PERSONAL LINES FINAL EXAM
QUESTIONS WITH 100%
CORRECT ANSWERS/NEWEST
UPDATE 2026/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 - 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 - answer-D) cease and desist order
Extended Coverage (EC) include all of the following perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - 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 - answer-Deductible
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - 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 - 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 - 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 - answer-B) $200
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 - 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 - 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 - 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. - answer-B) make
property insurance available for high risk property owners.
QUESTIONS WITH 100%
CORRECT ANSWERS/NEWEST
UPDATE 2026/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 - 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 - answer-D) cease and desist order
Extended Coverage (EC) include all of the following perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - 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 - answer-Deductible
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - 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 - 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 - 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 - answer-B) $200
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 - 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 - 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 - 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. - answer-B) make
property insurance available for high risk property owners.
