Personal Lines 20-44 UPDATED ACTUAL
Exam Questions and CORRECT Answers
PIP pays all BUT which of the following?
A)80% medical benefits
B)80% work loss
C)100% replacement services
D)$5000 death benefit - CORRECT ANSWER - B)80% work loss
Jim Smith has just purchased a Condominium and calls your agency to purchase a policy.
Which policy type will you sell to Mr. Smith?
A) HO-3
B) HO-4
C) HO-5
D) HO-6 - CORRECT ANSWER - D) HO-6
Bill Famer, your current Homeowners insured, is purchasing a 220 acre dairy farm with over
1,000 head of cattle and a full dairy operation. Bill wants to know if he can transfer his current
Homeowners policy to the new farm.
A) You tell Bill that he can transfer the policy as long as he is going to have the farm deeded in
the same legal name.
B) You tell Bill you will have to write a new HO-6 policy for the new farm.
C) You tell Bill that he will not be able to transfer his Homeowners policy and you let Bill know
that Farm operations in the HO-3 policy are only covered if the farm has "light incidental
farming".
,D) None of the above - CORRECT ANSWER - C) You tell Bill that he will not be able to
transfer his Homeowners policy and you let Bill know that Farm operations in the HO-3 policy
are only covered if the farm has "light incidental farming".
All of the following are eligible classes of property in an Inland Marine or Homeowners policy
EXCEPT which of the following?
A) Cameras and camera equipment
B) Fine arts
C) Inventory of insured's retail pet store
D) Jewelry - CORRECT ANSWER - C) Inventory of insured's retail pet store
Brian Neptune, your Homeowners insured, has purchased a small watercraft #14937(16 feet
long) with a small outboard motor (25 horsepower) and he is concerned about a lawsuit should
he damage another boater. He specifically wants to know if his Homeowners policy will provide
any Liability coverage.
A) You tell Mr. Neptune that ALL watercraft exposures are excluded under his Homeowners
policy.
B) You tell Mr. Neptune that his Homeowners policy will extend Liability coverage for his
watercraft as it meets the size and horsepower limits thresholds.
C) You tell Mr. Neptune that his Auto policy will cover his watercraft exposure.
D) You tell Mr. Neptune that his Homeowners policy will not provide any Liability coverage as
his boat's size and horsepower exceed the stated maximums in the policy. - CORRECT
ANSWER - B) You tell Mr. Neptune that his Homeowners policy will extend Liability
coverage for his watercraft as it meets the size and horsepower limits thresholds.
,Flood or Flooding is defined as the partial or complete inundation of ___ or more acres of
normally dry land or of ___ or more properties.
A) One
B) Two
C) Five
D) Ten - CORRECT ANSWER - B) Two
The Preferred Risk Flood Policy is available in which Flood Zones? (choose all that apply)
A) Flood Zone A
B) Flood Zone B
C) Flood Zone C
D) Flood Zone X - CORRECT ANSWER - B) Flood Zone B
C) Flood Zone C
D) Flood Zone X
While explaining to your insured her Jewelry Personal Articles Floater you advise #14929her
that inherent vice is specifically excluded. How will you explain the concept of "inherent vice" to
your insured?
A) You tell her inherent vice is when an insured intentionally damages their own property.
B) You advise her that inherent vice is when a loss occurs after the policy term has expired.
C) You advise her that inherent vice is an internal quality of property which leads to its own
damage.
D) None of the above - CORRECT ANSWER - C) You advise her that inherent vice is an
internal quality of property which leads to its own damage.
, What is the minimum amount of coverage for Loss Assessment in a Florida HO-6 Condominium
policy?
A)$1,000
B)$2,000
C)$5,000
D)$10,000 - CORRECT ANSWER - B)$2,000
A Tenant occupied home with a DP-3 Dwelling Fire policy insuring it has Coverage D
automatically in the policy. What does Coverage D cover?
A) The insured's loss of Fair Rent in the event of the insured property being damaged by a
covered peril and the dwelling being uninhabitable.
B) The insured's financial loss for any additional expenses necessary to maintain the insured's
normal standard of living.
C) Thirty days coverage for removed property at a temporary location.
D) Debris Removal - CORRECT ANSWER - A) The insured's loss of Fair Rent in the
event of the insured property being damaged by a covered peril and the dwelling being
uninhabitable.
What must be added to the DP-1 policy form before the Vandalism peril #14936can be added to
the policy.
