Personal Lines Exam Prep UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Actual cash value is defined as..... - CORRECT ANSWER - replacement cost minus
depreciation.
Fine arts are typically insured on an ______ ______ _____, whereby an insured, and insured
agree, at time of insuring, on an amount of insurance to be paid at the event of a loss. -
CORRECT ANSWER - Agreed Value Basis
The owner of clothing to be cleaned would be a ______. The dry cleaner cleaning the clothes is
the ______. - CORRECT ANSWER - Bailor, Bailee
The insurer has the right to take possession of damaged property after payment of loss. -
CORRECT ANSWER - True
The ______ covered in a property policy are always in the insuring agreement. - CORRECT
ANSWER - Perils
Additional living expense is an indirect loss, not a direct loss. - CORRECT ANSWER -
True
When property is covered on a ___________ ____ _____, there is no deduction for depriciation.
- CORRECT ANSWER - Replacement Cost Basis
____ _____ ________, cover risks of direct physical loss and the perils that are not named. -
CORRECT ANSWER - Open Peril Policies
The insuring agreement contains the insurer's promises to the insured. The insureds name is
found in the ____________. - CORRECT ANSWER - Declarations
,The insured is required to Personally make repairs to their property. - CORRECT
ANSWER - False-, The insured may choose who will make the repairs.
____________ is a legal process against a third party, not the insured. - CORRECT
ANSWER - Subrogation
______________ is a situation that occurs when two policies covering the same property contain
different coverages. - CORRECT ANSWER - Nonconcurrency
A property purchased ten years ago for $100,000 has a replacement value today of $200,000. it is
depriciated 3% each year. what is todays actual cash value? - CORRECT ANSWER -
$140,000
The _________ ______ states the procedure to be followed if the insured and insurer disagree on
the amount of loss. - CORRECT ANSWER - Appraisal Clause
_____ ________ policies provide coverage for only the perils listed in the policy. - CORRECT
ANSWER - Named Peril
The insuring clause personalizes the policy as too, who and what are insured. - CORRECT
ANSWER - False-, The declarations personalize the policy.
The loss under a property policy states that the insured cannot abandon property to the insurer. -
CORRECT ANSWER - True
A ______ ____ must be caused by an insured peril that set the loss in motion. - CORRECT
ANSWER - Direct loss
The perils that are not covered are in the __________ of a property policy. - CORRECT
ANSWER - Exclusions
, In property and casualty insurance, when a form is attached to further define certain policy
provisions or conditions, it is known as: - CORRECT ANSWER - An Endorsement
Nonconcurrency means: - CORRECT ANSWER - Not The Same
The legal representative of the insured is also, an insured under a property policy. - CORRECT
ANSWER - True
____________ are used to broaden, as well as restrict coverage. - CORRECT ANSWER -
Endorsements
After payment for loss, the _______ has the right to the salvage. - CORRECT ANSWER -
Insurer
The basic form covers the perils of ____, _________, and ________ _________. - CORRECT
ANSWER - Fire, Lightning and Internal Explosion
Coverage C may be extended to cover property of guests and servants. - CORRECT
ANSWER - True
A farmhouse does not fit the eligibility requirements of the dwelling program. - CORRECT
ANSWER - True
There is no _____ coverage in a dwelling policy. - CORRECT ANSWER - Flood
Trees, shrubs, and plants are covered for up to $____ for any one item or ____% of coverage A. -
CORRECT ANSWER - $500 and 5%
ACTUAL Exam Questions and CORRECT
Answers
Actual cash value is defined as..... - CORRECT ANSWER - replacement cost minus
depreciation.
Fine arts are typically insured on an ______ ______ _____, whereby an insured, and insured
agree, at time of insuring, on an amount of insurance to be paid at the event of a loss. -
CORRECT ANSWER - Agreed Value Basis
The owner of clothing to be cleaned would be a ______. The dry cleaner cleaning the clothes is
the ______. - CORRECT ANSWER - Bailor, Bailee
The insurer has the right to take possession of damaged property after payment of loss. -
CORRECT ANSWER - True
The ______ covered in a property policy are always in the insuring agreement. - CORRECT
ANSWER - Perils
Additional living expense is an indirect loss, not a direct loss. - CORRECT ANSWER -
True
When property is covered on a ___________ ____ _____, there is no deduction for depriciation.
- CORRECT ANSWER - Replacement Cost Basis
____ _____ ________, cover risks of direct physical loss and the perils that are not named. -
CORRECT ANSWER - Open Peril Policies
The insuring agreement contains the insurer's promises to the insured. The insureds name is
found in the ____________. - CORRECT ANSWER - Declarations
,The insured is required to Personally make repairs to their property. - CORRECT
ANSWER - False-, The insured may choose who will make the repairs.
____________ is a legal process against a third party, not the insured. - CORRECT
ANSWER - Subrogation
______________ is a situation that occurs when two policies covering the same property contain
different coverages. - CORRECT ANSWER - Nonconcurrency
A property purchased ten years ago for $100,000 has a replacement value today of $200,000. it is
depriciated 3% each year. what is todays actual cash value? - CORRECT ANSWER -
$140,000
The _________ ______ states the procedure to be followed if the insured and insurer disagree on
the amount of loss. - CORRECT ANSWER - Appraisal Clause
_____ ________ policies provide coverage for only the perils listed in the policy. - CORRECT
ANSWER - Named Peril
The insuring clause personalizes the policy as too, who and what are insured. - CORRECT
ANSWER - False-, The declarations personalize the policy.
The loss under a property policy states that the insured cannot abandon property to the insurer. -
CORRECT ANSWER - True
A ______ ____ must be caused by an insured peril that set the loss in motion. - CORRECT
ANSWER - Direct loss
The perils that are not covered are in the __________ of a property policy. - CORRECT
ANSWER - Exclusions
, In property and casualty insurance, when a form is attached to further define certain policy
provisions or conditions, it is known as: - CORRECT ANSWER - An Endorsement
Nonconcurrency means: - CORRECT ANSWER - Not The Same
The legal representative of the insured is also, an insured under a property policy. - CORRECT
ANSWER - True
____________ are used to broaden, as well as restrict coverage. - CORRECT ANSWER -
Endorsements
After payment for loss, the _______ has the right to the salvage. - CORRECT ANSWER -
Insurer
The basic form covers the perils of ____, _________, and ________ _________. - CORRECT
ANSWER - Fire, Lightning and Internal Explosion
Coverage C may be extended to cover property of guests and servants. - CORRECT
ANSWER - True
A farmhouse does not fit the eligibility requirements of the dwelling program. - CORRECT
ANSWER - True
There is no _____ coverage in a dwelling policy. - CORRECT ANSWER - Flood
Trees, shrubs, and plants are covered for up to $____ for any one item or ____% of coverage A. -
CORRECT ANSWER - $500 and 5%
