PERSONAL LINES LATEST 2026 EXAM FINAL PAPER
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Cancellation - ✔✔Cancellation may be done by either the insured or insurer -
cancellation is done mid term. If the insurer is cancelling mid term they must have a
specific reason and give written advance notice of the cancellation. In a cancelation
situation a refund is due to the insured , either short rate if the insured cancelled the
policy or pro rata if the insurer cancels the policy
✔✔Non renewal - ✔✔Occurs at the policy anniversary date- the insurer must give the
insured advance written notice that their policy will not be renewed. No premium refund
is due.
✔✔The four parts of a policy are - ✔✔DICE. Declarations, insuring agreement,
conditions, exclusions
✔✔The declarations list the - ✔✔Named insured, named insurer, policy limits ,and
premium and policy period
✔✔Insuring agreement - ✔✔Described the coverages provided
✔✔The conditions lists the obligations of - ✔✔Both the insured and insurer
✔✔The exclusions list - ✔✔The perils that are not covered
✔✔Dwelling policies do not cover the breakage of glass after - ✔✔60 days of vacancy
✔✔The limits of liability are found on - ✔✔The declarations page of the policy
✔✔The cancellation provisions are found - ✔✔In the condition section of the policy
✔✔To have replacement cost coverage on a dwelling broad form policy( dp 2) that
dwelling must be insured - ✔✔At least 80% of replacement cost not 100%
✔✔Personal injury liability does not cover bodily injury it covers - ✔✔Defamation, libel
and slander
✔✔On an HO policy and accident that results in bodily injury or property damage is
defined as - ✔✔An Occurance
✔✔The most an HO policy will pay under the liability section is known as - ✔✔The limit
of liability
✔✔To determine who is an insured on an HO Policy you must read the - ✔✔Definitions
, ✔✔On a dwelling fire and HO policy the required consultancy is what prrcentage -
✔✔80%
✔✔The definition of an insured under an HO includes who - ✔✔Residents in your
household who are relatives or any other person under the age of 21 in your care
✔✔The insurer has the right to sue the negligent third party for damages paid to you
under the concept of - ✔✔Subrogation
✔✔The four parts of a legal contract can be remembered using the acronym -
✔✔COAL- consideration offer acceptance and legal purpose and capacity
✔✔Consideration is - ✔✔A exchange of values
✔✔If the lender is not sent a notice of cancellation the fire insurance lapses and then
the property burns down , the lender ( mortgagee) has what? - ✔✔The protection in the
amount owed on the loan
✔✔In an appraisal situation both parties pay for how many persons - ✔✔One and a half
✔✔An assignment is never valid until when? - ✔✔Unless agreed to by the insurer
✔✔How soon should an insured tell the insurer about a claim? - ✔✔Promptly(notice of
claim)
✔✔The three people involved in an appraisal are: - ✔✔Appraiser appraiser and umpire
✔✔A person must be what minimum age to enter into a legal contract - ✔✔18
✔✔A representation - ✔✔Is a substantial truth
✔✔A warranty is - ✔✔A literal truth
✔✔A warranty something you promise is there today and will be there tomorrow -
✔✔I.e. A burglar alarm or sprinkler system in a ceiling
✔✔The gram leach Bailey act requires that a customer be given out a what? At the time
the customer relationship is what? - ✔✔Privacy notice, initially established and there
after annually
✔✔The failure to disclose a material fact is called - ✔✔Concealment and if found will
void the policy
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Cancellation - ✔✔Cancellation may be done by either the insured or insurer -
cancellation is done mid term. If the insurer is cancelling mid term they must have a
specific reason and give written advance notice of the cancellation. In a cancelation
situation a refund is due to the insured , either short rate if the insured cancelled the
policy or pro rata if the insurer cancels the policy
✔✔Non renewal - ✔✔Occurs at the policy anniversary date- the insurer must give the
insured advance written notice that their policy will not be renewed. No premium refund
is due.
✔✔The four parts of a policy are - ✔✔DICE. Declarations, insuring agreement,
conditions, exclusions
✔✔The declarations list the - ✔✔Named insured, named insurer, policy limits ,and
premium and policy period
✔✔Insuring agreement - ✔✔Described the coverages provided
✔✔The conditions lists the obligations of - ✔✔Both the insured and insurer
✔✔The exclusions list - ✔✔The perils that are not covered
✔✔Dwelling policies do not cover the breakage of glass after - ✔✔60 days of vacancy
✔✔The limits of liability are found on - ✔✔The declarations page of the policy
✔✔The cancellation provisions are found - ✔✔In the condition section of the policy
✔✔To have replacement cost coverage on a dwelling broad form policy( dp 2) that
dwelling must be insured - ✔✔At least 80% of replacement cost not 100%
✔✔Personal injury liability does not cover bodily injury it covers - ✔✔Defamation, libel
and slander
✔✔On an HO policy and accident that results in bodily injury or property damage is
defined as - ✔✔An Occurance
✔✔The most an HO policy will pay under the liability section is known as - ✔✔The limit
of liability
✔✔To determine who is an insured on an HO Policy you must read the - ✔✔Definitions
, ✔✔On a dwelling fire and HO policy the required consultancy is what prrcentage -
✔✔80%
✔✔The definition of an insured under an HO includes who - ✔✔Residents in your
household who are relatives or any other person under the age of 21 in your care
✔✔The insurer has the right to sue the negligent third party for damages paid to you
under the concept of - ✔✔Subrogation
✔✔The four parts of a legal contract can be remembered using the acronym -
✔✔COAL- consideration offer acceptance and legal purpose and capacity
✔✔Consideration is - ✔✔A exchange of values
✔✔If the lender is not sent a notice of cancellation the fire insurance lapses and then
the property burns down , the lender ( mortgagee) has what? - ✔✔The protection in the
amount owed on the loan
✔✔In an appraisal situation both parties pay for how many persons - ✔✔One and a half
✔✔An assignment is never valid until when? - ✔✔Unless agreed to by the insurer
✔✔How soon should an insured tell the insurer about a claim? - ✔✔Promptly(notice of
claim)
✔✔The three people involved in an appraisal are: - ✔✔Appraiser appraiser and umpire
✔✔A person must be what minimum age to enter into a legal contract - ✔✔18
✔✔A representation - ✔✔Is a substantial truth
✔✔A warranty is - ✔✔A literal truth
✔✔A warranty something you promise is there today and will be there tomorrow -
✔✔I.e. A burglar alarm or sprinkler system in a ceiling
✔✔The gram leach Bailey act requires that a customer be given out a what? At the time
the customer relationship is what? - ✔✔Privacy notice, initially established and there
after annually
✔✔The failure to disclose a material fact is called - ✔✔Concealment and if found will
void the policy
