Exam Prep: Personal Lines 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - A) Inherent vice
The policyholder has a liability of $300,000 and caused an accident injuring one person in the
amount of $250,000 and another person in the amount of $150,000. What limit of coverage
applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000 - B) $300,000
Eligible vehicles are described in the Personal Auto Policy. Which of the following vehicles is
NOT eligible?
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries - D) a truck used to make deliveries
What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
,C) $250
D) $500 - B) $200
In order for an insurer to meet their obligation to an insured, "insurable interest" must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss - A) At the time the loss occurs
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 - D) Representation
In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy - D) Not available on an auto policy
The purpose of the FAIR plan is to:
A) give the federal government a major role in providing insurance
B) Make property insurance available for high risk property owners.
C) Require complete disclosure of the reasons for cancellations
D) Force all insurance companies to participate in an insurance pool. - B) make property
insurance available for high risk property owners.
, Which type of watercraft is insurable on a yacht policy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat - C) sailboat
Which of the following is NOT a direct loss?
A) fire damage
B) water damage as a result of putting out the fire
C) Hotel expenses as a result of moving out because of the fire
D) smoke damage resulting from the fire - C) hotel expenses as a result of moving out because of
the fire
The right of the insurer to take over the insured's rights to recover fro an at-fault party is known
as:
A) subrogation
B) restitution
C) Recovery
D) Indemnification - A) subrogation
How many continuing education hours must an agent complete for insurance ethics in a
biennium?
A) one
B) two
C) three
D) four - C) Three
ANSWERS GUARANTEE A+
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - A) Inherent vice
The policyholder has a liability of $300,000 and caused an accident injuring one person in the
amount of $250,000 and another person in the amount of $150,000. What limit of coverage
applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000 - B) $300,000
Eligible vehicles are described in the Personal Auto Policy. Which of the following vehicles is
NOT eligible?
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries - D) a truck used to make deliveries
What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
,C) $250
D) $500 - B) $200
In order for an insurer to meet their obligation to an insured, "insurable interest" must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss - A) At the time the loss occurs
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 - D) Representation
In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy - D) Not available on an auto policy
The purpose of the FAIR plan is to:
A) give the federal government a major role in providing insurance
B) Make property insurance available for high risk property owners.
C) Require complete disclosure of the reasons for cancellations
D) Force all insurance companies to participate in an insurance pool. - B) make property
insurance available for high risk property owners.
, Which type of watercraft is insurable on a yacht policy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat - C) sailboat
Which of the following is NOT a direct loss?
A) fire damage
B) water damage as a result of putting out the fire
C) Hotel expenses as a result of moving out because of the fire
D) smoke damage resulting from the fire - C) hotel expenses as a result of moving out because of
the fire
The right of the insurer to take over the insured's rights to recover fro an at-fault party is known
as:
A) subrogation
B) restitution
C) Recovery
D) Indemnification - A) subrogation
How many continuing education hours must an agent complete for insurance ethics in a
biennium?
A) one
B) two
C) three
D) four - C) Three
