personal lines exam prep 2025/2026 QUESTIONS AND ANSWERS
GUARANTEE A+
____________ is a legal process against a third party, not the insured. - Subrogation
______________ is a situation that occurs when two policies covering the same property contain
different coverages. - Nonconcurrency
A property purchased ten years ago for $100,000 has a replacement value today of $200,000. it is
depriciated 3% each year. what is todays actual cash value? - $140,000
The _________ ______ states the procedure to be followed if the insured and insurer disagree on
the amount of loss. - Appraisal Clause
_____ ________ policies provide coverage for only the perils listed in the policy. - Named Peril
The insuring clause personalizes the policy as too, who and what are insured. - False-, The
declarations personalize the policy.
The loss under a property policy states that the insured cannot abandon property to the insurer. -
True
A ______ ____ must be caused by an insured peril that set the loss in motion. - Direct loss
The perils that are not covered are in the __________ of a property policy. - Exclusions
In property and casualty insurance, when a form is attached to further define certain policy
provisions or conditions, it is known as: - An Endorsement
GUARANTEE A+
____________ is a legal process against a third party, not the insured. - Subrogation
______________ is a situation that occurs when two policies covering the same property contain
different coverages. - Nonconcurrency
A property purchased ten years ago for $100,000 has a replacement value today of $200,000. it is
depriciated 3% each year. what is todays actual cash value? - $140,000
The _________ ______ states the procedure to be followed if the insured and insurer disagree on
the amount of loss. - Appraisal Clause
_____ ________ policies provide coverage for only the perils listed in the policy. - Named Peril
The insuring clause personalizes the policy as too, who and what are insured. - False-, The
declarations personalize the policy.
The loss under a property policy states that the insured cannot abandon property to the insurer. -
True
A ______ ____ must be caused by an insured peril that set the loss in motion. - Direct loss
The perils that are not covered are in the __________ of a property policy. - Exclusions
In property and casualty insurance, when a form is attached to further define certain policy
provisions or conditions, it is known as: - An Endorsement
