PERSONAL LINES EXAM AND PRACTICE EXAM
2025 WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|BRAND NEW !!!|LATEST UPDATE
|GUARANTEED PASS
Which statement is true of Section I of a Homeowners Policy?
A-A special limit of $1,500 limit applies to watercraft
B-Coverage is provided on owned golf carts and owned snowmobiles off premises
C-Theft of a boat while away from the premises is covered
D-Coverage on utility trailers is limited to $2,000
A-A special limit of $1,500 limit applies to watercraft
If your $5,000 gold watch is stolen, how would your Homeowners policy respond?
A-The loss is limited to $1,500 and subject to a deductible
B-The loss is limited to $1,500 and is not subject to a deductible
C-The loss is fully covered, but subject to a deductible
D-The loss is not covered at all without a scheduled personal property endorsement
A-The loss is limited to $1,500 and subject to a deductible
When the insurance company and insured cannot agree upon the amount of the loss, the person
selected to help the two hired appraisers is called a(n):
A-Adjuster
B-Agent
C-Umpire
D-Claim representative
C-Umpire
Which section lists the perils insured against by a property insurance policy?
A-Definitions
B-Additional Coverages
C-Insuring Agreement
D-Declarations
1|Page
,C-Insuring Agreement
Collision Coverage under Part D of the Personal Auto Policy would cover which of the following?
A-Damage to the auto caused by collision with an animal on the roadway
B-Damage to the auto caused by objects blown into it during a severe windstorm or tornado
C-Breakage of the windshield caused by collision with a stone or other missile
D-Damage to the insured auto's bumper sustained when the auto crashed into a tree
D-Damage to the insured auto's bumper sustained when the auto crashed into a tree
K gets a horrible rash after using wrinkle-prevention cream for 2 months. This is considered:
A-An accident
B-Punitive damages
C-An occurrence
D-Negligence
C-An occurrence
A Surplus Line Producer must post a bond in the amount of:
A-$20,000
B-$50,000
C-$5,000
D-$10,000
B-$50,000
Which of the following would be and insurable risk?
A-Repairs due to wear and tear
B-Defending a negligence claim
C-An investor's risk of market loss
D-A criminal prosecution
B-Defending a negligence claim
Which type of insurance companies may pay dividends only to its policyholders?
A-Reinsurance
B-Stock
C-Mutual
D-Reciprocal
C-Mutual
What provides "open peril" coverage?
A-A personal articles floater
B-An HO-2 (broad form)
C-A standard fire policy
D-An extended coverage endorsement
A-A personal articles floater
2|Page
,What type of insurance policy insured against all risks of loss that are not specifically excluded by the
policy?
A-Binder policy
B-Named peril policy
C-Open peril policy
D-Specified peril policy
C-Open peril policy
Which of the following would be eligible under a dwelling policy?
A-Four-dwelling unit with 6 boarders
B-Rental house occupied by tenant
C-3 acre farm
D-A motor home
B-Rental house occupied by tenant
Rates that cannot be used until the Department or Division of Insurance approves them are referred to
as:A-Use and file rates
B-File and use rates
C-Open competition rates D-Prior approval rate
D-Prior approval rate
Which is true regarding Dwelling policies?
A-Coverage C includes coverage for personal property of tenants and boarders
B-Coverage B would cover an attached garage
C-Coverage D is considered a direct loss coverage
D-Coverage C applies while insured property is located at the described location
D-Coverage C applies while insured property is located at the described location
Which of the following is false regarding the Broad Theft Endorsement under the Dwelling policy?
A-It may be added to any of the Dwelling forms
B-It includes vandalism resulting from theft
C-It applies only to owner-occupied structures
Which of the following is false regarding the Broad Theft Endorsement under the Dwelling policy?
A-It may be added to any of the Dwelling forms
B-It includes vandalism resulting from theft
C-It applies only to owner-occupied structures
When applying for Homeowners insurance, Mr. Applebee tells his agent that the home is used strictly as
a residence. Actually, he manufactures fireworks in the basement at the home. What will happen if the
insurance company discovers Mr. Applebee's misrepresentation after the policy is issued?
