PERSONAL LINES STUDY 2026 EXAM QUESTIONS AND
ANSWERS SURE A+
✔✔Combined Single Limit - ✔✔A single dollar limit of liability that applies to the total
damages for bodily injury and property damage combined, resulting from one accident
or occurrence.
✔✔Commercial Lines - ✔✔A type of insurance that pertains to business, mercantile, or
manufacturing establishments.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department.
✔✔Common Law - ✔✔An unwritten body of law based on past judicial decisions as well
as usages and customs.
✔✔Complaint - ✔✔A written statement of a liability claim given by the claimant; a
reason for a lawsuit.
✔✔Components - ✔✔Factors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses, and profits.
✔✔Comprehensive Coverage - ✔✔Also known as Other Than Collision coverage, it
covers losses caused by fire, theft, vandalism, falling objects, etc.
✔✔Concealment - ✔✔The act of withholding known facts that, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of agreement in which both parties must perform
certain duties and follow rules of conduct to make the contract enforceable.
✔✔Conditions - ✔✔The section of an insurance policy that indicates the general rules
or procedures that the insurer and insured agree to follow under the terms of the policy.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The insured's consideration is the
representations made in the application and the payment of premium, while the insurer's
consideration is the promise to pay in the event of loss.
✔✔Consultant - ✔✔A person who, for a fee, offers advice, counsel, opinion, or service
regarding the benefits, advantages, or disadvantages promised under an insurance
policy.
, ✔✔Consumer Reports - ✔✔Written and/or oral statements regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties that is enforceable by law.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer,
and employees.
✔✔Concurrent Causation - ✔✔Multiple events leading to one loss.
✔✔Death Benefit - ✔✔The amount payable upon the death of the person whose life is
insured.
✔✔Declarations - ✔✔The section of an insurance policy containing the basic
underwriting information, such as the insured's name, address, amount of coverage and
premiums, and a description of insured locations, as well as any supplemental
representations by the insured.
✔✔Deductible - ✔✔The portion of the loss that is to be paid by the insured before any
claim benefits may be paid by the insurer.
✔✔Defamation - ✔✔An unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming their reputation.
✔✔Deposit Premium Audit - ✔✔A condition that allows the insurer to audit the insured's
books or records at the end of the policy term to ensure adequate premium has been
collected for the exposure.
✔✔Depreciation - ✔✔The decrease in value of real and personal property due to age
and wear and tear.
✔✔Direct Losses - ✔✔Physical damage to buildings and/or personal property as a
direct consequence of a particular peril.
✔✔Director - ✔✔The head of the state department of insurance.
✔✔Disability - ✔✔A physical or mental impairment, either congenital or resulting from
an injury or sickness.
✔✔Disclosure - ✔✔The act of identifying the name of the producer, representative, or
firm, limited insurance representative, or temporary insurance producer on any policy
solicitation.
ANSWERS SURE A+
✔✔Combined Single Limit - ✔✔A single dollar limit of liability that applies to the total
damages for bodily injury and property damage combined, resulting from one accident
or occurrence.
✔✔Commercial Lines - ✔✔A type of insurance that pertains to business, mercantile, or
manufacturing establishments.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department.
✔✔Common Law - ✔✔An unwritten body of law based on past judicial decisions as well
as usages and customs.
✔✔Complaint - ✔✔A written statement of a liability claim given by the claimant; a
reason for a lawsuit.
✔✔Components - ✔✔Factors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses, and profits.
✔✔Comprehensive Coverage - ✔✔Also known as Other Than Collision coverage, it
covers losses caused by fire, theft, vandalism, falling objects, etc.
✔✔Concealment - ✔✔The act of withholding known facts that, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of agreement in which both parties must perform
certain duties and follow rules of conduct to make the contract enforceable.
✔✔Conditions - ✔✔The section of an insurance policy that indicates the general rules
or procedures that the insurer and insured agree to follow under the terms of the policy.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The insured's consideration is the
representations made in the application and the payment of premium, while the insurer's
consideration is the promise to pay in the event of loss.
✔✔Consultant - ✔✔A person who, for a fee, offers advice, counsel, opinion, or service
regarding the benefits, advantages, or disadvantages promised under an insurance
policy.
, ✔✔Consumer Reports - ✔✔Written and/or oral statements regarding a consumer's
credit, character, reputation, or habits collected by a reporting agency from employment
records, credit reports, and other public sources.
✔✔Contract - ✔✔An agreement between two or more parties that is enforceable by law.
✔✔Controlled Business - ✔✔An entity that obtains and possesses a license solely for
the purpose of writing business on the owner, immediate family, relatives, employer,
and employees.
✔✔Concurrent Causation - ✔✔Multiple events leading to one loss.
✔✔Death Benefit - ✔✔The amount payable upon the death of the person whose life is
insured.
✔✔Declarations - ✔✔The section of an insurance policy containing the basic
underwriting information, such as the insured's name, address, amount of coverage and
premiums, and a description of insured locations, as well as any supplemental
representations by the insured.
✔✔Deductible - ✔✔The portion of the loss that is to be paid by the insured before any
claim benefits may be paid by the insurer.
✔✔Defamation - ✔✔An unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming their reputation.
✔✔Deposit Premium Audit - ✔✔A condition that allows the insurer to audit the insured's
books or records at the end of the policy term to ensure adequate premium has been
collected for the exposure.
✔✔Depreciation - ✔✔The decrease in value of real and personal property due to age
and wear and tear.
✔✔Direct Losses - ✔✔Physical damage to buildings and/or personal property as a
direct consequence of a particular peril.
✔✔Director - ✔✔The head of the state department of insurance.
✔✔Disability - ✔✔A physical or mental impairment, either congenital or resulting from
an injury or sickness.
✔✔Disclosure - ✔✔The act of identifying the name of the producer, representative, or
firm, limited insurance representative, or temporary insurance producer on any policy
solicitation.
