PERSONAL LINES PRACTICE EXAM 2 |
COMPREHENSIVE QUESTIONS, CORRECT
ANSWERS, EXAM PREP AND STUDY GUIDE
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Updated 2026 Questions and Answers
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,During the 120-day period after receiving notice of cancelling D-Perform routine adjustments of losses
of an agency contract, the agency can continue to perform
which of the following transactions?
A-Appoint agent
B-Bind coverage
C-Write new business
D-Perform routine adjustments of losses
Which of the following would be an example of an insurer A-Charging the insured higher premiums based on her race
participating in the unfair trade practice of discrimination?
A-Charging the insured higher premiums based on her race
B-Making malicious statements about the insured based on his
race
C-Charging different premium rates to the insureds in different
insuring classes
D-Charging the insured higher premiums based on life
expectancy
To be valid, an insurance policy must have all of the following D-Countersignature
EXCEPT?
A-Acceptance
B-Consideration
C-Offer
D-Countersignature
For an insurance contract, the principle of utmost good faith D-Each party relies upon the truthfulness of the other
means?
A-The contract involves only the policyowner and the insurer
B-Each party is equally responsible for the value of the policy
C-The policyowner will be indemnified in case of loss
D-Each party relies upon the truthfulness of the other
After a covered loss on a homeowners policy, the insured D-Abandon the property involved to the insurer
must do all of the following EXCEPT?
A-Allow the insurer to inspect the property as often as
reasonably necessary
B-If requested, submit to an examination under oath
C-Prepare an inventory of damaged and undamaged
property, including bills, receipts, and related documentation
D-Abandon the property involved to the insurer
, In order to get a nonresident license in this state, a licensed A-Apply for a nonresident license and pay a fee
producer from another state must
A-Apply for a nonresident license and pay a fee
B-Pass the nonresident state exam
C-Represent an agency located in this state
D-Surrender his or her license in the state of residence
Which of the following is NOT an indicator of a competent B-Business profession
party?
A-Comprehension of contract
B-Business profession
C-Legal Age
D-Mental proficiency
In a DP-1, if the insured elects to apply Coverage B to a D-Be reduced by 10%
detached garage, Coverage A will?
A-Only be applicable if the insured pays a higher deductible
B-Only be applicable if the insured pays an additional
premium
C-Be increased by 10%
D-Be reduced by 10%
An insured has decided to never drive another vehicle and A-The written consent of the insurer
wants to transfer his auto insurance policy to his wife. What
does the insured need to transfer the policy?
A-The written consent of the insurer
B-An auto policy cannot be transferred
C-Nothing, because the wife is automatically included as an
insured
D-The written consent of all other insureds covered by the
policy
Which method of dealing with risk is applied when insurance is A-Transfer
purchased?
A-Transfer
B-Sharing
C-Avoidance
D-Reduction
COMPREHENSIVE QUESTIONS, CORRECT
ANSWERS, EXAM PREP AND STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,During the 120-day period after receiving notice of cancelling D-Perform routine adjustments of losses
of an agency contract, the agency can continue to perform
which of the following transactions?
A-Appoint agent
B-Bind coverage
C-Write new business
D-Perform routine adjustments of losses
Which of the following would be an example of an insurer A-Charging the insured higher premiums based on her race
participating in the unfair trade practice of discrimination?
A-Charging the insured higher premiums based on her race
B-Making malicious statements about the insured based on his
race
C-Charging different premium rates to the insureds in different
insuring classes
D-Charging the insured higher premiums based on life
expectancy
To be valid, an insurance policy must have all of the following D-Countersignature
EXCEPT?
A-Acceptance
B-Consideration
C-Offer
D-Countersignature
For an insurance contract, the principle of utmost good faith D-Each party relies upon the truthfulness of the other
means?
A-The contract involves only the policyowner and the insurer
B-Each party is equally responsible for the value of the policy
C-The policyowner will be indemnified in case of loss
D-Each party relies upon the truthfulness of the other
After a covered loss on a homeowners policy, the insured D-Abandon the property involved to the insurer
must do all of the following EXCEPT?
A-Allow the insurer to inspect the property as often as
reasonably necessary
B-If requested, submit to an examination under oath
C-Prepare an inventory of damaged and undamaged
property, including bills, receipts, and related documentation
D-Abandon the property involved to the insurer
, In order to get a nonresident license in this state, a licensed A-Apply for a nonresident license and pay a fee
producer from another state must
A-Apply for a nonresident license and pay a fee
B-Pass the nonresident state exam
C-Represent an agency located in this state
D-Surrender his or her license in the state of residence
Which of the following is NOT an indicator of a competent B-Business profession
party?
A-Comprehension of contract
B-Business profession
C-Legal Age
D-Mental proficiency
In a DP-1, if the insured elects to apply Coverage B to a D-Be reduced by 10%
detached garage, Coverage A will?
A-Only be applicable if the insured pays a higher deductible
B-Only be applicable if the insured pays an additional
premium
C-Be increased by 10%
D-Be reduced by 10%
An insured has decided to never drive another vehicle and A-The written consent of the insurer
wants to transfer his auto insurance policy to his wife. What
does the insured need to transfer the policy?
A-The written consent of the insurer
B-An auto policy cannot be transferred
C-Nothing, because the wife is automatically included as an
insured
D-The written consent of all other insureds covered by the
policy
Which method of dealing with risk is applied when insurance is A-Transfer
purchased?
A-Transfer
B-Sharing
C-Avoidance
D-Reduction
