Personal Lines FINAL EXAM (2025) comprehensive questions and
Personal Lines FINAL EXAM
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1. What part of the policy lists the rules, duties, and C) Conditions
obligations of the insured and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions
2. The directive that states the violation committed and D) cease and desist order
requires an agent to stop the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order
3. Extended Coverage (EC) include all of the following D) vandalism
perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism
4. A device which is used to minimize small nuisance Deductible
claims, lower insurance premiums, and reduce morale
hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance
5. All of the following perils are covered, in a PERSONAL A) Inherent vice
ARTICLES FLOATER (PAF), EXCEPT:
A) inherent vice
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B) flood
C) Earthquake
D) theft
6. The policyholder has a liability of $300,000 and caused B) $300,000
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
7. Eligible vehicles are described in the Personal Auto D) a truck used to make
Policy. Which of the following vehicles is NOT eligible? deliveries
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries
8. What is the deductible in an UNINSURED MOTORIST B) $200
CLAIM?
A) $100
B) $200
C) $250
D) $500
9. In order for an insurer to meet their obligation to an A) At the time the loss oc-
insured, "insurable interest" must exist: curs
A) At the time the loss occurs
B) At the time the application is made for the insur-
ance
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C) At the time of application or at the time of loss
D) at the time of application and at the time of loss
10. A customer's response to a question to the best of D) Representation
their knowledge or belief is called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation
11. In Virginia, A NAMED DRIVER EXCLUSION (NDE) is: D) Not available on an
A) available on all auto policies auto policy
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy
12. The purpose of the FAIR plan is to: B) make property insur-
A) give the federal government a major role in provid- ance available for high risk
ing insurance property owners.
B) Make property insurance available for high risk
property owners.
C) Require complete disclosure of the reasons for can-
cellations
D) Force all insurance companies to participate in an
insurance pool.
13. Which type of watercraft is insurable on a yacht poli- C) sailboat
cy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat
Personal Lines FINAL EXAM
verifiedStudy
detailed solutions (MULTIPLE CHOICES)|complete solutions
online at https://quizlet.com/_hcxk7c
|A+ GRADED |100% CORRECT!!
1. What part of the policy lists the rules, duties, and C) Conditions
obligations of the insured and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions
2. The directive that states the violation committed and D) cease and desist order
requires an agent to stop the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order
3. Extended Coverage (EC) include all of the following D) vandalism
perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism
4. A device which is used to minimize small nuisance Deductible
claims, lower insurance premiums, and reduce morale
hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance
5. All of the following perils are covered, in a PERSONAL A) Inherent vice
ARTICLES FLOATER (PAF), EXCEPT:
A) inherent vice
, Personal Lines FINAL EXAM
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B) flood
C) Earthquake
D) theft
6. The policyholder has a liability of $300,000 and caused B) $300,000
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
7. Eligible vehicles are described in the Personal Auto D) a truck used to make
Policy. Which of the following vehicles is NOT eligible? deliveries
A) A newly acquired sedan
B) an owned SUV
C) A van used as a temporary substitute
D) a truck used to make deliveries
8. What is the deductible in an UNINSURED MOTORIST B) $200
CLAIM?
A) $100
B) $200
C) $250
D) $500
9. In order for an insurer to meet their obligation to an A) At the time the loss oc-
insured, "insurable interest" must exist: curs
A) At the time the loss occurs
B) At the time the application is made for the insur-
ance
, Personal Lines FINAL EXAM
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C) At the time of application or at the time of loss
D) at the time of application and at the time of loss
10. A customer's response to a question to the best of D) Representation
their knowledge or belief is called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation
11. In Virginia, A NAMED DRIVER EXCLUSION (NDE) is: D) Not available on an
A) available on all auto policies auto policy
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy
12. The purpose of the FAIR plan is to: B) make property insur-
A) give the federal government a major role in provid- ance available for high risk
ing insurance property owners.
B) Make property insurance available for high risk
property owners.
C) Require complete disclosure of the reasons for can-
cellations
D) Force all insurance companies to participate in an
insurance pool.
13. Which type of watercraft is insurable on a yacht poli- C) sailboat
cy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat
