PERSONAL LINES FINAL 2025/26 EXAM QUESTIONS WITH 100% CORRECT
ANSWERS/GRADE A+ ASSURED!!
What part of the policy lists the rules, duties, and obligations of the insured and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions - (Correct Answer)-C) Conditions
The directive that states the violation committed and requires an agent to stop the illegal acitivity
is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order - (Correct Answer)-D) cease and desist order
Extended Coverage (EC) include all of the following perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - (Correct Answer)-D) vandalism
A device which is used to minimize small nuisance claims, lower insurance premiums, and
reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - (Correct Answer)-Deductible
, 2
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - (Correct Answer)-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 - (Correct Answer)-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 - (Correct Answer)-D) a truck used to make deliveries
What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
C) $250
D) $500 - (Correct Answer)-B) $200
, 3
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 - (Correct Answer)-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 - (Correct Answer)-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 - (Correct Answer)-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. - (Correct Answer)-B)
make property insurance available for high risk property owners.
Which type of watercraft is insurable on a yacht policy?
ANSWERS/GRADE A+ ASSURED!!
What part of the policy lists the rules, duties, and obligations of the insured and insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions - (Correct Answer)-C) Conditions
The directive that states the violation committed and requires an agent to stop the illegal acitivity
is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order - (Correct Answer)-D) cease and desist order
Extended Coverage (EC) include all of the following perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - (Correct Answer)-D) vandalism
A device which is used to minimize small nuisance claims, lower insurance premiums, and
reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - (Correct Answer)-Deductible
, 2
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - (Correct Answer)-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 - (Correct Answer)-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 - (Correct Answer)-D) a truck used to make deliveries
What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
C) $250
D) $500 - (Correct Answer)-B) $200
, 3
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 - (Correct Answer)-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 - (Correct Answer)-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 - (Correct Answer)-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. - (Correct Answer)-B)
make property insurance available for high risk property owners.
Which type of watercraft is insurable on a yacht policy?
