Personal Lines Final Exam - Questions With Fully
Explained Solutions
An unlicensed employee of an insurance agency may perform all of the
following EXCEPT Correct Answer - Advise an insured of coverage issues
A producer must notify the insurance division of an address change within
Correct Answer - 30 days
A Temporary License may be issues to approved individuals or a period of
Correct Answer - 90 days within extensions up to 180 days
Contribution by Equal Shares: Correct Answer - Is a form of proportional
coverage in which losses are paid equally by all policies until one policy is
exhausted, whereby the other policy pays alone
Which of the following is NOT a requirement necessary to qualify as a
producer in Iowa Correct Answer - Complete a 36-hour licensing course
All of the following are true of the Iowa's Continuing Education Regulation
EXCEPT Correct Answer - Continuing education is automatically waived
for producers that are attorneys
All of the following applicants may be denied a producer's license EXCEPT
Correct Answer - An attorney
Personal liability coverage under the Dwelling Policy is Correct Answer -
Only provided by endorsement
All of the following would be considered an underwriting hazard EXCEPT:
Correct Answer - Properly stored paint and related solvents
Which of the following would NOT be considered an Unfair Clams Practice?
Correct Answer - Dealing with the insured or claimant in good faith
A producer license is Correct Answer - Renewed for three-year periods
subject to the completion of CE
, In a Personal Umbrella Policy, the amount paid by the insured for certain
losses not covered under the primary coverage is called Correct Answer -
The self-insured retention
To form a contract, a competent party Correct Answer - Must have legal
capacity
in 2010, a homeowner insured his home for its purchase price of $100,000
and added the inflation guard endorsement. Under the Homeowner Policy,
what amount should the homeowner be carrying today to be properly
insured? Correct Answer - The current cost to replace with like kind and
quality at today's rebuilding costs
Which of the following reduces small nuisance claims and helps keep
premiums down? Correct Answer - Deductible
A fire severely damages a tenant occupied duplex insured under a Dwelling
Policy. After the fire the tenants are forced to move. In this case, Correct
Answer - The Dwelling Policy will pay for the owner's loss of rental value
The Notice of Aftermarket Crash Parts must be given to the insured no later
than at Correct Answer - Delivery of the policy
The principle of Indemnity is used extensively in the property casualty field to
Correct Answer - Restore or reimburse one to the extent of their loss
Which of the following is CORRECT of Collision coverage under the Personal
Auto Policy Correct Answer - it is the upset of a covered auto or its impact
with another vehicle or object
Insurance is a method which Correct Answer - Transfers risk
A known right that is voluntarily relinquished by an insurer is: Correct
Answer - Waiver
Which of the following activities would require an individual to be licensed as
a producer? Correct Answer - Signing an insurance application
Explained Solutions
An unlicensed employee of an insurance agency may perform all of the
following EXCEPT Correct Answer - Advise an insured of coverage issues
A producer must notify the insurance division of an address change within
Correct Answer - 30 days
A Temporary License may be issues to approved individuals or a period of
Correct Answer - 90 days within extensions up to 180 days
Contribution by Equal Shares: Correct Answer - Is a form of proportional
coverage in which losses are paid equally by all policies until one policy is
exhausted, whereby the other policy pays alone
Which of the following is NOT a requirement necessary to qualify as a
producer in Iowa Correct Answer - Complete a 36-hour licensing course
All of the following are true of the Iowa's Continuing Education Regulation
EXCEPT Correct Answer - Continuing education is automatically waived
for producers that are attorneys
All of the following applicants may be denied a producer's license EXCEPT
Correct Answer - An attorney
Personal liability coverage under the Dwelling Policy is Correct Answer -
Only provided by endorsement
All of the following would be considered an underwriting hazard EXCEPT:
Correct Answer - Properly stored paint and related solvents
Which of the following would NOT be considered an Unfair Clams Practice?
Correct Answer - Dealing with the insured or claimant in good faith
A producer license is Correct Answer - Renewed for three-year periods
subject to the completion of CE
, In a Personal Umbrella Policy, the amount paid by the insured for certain
losses not covered under the primary coverage is called Correct Answer -
The self-insured retention
To form a contract, a competent party Correct Answer - Must have legal
capacity
in 2010, a homeowner insured his home for its purchase price of $100,000
and added the inflation guard endorsement. Under the Homeowner Policy,
what amount should the homeowner be carrying today to be properly
insured? Correct Answer - The current cost to replace with like kind and
quality at today's rebuilding costs
Which of the following reduces small nuisance claims and helps keep
premiums down? Correct Answer - Deductible
A fire severely damages a tenant occupied duplex insured under a Dwelling
Policy. After the fire the tenants are forced to move. In this case, Correct
Answer - The Dwelling Policy will pay for the owner's loss of rental value
The Notice of Aftermarket Crash Parts must be given to the insured no later
than at Correct Answer - Delivery of the policy
The principle of Indemnity is used extensively in the property casualty field to
Correct Answer - Restore or reimburse one to the extent of their loss
Which of the following is CORRECT of Collision coverage under the Personal
Auto Policy Correct Answer - it is the upset of a covered auto or its impact
with another vehicle or object
Insurance is a method which Correct Answer - Transfers risk
A known right that is voluntarily relinquished by an insurer is: Correct
Answer - Waiver
Which of the following activities would require an individual to be licensed as
a producer? Correct Answer - Signing an insurance application
