INSURANCE LICENSING · PERSONAL LINES
PERSONAL LINES FINAL 2026/27 EXAM QUESTIONS
WITH 100% CORRECT ANSWERS!!
A+
Complete Blueprint Coverage · Verified Rationales
A+ 5 100%
QUESTIONS VERIFIED EXAM DOMAINS COVERED RATIONALES INCLUDED
CATEGORIES
Section 1: Personal Auto Policy (PAP) Coverages and Provisions
Section 2: Homeowners Policy Forms and Section I Coverages
Section 3: Homeowners Liability, Endorsements, and Conditions
Section 4: Dwelling, Inland Marine, and Specialty Personal Lines
Section 5: Umbrella, Claims, Underwriting, and Regulatory Concepts
STUVIAACTUALEXAM
, SECTION 1: PERSONAL AUTO POLICY (PAP) COVERAGES AND PROVISIONS
Question 1
A named insured has a Personal Auto Policy with liability limits of 100/300/50. While driving the covered auto, the
insured causes an accident that injures three people in the other vehicle. Their bodily injury claims total $120,000,
$95,000, and $40,000 respectively. How will the policy respond to the bodily injury claims?
A. Pay the full $255,000 because the combined single limit is $300,000.
B. Pay $100,000 to the first claimant, $100,000 to the second, and $40,000 to the third, for a total of $240,000.
C. Pay only $100,000 total for all bodily injury claims combined.
D. Deny all claims because three claimants exceed the per-person limit structure.
Correct Answer: B
Rationale:
Split limits of 100/300 mean $100,000 per person and $300,000 per accident for bodily injury. Each person is capped at $100,000;
the third claim is fully covered at $40,000. The accident total of $240,000 remains under the $300,000 aggregate.
Question 2
An insured's 19-year-old son, who resides in the household and is listed as a driver, borrows a neighbor's private
passenger auto and causes an at-fault accident. The neighbor's policy has liability limits of 25/50/25. The son's parents'
PAP has limits of 100/300/50. Which statement correctly describes the order of coverage?
A. The son's parents' PAP is primary and the neighbor's policy is excess.
B. The neighbor's policy is primary; the parents' PAP provides excess liability over the neighbor's limits.
C. Neither policy responds because the auto is not owned by a named insured.
D. Only the neighbor's policy responds; the parents' PAP excludes non-owned autos used by resident relatives.
Correct Answer: B
Rationale:
For a non-owned auto, the owner's policy is primary. The resident relative's PAP provides excess liability coverage. The PAP does
extend liability to the named insured and family members using non-owned private passenger autos.
Question 3
A covered auto is stolen from a parking garage. The insured discovers the theft three days later and immediately notifies
the insurer. The auto is recovered two weeks later with $4,800 in damage. The PAP has a $500 collision deductible and
a $250 comprehensive deductible. Which deductible applies?
A. The $500 collision deductible because theft-related damage is treated as collision.
B. The $250 comprehensive (other-than-collision) deductible because theft is an other-than-collision peril.
C. No deductible applies because the auto was recovered.
D. Both deductibles apply in sequence for a total of $750.
Correct Answer: B
Rationale:
Theft and damage resulting from theft are other-than-collision (comprehensive) losses. The comprehensive deductible applies.
Collision coverage addresses upset or impact with another object, not theft.
Question 4
An insured with Part D coverage has a covered auto valued at $18,000. After a total loss by collision, the insurer
determines the actual cash value is $15,200. The collision deductible is $500. The insured still owes $16,800 on the auto
loan. How much will the PAP pay the insured (or lienholder) before considering any endorsement?
A. $18,000 minus the deductible, because the policy pays replacement cost.
B. $15,200 minus the $500 deductible, for a net payment of $14,700.
C. $16,800 to satisfy the loan in full regardless of actual cash value.
D. $15,200 with no deductible because total losses waive the deductible.
Correct Answer: B
Rationale:
Part D settles total losses at actual cash value less the applicable deductible. Without a loan/lease gap endorsement, the policy does
not pay the full loan balance when it exceeds ACV.
PERSONAL LINES FINAL 2026/27 EXAM Page 2
, Question 5
A named insured is injured while riding as a passenger in a friend's car. The friend has no auto insurance. The named
insured's PAP includes Medical Payments coverage of $5,000 and Uninsured Motorists Bodily Injury limits of 100/300.
