MA Personal Lines Multiple Choice || TOP-SCORING
EXAM QUESTIONS WITH ANSWERS.
C correct answers 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 correct answers 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 correct answers Which of the following parts of an insurance contract identifies the perils
covered?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
B correct answers 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 correct answers 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 correct answers Which of the following permits an insurer to reduce the cost of insurance?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
, B correct answers The statements made by an applicant in an insurance application are
considered to be:
A. Warranties
B. Representations
C. Misrepresentations
D. Countersignatures
D correct answers 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:
A. Representation
B. Conditional Promise
C. Consideration
D. Warranty
C correct answers Which of the following is true regarding the Fair Reporting Credit Act?
A. It permits insurers to deny invalid claims
B. It allows applicants to do a credit check on the insurer
C. It allows an applicant to receive a copy of the information contained in a consumer report
D. It permits an insurer to cancel a policy for nonpayment of premium
A correct answers A promise made in exchange for an act already performed best describes:
A. A unilateral contract
B. A bilateral contract
C. An executory contract
D. An executed contract
B correct answers An insurer which issues a policy after accepting an incomplete application has
engaged in a:
A. Parole evidence rule
B. Waiver
C. Warranty
D. Conditional acceptance
A correct answers Ms. Walters makes an offer to an insurer. The insurer then counters the
original offer. This means that the original offer has been:
A. Rejected
B. Accepted
C. Unilaterally assumed
D. Negotiated
B correct answers Which of the following parts of an insurance contract contains the nature of
the agreement between the insurer and policyholder?
A. Declarations
B. Insuring provision
C. Conditions
D. Exclusions
EXAM QUESTIONS WITH ANSWERS.
C correct answers 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 correct answers 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 correct answers Which of the following parts of an insurance contract identifies the perils
covered?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
B correct answers 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 correct answers 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 correct answers Which of the following permits an insurer to reduce the cost of insurance?
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
, B correct answers The statements made by an applicant in an insurance application are
considered to be:
A. Warranties
B. Representations
C. Misrepresentations
D. Countersignatures
D correct answers 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:
A. Representation
B. Conditional Promise
C. Consideration
D. Warranty
C correct answers Which of the following is true regarding the Fair Reporting Credit Act?
A. It permits insurers to deny invalid claims
B. It allows applicants to do a credit check on the insurer
C. It allows an applicant to receive a copy of the information contained in a consumer report
D. It permits an insurer to cancel a policy for nonpayment of premium
A correct answers A promise made in exchange for an act already performed best describes:
A. A unilateral contract
B. A bilateral contract
C. An executory contract
D. An executed contract
B correct answers An insurer which issues a policy after accepting an incomplete application has
engaged in a:
A. Parole evidence rule
B. Waiver
C. Warranty
D. Conditional acceptance
A correct answers Ms. Walters makes an offer to an insurer. The insurer then counters the
original offer. This means that the original offer has been:
A. Rejected
B. Accepted
C. Unilaterally assumed
D. Negotiated
B correct answers Which of the following parts of an insurance contract contains the nature of
the agreement between the insurer and policyholder?
A. Declarations
B. Insuring provision
C. Conditions
D. Exclusions
