PERSONAL LINES FINAL EXAM 2025/2026 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS <LATEST VERSION>

PERSONAL LINES FINAL EXAM 2025/2026 ACCURATE QUESTIONS WITH CORRECT DETAILED ANSWERS || 100% GUARANTEED PASS &lt;LATEST VERSION&gt; 1. A temporary license is given to which of the following? A. Employee of a disabled producer B. Next of kin of producer who is retiring C. Spouse of producer who has been terminated D. Anyone approved by the Commissioner - ANSWER A. Employee of a disabled producer 2. The legal doctrine that holds that the parties to a contract to a contract may exchange unequal consideration is called: A. Adhesion B. Aleatory C. Alienation D. Unilateral - ANSWER B. Aleatory 3. When an insurer sues a negligent third party to recover a loss paid to an insured, the company is exercising its right of A. Assignment B. Arbitration C. Estoppel D. Subrogation - ANSWER D. Subrogation 4. Which of the following is not covered by the Personal Auto Policy? A. A portable GPS B. A factory installed stereo system C. Medical expenses the insured incurs due to an accident D. Physical damage caused by hitting a dear - ANSWER A. A portable GPS 5. Pure risk means: A. Lose only B. Win only C. Win, lose D. None of the above - ANSWER A. Lose only 6. All of the following are examples of types of insurance that a limited insurance agent would solicit EXCEPT: A. Baggage coverage B. Travel accident insurance C. Personal articles coverage D. Title insurance - ANSWER C. Personal articles coverage 7. 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 - ANSWER C) Pedestrian struck by the insured's auto 8. Which is NOT a duty of the insured following a loss? A) obtain an appraisal of the damaged property B) submit a signed proof of loss statement C) Provide prompt notice of claim D) supply a list of witnesses names if possible - ANSWER A) obtain an appraisal of the damaged property 9. The illegal practice of an agent offering to pay, allow, give, or make a promise to a prospective customer any return of premiums, special favor or advantage, or anything of value as an inducement to buy insurance is called: A) Twisting B) Coercion C) Rebating D) Boycotting - ANSWER C) Rebating 10. Evidence of financial responsibility is required: A) to obtain a driver's license B) to register a vehicle C) when involved in an accident D) to purchase a vehicle - ANSWER C) when involved in an accident 11. Which of the following is NOT a personal injury liability? A) defamation B) invasion of privacy C) bodily injury D) false arrest - ANSWER C) bodily injury 12. 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 - ANSWER D) cancel an insurance policy 13. What part of an insurance policy would you locate the policy limits? A) Definitions B) Insuring Agreement C) Declarations page D) Conditions - ANSWER C) declarations page 14. Which one is considered an Additional Coverage? A) first aid B) loss of use C) liability D) Medical - ANSWER A) first aid0 15. The minimum state split limits for personal auto liability in Virginia are: A) 15/30/5 B) 20/40/10 C) 25/50/20 D) 50/100/40 - ANSWER C) 25/50/20 16. The deductible on an Earthquake endorsement is: A) a percentage of the coverage B) a standard $250 deductible C) not available D) based on the loss - ANSWER A) a percentage of the coverage 17. Consideration in an insurance contract involves: A) an offer accepted by the insurer B) an exchange of something of value C) issuing a policy to the insured D) the competency of both parties - ANSWER B) an exchange of something of value 18. Pair and set clause identifies a value for items grouped together and insurer determines indemnification by: A) paying a total loss even if not all items in the group are damaged B) adding the value of undamaged items to the value of the group C) subtracting the value of undamaged items from the value of the group D) paying the salvage value of damaged property - ANSWER C) subtracting the value of undamaged items from the value of the group 19. What is the fine to an agent who intentionally violates an insurance code, rule, regulation or order issued by the commission? A) $1,000 B) $5,000 C) $10,000 D) $50,000 - ANSWER B) $5,000 20. If an insured up change other insurance for a personal automobile through a lower cost ensure, what will happen to the coverage provided by the previous insured? - ANSWER The similar coverage under the old policy will automatically terminate on the date that the new policy becomes effective The coverage from the new insured will supersede the old policy regardless of the time in which book policies are in effect The insured will have the option to continue the coverage until the next policy renewal, which will provide him with the duplicate coverage in the event of an accident The coverage will continue until all previously paid premiums have been exhausted and lapse once that has occurred 21. Which of the following best expresses the differences between and HO1 and and HO3 in regards to the Part 2 (liability) section of the policy? A. An HO3 has higher bodily injury limits B. An HO3 has higher property damage limits C. An HO3 has higher medical payment limits D. None of the above - ANSWER D. None of the above (There is no difference between the two) 22. Which of the following accurately describes the hourly prelicensing requirement which must be satisfies to obtain a property and casualty license in the state of Indiana: A. 20 hours B. 24 hours C. 30 hours D. 40 hours - ANSWER D. 40 hours 23. The maximum amount of commission a producer may receive from controlled business in any 12 month period is: A. 50% B. 100% C. 25% D. 30% - ANSWER C. 25% 24. All of the following are true concerning the Medical Payments to Others coverage EXCEPT it: A. Pays on a per person, per occurrence basis B. Is part of Section II of the Homeowner's policy C. Has a standard limit of $1,000 up to a maximm of $10,000 D. Pays to the family members of the Named Insured - ANSWER D. Pays to the family members of the Named Insured 25. Any person who violates a cease and desist order may be subject to a civil penalty of not more than: A. $1,000 B. $10,000 C. $50,000 D. $25,000 - ANSWER C. $50,000 26. All of the following are an example of an Unfair Claimes Settlement Practice EXCEPT: A. Failing to adopt and implement reasonable standards for investigating claims B. Refusing to pay claims without conducting a reasonable investigation based on available information C. Failing to affirm or deny coverage within a reasonable time after a proof of loss statement has been filed D. Denying a claim because the insurance company had a bad production month - ANSWER D. Denying a claim because the insurance company had a bad production month 27. If a producer completes all CE requirements and allow their license to lapse for less than 12 months: A. They may be required to repeat the CE requirement B. Their renewal fee will be 3 times more expensive C. They are placed on probation D. They must reapply for their license - ANSWER B. Their renewal fee will be 3 times more expensive