PERSONAL LINES FINAL EXAM WITH bbb bbb bbb bbb
ALL ANSWERS bbb bbb
Statements made in the application are considered: bbb b b
bbb bbb b bbb b b
bbb b
bbb
A. Warranties
bbb b
B. Representations
bbb b
C. Possible Concealments
b
bbb bbb b
D. None of the Above - correct answer-B. Representations
b
bbb bbb b bbb b bbb b bbb b bbb b bbbb b
bbb b
bbb
The definition of Risk is: b
bbb bbb b bbb b bbb b
A. Uncertainty regarding loss
bbb b bbb b bbb b
B. A chance of gain
bbb b bbb b bbb b bbb b
C. Uncertainty regarding gain or profit
b
bbb bbb b bbb b bbb b bbb b
D. Intended unforseen damage to property for gain or profit -
b
bbb bbb b bbb b bbb b bbb b b
bbb bbb b b
bbb bbb b b
bbb bbb b bbbb correct answer- bbb b
A. Uncertainty regarding loss
bbb b bbb b bbb b
A financial device for transferring or shifting risk from an individual or entity to
b
bbb b
bbb bbb b b
bbb bbb b b
bbb bbb b b
bbb bbb b bbb b bbb b b
bbb bbb b
a large group with the same risk is the definition of:
bbb b bbb b bbb b bbb b b
bbb bbb b bbb b bbb b bbb b bbb b b
bbb
A. Avoidancebbb b
B. Retentionbbb b
C. Transfer b
bbb
D. Insurance - correct answer-D. Insurance
b
bbb bbb b bbb b bbbb bbbb bbb b
Hazards include which of the following: b
bbb bbb b bbb b b
bbb bbb b
1. Unintended oily rags stacked in a corner
bbb b bbb b bbb b bbb b bbb b bbb b bbb b
2. A homeowner's carelessness because he has insurance
bbb b bbb b b
bbb bbb b bbb b bbb b bbb b
, A. bbb 1 only
b b
bbb
B. bbb 2 only
b b
bbb
C. bbb Both 1 & 2
b bbb b bbb b bbb b
D. bbb Neither 1 or 2 -
b bbb b bbb b bbb b bbbb bbb b bbbb correct answer-C. Both 1 & 2 bbb b bbb b bbb b b
bbb bbb b
The mortgage condition in a property policy:
b
bbb bbb b bbb b bbb b bbb b bbb b
1. Guarantees that the lending institutions may act for itself in paying a
b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b
premium
bbb b
2. Guarantees claim payments will be divided as the interests of the insurance
b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b bbb b bbb b
and mortgagee appear
bbb b bbb b bbb b
A. bbb 1 only
b b
bbb
B. bbb 2 only
b b
bbb
C. bbb Both 1 & 2
b bbb b bbb b bbb b
D. bbb Neither 1 nor 2 -
b bbb b bbb b bbb b bbb b bbb b bbbb correct answer-C. Both 1 & 2 bbb b bbb b bbb b bbb b bbb b
Which of the following situations does NOT create an insurable interest?
bbb b bbb b bbb b b
bbb bbb b bbb b bbb b bbb b bbb b b
bbb
A. Being named in someone's will as an heir
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b
B. Holding a mortgage or lien on property
bbb b bbb b bbb b bbb b bbb b bbb b bbb b
C. Having custody or control of someone else's property
bbb b bbb b bbbb bbb b bbb b bbb b bbb b bbb b
D. Owning property - correct answer-A. Being named in someone's will as an
bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b
heir
bbb b
The plumbing in Mrs. Ward's home suddenly burst and the ceilings were
b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b
damaged by water. Which of the following homeowner forms would cover the
bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b bbb b bbb b bbb b
loss?
bbb b
A. bbb HO1
b
B. bbb HO2
b
C. bbb HO4
b
D. bbb HO7` -
b bbb b bbb b bbbb correct answer-B. HO2 bbb b bbb b
Nicole has a Personal Auto policy with limits of 10/20/10 for liability coverage.
bbb b bbb b bbb b b
bbb bbb b bbb b b
bbb bbb b bbb b b
bbb bbb b bbb b
She causes an accident that results in $12,000 bodily injury damages to the
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b
other driver and $5,000 in property damage to the other driver's car. How
bbb b bbb b b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb
much would Nicole's policy pay for the the BI and PD losses?
