PERSONAL LINES UPDATED TEST PAPER QUESTIONS
AND ANSWERS SURE A+
✔✔Avoidance - ✔✔A risk management method that involves deliberately staying away
from a particular risk. For example, choosing not to fly in an airplane to avoid the risk of
being killed in an airplane crash.
✔✔Bailee - ✔✔A person or entity that has possession of personal property entrusted to
them by the owner. For example, a television repair person who has possession of a
customer's television would be a bailee.
✔✔Beneficiary - ✔✔The person who receives the proceeds from an insurance policy.
✔✔Binder - ✔✔A temporary contract that puts an insurance policy into effect before the
premium has been paid.
✔✔Blanket Bond - ✔✔A type of bond that covers losses caused by dishonest
employees.
✔✔Blanket Insurance - ✔✔A single property insurance policy that provides coverage for
multiple classes of property at one location or one or more classes of property at
multiple locations.
✔✔Bodily Injury Liability - ✔✔Legal liability arising from death or physical trauma to a
person as a result of a negligent or purposeful act or omission by an insured.
✔✔Boycott - ✔✔An unfair trade practice in which one person refuses to do business
with another until certain conditions are met.
✔✔Builder's Risk Coverage Form - ✔✔A commercial property form that covers
buildings under construction.
✔✔Building and Personal Property Coverage Form - ✔✔A commercial property form
that covers buildings and/or their contents.
✔✔Burglary - ✔✔The act of breaking into another person's premises with the intent to
commit a felony.
✔✔Cancellation - ✔✔The termination of an in-force insurance policy by either the
insured or the insurer before the expiration date shown in the policy.
✔✔Casualty Insurance - ✔✔A type of insurance that covers losses caused by injury to
persons or damage to the property of others.
, ✔✔Cease and Desist Order - ✔✔A demand for a person to stop committing an action
that violates a provision.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the types of insurance the company can transact. It
is illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates an insurance policy
has been issued and states the amounts and types of insurance provided.
✔✔Claim - ✔✔A demand made by the insured to cover a loss protected by the
insurance policy.
✔✔Class Rating - ✔✔The practice of computing a price per unit of insurance that
applies to all applicants possessing a given set of characteristics.
✔✔Coercion - ✔✔An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance.
✔✔Coinsurance - ✔✔An agreement between an insurer and insured in which both
parties are expected to pay a certain portion of the potential loss and other expenses.
✔✔Combined Single Limit - ✔✔A single dollar limit of liability that applies to the total
damages for bodily injury and property damage combined, resulting from one accident
or occurrence.
✔✔Commercial Lines - ✔✔A type of insurance that pertains to business, mercantile, or
manufacturing establishments.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department.
✔✔Common Law - ✔✔An unwritten body of law based on past judicial decisions as well
as usages and customs.
✔✔Complaint - ✔✔A written statement of a liability claim given by the claimant; a
reason for a lawsuit.
✔✔Components - ✔✔Factors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses, and profits.
✔✔Comprehensive Coverage - ✔✔Also known as Other Than Collision coverage, it
covers losses caused by fire, theft, vandalism, falling objects, etc.
AND ANSWERS SURE A+
✔✔Avoidance - ✔✔A risk management method that involves deliberately staying away
from a particular risk. For example, choosing not to fly in an airplane to avoid the risk of
being killed in an airplane crash.
✔✔Bailee - ✔✔A person or entity that has possession of personal property entrusted to
them by the owner. For example, a television repair person who has possession of a
customer's television would be a bailee.
✔✔Beneficiary - ✔✔The person who receives the proceeds from an insurance policy.
✔✔Binder - ✔✔A temporary contract that puts an insurance policy into effect before the
premium has been paid.
✔✔Blanket Bond - ✔✔A type of bond that covers losses caused by dishonest
employees.
✔✔Blanket Insurance - ✔✔A single property insurance policy that provides coverage for
multiple classes of property at one location or one or more classes of property at
multiple locations.
✔✔Bodily Injury Liability - ✔✔Legal liability arising from death or physical trauma to a
person as a result of a negligent or purposeful act or omission by an insured.
✔✔Boycott - ✔✔An unfair trade practice in which one person refuses to do business
with another until certain conditions are met.
✔✔Builder's Risk Coverage Form - ✔✔A commercial property form that covers
buildings under construction.
✔✔Building and Personal Property Coverage Form - ✔✔A commercial property form
that covers buildings and/or their contents.
✔✔Burglary - ✔✔The act of breaking into another person's premises with the intent to
commit a felony.
✔✔Cancellation - ✔✔The termination of an in-force insurance policy by either the
insured or the insurer before the expiration date shown in the policy.
✔✔Casualty Insurance - ✔✔A type of insurance that covers losses caused by injury to
persons or damage to the property of others.
, ✔✔Cease and Desist Order - ✔✔A demand for a person to stop committing an action
that violates a provision.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the types of insurance the company can transact. It
is illegal for an insurance company to transact insurance without this certificate.
✔✔Certificate of Insurance - ✔✔A legal document that indicates an insurance policy
has been issued and states the amounts and types of insurance provided.
✔✔Claim - ✔✔A demand made by the insured to cover a loss protected by the
insurance policy.
✔✔Class Rating - ✔✔The practice of computing a price per unit of insurance that
applies to all applicants possessing a given set of characteristics.
✔✔Coercion - ✔✔An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance.
✔✔Coinsurance - ✔✔An agreement between an insurer and insured in which both
parties are expected to pay a certain portion of the potential loss and other expenses.
✔✔Combined Single Limit - ✔✔A single dollar limit of liability that applies to the total
damages for bodily injury and property damage combined, resulting from one accident
or occurrence.
✔✔Commercial Lines - ✔✔A type of insurance that pertains to business, mercantile, or
manufacturing establishments.
✔✔Commissioner - ✔✔The chief executive and administrative officer of a state
insurance department.
✔✔Common Law - ✔✔An unwritten body of law based on past judicial decisions as well
as usages and customs.
✔✔Complaint - ✔✔A written statement of a liability claim given by the claimant; a
reason for a lawsuit.
✔✔Components - ✔✔Factors that determine rates, including loss reserves, loss
adjusting expenses, operating expenses, and profits.
✔✔Comprehensive Coverage - ✔✔Also known as Other Than Collision coverage, it
covers losses caused by fire, theft, vandalism, falling objects, etc.
