NC Personal Lines UPDATED ACTUAL
Exam Questions and CORRECT Answers
Liability - CORRECT ANSWER - Casualty insurance
Pays damages to third party
Legal obligation to pay
Does not pay the policy owner
Elements of Insurance Contracts - CORRECT ANSWER - Agreement
Consideration
Competent Parties
Legal Purpose
Agreement - CORRECT ANSWER - Offer and Acceptance
-Offer (From Customer: Application & Premium
- Acceptance (By Company): Issue Policy
Consideration - CORRECT ANSWER - something of value exchanged for something else
of value
Policy Structure - CORRECT ANSWER - Declarations
Definitions
Insuring agreement
Additional coverage
Conditions
Endorsements
Exclusions and policy limits
,Declarations - CORRECT ANSWER - basic information about the policy: names,
addresses and amounts of coverage.
Insuring Agreement - CORRECT ANSWER - Establishes insurance company obligations
Conditions - CORRECT ANSWER - General rules/procedures
Inspections
Changes to policy
Contributory Negligence - CORRECT ANSWER - Injured party completely free of fault
Personal Insurance Coverage - CORRECT ANSWER - Purchased to protect insurer and
family
Standard Fire Policy (SFP) - CORRECT ANSWER - Named Peril
SFP Covered Perils - CORRECT ANSWER - Fire
Lightning
Removal
Direct loss caused by NAMED perils
SFP Exclusion W - CORRECT ANSWER - War
SFP Exclusion C - CORRECT ANSWER - Civil Authority
SFP Exclusion N - CORRECT ANSWER - Neglect
SFP Exclusion T - CORRECT ANSWER - Theft
, SFP Exclusion H - CORRECT ANSWER - Hazard Increase
SFP Exclusion V/O - CORRECT ANSWER - Vacant (60 days)
Unoccupied (60 days)
In the event of a loss, signed proof of loss is required to be submitted within how many days? -
CORRECT ANSWER - 60
Is liability coverage provided with DP? - CORRECT ANSWER - Liability coverage not
included
Solely for residential purposes
Dwelling Policy Structure - CORRECT ANSWER - Agreement
Definitions
Deductibles
Coverages/Other Coverages
Perils Insured
General Exclusions
Conditions
DP1 - CORRECT ANSWER - Basic Form
Limited Coverage
DP1 - CORRECT ANSWER - Named Peril
DP1 - CORRECT ANSWER - Fire
Lightning
Exam Questions and CORRECT Answers
Liability - CORRECT ANSWER - Casualty insurance
Pays damages to third party
Legal obligation to pay
Does not pay the policy owner
Elements of Insurance Contracts - CORRECT ANSWER - Agreement
Consideration
Competent Parties
Legal Purpose
Agreement - CORRECT ANSWER - Offer and Acceptance
-Offer (From Customer: Application & Premium
- Acceptance (By Company): Issue Policy
Consideration - CORRECT ANSWER - something of value exchanged for something else
of value
Policy Structure - CORRECT ANSWER - Declarations
Definitions
Insuring agreement
Additional coverage
Conditions
Endorsements
Exclusions and policy limits
,Declarations - CORRECT ANSWER - basic information about the policy: names,
addresses and amounts of coverage.
Insuring Agreement - CORRECT ANSWER - Establishes insurance company obligations
Conditions - CORRECT ANSWER - General rules/procedures
Inspections
Changes to policy
Contributory Negligence - CORRECT ANSWER - Injured party completely free of fault
Personal Insurance Coverage - CORRECT ANSWER - Purchased to protect insurer and
family
Standard Fire Policy (SFP) - CORRECT ANSWER - Named Peril
SFP Covered Perils - CORRECT ANSWER - Fire
Lightning
Removal
Direct loss caused by NAMED perils
SFP Exclusion W - CORRECT ANSWER - War
SFP Exclusion C - CORRECT ANSWER - Civil Authority
SFP Exclusion N - CORRECT ANSWER - Neglect
SFP Exclusion T - CORRECT ANSWER - Theft
, SFP Exclusion H - CORRECT ANSWER - Hazard Increase
SFP Exclusion V/O - CORRECT ANSWER - Vacant (60 days)
Unoccupied (60 days)
In the event of a loss, signed proof of loss is required to be submitted within how many days? -
CORRECT ANSWER - 60
Is liability coverage provided with DP? - CORRECT ANSWER - Liability coverage not
included
Solely for residential purposes
Dwelling Policy Structure - CORRECT ANSWER - Agreement
Definitions
Deductibles
Coverages/Other Coverages
Perils Insured
General Exclusions
Conditions
DP1 - CORRECT ANSWER - Basic Form
Limited Coverage
DP1 - CORRECT ANSWER - Named Peril
DP1 - CORRECT ANSWER - Fire
Lightning
