Personal Lines Exam Prep UPDATED Exam Questions and CORRECT Answers

Personal Lines Exam Prep UPDATED
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