personal lines exam prep Questions and Verified
Answers
Actual cash value is defined as..... Correct 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. Correct Answer: Agreed
Value Basis
The owner of clothing to be cleaned would be a ______. The dry cleaner cleaning the clothes is the
______. Correct Answer: Bailor, Bailee
The insurer has the right to take possession of damaged property after payment of loss. Correct Answer:
True
The ______ covered in a property policy are always in the insuring agreement. Correct Answer: Perils
Additional living expense is an indirect loss, not a direct loss. Correct Answer: True
When property is covered on a ___________ ____ _____, there is no deduction for depriciation. Correct
Answer: Replacement Cost Basis
____ _____ ________, cover risks of direct physical loss and the perils that are not named. Correct
Answer: Open Peril Policies
The insuring agreement contains the insurer's promises to the insured. The insureds name is found in the
____________. Correct Answer: Declarations
The insured is required to Personally make repairs to their property. Correct Answer: False-, The insured
may choose who will make the repairs.
____________ is a legal process against a third party, not the insured. Correct Answer: Subrogation
______________ is a situation that occurs when two policies covering the same property contain
different coverages. Correct Answer: 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? Correct Answer: $140,000
Answers
Actual cash value is defined as..... Correct 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. Correct Answer: Agreed
Value Basis
The owner of clothing to be cleaned would be a ______. The dry cleaner cleaning the clothes is the
______. Correct Answer: Bailor, Bailee
The insurer has the right to take possession of damaged property after payment of loss. Correct Answer:
True
The ______ covered in a property policy are always in the insuring agreement. Correct Answer: Perils
Additional living expense is an indirect loss, not a direct loss. Correct Answer: True
When property is covered on a ___________ ____ _____, there is no deduction for depriciation. Correct
Answer: Replacement Cost Basis
____ _____ ________, cover risks of direct physical loss and the perils that are not named. Correct
Answer: Open Peril Policies
The insuring agreement contains the insurer's promises to the insured. The insureds name is found in the
____________. Correct Answer: Declarations
The insured is required to Personally make repairs to their property. Correct Answer: False-, The insured
may choose who will make the repairs.
____________ is a legal process against a third party, not the insured. Correct Answer: Subrogation
______________ is a situation that occurs when two policies covering the same property contain
different coverages. Correct Answer: 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? Correct Answer: $140,000