Which coverage responds first to the insured's medical bills of $3,200?
A. Uninsured Motorists coverage, because the at-fault driver was uninsured.
B. Medical Payments coverage, which pays reasonable medical expenses incurred by an insured regardless of fault.
C. Liability coverage under the named insured's own PAP.
D. No coverage applies because the insured was not occupying a covered auto.
Correct Answer: B
Rationale:
Medical Payments coverage under the PAP pays necessary medical expenses for the named insured and family members injured
while occupying any auto, without regard to fault. UM responds to bodily injury liability claims against the uninsured driver, not
first-party medical bills.
Question 6
An insured has a PAP with Transportation Expenses coverage under Part D. The covered auto is disabled for 12 days
after a covered collision. The insured rents a substitute vehicle for $45 per day. The policy provides $30 per day subject
to a $900 maximum and a 48-hour waiting period for collision losses. What is the maximum recoverable amount for
transportation expenses?
A. $540 (12 days x $45).
B. $300 (10 days x $30 after the 48-hour waiting period).
C. $360 (12 days x $30).
D. $900, the full policy maximum regardless of daily limit.
Correct Answer: B
Rationale:
Transportation Expenses for collision begin after a 48-hour waiting period, so only 10 days are covered. The daily limit is $30,
producing $300. The actual rental cost of $45 does not increase the policy limit.
Question 7
A named insured's PAP lists only a private passenger auto. The insured occasionally borrows a pickup truck owned by
an employer for personal errands on weekends. While using the truck for a personal errand, the insured causes an
at-fault accident. Which statement is correct regarding liability coverage?
A. The PAP automatically provides primary liability coverage for any vehicle the insured drives.
B. The PAP may provide excess liability for a non-owned auto, but coverage is often excluded if the vehicle is furnished or
available for regular use.
C. No coverage exists because pickups are never covered under a Personal Auto Policy.
D. The PAP becomes primary because personal use converts the truck into a covered auto.
Correct Answer: B
Rationale:
Non-owned autos are covered for liability on an excess basis, but the 'furnished or available for regular use' exclusion can eliminate
coverage when the vehicle is regularly available to the insured. Primary coverage would rest with the owner's policy.
PERSONAL LINES FINAL 2026/27 EXAM Page 3
PERSONAL LINES FINAL 2026/27 EXAM QUESTIONS
WITH 100% CORRECT ANSWERS!!
A+
Complete Blueprint Coverage · Verified Rationales
A+ 5 100%
QUESTIONS VERIFIED EXAM DOMAINS COVERED RATIONALES INCLUDED
CATEGORIES
Section 1: Personal Auto Policy (PAP) Coverages and Provisions
Section 2: Homeowners Policy Forms and Section I Coverages
Section 3: Homeowners Liability, Endorsements, and Conditions
Section 4: Dwelling, Inland Marine, and Specialty Personal Lines
Section 5: Umbrella, Claims, Underwriting, and Regulatory Concepts
STUVIAACTUALEXAM
, SECTION 1: PERSONAL AUTO POLICY (PAP) COVERAGES AND PROVISIONS
Question 1
A named insured has a Personal Auto Policy with liability limits of 100/300/50. While driving the covered auto, the
insured causes an accident that injures three people in the other vehicle. Their bodily injury claims total $120,000,
$95,000, and $40,000 respectively. How will the policy respond to the bodily injury claims?
A. Pay the full $255,000 because the combined single limit is $300,000.
B. Pay $100,000 to the first claimant, $100,000 to the second, and $40,000 to the third, for a total of $240,000.
C. Pay only $100,000 total for all bodily injury claims combined.
D. Deny all claims because three claimants exceed the per-person limit structure.
Correct Answer: B
Rationale:
Split limits of 100/300 mean $100,000 per person and $300,000 per accident for bodily injury. Each person is capped at $100,000;
the third claim is fully covered at $40,000. The accident total of $240,000 remains under the $300,000 aggregate.
Question 2
An insured's 19-year-old son, who resides in the household and is listed as a driver, borrows a neighbor's private
passenger auto and causes an at-fault accident. The neighbor's policy has liability limits of 25/50/25. The son's parents'
PAP has limits of 100/300/50. Which statement correctly describes the order of coverage?