A-It will void the policy because Mr. Applebee misrepresented a material fact
B-Nothing, because the agent should have been more thorough in completing the application
C-None of the answers listed
D-Nothing, because the policy is considered a non-cancelable type policy
3|Page
, A-It will void the policy because Mr. Applebee misrepresented a material fact
Which of the following is not true about medical payments under the Personal Auto Policy?
A-The coverage limit applies per person, per accident
B-Coverage applies only for medical expenses incurred within one year of the accident
C-Medical expenses of the insured and family members are covered
D-Medical expenses of all persons occupying the insured auto are covered
B-Coverage applies only for medical expenses incurred within one year of the accident
Which of the following is true regarding coverage of trees, shrubs or plants under the Dwelling policies?
A-Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
B-Theft of shrubs and plants is covered
C-All vehicle damage to trees, shrubs, or plants is covered
D-The Limit of Liability is $1,000 for any tree, shrub, or plant
A-Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
Choose the statement that is false about the FAIR plan.
A-It provides basic property coverage to those who have been rejected in the standard market
B-Agents cannot bind FAIR plan coverage
C-It provides property coverage to both residential and farm dwellings
D-FAIR means Fair Access to Insurance Requirements
C-It provides property coverage to both residential and farm dwellings
Policyholder M insures her owner-occupied single family residence under a dwelling property policy (DP-
3) with a limit of $100,000. If the dwelling is damaged in a fire, what policy coverage will pay for M's
extra costs to stay in a motel and board her pets while the fire damage is being repaired?
A-Coverage E
B-Coverage C
C-Coverage B
D-Coverage D
A-Coverage E
Each of the following business occupancies would be permitted in a dwelling insured under a Dwelling
form, EXCEPT:
A-A professional office providing services to clients
B-A photographic studio
C-A beauty shop run by the insured and her daughter
D-A small store selling musical instruments to the general public at retail
D-A small store selling musical instruments to the general public at retail
Under the Homeowners policy, which coverage provides indirect loss coverage?
A-Coverage B
B-Coverage C
4|Page
2025 WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS |FREQUENTLY
TESTED QUESTIONS AND SOLUTIONS |ALREADY
GRADED A+|BRAND NEW !!!|LATEST UPDATE
|GUARANTEED PASS
Which statement is true of Section I of a Homeowners Policy?
A-A special limit of $1,500 limit applies to watercraft
B-Coverage is provided on owned golf carts and owned snowmobiles off premises
C-Theft of a boat while away from the premises is covered
D-Coverage on utility trailers is limited to $2,000
A-A special limit of $1,500 limit applies to watercraft
If your $5,000 gold watch is stolen, how would your Homeowners policy respond?
A-The loss is limited to $1,500 and subject to a deductible
B-The loss is limited to $1,500 and is not subject to a deductible
C-The loss is fully covered, but subject to a deductible
D-The loss is not covered at all without a scheduled personal property endorsement
A-The loss is limited to $1,500 and subject to a deductible
When the insurance company and insured cannot agree upon the amount of the loss, the person
selected to help the two hired appraisers is called a(n):
A-Adjuster
B-Agent
C-Umpire
D-Claim representative
C-Umpire
Which section lists the perils insured against by a property insurance policy?
A-Definitions
B-Additional Coverages
C-Insuring Agreement
D-Declarations
1|Page
,C-Insuring Agreement
Collision Coverage under Part D of the Personal Auto Policy would cover which of the following?
A-Damage to the auto caused by collision with an animal on the roadway
B-Damage to the auto caused by objects blown into it during a severe windstorm or tornado
C-Breakage of the windshield caused by collision with a stone or other missile
D-Damage to the insured auto's bumper sustained when the auto crashed into a tree
D-Damage to the insured auto's bumper sustained when the auto crashed into a tree
K gets a horrible rash after using wrinkle-prevention cream for 2 months. This is considered:
A-An accident
B-Punitive damages
C-An occurrence
D-Negligence
C-An occurrence
A Surplus Line Producer must post a bond in the amount of:
A-$20,000
B-$50,000
C-$5,000
D-$10,000
B-$50,000
Which of the following would be and insurable risk?
