Personal Lines Study Guide Exam
2025 Questions and Answers
Insolvent - ANSWER✔✔-Describes an insurer with insufficient financial resources for
liabilities.
Unendorsed homeowners policy - ANSWER✔✔-Covers fire damage to the ceiling and
clothes dryer.
Personal injury endorsement - ANSWER✔✔-Adds liability protection for false arrests,
libel, and slander.
Additional coverage - ANSWER✔✔-Includes trees, shrubs, and other plants in an HO3
policy.
Comparative negligence - ANSWER✔✔-Does not require a person to be entirely free
from negligence to collect damages.
Personal automobile policy coverage - ANSWER✔✔-Pays for repairing a neighbor's
fence damaged through negligent car operation.
, Scheduled personal property endorsement - ANSWER✔✔-Provides open peril coverage
for personal possessions like jewelry, fur, and cameras.
HO3 policy - ANSWER✔✔-Covers damage caused by ensuing fire and explosion after
an earthquake.
California Earthquake Authority policies - ANSWER✔✔-Marketed and serviced by the
state of California.
Actual cash value - ANSWER✔✔-The limit of liability for damage to an automobile in a
personal auto policy.
Earned premium - ANSWER✔✔-The premium for which protection has been provided.
Grace period - ANSWER✔✔-Offers 45 days for premium payment during a declared
state of emergency.
Minimum limit - ANSWER✔✔-The required amount for several people injured in one
accident under the Financial Responsibility Law in California.
All risk coverage - ANSWER✔✔-A policy that contains no excluded perils.
Principal rating factor - ANSWER✔✔-Determines the premium for a personal auto
policy based on the type of vehicle insured.
Insurer payment for damage - ANSWER✔✔-Pays $1050 for damage to the insured car
in a personal auto policy.
2025 Questions and Answers
Insolvent - ANSWER✔✔-Describes an insurer with insufficient financial resources for
liabilities.
Unendorsed homeowners policy - ANSWER✔✔-Covers fire damage to the ceiling and
clothes dryer.
Personal injury endorsement - ANSWER✔✔-Adds liability protection for false arrests,
libel, and slander.
Additional coverage - ANSWER✔✔-Includes trees, shrubs, and other plants in an HO3
policy.
Comparative negligence - ANSWER✔✔-Does not require a person to be entirely free
from negligence to collect damages.
Personal automobile policy coverage - ANSWER✔✔-Pays for repairing a neighbor's
fence damaged through negligent car operation.
, Scheduled personal property endorsement - ANSWER✔✔-Provides open peril coverage
for personal possessions like jewelry, fur, and cameras.
HO3 policy - ANSWER✔✔-Covers damage caused by ensuing fire and explosion after
an earthquake.
California Earthquake Authority policies - ANSWER✔✔-Marketed and serviced by the
state of California.
Actual cash value - ANSWER✔✔-The limit of liability for damage to an automobile in a
personal auto policy.
Earned premium - ANSWER✔✔-The premium for which protection has been provided.
Grace period - ANSWER✔✔-Offers 45 days for premium payment during a declared
state of emergency.
Minimum limit - ANSWER✔✔-The required amount for several people injured in one
accident under the Financial Responsibility Law in California.
All risk coverage - ANSWER✔✔-A policy that contains no excluded perils.
Principal rating factor - ANSWER✔✔-Determines the premium for a personal auto
policy based on the type of vehicle insured.
Insurer payment for damage - ANSWER✔✔-Pays $1050 for damage to the insured car
in a personal auto policy.
