Personal Lines Insurance - Iowa License
Exam Manual
"Loss of Use" under the Homeowners is NOT available if the.. - ANS - government confiscates
or seizes the dwelling
\`The form used by a condominium owner would be the... - ANS - HO 6
\A continuing education term is based on... - ANS - the producers birth month
\A document attached to an insurance policy that modifies the terms or conditions of the
contract is... - ANS - An endorsement
\A Dwelling policy would NOT cover... - ANS - A dwelling with more than four apartments
\A flood would NOT be covered if it was on - ANS - property flooded by sewer backup
\A Homeowners Policy does NOT... - ANS - Provide great flexibility in covering non-conforming
property
\A legally binding contract requires offer and acceptance. What happens when a counter offer is
made? - ANS - The original offer is terminated
\A licensee shall inform the commissioner by any means acceptable to the commissioner of a
change of address within how many days of the change? - ANS - 30 days
\A licensing exam would NOT be required of - ANS - An insurer
\A loss that occurs at a specific time and place or over a period of time is... - ANS - An
occurrence
\A negligent act or peril causing damage to another person or property is known as... - ANS -
the proximate cause
\A notice of cancellation for nonpayment of premium shall not be effective unless mailed or
delivered by the insurer to the named insured at least... - ANS - 10 days prior to the date of
cancellation
\A notice of cancellation is not effective unless mailed or delivered by the insurer to the named
insured at least... - ANS - 20 days before the effective date of cancellation
\A notice of intention not to renew is not effective unless mailed or delivered by the insurer to the
named insured at least how many days prior to the expiration date of the policy? - ANS - 30
days
\A person applying for a resident insurance producer license would NOT be required to - ANS -
Serve a two year internship
\A producer may comply with the continuing education requirement in all of the following ways
EXCEPT... - ANS - publishing research articles
\A producer's license may be revoked for... - ANS - failing to cooperate with the commissioner
\A resident insurance producer who moves from this state to another state shall file a change of
address and provide certification from the new resident state within... - ANS - 30 days
\A short-term rental car would be an example of... - ANS - Non-owned auto
\A statement made on an insurance application that the applicant believes is true is a... - ANS -
A representation
\A temporary contract proving insurance to be in force is called a... - ANS - Binder
, \A type of auto that would NOT be eligible for the personal auto policy would be... - ANS - An
auto used as a taxi-cab
\Actual cash value is... - ANS - replacement cost less depreciation
\Additional coverages under the homeowners pays for Damage To Property of Others up to... -
ANS - $1,000 per occurrence
\Advance notice for nonpayment of premium must be given at least... - ANS - 10 days
\Advance Notice of Nonrenewal must be how many days prior to the policy's expiration? - ANS -
30 days
\After the date of the test, examination results are valid for... - ANS - 90 days
\Aftermarket parts regulations does NOT state that... - ANS - A repair facility may use
aftermarket crash parts without disclosing the proposed use of such parts
\All of the following are necessary for a nonresident to receive a nonresident insurance license
EXCEPT... - ANS - The person lives in a bordering state
\All of the following are required under the Iowa Motor Vehicle Financial Responsibility Law
EXCEPT... - ANS - Financial liability coverage is required to renew a driver's license
\All of the following are true under the "Notice-payment for aftermarket crash parts" EXCEPT -
ANS - the vehicle manufacturer provides any warranties applicable to aftermarket crash parts
\All of the following must certify the act as terrorism EXCEPT... - ANS - Vice - President
\An "Insured Location" under the Homeowners '00 policies can be all of the following EXCEPT: -
ANS - premises rented to an insured for business use
\An agent wanting to write insurance for an older home whose market value is considerably less
than the cost to rebuild it would use which Homeowners Policy? - ANS - HO 8
\An auto policy may NOT be cancelled because of... - ANS - Occupation of the insured
\An example of a moral hazard would be... - ANS - an arsonist
\An example of an indirect loss would be... - ANS - loss of rental income due to fire
\An insurable interest in property insurance - ANS - must be present at the time of loss
\An insurance producer doing business under any name other than the insurance producer's
legal name is required to - ANS - notify the commissioner prior to using the assumed name
\An insurance producer license shall remain in effect for a term of... - ANS - 3 years
\Any licensed insurance producer wanting to add an amendment to the license to become
licensed in an additional line of authority does NOT have to... - ANS - Complete additional
continuing education
\As loss payee, the mortgagee - ANS - Is expected to pay the premium if the insured fails to
make premium payment
\Committing a general business practice of not attempting in good faith to effectuate prompt, fair
and equitable settlements of claims in which liability has become reasonably clear is known as...