A-Repairs due to wear and tear
B-Defending a negligence claim
C-An investor's risk of market loss
D-A criminal prosecution
B-Defending a negligence claim
Which type of insurance companies may pay dividends only to its policyholders?
A-Reinsurance
B-Stock
C-Mutual
D-Reciprocal
C-Mutual
What provides "open peril" coverage?
A-A personal articles floater
B-An HO-2 (broad form)
C-A standard fire policy
D-An extended coverage endorsement
A-A personal articles floater
2|Page
,What type of insurance policy insured against all risks of loss that are not specifically excluded by the
policy?
A-Binder policy
B-Named peril policy
C-Open peril policy
D-Specified peril policy
C-Open peril policy
Which of the following would be eligible under a dwelling policy?
A-Four-dwelling unit with 6 boarders
B-Rental house occupied by tenant
C-3 acre farm
D-A motor home
B-Rental house occupied by tenant
Rates that cannot be used until the Department or Division of Insurance approves them are referred to
as:A-Use and file rates
B-File and use rates
C-Open competition rates D-Prior approval rate
D-Prior approval rate
Which is true regarding Dwelling policies?
A-Coverage C includes coverage for personal property of tenants and boarders
B-Coverage B would cover an attached garage
C-Coverage D is considered a direct loss coverage
D-Coverage C applies while insured property is located at the described location
D-Coverage C applies while insured property is located at the described location
Which of the following is false regarding the Broad Theft Endorsement under the Dwelling policy?
A-It may be added to any of the Dwelling forms
B-It includes vandalism resulting from theft
C-It applies only to owner-occupied structures
Which of the following is false regarding the Broad Theft Endorsement under the Dwelling policy?
A-It may be added to any of the Dwelling forms
B-It includes vandalism resulting from theft
C-It applies only to owner-occupied structures
When applying for Homeowners insurance, Mr. Applebee tells his agent that the home is used strictly as
a residence. Actually, he manufactures fireworks in the basement at the home. What will happen if the
insurance company discovers Mr. Applebee's misrepresentation after the policy is issued?
A-It will void the policy because Mr. Applebee misrepresented a material fact
B-Nothing, because the agent should have been more thorough in completing the application
C-None of the answers listed
D-Nothing, because the policy is considered a non-cancelable type policy
3|Page
, A-It will void the policy because Mr. Applebee misrepresented a material fact
Which of the following is not true about medical payments under the Personal Auto Policy?
A-The coverage limit applies per person, per accident
B-Coverage applies only for medical expenses incurred within one year of the accident
C-Medical expenses of the insured and family members are covered
D-Medical expenses of all persons occupying the insured auto are covered
B-Coverage applies only for medical expenses incurred within one year of the accident
Which of the following is true regarding coverage of trees, shrubs or plants under the Dwelling policies?
A-Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
B-Theft of shrubs and plants is covered
C-All vehicle damage to trees, shrubs, or plants is covered
D-The Limit of Liability is $1,000 for any tree, shrub, or plant
A-Damage to plants by wind, hail, weight of ice, snow or sleet is not covered
Choose the statement that is false about the FAIR plan.
A-It provides basic property coverage to those who have been rejected in the standard market
B-Agents cannot bind FAIR plan coverage
C-It provides property coverage to both residential and farm dwellings
D-FAIR means Fair Access to Insurance Requirements
C-It provides property coverage to both residential and farm dwellings
Policyholder M insures her owner-occupied single family residence under a dwelling property policy (DP-
3) with a limit of $100,000. If the dwelling is damaged in a fire, what policy coverage will pay for M's
extra costs to stay in a motel and board her pets while the fire damage is being repaired?
A-Coverage E
B-Coverage C
C-Coverage B
D-Coverage D
A-Coverage E
Each of the following business occupancies would be permitted in a dwelling insured under a Dwelling
form, EXCEPT:
A-A professional office providing services to clients
B-A photographic studio
C-A beauty shop run by the insured and her daughter
D-A small store selling musical instruments to the general public at retail
D-A small store selling musical instruments to the general public at retail
Under the Homeowners policy, which coverage provides indirect loss coverage?
A-Coverage B
B-Coverage C
4|Page
