NC PERSONAL LINES EXAM |
COMPREHENSIVE INSURANCE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, In a split limits policy 50/100/50, the second number the total limit for two or more persons with bodily injury
represents
Insurable Interest The ability to insure property due to ownership
Declarations Page Identifies the amount of premium to be paid, who or what is insured, and the amount of
insurance coverage.
Transferring Risk Obtaining Insurance is a method of this _______.
Insurers allow the insured to move the risk of loss from the insured to the insurance
company for a fee (aka premium)
Example of Indirect Loss Fire destroys a shoe repair shop forcing the business to close down. During the
suspension of operations the shoe repair shop cannot earn money. This loss of income is
referred to as which of the following?
Economic Loss The destruction of property or a loss of income due to the destruction of property.
Binder Temporary evidence of insurances issued by an insurance producer. NC limits the binder
to 60 days for the date of insurance. Canceling a binder requires at least ten days notice.
Risk Reduction Actions reducing the possibility of a loss. Like locking doors, installing alarm system,
replacing surge protectors.
Negligence The key element that must be present for a person or entity to be held liable for some
action. Liability requires this to be present.
Specific Coverage ___________ ___________ contracts are designed to cover the one object of property listed and
the amount of coverage provided. More than one item of property could be listed on the
Declarations, but the amount paid for each item would be separate
125,000 J has a Homeowner's policy with a $100,000 liability limit. J dug a hole in his front yard.
Unfortunately, a delivery man fell into the hole and was injured. Later the same day,
another delivery man falls into the same hole and is injured. Eventually the claims for the
injuries resulted in a $25,000 judgment for the injuries for the first delivery man and
$100,000 judgment for the injuries for the second man. The Homeowner's policy is a
"single limit" contract. How much did the policy pay on the claims?
COMPREHENSIVE INSURANCE EXAM PREP,
PRACTICE QUESTIONS, CORRECT ANSWERS
AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
, In a split limits policy 50/100/50, the second number the total limit for two or more persons with bodily injury
represents
Insurable Interest The ability to insure property due to ownership
Declarations Page Identifies the amount of premium to be paid, who or what is insured, and the amount of
insurance coverage.
Transferring Risk Obtaining Insurance is a method of this _______.
Insurers allow the insured to move the risk of loss from the insured to the insurance
company for a fee (aka premium)
Example of Indirect Loss Fire destroys a shoe repair shop forcing the business to close down. During the
suspension of operations the shoe repair shop cannot earn money. This loss of income is
referred to as which of the following?
Economic Loss The destruction of property or a loss of income due to the destruction of property.
Binder Temporary evidence of insurances issued by an insurance producer. NC limits the binder
to 60 days for the date of insurance. Canceling a binder requires at least ten days notice.
Risk Reduction Actions reducing the possibility of a loss. Like locking doors, installing alarm system,
replacing surge protectors.
Negligence The key element that must be present for a person or entity to be held liable for some
action. Liability requires this to be present.
Specific Coverage ___________ ___________ contracts are designed to cover the one object of property listed and
the amount of coverage provided. More than one item of property could be listed on the
Declarations, but the amount paid for each item would be separate
125,000 J has a Homeowner's policy with a $100,000 liability limit. J dug a hole in his front yard.
Unfortunately, a delivery man fell into the hole and was injured. Later the same day,
another delivery man falls into the same hole and is injured. Eventually the claims for the
injuries resulted in a $25,000 judgment for the injuries for the first delivery man and
$100,000 judgment for the injuries for the second man. The Homeowner's policy is a
"single limit" contract. How much did the policy pay on the claims?
