1|Page
personal lines exam prep Questions with 100%
Verified Answers 2025 | 2026
Actual cash value is defined as..... - ANSWER replacement cost
minus depreciation.
Fine arts are typically insured on an ______ ______ _____,
whereby an insured, and insured agree, at time of insuring, on
an amount of insurance to be paid at the event of a loss. -
ANSWER Agreed Value Basis
The owner of clothing to be cleaned would be a ______. The
dry cleaner cleaning the clothes is the ______. - ANSWER Bailor,
Bailee
The insurer has the right to take possession of damaged
property after payment of loss. - ANSWER True
The ______ covered in a property policy are always in the
insuring agreement. - ANSWER Perils
, 2|Page
Additional living expense is an indirect loss, not a direct loss. -
ANSWER True
When property is covered on a ___________ ____ _____, there
is no deduction for depriciation. - ANSWER Replacement Cost
Basis
____ _____ ________, cover risks of direct physical loss and the
perils that are not named. - ANSWER Open Peril Policies
The insuring agreement contains the insurer's promises to the
insured. The insureds name is found in the ____________. -
ANSWER Declarations
The insured is required to Personally make repairs to their
property. - ANSWER False-, The insured may choose who will
make the repairs.
____________ is a legal process against a third party, not the
insured. - ANSWER Subrogation
personal lines exam prep Questions with 100%
Verified Answers 2025 | 2026
Actual cash value is defined as..... - ANSWER replacement cost
minus depreciation.
Fine arts are typically insured on an ______ ______ _____,
whereby an insured, and insured agree, at time of insuring, on
an amount of insurance to be paid at the event of a loss. -
ANSWER Agreed Value Basis
The owner of clothing to be cleaned would be a ______. The
dry cleaner cleaning the clothes is the ______. - ANSWER Bailor,
Bailee
The insurer has the right to take possession of damaged
property after payment of loss. - ANSWER True
The ______ covered in a property policy are always in the
insuring agreement. - ANSWER Perils
, 2|Page
Additional living expense is an indirect loss, not a direct loss. -
ANSWER True
When property is covered on a ___________ ____ _____, there
is no deduction for depriciation. - ANSWER Replacement Cost
Basis
____ _____ ________, cover risks of direct physical loss and the
perils that are not named. - ANSWER Open Peril Policies
The insuring agreement contains the insurer's promises to the
insured. The insureds name is found in the ____________. -
ANSWER Declarations
The insured is required to Personally make repairs to their
property. - ANSWER False-, The insured may choose who will
make the repairs.
____________ is a legal process against a third party, not the
insured. - ANSWER Subrogation