bbb b bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b bbb b bbb b bbb b
A. bbb $15,000
b
B. bbb $17,000
b
C. bbb $10,000
b
D. bbb $12,000 -
b bbb b bbb b bbbb correct answer-A. $15,000 bbb b bbb b
Sally Smith calls her agent, Hubert Dufus, to purchase flood insurance. Agent
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b
Dufus explains to Ms. Smith that flood coverage can be purchased directly
bbb b bbb b bbb b bbb b b
bbb bbb b bbb b b
bbb bbb b bbb b bbb b bbb b
through the NFIP or through him. Should Ms. Smith choose to purchase
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b
coverage through Agent Dufus it is called the:
bbb b bbb b bbb b bbb b bbb b b
bbb bbb b bbb b
A. Write your own program
bbb b bbb b bbb b bbb b
B. Create flood insurance program
bbb b bbb b bbb b bbb b
ALL ANSWERS bbb bbb
Statements made in the application are considered: bbb b b
bbb bbb b bbb b b
bbb b
bbb
A. Warranties
bbb b
B. Representations
bbb b
C. Possible Concealments
b
bbb bbb b
D. None of the Above - correct answer-B. Representations
b
bbb bbb b bbb b bbb b bbb b bbb b bbbb b
bbb b
bbb
The definition of Risk is: b
bbb bbb b bbb b bbb b
A. Uncertainty regarding loss
bbb b bbb b bbb b
B. A chance of gain
bbb b bbb b bbb b bbb b
C. Uncertainty regarding gain or profit
b
bbb bbb b bbb b bbb b bbb b
D. Intended unforseen damage to property for gain or profit -
b
bbb bbb b bbb b bbb b bbb b b
bbb bbb b b
bbb bbb b b
bbb bbb b bbbb correct answer- bbb b
A. Uncertainty regarding loss
bbb b bbb b bbb b
A financial device for transferring or shifting risk from an individual or entity to
b
bbb b
bbb bbb b b
bbb bbb b b
bbb bbb b b
bbb bbb b bbb b bbb b b
bbb bbb b
a large group with the same risk is the definition of:
bbb b bbb b bbb b bbb b b
bbb bbb b bbb b bbb b bbb b bbb b b
bbb
A. Avoidancebbb b
B. Retentionbbb b
C. Transfer b
bbb
D. Insurance - correct answer-D. Insurance
b
bbb bbb b bbb b bbbb bbbb bbb b
Hazards include which of the following: b
bbb bbb b bbb b b
bbb bbb b
1. Unintended oily rags stacked in a corner
bbb b bbb b bbb b bbb b bbb b bbb b bbb b
2. A homeowner's carelessness because he has insurance
bbb b bbb b b
bbb bbb b bbb b bbb b bbb b
, A. bbb 1 only
b b
bbb
B. bbb 2 only
b b
bbb
C. bbb Both 1 & 2
b bbb b bbb b bbb b
D. bbb Neither 1 or 2 -
b bbb b bbb b bbb b bbbb bbb b bbbb correct answer-C. Both 1 & 2 bbb b bbb b bbb b b
bbb bbb b
The mortgage condition in a property policy:
b
bbb bbb b bbb b bbb b bbb b bbb b
1. Guarantees that the lending institutions may act for itself in paying a
b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b
premium
bbb b
2. Guarantees claim payments will be divided as the interests of the insurance
b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b bbb b bbb b
and mortgagee appear
bbb b bbb b bbb b
A. bbb 1 only
b b
bbb
B. bbb 2 only
b b
bbb
C. bbb Both 1 & 2
b bbb b bbb b bbb b
D. bbb Neither 1 nor 2 -
b bbb b bbb b bbb b bbb b bbb b bbbb correct answer-C. Both 1 & 2 bbb b bbb b bbb b bbb b bbb b
Which of the following situations does NOT create an insurable interest?
bbb b bbb b bbb b b
bbb bbb b bbb b bbb b bbb b bbb b b
bbb
A. Being named in someone's will as an heir
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b
B. Holding a mortgage or lien on property
bbb b bbb b bbb b bbb b bbb b bbb b bbb b
C. Having custody or control of someone else's property
bbb b bbb b bbbb bbb b bbb b bbb b bbb b bbb b
D. Owning property - correct answer-A. Being named in someone's will as an
bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b
heir
bbb b
The plumbing in Mrs. Ward's home suddenly burst and the ceilings were
b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b
damaged by water. Which of the following homeowner forms would cover the
bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b bbb b bbb b bbb b
loss?
bbb b
A. bbb HO1
b
B. bbb HO2
b
C. bbb HO4
b
D. bbb HO7` -
b bbb b bbb b bbbb correct answer-B. HO2 bbb b bbb b
Nicole has a Personal Auto policy with limits of 10/20/10 for liability coverage.
bbb b bbb b bbb b b
bbb bbb b bbb b b
bbb bbb b bbb b b
bbb bbb b bbb b
She causes an accident that results in $12,000 bodily injury damages to the
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb bbb b
other driver and $5,000 in property damage to the other driver's car. How
bbb b bbb b b
bbb bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b b
bbb
much would Nicole's policy pay for the the BI and PD losses?
bbb b bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b bbb b bbb b bbb b
A. bbb $15,000
b
B. bbb $17,000
b
C. bbb $10,000
b
D. bbb $12,000 -
b bbb b bbb b bbbb correct answer-A. $15,000 bbb b bbb b
Sally Smith calls her agent, Hubert Dufus, to purchase flood insurance. Agent
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbbb bbb b bbb b bbb b
Dufus explains to Ms. Smith that flood coverage can be purchased directly
bbb b bbb b bbb b bbb b b
bbb bbb b bbb b b
bbb bbb b bbb b bbb b bbb b
through the NFIP or through him. Should Ms. Smith choose to purchase
bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b bbb b
coverage through Agent Dufus it is called the:
bbb b bbb b bbb b bbb b bbb b b
bbb bbb b bbb b
A. Write your own program
bbb b bbb b bbb b bbb b
B. Create flood insurance program
bbb b bbb b bbb b bbb b
