PERSONAL LINES FINAL EXAM, WITH ALL GRADE A SOLUTIONS.

Personal Lines Final Exam, With All b b b b b




Grade A Solutions b b b




One bpurpose bof ba bdeductible bis bto b
b b b b b b b




A- bprevent bunderinsurance
b b




B- bEliminate bsmall bclaims b
b b b b




C- bPrevent bcatastrophic bclaims
b b b




D- bpenalize bthe binsured bfor bphysical bhazards b- b bcorrect banswer-B- bEliminate
b b b b b b b b b b b




bsmall bclaims
b b




An binsureds bHomeowners bBroad bform b(HO-2) bprovides b40,000 bcoverage bon bher
b b b b b b b b b b




bdwelling band b25,000 bcoverage bon bits bcontents. bIf bvandals bcut bdown ba btree bon
b b b b b b b b b b b b b b




bher bpropter bvalued bat b1000, bthe bmaximum bamount bshe bwill breceive bis bwhich bof
b b b b b b b b b b b b b b




bthe bfollowing, bassuming ba b250 bdeductible?
b b b b b b




A- b0
b




B- b250
b




C- b400
b




D- b500 b- b bcorrect banswer-D- b500
b b b b b b




Which bof bthe bfollowing bbest bdescribes bthe bconcept bof brisk?
b b b b b b b b b




A- bResult bof bloss
b b b




B- bAmount bof bloss
b b b




C- bUncertainty bof bloss b
b b b b




D- bCause bof bloss b- b bcorrect banswer-C- bUncertainty bof bloss
b b b b b b b b b b




Ten byears bago binsured bpurchases ba bbuilding bfor b50,000 bthat bwould bcost b100,000
b b b b b b b b b b b b




bto brebuild btoday. bIf bthe bphysical bvalue bof bthe bbuilding bhas bdepreciated b2,000
b b b b b b b b b b b b b




beach byear, bthe bbuildings bpresent badmitted bcash bvalue bis b
b b b b b b b b b b




A- b100,000 b
b b




B- b80,000
b




C- b50,000
b




D- b30,000 b- b bcorrect banswer-B- b80,000
b b b b b b




Additional bcoverages bin ba bhomeowners bpolicy bwould bcover
b b b b b b b




A- bthe bdwelling
b b




B- bmaterials band bsupplies
b b b




C- bother bstructures
b b




D- bdebris bremoval b- b bcorrect banswer-D- bdebris bremoval
b b b b b b b b




Which bof bthe bfollowing bwould bNOT bbe bcovered bunder bthe bSection b1 bof ban bHO-3
b b b b b b b b b b b b b b




bform?
b

, A- bThe binsureds b2000 bcollie b
b b b b b




B- bPersonal bproperty bof bthe binsureds bdaughter bwho bis baway bat bcollege b
b b b b b b b b b b b b




C- bThe binsureds bdriveway bif bdamaged bby ba bfalling bobject b
b b b b b b b b b b




D- bLosses bcaused bby bthe bsudden band baccidental bleaking bof ba bwater bheater b- b
b b b b b b b b b b b b b b




bcorrect banswer-A- bThe binsureds b2000 bcollie
b b b b b b




An binsured bcarries b25,000 bproperty binsurance bwith b80 bpercent bcoinsurance bon ba
b b b b b b b b b b b




bbuilding bworth b40,000. bhow bmuch bwould bshe bcollect bin bthe bevent bof ba btotal
b b b b b b b b b b b b b b




bloss?
b




A- b20,000 b




B- b25,000 b




C- b32,000 b




D- b40,000 b- b bcorrect banswer-B- b25,000
b b b b b b




A bperson bmay bbe bconsidered bnegligent bif bhe b
b b b b b b b b




A- bfails bto bdo bwhat ba breasonably bprudent bperson bwould bdo
b b b b b b b b b b




B- bcommits ba bdeliberate bact bthat binjures banother b
b b b b b b b b




C- binjures banother bperson beven bthough bhe bacted bprudently b
b b b b b b b b b




D- bassists bto bthe bbest bof bhis bability banother bperson bwho bis bin bdistress b- b bcorrect
b b b b b b b b b b b b b b b b




banswer-A- bfails bto bdo bwhat ba breasonably bprudent bperson bwould bdo
b b b b b b b b b b b




In bproperty binsurance, ba bloss bwould bonly bbe bpaid bif binsurable binterest bat bthe b
b b b b b b b b b b b b b b




A- binception bof bthe bpolicy b
b b b b b




B- btime bof bpremium bpayment b
b b b b b




C- btime bof bapplication b
b b b b




D- btime bof bloss b- b bcorrect banswer-D- btime bof bloss
b b b b b b b b b b




Which bof bthe bfollowing bis bNOT btrue bconcerning bExclusions
b b b b b b b b




A- bthey bexist bin bpart bto beliminate bcoverage bfor buninsurable bperils
b b b b b b b b b b




B- bThe bThe beliminate bcoverage bfor bcertain bkind bof blosses b
b b b b b b b b b b




C- bThey bare bcritical bimportance bin bterminating bwhat bis bcovered bunder ban bAll bRisk
b b b b b b b b b b b b b




bpolicy b
b b




D- bThere bare bno ballowable bexclusions bin ban bInland bMarine bpolicy b- b bcorrect
b b b b b b b b b b b b b




banswer-D- bThere bare bno ballowable bexclusions bin ban bInland bMarine bpolicy
b b b b b b b b b b b




A bhomeowner bwhose bhouse bsuffered ba b50,000 btotal bloss bwas binsured bfor b60,000.
b b b b b b b b b b b b




bWhat bprinciple bwould bbe bviolated bof bher binsurance bcompany bpaid bher b60,000?
b b b b b b b b b b b b




A- bIndemnity b
b b




B- bNegligence b
b b




C- bLiability b
b b




D- bInsurable bInterest b- b bcorrect banswer-A- bIndemnity
b b b b b b b




Which bof bthe bfollowing bformulas bis bused bto bcalculate ba bclaim bpayment bwhen ba
b b b b b b b b b b b b b




bpolicy bcontains ba bCoinsurance bclause?
b b b b b




A- bInsurance bCarried bx bLoss= bAmount bPaid b
b b b b b b b




bInsurance brequired b
b b b




B- bInsurance bCarried bx bTotal bValue= bAmount bPaid
b b b b b b b




bInsurance brequired b
b b b




C- bInsurance brequired bx bLoss= bAmount bPaid b
b b b b b b b




b80% bof bCash bvalue b
b b b b b