Personal Lines ExamFX Study Session Questions and Correct Answers

Personal Lines ExamFX Study Session Questions and Correct Answers An additional loss that results from a direct loss of property is called a/an - Correct Answer indirect loss Which of the following statements is NOT true regarding a personal umbrella liability policy? - Correct Answer It provides errors and omissions coverage for an agency What type of information would be found in a policy's insuring agreement? - Correct Answer Renewal dates An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have? - Correct Answer Per occurrence The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other structures on land - Correct Answer Owned or leased by the resident of the mobile home Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? - Correct Answer warranty Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP? - Correct Answer Mechanical breakdown The insured's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house is something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this