbuilding bworth b40,000. bhow bmuch bwould bshe bcollect bin bthe bevent bof ba btotal
b b b b b b b b b b b b b b
bloss?
b
A- b20,000 b
B- b25,000 b
C- b32,000 b
D- b40,000 b- b bcorrect banswer-B- b25,000
b b b b b b
A bperson bmay bbe bconsidered bnegligent bif bhe b
b b b b b b b b
A- bfails bto bdo bwhat ba breasonably bprudent bperson bwould bdo
b b b b b b b b b b
B- bcommits ba bdeliberate bact bthat binjures banother b
b b b b b b b b
C- binjures banother bperson beven bthough bhe bacted bprudently b
b b b b b b b b b
D- bassists bto bthe bbest bof bhis bability banother bperson bwho bis bin bdistress b- b bcorrect
b b b b b b b b b b b b b b b b
banswer-A- bfails bto bdo bwhat ba breasonably bprudent bperson bwould bdo
b b b b b b b b b b b
In bproperty binsurance, ba bloss bwould bonly bbe bpaid bif binsurable binterest bat bthe b
b b b b b b b b b b b b b b
A- binception bof bthe bpolicy b
b b b b b
B- btime bof bpremium bpayment b
b b b b b
C- btime bof bapplication b
b b b b
D- btime bof bloss b- b bcorrect banswer-D- btime bof bloss
b b b b b b b b b b
Which bof bthe bfollowing bis bNOT btrue bconcerning bExclusions
b b b b b b b b
A- bthey bexist bin bpart bto beliminate bcoverage bfor buninsurable bperils
b b b b b b b b b b
B- bThe bThe beliminate bcoverage bfor bcertain bkind bof blosses b
b b b b b b b b b b
C- bThey bare bcritical bimportance bin bterminating bwhat bis bcovered bunder ban bAll bRisk
b b b b b b b b b b b b b
bpolicy b
b b
D- bThere bare bno ballowable bexclusions bin ban bInland bMarine bpolicy b- b bcorrect
b b b b b b b b b b b b b
banswer-D- bThere bare bno ballowable bexclusions bin ban bInland bMarine bpolicy
b b b b b b b b b b b
A bhomeowner bwhose bhouse bsuffered ba b50,000 btotal bloss bwas binsured bfor b60,000.
b b b b b b b b b b b b
bWhat bprinciple bwould bbe bviolated bof bher binsurance bcompany bpaid bher b60,000?
b b b b b b b b b b b b
A- bIndemnity b
b b
B- bNegligence b
b b
C- bLiability b
b b
D- bInsurable bInterest b- b bcorrect banswer-A- bIndemnity
b b b b b b b
Which bof bthe bfollowing bformulas bis bused bto bcalculate ba bclaim bpayment bwhen ba
b b b b b b b b b b b b b
bpolicy bcontains ba bCoinsurance bclause?
b b b b b
A- bInsurance bCarried bx bLoss= bAmount bPaid b
b b b b b b b
bInsurance brequired b
b b b
B- bInsurance bCarried bx bTotal bValue= bAmount bPaid
b b b b b b b
bInsurance brequired b
b b b
C- bInsurance brequired bx bLoss= bAmount bPaid b
b b b b b b b
b80% bof bCash bvalue b
b b b b b
