MA Personal Lines Multiple Choice
C - Answer-Each of the following must be present in order for an insurance contract to be legal and
enforceable except:
A. Offer
B. Acceptance
C. Competent Underwriting
D. Legal Purpose
A - Answer-An insurance contract is created by an insurer. Any ambiguities that appear in the future will
be decided by a court in favor of the insured since the policy is:
A. A contract of adhesion
B. An aleatory contract
C. A unilateral contract
D. A personal contract
B - Answer-Which of the following parts of an insurance contract identifies the perils covered?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
B - Answer-An insurance policy is comprised of four basic sections. Which of the following appears in the
declarations section of the policy?
, A. The perils covered
B. The type of property covered
C. The obligations of the insurer
D. The property not covered
A - Answer-The name of a mortgagee, amount of the annual premium and the coverage inception date
all appear in what section of a property and casualty insurance policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
D - Answer-Which of the following permits an insurer to reduce the cost of insurance?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
B - Answer-The statements made by an applicant in an insurance application are considered to be:
A. Warranties
B. Representations
C. Misrepresentations
D. Countersignatures
D - Answer-A statement made by an applicant for insurance that is guaranteed to be absolutely true and
is made part of the contract is called a:
C - Answer-Each of the following must be present in order for an insurance contract to be legal and
enforceable except:
A. Offer
B. Acceptance
C. Competent Underwriting
D. Legal Purpose
A - Answer-An insurance contract is created by an insurer. Any ambiguities that appear in the future will
be decided by a court in favor of the insured since the policy is:
A. A contract of adhesion
B. An aleatory contract
C. A unilateral contract
D. A personal contract
B - Answer-Which of the following parts of an insurance contract identifies the perils covered?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
B - Answer-An insurance policy is comprised of four basic sections. Which of the following appears in the
declarations section of the policy?
, A. The perils covered
B. The type of property covered
C. The obligations of the insurer
D. The property not covered
A - Answer-The name of a mortgagee, amount of the annual premium and the coverage inception date
all appear in what section of a property and casualty insurance policy?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
D - Answer-Which of the following permits an insurer to reduce the cost of insurance?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
B - Answer-The statements made by an applicant in an insurance application are considered to be:
A. Warranties
B. Representations
C. Misrepresentations
D. Countersignatures
D - Answer-A statement made by an applicant for insurance that is guaranteed to be absolutely true and
is made part of the contract is called a:
