SOUTH CAROLINA PERSONAL LINES EXAM
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Updated 2026 Questions and Answers
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,How is ACV calculated? Current Replacement Cost - Depreciation
What determines insurance companies responsibility for Limits of liability
payment, as it's stated in the policy?
If a manufactured product is unsafe, what type of liability Strict liability
applies to manufacturer?
What are the two types of compensatory damages? Special and general
A tornado that destroys a property would be an example of Peril
what?
What is the term for the causes of loss insured against in an Peril
insurance policy?
What sub-limit in a liability policy puts a ceiling on the Per occurrence
payment for all claims that arise from a single accident?
What sub-limit in a liability policy puts a ceiling on the Per person
payment for bodily injury for a single person that arise from a
single accident?
What provision states that if the policy allows for greater Indemnity
benefits, the insured may only be compensated only for the
amount lost?
In property insurance, when must insurable interest exist? At the time of the loss
A policy that covers all causes of loss except for those Open/special peril form
specifically excluded is known as what type of policy?
What type of policy insures all property at multiple locations Blanket policy
for a single amount?
What is burglary? Forced entry into premises with felonious intent.
,What type of limits of liability has the limits separately stated Split limits
for different coverages?
In property insurance, what is ACV? Current replacement cost, minus depreciation
How are direct and indirect losses related? Direct losses can cause indirect losses.
If insured peril was the proximate cause of loss, what type of Direct
loss is it?
An insured's business is damaged because of a fire, and he is Indirect or consequential loss
forced to close the business temporarily for repairs. As a
result, the insured lost income. What type of loss is this?
What is a deductible in an insurance policy? A specified dollar amount that the insured must pay before the insurer will pay the policy
benefits
Both robbery and burglary can be considered what? theft
Formula for coinsurance less than 80% required (carried/required) * loss amount = loss payment
In property insurance, what is the purpose of a coinsurance To encourage insureds to insure property close to its value
clause?
Difference between vacancy and unoccupancy? vacancy is when no one has live/worked and no property is stored for 60 days - like
when you move out of a home to another; unoccupancy is when no one is living/working
but property is stored - like when you go on vacation.
What term describes a loss caused by continuous exposure to Occurrence
a condition?
What provision prevents insured from collecting twice for the subrogation
same loss: from insurer and third party?
Subrogation when insurance company pursues third party for funds given to insured for loss
, A person who does not lock their doors shows an indifferent morale
attitude. What type of hazard does this represent?
What law protects consumers from the circulation of Fair Credit Reporting Act
inaccurate or obsolete information?
What term defines an exact, direct, and uninterrupted cause Proximate cause
of loss?
what is a risk? Uncertainty of loss
A situation in which a person can experience only a loss and Pure risk
no gain presents what type of risk?
Wagering on a sporting event is known as what type of risk? speculative risk
which is insurable pure or speculative risk? pure only
A insurer discovers that an applicant for a policy submitted a Moral
fraudulent claim in the past. What type of hazard does this
represent?
What do individuals use to transfer risk of loss to a larger insurance
group?
Conditions that increase chance of loss are known as what? hazard
What are the three types of hazards? Physical, Moral, Morale
Insurance is a contract that protects the insured from what? Loss
What term includes damage where the insured peril was the Direct loss
proximate cause of loss?
| COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,How is ACV calculated? Current Replacement Cost - Depreciation
What determines insurance companies responsibility for Limits of liability
payment, as it's stated in the policy?
If a manufactured product is unsafe, what type of liability Strict liability
applies to manufacturer?
What are the two types of compensatory damages? Special and general
A tornado that destroys a property would be an example of Peril
what?
What is the term for the causes of loss insured against in an Peril
insurance policy?
What sub-limit in a liability policy puts a ceiling on the Per occurrence
payment for all claims that arise from a single accident?
What sub-limit in a liability policy puts a ceiling on the Per person
payment for bodily injury for a single person that arise from a
single accident?
What provision states that if the policy allows for greater Indemnity
benefits, the insured may only be compensated only for the
amount lost?
In property insurance, when must insurable interest exist? At the time of the loss
A policy that covers all causes of loss except for those Open/special peril form
specifically excluded is known as what type of policy?
What type of policy insures all property at multiple locations Blanket policy
for a single amount?
What is burglary? Forced entry into premises with felonious intent.
,What type of limits of liability has the limits separately stated Split limits
for different coverages?
In property insurance, what is ACV? Current replacement cost, minus depreciation
How are direct and indirect losses related? Direct losses can cause indirect losses.
If insured peril was the proximate cause of loss, what type of Direct
loss is it?
An insured's business is damaged because of a fire, and he is Indirect or consequential loss
forced to close the business temporarily for repairs. As a
result, the insured lost income. What type of loss is this?
What is a deductible in an insurance policy? A specified dollar amount that the insured must pay before the insurer will pay the policy
benefits
Both robbery and burglary can be considered what? theft
Formula for coinsurance less than 80% required (carried/required) * loss amount = loss payment
In property insurance, what is the purpose of a coinsurance To encourage insureds to insure property close to its value
clause?
Difference between vacancy and unoccupancy? vacancy is when no one has live/worked and no property is stored for 60 days - like
when you move out of a home to another; unoccupancy is when no one is living/working
but property is stored - like when you go on vacation.
What term describes a loss caused by continuous exposure to Occurrence
a condition?
What provision prevents insured from collecting twice for the subrogation
same loss: from insurer and third party?
Subrogation when insurance company pursues third party for funds given to insured for loss
, A person who does not lock their doors shows an indifferent morale
attitude. What type of hazard does this represent?
What law protects consumers from the circulation of Fair Credit Reporting Act
inaccurate or obsolete information?
What term defines an exact, direct, and uninterrupted cause Proximate cause
of loss?
what is a risk? Uncertainty of loss
A situation in which a person can experience only a loss and Pure risk
no gain presents what type of risk?
Wagering on a sporting event is known as what type of risk? speculative risk
which is insurable pure or speculative risk? pure only
A insurer discovers that an applicant for a policy submitted a Moral
fraudulent claim in the past. What type of hazard does this
represent?
What do individuals use to transfer risk of loss to a larger insurance
group?
Conditions that increase chance of loss are known as what? hazard
What are the three types of hazards? Physical, Moral, Morale
Insurance is a contract that protects the insured from what? Loss
What term includes damage where the insured peril was the Direct loss
proximate cause of loss?
