Personal Lines FINAL EXAM (2025) ACTUAL EXAM
UPDATED EXAM QUESTIONS WITH ANSWERS
SOLVED.
A blanket limit is described as:
A) one limit covering multiple properties
B) a list of properties with their own individual limits
C) one limit covering one property
D) a limit that determines the value of the property - CORRECT ANSWER✅✅A) one
limit covering multiple properties
A customer's response to a question to the best of their knowledge or belief is called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation - CORRECT ANSWER✅✅D) Representation
A device which is used to minimize small nuisance claims, lower insurance premiums,
and reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - CORRECT ANSWER✅✅Deductible
A dispute between the insured and insurer regarding an uninsured motorist claim can
be settled through what out of court process?
A) arbitration
B) Indemnification
C) litigation
D) subrogation - CORRECT ANSWER✅✅A) Arbitration
A famous court case which held that insurance was not an interstate commerce subject
to federal regulation and should be regulated by the state was known as:
A) a public law 15
B) Paul V Virginia
C) The McCarran Ferguson Act
D) The Southeastern Underwriters case - CORRECT ANSWER✅✅B) Paul V Virginia
A licensed insurance agent can do all the following EXCEPT:
A) solicit a new policy
B) negotiate an insurance contract
,C) charge compensation fees
D) cancel an insurance policy - CORRECT ANSWER✅✅D) cancel an insurance policy
A medical claim in homeowners insurance has how long to be filled?
A) one year
B) three years
C) five years
D) Indefinite - CORRECT ANSWER✅✅B) Three years
A personal lines agent's license:
A) a must be renewed annually
B) renews every 2 years
C) is perpetual
D) terminates annually - CORRECT ANSWER✅✅C) is perpetual
A temporary substitute auto is described as:
A) a vehicle listed on the declarations page
B) an additionally acquired vehicle
C) a rental vehicle used because the insured's vehicle was stolen
D) a rental vehicle used for traveling out of town - CORRECT ANSWER✅✅C) a rental
vehicle used because the insured's vehicle was stolen
A windstorm blew over a tree causing a limb to break the window and broken glass
damaged the hardwood floors. What was the proximate cause of the loss?
A) The falling tree
B) the broken glass
C) the wind
D) the limb - CORRECT ANSWER✅✅C) the wind
All of the following are acceptable evidences of financial responsibility, EXCEPT:
A) Liability insurance with the required minimum limits
B) Posting a bond for $70,000
C) Paying a $500 uninsured motorist fee to the DMV
D) Qualify as a self-insured with the required amount of assets. - CORRECT
ANSWER✅✅C) paying a $500 uninsured motorist fee to the DMV
All of the following are automobile collision losses, EXCEPT:
A) colliding with a deer
B) Colliding with a stationary object
C) Colliding with another vehicle
D) overturning a vehicle - CORRECT ANSWER✅✅A) colliding with a deer
All of the following are covered under a mobile home endorsement, EXCEPT:
A) moving costs
B) Dwelling
, C) personal property
D) other structures - CORRECT ANSWER✅✅A) moving costs
All of the following are examples of an uninsured motorist, EXCEPT:
A) A driver with insufficient limits
B) A hit and run
C) a bankrupt insurer
D) a driver who cannot comply with the financial responsibility law - CORRECT
ANSWER✅✅A) A driver with insufficient limits
All of the following are found written in a binder, EXCEPT:
A) insurer's name
B) Premium
C) effective date of coverage
D) policy limits - CORRECT ANSWER✅✅B) Premium
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - CORRECT ANSWER✅✅A) Inherent vice
All of the following situations are covered under an Earthquake endorsement EXCEPT:
A) Landslides
B) Mudflows
C) Underground tremors from a volcano
D) Earth Sinking - CORRECT ANSWER✅✅B) mudflows
All of the following would be covered under medical on a Personal Auto Policy,
EXCEPT:
A) A passenger in the insured's owned auto
B) the insured struck a pedestrian
C) a pedestrian struck by the insured's auto
D) the insured while occupying an auto - CORRECT ANSWER✅✅C) Pedestrian struck
by the insured's auto
All the following are categorized as "hired autos" EXCEPT:
A) rented autos
B) Leased Autos
C) Owned autos
D) Limousine Autos - CORRECT ANSWER✅✅C) owned autos
All the following are obligations of an insurer, EXCEPT:
A) Duty to defend
UPDATED EXAM QUESTIONS WITH ANSWERS
SOLVED.
