Personal Lines Insurance PA UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What are the penalties for violating the Fair Credit Reporting Act? - CORRECT
ANSWER - $5,000, Imprisonment for 1 year or both
How long to give notice to client about credit report? - CORRECT ANSWER - 3 days
after report is requested
TRIPRA defines terrorism as... - CORRECT ANSWER - A violent act or an act that is
dangerous to human life, property or infrastructure that results in damage in or outside the US
committed by domestic or foreign terrorists.
TRIPRA Regulations - CORRECT ANSWER - Triggering event to go into effect $200
million
Insurance carrier's deductible set at 20% of last years direct earned premium
Federal share of compensation 80%
Gramm-Leach-Bliley Act - CORRECT ANSWER - requires financial institutions to
ensure the security and confidentiality of customer data
Consumer - CORRECT ANSWER - Anyone about whom information is collected.
customer - CORRECT ANSWER - someone who has an ongoing relationship with a
financial institution.
Fraud and false statements penalties - CORRECT ANSWER - a fine, imprisonment for up
to 10 years or both
or imprisonment for up to 15 years if false statements jeopardize insurer.
, Scheduled Coverage - CORRECT ANSWER - Insurance for property specifically listed
(scheduled) on a policy, with a limit of liability for each item.
Blanket Coverage - CORRECT ANSWER - One price to cover all as opposed to specific
peril - CORRECT ANSWER - cause of loss
Basic Perils - CORRECT ANSWER - Fire, lightning, and internal explosion
extended coverage Perils - CORRECT ANSWER - Wind, Civil Commotion, Smoke, Hail,
Aircraft, Vehicles, Volcanoes, Explosion, Riot, Vandalism and Malicious Mischief (WC
SHAVVER and V&MM)
Broad Perils - CORRECT ANSWER - Big Affect
Broad Peril Exclusions - CORRECT ANSWER - - Weight of ice, snow, or falling objects
on awnings, fences, patios, swimming pools, docks, and retaining walls
- Accidental discharge over water from continuous leaking
- Flooding from river or lake
- Burglary if property vacant more than 60 consecutive days
Special Perils - CORRECT ANSWER - Covers any peril except those specifically
excluded
Direct Loss - CORRECT ANSWER - a financial loss that results from the physical
damage, destruction, or theft of the property
Indirect Loss/Consequential Loss - CORRECT ANSWER - occurs as a consequence of the
direct loss; fire would be a direct loss; loss of rental dollars due to fire would be the indirect loss
ACTUAL Exam Questions and CORRECT
Answers
What are the penalties for violating the Fair Credit Reporting Act? - CORRECT
ANSWER - $5,000, Imprisonment for 1 year or both
How long to give notice to client about credit report? - CORRECT ANSWER - 3 days
after report is requested
TRIPRA defines terrorism as... - CORRECT ANSWER - A violent act or an act that is
dangerous to human life, property or infrastructure that results in damage in or outside the US
committed by domestic or foreign terrorists.
TRIPRA Regulations - CORRECT ANSWER - Triggering event to go into effect $200
million
Insurance carrier's deductible set at 20% of last years direct earned premium
Federal share of compensation 80%
Gramm-Leach-Bliley Act - CORRECT ANSWER - requires financial institutions to
ensure the security and confidentiality of customer data
Consumer - CORRECT ANSWER - Anyone about whom information is collected.
customer - CORRECT ANSWER - someone who has an ongoing relationship with a
financial institution.
Fraud and false statements penalties - CORRECT ANSWER - a fine, imprisonment for up
to 10 years or both
or imprisonment for up to 15 years if false statements jeopardize insurer.
, Scheduled Coverage - CORRECT ANSWER - Insurance for property specifically listed
(scheduled) on a policy, with a limit of liability for each item.
Blanket Coverage - CORRECT ANSWER - One price to cover all as opposed to specific
peril - CORRECT ANSWER - cause of loss
Basic Perils - CORRECT ANSWER - Fire, lightning, and internal explosion
extended coverage Perils - CORRECT ANSWER - Wind, Civil Commotion, Smoke, Hail,
Aircraft, Vehicles, Volcanoes, Explosion, Riot, Vandalism and Malicious Mischief (WC
SHAVVER and V&MM)
Broad Perils - CORRECT ANSWER - Big Affect
Broad Peril Exclusions - CORRECT ANSWER - - Weight of ice, snow, or falling objects
on awnings, fences, patios, swimming pools, docks, and retaining walls
- Accidental discharge over water from continuous leaking
- Flooding from river or lake
- Burglary if property vacant more than 60 consecutive days
Special Perils - CORRECT ANSWER - Covers any peril except those specifically
excluded
Direct Loss - CORRECT ANSWER - a financial loss that results from the physical
damage, destruction, or theft of the property
Indirect Loss/Consequential Loss - CORRECT ANSWER - occurs as a consequence of the
direct loss; fire would be a direct loss; loss of rental dollars due to fire would be the indirect loss
