PERSONAL LINES FINAL {LATEST 2026 -
2027} QUESTIONS AND ANSWERS 100%
CORRECT
The Commissioner of Insurance in the State of Indiana is appointed by which of the
following:
A. The chairman of the Banking & Insurance Commission
B. He is not appointed, but elected
C. The Attorney General
D. The Governor - correct answer D. The Governor
Which of the following conditions of a property policy describes the procedure for an
insured to use in a disagreement with the insurer about the amount of a loss?
A. Pro-rata liability
B. Subrogation
C. Audit
D. Appraisal - correct answer D. Appraisal
,Susie owns an HO2. Her hot water heater accidentally discharges 40 gallons of hot
water onto her $1,800 fur coat. Under the terms of the policy, which of the follwing best
describes what will happen when she files her claim?
A. The company will deny the claim because this is not a covered peril
B. The company will deny the claim because fur coats are not covered under the basic
policy
C. The company will pay only $1,000 because this is the limit for furs under any policy
D. The company will pay the full amount of the claim less any applicable deductible -
correct answer D. The company will pay the full amount of the claim less any
applicable deductible
Wich of the following would be considered insured for liability coverage under the
Personal Auto Policy?
A. The named insured's resident son while driving a neighbor's car
B. The named insured's neighbor while taking the named insured for a drive in the
neighbor's new car
C. The named insured's cousin who, while visiting from another state, drives a car the
named insured borrows from a neighbor
D. Rock Oil Refiner, which provides a company-owned car to the named insured -
correct answer A. The named insured's resident son while driving a neighbor's car
,Insurance was first arranged at Edward Lloyd's coffeehouse during the:
A. 1500s
B. 1600s
C. 1700s
D. 1800s - correct answer B. 1600s
Which of the following is an example of a pure risk?
A. Deciding to manufacture a new drub
B. Purchasing a piece of real estate
C. Threat of fire damage to property
D. Playing the lottery - correct answer C. Threat of fire damage to property
Which of the following is an example of a direct loss?
A. Loss of rental income after a builing is destroyed
B. Loss of income when a store must shut down following a theft
C. Loss due to fire damage to a building
D. Loss due to amounts spent on hotels following fire damage to a home - correct
answer C. Loss due to fire damage to a building
, All of the follwing must possess a certificat of authority in order to conduct insurance
business in this state EXCEPT:
A. Interinsurance exchange
B. Domestic insurer
C. Nonadmitted insurer
D. Alien insurer - correct answer C. Nonadmitted insurer
On an automobile policy application, an applicant states that she has had no accidents
in the past 3 years. The statement is known as which of the following:
A. A respresentation
B. A warranty
C. Concealment
D. An appraisal - correct answer A. A representation
Of the four coverage's provided under Section 1 of the Homeowner's policy, which one
provides coverage against an indirect loss?
A. Coverage A - Dwelling
B. Coverage B - Other structures
2027} QUESTIONS AND ANSWERS 100%
CORRECT
The Commissioner of Insurance in the State of Indiana is appointed by which of the
following:
A. The chairman of the Banking & Insurance Commission
B. He is not appointed, but elected
C. The Attorney General
D. The Governor - correct answer D. The Governor
Which of the following conditions of a property policy describes the procedure for an
insured to use in a disagreement with the insurer about the amount of a loss?
A. Pro-rata liability
B. Subrogation
C. Audit
D. Appraisal - correct answer D. Appraisal
,Susie owns an HO2. Her hot water heater accidentally discharges 40 gallons of hot
water onto her $1,800 fur coat. Under the terms of the policy, which of the follwing best
describes what will happen when she files her claim?
A. The company will deny the claim because this is not a covered peril
B. The company will deny the claim because fur coats are not covered under the basic
policy
C. The company will pay only $1,000 because this is the limit for furs under any policy
D. The company will pay the full amount of the claim less any applicable deductible -
correct answer D. The company will pay the full amount of the claim less any
applicable deductible
Wich of the following would be considered insured for liability coverage under the
Personal Auto Policy?
A. The named insured's resident son while driving a neighbor's car
B. The named insured's neighbor while taking the named insured for a drive in the
neighbor's new car
C. The named insured's cousin who, while visiting from another state, drives a car the
named insured borrows from a neighbor
D. Rock Oil Refiner, which provides a company-owned car to the named insured -
correct answer A. The named insured's resident son while driving a neighbor's car
,Insurance was first arranged at Edward Lloyd's coffeehouse during the:
A. 1500s
B. 1600s
C. 1700s
D. 1800s - correct answer B. 1600s
Which of the following is an example of a pure risk?
A. Deciding to manufacture a new drub
B. Purchasing a piece of real estate
C. Threat of fire damage to property
D. Playing the lottery - correct answer C. Threat of fire damage to property
Which of the following is an example of a direct loss?
A. Loss of rental income after a builing is destroyed
B. Loss of income when a store must shut down following a theft
C. Loss due to fire damage to a building
D. Loss due to amounts spent on hotels following fire damage to a home - correct
answer C. Loss due to fire damage to a building
, All of the follwing must possess a certificat of authority in order to conduct insurance
business in this state EXCEPT:
A. Interinsurance exchange
B. Domestic insurer
C. Nonadmitted insurer
D. Alien insurer - correct answer C. Nonadmitted insurer
On an automobile policy application, an applicant states that she has had no accidents
in the past 3 years. The statement is known as which of the following:
A. A respresentation
B. A warranty
C. Concealment
D. An appraisal - correct answer A. A representation
Of the four coverage's provided under Section 1 of the Homeowner's policy, which one
provides coverage against an indirect loss?
A. Coverage A - Dwelling
B. Coverage B - Other structures