A. The son's parents' PAP is primary and the neighbor's policy is excess.
B. The neighbor's policy is primary; the parents' PAP provides excess liability over the neighbor's limits.
C. Neither policy responds because the auto is not owned by a named insured.
D. Only the neighbor's policy responds; the parents' PAP excludes non-owned autos used by resident relatives.
Correct Answer: B
Rationale:
For a non-owned auto, the owner's policy is primary. The resident relative's PAP provides excess liability coverage. The PAP does
extend liability to the named insured and family members using non-owned private passenger autos.
Question 3
A covered auto is stolen from a parking garage. The insured discovers the theft three days later and immediately notifies
the insurer. The auto is recovered two weeks later with $4,800 in damage. The PAP has a $500 collision deductible and
a $250 comprehensive deductible. Which deductible applies?
A. The $500 collision deductible because theft-related damage is treated as collision.
B. The $250 comprehensive (other-than-collision) deductible because theft is an other-than-collision peril.
C. No deductible applies because the auto was recovered.
D. Both deductibles apply in sequence for a total of $750.
Correct Answer: B
Rationale:
Theft and damage resulting from theft are other-than-collision (comprehensive) losses. The comprehensive deductible applies.
Collision coverage addresses upset or impact with another object, not theft.
Question 4
An insured with Part D coverage has a covered auto valued at $18,000. After a total loss by collision, the insurer
determines the actual cash value is $15,200. The collision deductible is $500. The insured still owes $16,800 on the auto
loan. How much will the PAP pay the insured (or lienholder) before considering any endorsement?
A. $18,000 minus the deductible, because the policy pays replacement cost.
B. $15,200 minus the $500 deductible, for a net payment of $14,700.
C. $16,800 to satisfy the loan in full regardless of actual cash value.
D. $15,200 with no deductible because total losses waive the deductible.
Correct Answer: B
Rationale:
Part D settles total losses at actual cash value less the applicable deductible. Without a loan/lease gap endorsement, the policy does
not pay the full loan balance when it exceeds ACV.
PERSONAL LINES FINAL 2026/27 EXAM Page 2
, Question 5
A named insured is injured while riding as a passenger in a friend's car. The friend has no auto insurance. The named
insured's PAP includes Medical Payments coverage of $5,000 and Uninsured Motorists Bodily Injury limits of 100/300.
Which coverage responds first to the insured's medical bills of $3,200?
A. Uninsured Motorists coverage, because the at-fault driver was uninsured.
B. Medical Payments coverage, which pays reasonable medical expenses incurred by an insured regardless of fault.
C. Liability coverage under the named insured's own PAP.
D. No coverage applies because the insured was not occupying a covered auto.
Correct Answer: B
Rationale:
Medical Payments coverage under the PAP pays necessary medical expenses for the named insured and family members injured
while occupying any auto, without regard to fault. UM responds to bodily injury liability claims against the uninsured driver, not
first-party medical bills.
Question 6
An insured has a PAP with Transportation Expenses coverage under Part D. The covered auto is disabled for 12 days
after a covered collision. The insured rents a substitute vehicle for $45 per day. The policy provides $30 per day subject
to a $900 maximum and a 48-hour waiting period for collision losses. What is the maximum recoverable amount for
transportation expenses?
A. $540 (12 days x $45).
B. $300 (10 days x $30 after the 48-hour waiting period).
C. $360 (12 days x $30).
D. $900, the full policy maximum regardless of daily limit.
Correct Answer: B
Rationale:
Transportation Expenses for collision begin after a 48-hour waiting period, so only 10 days are covered. The daily limit is $30,
producing $300. The actual rental cost of $45 does not increase the policy limit.
Question 7
A named insured's PAP lists only a private passenger auto. The insured occasionally borrows a pickup truck owned by
an employer for personal errands on weekends. While using the truck for a personal errand, the insured causes an
at-fault accident. Which statement is correct regarding liability coverage?
A. The PAP automatically provides primary liability coverage for any vehicle the insured drives.
B. The PAP may provide excess liability for a non-owned auto, but coverage is often excluded if the vehicle is furnished or
available for regular use.
C. No coverage exists because pickups are never covered under a Personal Auto Policy.
D. The PAP becomes primary because personal use converts the truck into a covered auto.
Correct Answer: B
Rationale:
Non-owned autos are covered for liability on an excess basis, but the 'furnished or available for regular use' exclusion can eliminate
coverage when the vehicle is regularly available to the insured. Primary coverage would rest with the owner's policy.
PERSONAL LINES FINAL 2026/27 EXAM Page 3