- ANS - an unfair claims settlement practice
\Continuing education requirements do NOT allow... - ANS - A producer to receive CE credit for
courses taken prior to the issuance of an initial license
\Coverage A - Dwelling under the Dwelling Policy does NOT cover - ANS - detached garages
\Coverage B - Other Structures of the Homeowners Policy EXCLUDES: - ANS - structures used
for business
\Coverage C - Personal Property under the Dwelling Policy excludes or limits all of the following
property EXCEPT - ANS - Rowboats and canoes located on the premises
Exam Manual
"Loss of Use" under the Homeowners is NOT available if the.. - ANS - government confiscates
or seizes the dwelling
\`The form used by a condominium owner would be the... - ANS - HO 6
\A continuing education term is based on... - ANS - the producers birth month
\A document attached to an insurance policy that modifies the terms or conditions of the
contract is... - ANS - An endorsement
\A Dwelling policy would NOT cover... - ANS - A dwelling with more than four apartments
\A flood would NOT be covered if it was on - ANS - property flooded by sewer backup
\A Homeowners Policy does NOT... - ANS - Provide great flexibility in covering non-conforming
property
\A legally binding contract requires offer and acceptance. What happens when a counter offer is
made? - ANS - The original offer is terminated
\A licensee shall inform the commissioner by any means acceptable to the commissioner of a
change of address within how many days of the change? - ANS - 30 days
\A licensing exam would NOT be required of - ANS - An insurer
\A loss that occurs at a specific time and place or over a period of time is... - ANS - An
occurrence
\A negligent act or peril causing damage to another person or property is known as... - ANS -
the proximate cause
\A notice of cancellation for nonpayment of premium shall not be effective unless mailed or
delivered by the insurer to the named insured at least... - ANS - 10 days prior to the date of
cancellation
\A notice of cancellation is not effective unless mailed or delivered by the insurer to the named
insured at least... - ANS - 20 days before the effective date of cancellation
\A notice of intention not to renew is not effective unless mailed or delivered by the insurer to the
named insured at least how many days prior to the expiration date of the policy? - ANS - 30
days
\A person applying for a resident insurance producer license would NOT be required to - ANS -
Serve a two year internship
\A producer may comply with the continuing education requirement in all of the following ways
EXCEPT... - ANS - publishing research articles
\A producer's license may be revoked for... - ANS - failing to cooperate with the commissioner
\A resident insurance producer who moves from this state to another state shall file a change of
address and provide certification from the new resident state within... - ANS - 30 days
\A short-term rental car would be an example of... - ANS - Non-owned auto
\A statement made on an insurance application that the applicant believes is true is a... - ANS -
A representation
\A temporary contract proving insurance to be in force is called a... - ANS - Binder
, \A type of auto that would NOT be eligible for the personal auto policy would be... - ANS - An
auto used as a taxi-cab
\Actual cash value is... - ANS - replacement cost less depreciation
\Additional coverages under the homeowners pays for Damage To Property of Others up to... -
ANS - $1,000 per occurrence
\Advance notice for nonpayment of premium must be given at least... - ANS - 10 days
\Advance Notice of Nonrenewal must be how many days prior to the policy's expiration? - ANS -
30 days
\After the date of the test, examination results are valid for... - ANS - 90 days
\Aftermarket parts regulations does NOT state that... - ANS - A repair facility may use
aftermarket crash parts without disclosing the proposed use of such parts
\All of the following are necessary for a nonresident to receive a nonresident insurance license
EXCEPT... - ANS - The person lives in a bordering state
\All of the following are required under the Iowa Motor Vehicle Financial Responsibility Law
EXCEPT... - ANS - Financial liability coverage is required to renew a driver's license
\All of the following are true under the "Notice-payment for aftermarket crash parts" EXCEPT -
ANS - the vehicle manufacturer provides any warranties applicable to aftermarket crash parts
\All of the following must certify the act as terrorism EXCEPT... - ANS - Vice - President
\An "Insured Location" under the Homeowners '00 policies can be all of the following EXCEPT: -
ANS - premises rented to an insured for business use
\An agent wanting to write insurance for an older home whose market value is considerably less
than the cost to rebuild it would use which Homeowners Policy? - ANS - HO 8
\An auto policy may NOT be cancelled because of... - ANS - Occupation of the insured
\An example of a moral hazard would be... - ANS - an arsonist
\An example of an indirect loss would be... - ANS - loss of rental income due to fire
\An insurable interest in property insurance - ANS - must be present at the time of loss
\An insurance producer doing business under any name other than the insurance producer's
legal name is required to - ANS - notify the commissioner prior to using the assumed name
\An insurance producer license shall remain in effect for a term of... - ANS - 3 years
\Any licensed insurance producer wanting to add an amendment to the license to become
licensed in an additional line of authority does NOT have to... - ANS - Complete additional
continuing education
\As loss payee, the mortgagee - ANS - Is expected to pay the premium if the insured fails to
make premium payment
\Committing a general business practice of not attempting in good faith to effectuate prompt, fair
and equitable settlements of claims in which liability has become reasonably clear is known as...
- ANS - an unfair claims settlement practice
\Continuing education requirements do NOT allow... - ANS - A producer to receive CE credit for
courses taken prior to the issuance of an initial license
\Coverage A - Dwelling under the Dwelling Policy does NOT cover - ANS - detached garages
\Coverage B - Other Structures of the Homeowners Policy EXCLUDES: - ANS - structures used
for business
\Coverage C - Personal Property under the Dwelling Policy excludes or limits all of the following
property EXCEPT - ANS - Rowboats and canoes located on the premises
