Personal Lines Exam Questions And 100%
Correct Answers
Foreign - Answer If an insurer is incorporated in Rhode Island, but its principal place of
business is New York, what kind of insurer would it be, with respect to New York?
A contract between the insurer and the reinsurer - Answer Policyholder A's insurer is
writing too many homes that are subject to wind losses. Because of this, the company
wishes to reinsure those policies in order to spread the high risk of wind loss. The
reinsurance contract can best be described as which of the following?
Stockholders - Answer Dividends issued by Stock insurers are paid to:
The policy is an adhesion contract - Answer When an insurance policy is ambiguous, the
court will generally find in favor of the insured due to which of the following
characteristic?
Retention of risk - Answer Self-insurance is an example of which of the following type of
risk management?
Peril - Answer A potential cause of a loss, such as fire, explosion, flood, or theft is
considered to be a(n):
A contract of indemnity - Answer An insurance contract is considered which type of
contract because it restores the insured to the same financial condition as before the
loss?
Admitted - Answer An insurer that is authorized to do business in a particular state is
said to be:
, Enhancement - Answer Is not a risk management technique
Warranty - Answer A statement indicating the liability of the manufacturer for product
deficiencies.
Pure risk - Answer The uncertainty of loss from fire, wind or hail is a type of:
Aleatory - Answer Is a type of contract that is defined as an unequal exchange in value.
Misrepresentation - Answer When applying for car insurance, Producer M asked B if he
had been convicted of a DWI within the previous 10 years. B answered "no" when, in
fact he was convicted of a DWI last year. What is B's mistake?
Foreign Company - Answer Ohio Casualty is doing regular business in Indiana. Within
the state of Indiana, Ohio Casualty would be considered a(an):
If an individual is denied coverage, they can request a copy of the report. - Answer
Under the Fair Credit Reporting Act, what is true?
Additional Coverages part of an insurance policy-provides protection in addition to the
basic coverages in the insuring agreement automatically included without an additional
premium.
60 days and 30 days respectively for Personal lines and Commercial lines - Answer
What is the 'Loss Payment' condition in respect of the period an insurer has to pay for a
loss once the proof of loss has been received and the loss has been agreed with the
insured?
What would be deemed as a hostile fire? - Answer An uncontrolled campfire in the
woods
Correct Answers
Foreign - Answer If an insurer is incorporated in Rhode Island, but its principal place of
business is New York, what kind of insurer would it be, with respect to New York?
A contract between the insurer and the reinsurer - Answer Policyholder A's insurer is
writing too many homes that are subject to wind losses. Because of this, the company
wishes to reinsure those policies in order to spread the high risk of wind loss. The
reinsurance contract can best be described as which of the following?
Stockholders - Answer Dividends issued by Stock insurers are paid to:
The policy is an adhesion contract - Answer When an insurance policy is ambiguous, the
court will generally find in favor of the insured due to which of the following
characteristic?
Retention of risk - Answer Self-insurance is an example of which of the following type of
risk management?
Peril - Answer A potential cause of a loss, such as fire, explosion, flood, or theft is
considered to be a(n):
A contract of indemnity - Answer An insurance contract is considered which type of
contract because it restores the insured to the same financial condition as before the
loss?
Admitted - Answer An insurer that is authorized to do business in a particular state is
said to be:
, Enhancement - Answer Is not a risk management technique
Warranty - Answer A statement indicating the liability of the manufacturer for product
deficiencies.
Pure risk - Answer The uncertainty of loss from fire, wind or hail is a type of:
Aleatory - Answer Is a type of contract that is defined as an unequal exchange in value.
Misrepresentation - Answer When applying for car insurance, Producer M asked B if he
had been convicted of a DWI within the previous 10 years. B answered "no" when, in
fact he was convicted of a DWI last year. What is B's mistake?
Foreign Company - Answer Ohio Casualty is doing regular business in Indiana. Within
the state of Indiana, Ohio Casualty would be considered a(an):
If an individual is denied coverage, they can request a copy of the report. - Answer
Under the Fair Credit Reporting Act, what is true?
Additional Coverages part of an insurance policy-provides protection in addition to the
basic coverages in the insuring agreement automatically included without an additional
premium.
60 days and 30 days respectively for Personal lines and Commercial lines - Answer
What is the 'Loss Payment' condition in respect of the period an insurer has to pay for a
loss once the proof of loss has been received and the loss has been agreed with the
insured?
What would be deemed as a hostile fire? - Answer An uncontrolled campfire in the
woods