A blanket limit is described as:
A) one limit covering multiple properties
B) a list of properties with their own individual limits
C) one limit covering one property
D) a limit that determines the value of the property - CORRECT ANSWER✅✅A) one
limit covering multiple properties
A customer's response to a question to the best of their knowledge or belief is called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation - CORRECT ANSWER✅✅D) Representation
A device which is used to minimize small nuisance claims, lower insurance premiums,
and reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - CORRECT ANSWER✅✅Deductible
A dispute between the insured and insurer regarding an uninsured motorist claim can
be settled through what out of court process?
A) arbitration
B) Indemnification
C) litigation
D) subrogation - CORRECT ANSWER✅✅A) Arbitration
A famous court case which held that insurance was not an interstate commerce subject
to federal regulation and should be regulated by the state was known as:
A) a public law 15
B) Paul V Virginia
C) The McCarran Ferguson Act
D) The Southeastern Underwriters case - CORRECT ANSWER✅✅B) Paul V Virginia
A licensed insurance agent can do all the following EXCEPT:
A) solicit a new policy
B) negotiate an insurance contract
,C) charge compensation fees
D) cancel an insurance policy - CORRECT ANSWER✅✅D) cancel an insurance policy
A medical claim in homeowners insurance has how long to be filled?
A) one year
B) three years
C) five years
D) Indefinite - CORRECT ANSWER✅✅B) Three years
A personal lines agent's license:
A) a must be renewed annually
B) renews every 2 years
C) is perpetual
D) terminates annually - CORRECT ANSWER✅✅C) is perpetual
A temporary substitute auto is described as:
A) a vehicle listed on the declarations page
B) an additionally acquired vehicle
C) a rental vehicle used because the insured's vehicle was stolen
D) a rental vehicle used for traveling out of town - CORRECT ANSWER✅✅C) a rental
vehicle used because the insured's vehicle was stolen
A windstorm blew over a tree causing a limb to break the window and broken glass
damaged the hardwood floors. What was the proximate cause of the loss?
A) The falling tree
B) the broken glass
C) the wind
D) the limb - CORRECT ANSWER✅✅C) the wind
All of the following are acceptable evidences of financial responsibility, EXCEPT:
A) Liability insurance with the required minimum limits
B) Posting a bond for $70,000
C) Paying a $500 uninsured motorist fee to the DMV
D) Qualify as a self-insured with the required amount of assets. - CORRECT
ANSWER✅✅C) paying a $500 uninsured motorist fee to the DMV
All of the following are automobile collision losses, EXCEPT:
A) colliding with a deer
B) Colliding with a stationary object
C) Colliding with another vehicle
D) overturning a vehicle - CORRECT ANSWER✅✅A) colliding with a deer
All of the following are covered under a mobile home endorsement, EXCEPT:
A) moving costs
B) Dwelling
, C) personal property
D) other structures - CORRECT ANSWER✅✅A) moving costs
All of the following are examples of an uninsured motorist, EXCEPT:
A) A driver with insufficient limits
B) A hit and run
C) a bankrupt insurer
D) a driver who cannot comply with the financial responsibility law - CORRECT
ANSWER✅✅A) A driver with insufficient limits
All of the following are found written in a binder, EXCEPT:
A) insurer's name
B) Premium
C) effective date of coverage
D) policy limits - CORRECT ANSWER✅✅B) Premium
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - CORRECT ANSWER✅✅A) Inherent vice
All of the following situations are covered under an Earthquake endorsement EXCEPT:
A) Landslides
B) Mudflows
C) Underground tremors from a volcano
D) Earth Sinking - CORRECT ANSWER✅✅B) mudflows
All of the following would be covered under medical on a Personal Auto Policy,
EXCEPT:
A) A passenger in the insured's owned auto
B) the insured struck a pedestrian
C) a pedestrian struck by the insured's auto
D) the insured while occupying an auto - CORRECT ANSWER✅✅C) Pedestrian struck
by the insured's auto
All the following are categorized as "hired autos" EXCEPT:
A) rented autos
B) Leased Autos
C) Owned autos
D) Limousine Autos - CORRECT ANSWER✅✅C) owned autos
All the following are obligations of an insurer, EXCEPT:
A) Duty to defend
