PERSONAL LINES LATEST 2026 COMPREHENSIVE EXAM
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔consequential loss - ✔✔generally an indirect loss. Specifically, an endorsement that
can be purchased with an Equipment Breakdown Policy that would cover losses that
occur after, and as a result of, a direct loss. Ex: spoilage that occurs after power is lost.
✔✔coverage for damage to your auto - ✔✔originally--physical damage coverage; this is
the portion of an Automobile Policy in which the insured would find coverage for
damage to their automobile.
✔✔covered auto - ✔✔generally, your auto, the auto named on the Dec Sheet of the
Auto policy. Also includes autos acquired during the policy period, trailers, and
temporary substitute autos.
✔✔debris removal - ✔✔additional coverage of a property policy which stipulates to what
extent the policy will pay for the removal of debris after a covered loss to property as
occurred.
✔✔declarations sheet/page - ✔✔the first page of an insurance contract that contains
information concerning who is covered, what is covered, when it is coveerd, the amount
and cost of coverage, and where covered property is located
✔✔deductible - ✔✔the amount of the risk that the insured has retained. If you have a
$500 deductible, for example, you have agreed that the first $500 suffered in a covered
loss is your responsibility. The purpose of a deductible is to reduce claims and prevent
over use of a property policy.
✔✔depreciation - ✔✔the loss of value of an item over time
✔✔dwelling - ✔✔a home and more. For insurance purposes a dwelling is considered a
house as well as items built-in to the home and items attached to the home.
✔✔dwelling policy - ✔✔a policy to cover a dwelling in which the owner does not reside
or for some other reason does not qualify for homeowners coverage.
✔✔earthquake endorsement - ✔✔coverage available at extra cost in a property contract
to cover losses due to earthquake and volcanic eruption
✔✔exclusions - ✔✔losses not covered by a policy, such as Flood and Intentional
Losses
✔✔Fair Rental value - ✔✔an indirect loss coverage designed to offset the losses
sustained by a landlord following the damage or destruction of a rental property
, ✔✔fire department service charge - ✔✔an additional coverage automatically provided in
both homeowners and commercial property it is the payment made to the fire
department to put out a fire. In homeowners that amount is $500. In commercial
property, it is $1000.
✔✔floater - ✔✔coverage available under inland marine insurance to cover personal
property for more perils and with a better method of valuation than offered in property
insurance. Providing worldwide coverage, a floater is called such because the coverage
moves or floats along with covered property wherever the property may be.
✔✔flood - ✔✔the covering of normally dry land with water that overflows its banks. Also
would include erosion of shorelines, the unusual accumulation of surface water and
mudflows. Does not include sewer back-up or wind blown rain.
✔✔flood insurance - ✔✔insurance available to cover floods. Since floods are excluded
by most property policies covering real property, flood insurance can be purchased
through the national flood insurance program (NFIP). Although sold by insurance
companies flood insurance is actually underwritten by the Federal Government.
✔✔forgery - ✔✔the criminal act of fraudulently making or altering a document with the
intent of depriving others of some right, interest or property.
✔✔governmental action - ✔✔an excluded loss in a property policy caused by the
seizure or destruction of property due to the actions of the government. The preventive
destruction of property to stop the spread of a covered fire would be covered.
✔✔hail - ✔✔a basic peril covered under windstorm/hail
✔✔homeowners - ✔✔the series of contracts (HO2 through H08) that provides property
and casualty coverage for the exposures of the typical homeowner
✔✔insuring agreement - ✔✔the provision in a contract that contains the insurance
company's promise to pay benefits for covered loss
✔✔intentional water - ✔✔friendly water invited into building such as water found in
pipes and appliances. Intentional water that suddenly and accidentally damages
covered property is a covered peril under the broad peril form.
✔✔liability - ✔✔to have responsibility for damage caused to another person or their
property
✔✔lightning - ✔✔a basic peril
QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔consequential loss - ✔✔generally an indirect loss. Specifically, an endorsement that
can be purchased with an Equipment Breakdown Policy that would cover losses that
occur after, and as a result of, a direct loss. Ex: spoilage that occurs after power is lost.
✔✔coverage for damage to your auto - ✔✔originally--physical damage coverage; this is
the portion of an Automobile Policy in which the insured would find coverage for
damage to their automobile.
✔✔covered auto - ✔✔generally, your auto, the auto named on the Dec Sheet of the
Auto policy. Also includes autos acquired during the policy period, trailers, and
temporary substitute autos.
✔✔debris removal - ✔✔additional coverage of a property policy which stipulates to what
extent the policy will pay for the removal of debris after a covered loss to property as
occurred.
✔✔declarations sheet/page - ✔✔the first page of an insurance contract that contains
information concerning who is covered, what is covered, when it is coveerd, the amount
and cost of coverage, and where covered property is located
✔✔deductible - ✔✔the amount of the risk that the insured has retained. If you have a
$500 deductible, for example, you have agreed that the first $500 suffered in a covered
loss is your responsibility. The purpose of a deductible is to reduce claims and prevent
over use of a property policy.
✔✔depreciation - ✔✔the loss of value of an item over time
✔✔dwelling - ✔✔a home and more. For insurance purposes a dwelling is considered a
house as well as items built-in to the home and items attached to the home.
✔✔dwelling policy - ✔✔a policy to cover a dwelling in which the owner does not reside
or for some other reason does not qualify for homeowners coverage.
✔✔earthquake endorsement - ✔✔coverage available at extra cost in a property contract
to cover losses due to earthquake and volcanic eruption
✔✔exclusions - ✔✔losses not covered by a policy, such as Flood and Intentional
Losses
✔✔Fair Rental value - ✔✔an indirect loss coverage designed to offset the losses
sustained by a landlord following the damage or destruction of a rental property
, ✔✔fire department service charge - ✔✔an additional coverage automatically provided in
both homeowners and commercial property it is the payment made to the fire
department to put out a fire. In homeowners that amount is $500. In commercial
property, it is $1000.
✔✔floater - ✔✔coverage available under inland marine insurance to cover personal
property for more perils and with a better method of valuation than offered in property
insurance. Providing worldwide coverage, a floater is called such because the coverage
moves or floats along with covered property wherever the property may be.
✔✔flood - ✔✔the covering of normally dry land with water that overflows its banks. Also
would include erosion of shorelines, the unusual accumulation of surface water and
mudflows. Does not include sewer back-up or wind blown rain.
✔✔flood insurance - ✔✔insurance available to cover floods. Since floods are excluded
by most property policies covering real property, flood insurance can be purchased
through the national flood insurance program (NFIP). Although sold by insurance
companies flood insurance is actually underwritten by the Federal Government.
✔✔forgery - ✔✔the criminal act of fraudulently making or altering a document with the
intent of depriving others of some right, interest or property.
✔✔governmental action - ✔✔an excluded loss in a property policy caused by the
seizure or destruction of property due to the actions of the government. The preventive
destruction of property to stop the spread of a covered fire would be covered.
✔✔hail - ✔✔a basic peril covered under windstorm/hail
✔✔homeowners - ✔✔the series of contracts (HO2 through H08) that provides property
and casualty coverage for the exposures of the typical homeowner
✔✔insuring agreement - ✔✔the provision in a contract that contains the insurance
company's promise to pay benefits for covered loss
✔✔intentional water - ✔✔friendly water invited into building such as water found in
pipes and appliances. Intentional water that suddenly and accidentally damages
covered property is a covered peril under the broad peril form.
✔✔liability - ✔✔to have responsibility for damage caused to another person or their
property
✔✔lightning - ✔✔a basic peril