A) Incidental Coverages (IC)
B) Liability Coverages (LC)
C) Extended Coverages (EC)
Exam Questions and CORRECT Answers
PIP pays all BUT which of the following?
A)80% medical benefits
B)80% work loss
C)100% replacement services
D)$5000 death benefit - CORRECT ANSWER - B)80% work loss
Jim Smith has just purchased a Condominium and calls your agency to purchase a policy.
Which policy type will you sell to Mr. Smith?
A) HO-3
B) HO-4
C) HO-5
D) HO-6 - CORRECT ANSWER - D) HO-6
Bill Famer, your current Homeowners insured, is purchasing a 220 acre dairy farm with over
1,000 head of cattle and a full dairy operation. Bill wants to know if he can transfer his current
Homeowners policy to the new farm.
A) You tell Bill that he can transfer the policy as long as he is going to have the farm deeded in
the same legal name.
B) You tell Bill you will have to write a new HO-6 policy for the new farm.
C) You tell Bill that he will not be able to transfer his Homeowners policy and you let Bill know
that Farm operations in the HO-3 policy are only covered if the farm has "light incidental
farming".
,D) None of the above - CORRECT ANSWER - C) You tell Bill that he will not be able to
transfer his Homeowners policy and you let Bill know that Farm operations in the HO-3 policy
are only covered if the farm has "light incidental farming".
All of the following are eligible classes of property in an Inland Marine or Homeowners policy
EXCEPT which of the following?
A) Cameras and camera equipment
B) Fine arts
C) Inventory of insured's retail pet store
D) Jewelry - CORRECT ANSWER - C) Inventory of insured's retail pet store
Brian Neptune, your Homeowners insured, has purchased a small watercraft #14937(16 feet
long) with a small outboard motor (25 horsepower) and he is concerned about a lawsuit should
he damage another boater. He specifically wants to know if his Homeowners policy will provide
any Liability coverage.
A) You tell Mr. Neptune that ALL watercraft exposures are excluded under his Homeowners
policy.
B) You tell Mr. Neptune that his Homeowners policy will extend Liability coverage for his
watercraft as it meets the size and horsepower limits thresholds.
C) You tell Mr. Neptune that his Auto policy will cover his watercraft exposure.
D) You tell Mr. Neptune that his Homeowners policy will not provide any Liability coverage as
his boat's size and horsepower exceed the stated maximums in the policy. - CORRECT
ANSWER - B) You tell Mr. Neptune that his Homeowners policy will extend Liability
coverage for his watercraft as it meets the size and horsepower limits thresholds.
,Flood or Flooding is defined as the partial or complete inundation of ___ or more acres of
normally dry land or of ___ or more properties.
A) One
B) Two
C) Five
D) Ten - CORRECT ANSWER - B) Two
The Preferred Risk Flood Policy is available in which Flood Zones? (choose all that apply)
A) Flood Zone A
B) Flood Zone B
C) Flood Zone C
D) Flood Zone X - CORRECT ANSWER - B) Flood Zone B
C) Flood Zone C
D) Flood Zone X
While explaining to your insured her Jewelry Personal Articles Floater you advise #14929her
that inherent vice is specifically excluded. How will you explain the concept of "inherent vice" to
your insured?
A) You tell her inherent vice is when an insured intentionally damages their own property.
B) You advise her that inherent vice is when a loss occurs after the policy term has expired.
C) You advise her that inherent vice is an internal quality of property which leads to its own
damage.
D) None of the above - CORRECT ANSWER - C) You advise her that inherent vice is an
internal quality of property which leads to its own damage.
, What is the minimum amount of coverage for Loss Assessment in a Florida HO-6 Condominium
policy?
A)$1,000
B)$2,000
C)$5,000
D)$10,000 - CORRECT ANSWER - B)$2,000
A Tenant occupied home with a DP-3 Dwelling Fire policy insuring it has Coverage D
automatically in the policy. What does Coverage D cover?
A) The insured's loss of Fair Rent in the event of the insured property being damaged by a
covered peril and the dwelling being uninhabitable.
B) The insured's financial loss for any additional expenses necessary to maintain the insured's
normal standard of living.
C) Thirty days coverage for removed property at a temporary location.
D) Debris Removal - CORRECT ANSWER - A) The insured's loss of Fair Rent in the
event of the insured property being damaged by a covered peril and the dwelling being
uninhabitable.
What must be added to the DP-1 policy form before the Vandalism peril #14936can be added to
the policy.
A) Incidental Coverages (IC)
B) Liability Coverages (LC)
C) Extended Coverages (EC)
