CISR - Personal Lines Miscellaneous Exam
Questions and Answers 2025
Accident - CORRECT ANSWER An unexpected and unintentional event, definite as to time
and place, that results in injury or damage to a person or property
Actual Cash Value (ACV) - CORRECT ANSWER Property's replacement cost value, less an
allowance for depreciation or obsolescence amortization; an accounting technique used to
periodically lower the book value of a loan or an intangible asset over a set period of time
Admitted Insurance Company - CORRECT ANSWER An insurance carrier licensed to do
business in a particular state and which meets insurance regulation set by that state's Department
,of Insurance. Admitted insurance companies are part of the state's guaranty association and pay
into the state's guaranty fund; the guaranty fund pays outstanding claims (or a percentage of
those claims) of an insolvent admitted carrier
Amendment of Policy Provisions - CORRECT ANSWER State-specific modifications to the
Personal Auto Policy
Auto - CORRECT ANSWER A private passenger motor vehicle, motorcycle, moped, motor
home or a vehicle designed to be pulled by a private passenger motor vehicle or motor home
including a farm wagon or farm implement while towed
Blanket Endorsement - CORRECT ANSWER An endorsement that provides property or
liability coverage without specifically naming individual property or individual locations to be
covered.
Business (as defined in the ISO Homeowners Policy HO 00 03 03 22) - CORRECT ANSWER
(a) A trade, profession or occupation engaged in on a full-time, part-time or occasional basis; (b)
The leasing of the mineral rights of an "insured location"; (c) "Home-sharing host activities"; or
(d) Any other activity engaged in for money or other compensation, except the following: (1)
One or more activities, not described in (2) through (4) below, for which no "insured" receives
more than $5,000 in total compensation for the 12 months before the beginning of the policy
period; (2) Volunteer activities for which no money is received other than payment for expenses
incurred to perform the activity; (3) Providing home day care services for which no
compensation is received, other than the mutual exchange of such services; or (4) The rendering
of home day care services to a relative of an "insured"
, Business (as defined in the ISO Personal Auto Policy PP 00 01 09 18) - CORRECT ANSWER
A trade, profession, or occupation (with no exceptions)
Business (as defined in the ISO Personal Umbrella Policy DL 98 01 02 15) - CORRECT
ANSWER A trade, profession, or occupation engaged in on a full-time, part-time, or occasional
basis; or any other activity engaged in for money or other compensation except for: (a) one or
more activities not described in b. through d. below, for which no "insured" receives more than
$2,000 in total compensation for the 12 months before the beginning of the policy period; (b)
Volunteer activities for which no money is received other than payment for expenses incurred to
perform the activity; (c) Providing home day care services for which no compensation is
received, other than the mutual exchange of such services; or (d) The rendering of home day care
services to a relative of an "insured"
Catastrophe - CORRECT ANSWER A severe natural, or human-made, disaster
Catastrophic Risks - CORRECT ANSWER Particularly hazardous events capable of severe
destruction, loss to property, or great financial loss. Examples: flood, wind, wildfire, and
earthquake losses
Coverage Gap - CORRECT ANSWER A gap in coverage can occur when policies are written
by different agencies and/or when policy language between Personal Umbrella Policy and
underlying coverage is uncoordinated; the agency's automated system and unreviewed policies
may miss changes made at renewal
Coverage or Policy Territory - CORRECT ANSWER The geographical area within which
insurance coverage applies
Questions and Answers 2025
Accident - CORRECT ANSWER An unexpected and unintentional event, definite as to time
and place, that results in injury or damage to a person or property
Actual Cash Value (ACV) - CORRECT ANSWER Property's replacement cost value, less an
allowance for depreciation or obsolescence amortization; an accounting technique used to
periodically lower the book value of a loan or an intangible asset over a set period of time
Admitted Insurance Company - CORRECT ANSWER An insurance carrier licensed to do
business in a particular state and which meets insurance regulation set by that state's Department
,of Insurance. Admitted insurance companies are part of the state's guaranty association and pay
into the state's guaranty fund; the guaranty fund pays outstanding claims (or a percentage of
those claims) of an insolvent admitted carrier
Amendment of Policy Provisions - CORRECT ANSWER State-specific modifications to the
Personal Auto Policy
Auto - CORRECT ANSWER A private passenger motor vehicle, motorcycle, moped, motor
home or a vehicle designed to be pulled by a private passenger motor vehicle or motor home
including a farm wagon or farm implement while towed
Blanket Endorsement - CORRECT ANSWER An endorsement that provides property or
liability coverage without specifically naming individual property or individual locations to be
covered.
Business (as defined in the ISO Homeowners Policy HO 00 03 03 22) - CORRECT ANSWER
(a) A trade, profession or occupation engaged in on a full-time, part-time or occasional basis; (b)
The leasing of the mineral rights of an "insured location"; (c) "Home-sharing host activities"; or
(d) Any other activity engaged in for money or other compensation, except the following: (1)
One or more activities, not described in (2) through (4) below, for which no "insured" receives
more than $5,000 in total compensation for the 12 months before the beginning of the policy
period; (2) Volunteer activities for which no money is received other than payment for expenses
incurred to perform the activity; (3) Providing home day care services for which no
compensation is received, other than the mutual exchange of such services; or (4) The rendering
of home day care services to a relative of an "insured"
, Business (as defined in the ISO Personal Auto Policy PP 00 01 09 18) - CORRECT ANSWER
A trade, profession, or occupation (with no exceptions)
Business (as defined in the ISO Personal Umbrella Policy DL 98 01 02 15) - CORRECT
ANSWER A trade, profession, or occupation engaged in on a full-time, part-time, or occasional
basis; or any other activity engaged in for money or other compensation except for: (a) one or
more activities not described in b. through d. below, for which no "insured" receives more than
$2,000 in total compensation for the 12 months before the beginning of the policy period; (b)
Volunteer activities for which no money is received other than payment for expenses incurred to
perform the activity; (c) Providing home day care services for which no compensation is
received, other than the mutual exchange of such services; or (d) The rendering of home day care
services to a relative of an "insured"
Catastrophe - CORRECT ANSWER A severe natural, or human-made, disaster
Catastrophic Risks - CORRECT ANSWER Particularly hazardous events capable of severe
destruction, loss to property, or great financial loss. Examples: flood, wind, wildfire, and
earthquake losses
Coverage Gap - CORRECT ANSWER A gap in coverage can occur when policies are written
by different agencies and/or when policy language between Personal Umbrella Policy and
underlying coverage is uncoordinated; the agency's automated system and unreviewed policies
may miss changes made at renewal
Coverage or Policy Territory - CORRECT ANSWER The geographical area within which
insurance coverage applies
