Personal Lines Broker/Agent Exam
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Which of the following describes an insurance company that meets the insurance departments
standards and is authorized to do business in the state? - CORRECT ANSWER - Admitted
Which of the following is a form of insurance organization that consists of members who share
losses with each other? - CORRECT ANSWER - Reciprocal
What policy provision specifies a certain value that will meet the coinsurance requirement? -
CORRECT ANSWER - Agreed Value
Which of the following terms means giving something of value, not specified in the policy, to
induce a customer to buy insurance? - CORRECT ANSWER - Rebating
Forgery or alteration coverage pays for losses from forgery or alteration of the following
EXCEPT: - CORRECT ANSWER - Instruments made by or drawn upon an employee's
account.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand
federal laws? - CORRECT ANSWER - It prohibited anyone in insurance convicted on a
state or federal felony involving dishonesty or breach of trust without a consent waiver from the
Commissioner.
The Fair Credit Reporting Act permits consumer reporting agencies to include applicant
information about bankruptcies MORE than 10 years old under which of the following
circumstances? - CORRECT ANSWER - The applicant is seeking a transaction greater
than $150,000.
How many business days does a business have to honor a requested email to opt-out according to
the 2003 CAN-SPAM Act? - CORRECT ANSWER - 10
, Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance
industry? - CORRECT ANSWER - It establishes which insurance products banks and
bank subsidiaries may provide as principal.
The Terrorism Risk Act and the National Flood Insurance Program are similar by providing
which of the following? - CORRECT ANSWER - Subsidiaries, loss sharing, or excess
coverage.
Mysterious disappearance in insurance refers to which occurrence? - CORRECT
ANSWER - The disappearance of property without any explanation of what happened.
All of the following are used by the courts to establish negligence EXCEPT: - CORRECT
ANSWER - Policy exclusions
Which of the following BEST differentiates the terms vacant versus unoccupied? - CORRECT
ANSWER - Vacant means the absence of people and property.
Which term BEST describes when the leather seats in the policyholder's car begins to wear and
tear? - CORRECT ANSWER - Occurrence
Which of the following represents an insured's attempt to mitigate risk? - CORRECT
ANSWER - Reduction
Which of the following gives a mortgagee rights at the time of loss? - CORRECT
ANSWER - Insurable interest in the property.
What is generally accepted as a condition for which an insurer is allowed to cancel a policy? -
CORRECT ANSWER - For non-payment of premiums.
Which of the following defines the term peril? - CORRECT ANSWER - Cause of loss.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Which of the following describes an insurance company that meets the insurance departments
standards and is authorized to do business in the state? - CORRECT ANSWER - Admitted
Which of the following is a form of insurance organization that consists of members who share
losses with each other? - CORRECT ANSWER - Reciprocal
What policy provision specifies a certain value that will meet the coinsurance requirement? -
CORRECT ANSWER - Agreed Value
Which of the following terms means giving something of value, not specified in the policy, to
induce a customer to buy insurance? - CORRECT ANSWER - Rebating
Forgery or alteration coverage pays for losses from forgery or alteration of the following
EXCEPT: - CORRECT ANSWER - Instruments made by or drawn upon an employee's
account.
Which of the following ways did the Violent Crime Control and Law Enforcement Act expand
federal laws? - CORRECT ANSWER - It prohibited anyone in insurance convicted on a
state or federal felony involving dishonesty or breach of trust without a consent waiver from the
Commissioner.
The Fair Credit Reporting Act permits consumer reporting agencies to include applicant
information about bankruptcies MORE than 10 years old under which of the following
circumstances? - CORRECT ANSWER - The applicant is seeking a transaction greater
than $150,000.
How many business days does a business have to honor a requested email to opt-out according to
the 2003 CAN-SPAM Act? - CORRECT ANSWER - 10
, Which of the following is one of the ways the Gramm-Leach Bliley Act affects the insurance
industry? - CORRECT ANSWER - It establishes which insurance products banks and
bank subsidiaries may provide as principal.
The Terrorism Risk Act and the National Flood Insurance Program are similar by providing
which of the following? - CORRECT ANSWER - Subsidiaries, loss sharing, or excess
coverage.
Mysterious disappearance in insurance refers to which occurrence? - CORRECT
ANSWER - The disappearance of property without any explanation of what happened.
All of the following are used by the courts to establish negligence EXCEPT: - CORRECT
ANSWER - Policy exclusions
Which of the following BEST differentiates the terms vacant versus unoccupied? - CORRECT
ANSWER - Vacant means the absence of people and property.
Which term BEST describes when the leather seats in the policyholder's car begins to wear and
tear? - CORRECT ANSWER - Occurrence
Which of the following represents an insured's attempt to mitigate risk? - CORRECT
ANSWER - Reduction
Which of the following gives a mortgagee rights at the time of loss? - CORRECT
ANSWER - Insurable interest in the property.
What is generally accepted as a condition for which an insurer is allowed to cancel a policy? -
CORRECT ANSWER - For non-payment of premiums.
Which of the following defines the term peril? - CORRECT ANSWER - Cause of loss.
