PERSONAL LINES FINAL TEST QUESTIONS WITH 100% VERIFIED SOLUTIONS| latest updates|

PERSONAL LINES FINAL TEST QUESTIONS WITH 100% VERIFIED SOLUTIONS| latest updates| The Commissioner of Insurance in the State of Indiana is appointed by which of the following: A. The chairman of the Banking & Insurance Commission B. He is not appointed, but elected C. The Attorney General D. The Governor - ANSWER -D. The Governor Which of the following conditions of a property policy describes the procedure for an insured to use in a disagreement with the insurer about the amount of a loss? A. Pro-rata liability B. Subrogation C. Audit D. Appraisal - ANSWER -D. Appraisal The privacy notice must be issued to the policyowner every: A. 1 year B. 2 years C. 3 years D. 4 years - ANSWER -A. 1 year Susie owns an HO2. Her hot water heater accidentally discharges 40 gallons of hot water onto her $1,800 fur coat. Under the terms of the policy, which of the follwing best describes what will happen when she files her claim? A. The company will deny the claim because this is not a covered peril B. The company will deny the claim because fur coats are not covered under the basic policy C. The company will pay only $1,000 because this is the limit for furs under any policy D. The company will pay the full amount of the claim less any applicable deductible - ANSWER -D. The company will pay the full amount of the claim less any applicable deductible Wich of the following would be considered insured for liability coverage under the Personal Auto Policy? A. The named insured's resident son while driving a neighbor's car B. The named insured's neighbor while taking the named insured for a drive in the neighbor's new car C. The named insured's cousin who, while visiting from another state, drives a car the named insured borrows from a neighbor D. Rock Oil Refiner, which provides a company-owned car to the named insured - ANSWER -A. The named insured's resident son while driving a neighbor's car Insurance was first arranged at Edward Lloyd's coffeehouse during the: A. 1500s B. 1600s C. 1700s D. 1800s - ANSWER -B. 1600s Which of the following is an example of a pure risk? A. Deciding to manufacture a new drub B. Purchasing a piece of real estate C. Threat of fire damage to property D. Playing the lottery - ANSWER -C. Threat of fire damage to property Which of the following is an example of a direct loss? A. Loss of rental income after a builing is destroyed B. Loss of income when a store must shut down following a theft C. Loss due to fire damage to a building D. Loss due to amounts spent on hotels following fire damage to a home - ANSWER -C. Loss due to fire damage to a building All of the follwing must possess a certificat of authority in order to conduct insurance business in this state EXCEPT: A. Interinsurance exchange B. Domestic insurer C. Nonadmitted insurer D. Alien insurer - ANSWER -C. Nonadmitted insurer On an automobile policy application, an applicant states that she has had no accidents in the past 3 years. The statement is known as which of the following: A. A respresentation B. A warranty C. Concealment D. An appraisal - ANSWER -A. A representation Of the four coverage's provided under Section 1 of the Homeowner's policy, which one provides coverage against an indirect loss? A. Coverage A - Dwelling B. Coverage B - Other structures C. Coverage C - Personal Property D. Coverage D - Loss of use - ANSWER -D. Loss of use All of the following types of insurers may be authorized to conduct business in this state, EXCEPT: A. Domestic insurer B. Foreign insurer C. Surplus lines insurer D. Stock insurer - ANSWER -C. Surplus lines insurer An insurer incorporated and formed under the laws of the state in which it is domiciled is what type of company? A. Domestic B. Resident C. Foreign D. State - ANSWER -A. Domestic The term insurable interest refers to the A. Relationship between an insured and his agent