PERSONAL LINES RELIABLE EXAM QUESTIONS WITH
SOLUTIONS 2025 GRADED A+
✔✔The legal doctrine that holds that the parties to a contract to a contract may
exchange unequal consideration is called:
A. Adhesion
B. Aleatory
C. Alienation
D. Unilateral - ✔✔B. Aleatory
✔✔When an insurer sues a negligent third party to recover a loss paid to an insured,
the company is exercising its right of
A. Assignment
B. Arbitration
C. Estoppel
D. Subrogation - ✔✔D. Subrogation
✔✔Which of the following is not covered by the Personal Auto Policy?
A. A portable GPS
B. A factory installed stereo system
C. Medical expenses the insured incurs due to an accident
D. Physical damage caused by hitting a dear - ✔✔A. A portable GPS
✔✔Pure risk means:
A. Lose only
B. Win only
C. Win, lose
D. None of the above - ✔✔A. Lose only
✔✔All of the following are examples of types of insurance that a limited insurance agent
would solicit EXCEPT:
A. Baggage coverage
B. Travel accident insurance
C. Personal articles coverage
D. Title insurance - ✔✔C. Personal articles coverage
✔✔The Property & Casualty Guarantee Association applies to:
A. Risk Retention Groups
B. Admitted insurers
, C. Alien companies
D. Non-admitted insurers - ✔✔B. Admitted insurers
✔✔Which of the following is true about additional coverage?
A. They are automatically included only if Medical Payments Coverage is purchased
B. They are included for a minimum premium
C. They are included at no extra cost
D. They are optional on the part of the insured - ✔✔C. They are included at no extra
cost
✔✔The insured would have Liability coverage under the Homeowner's policy while
operating which of the following boats? (Assume ther are no endorsements attached to
the policy):
A. 8 foot boat with a 25 horsepower inboard-outboard motor owned by the insured
B. 42 foot sailboat with no auxiliary power owned by the insured
C. 15 foot boat powered by a 50 horsepower outboard motor that was purchased by the
insured before the inception date and not reported to the insurer
D. 8 foot boat with 26 horsepower outboard motor rented by the insured - ✔✔A. 8 foot
boat with a 25 horsepower inboard-outboard motor owned by the insured
✔✔Both the structure and the contents of a mobile home can be insured by purchasing:
A. An unendorsed HO3
B. A businessowners policy
C. An unendorsed DP3 policy
D. Either a Mobile Home package policy or an HO2 or HO3 with the Mobile
Homeowner's endorsement - ✔✔D. Either a Mobile Home package policy or an HO2 or
HO3 with the Mobile Homeowner's endorsement
✔✔A deductible is a usual feature in which of the following automobile coverages?
I. Physical Damage
II. BI and PD Liability
III. Medical Payments
A. I only
B. II only
C. III only
D. I and III - ✔✔A. I only
✔✔J drives L's car. Both J and L have a Personal Auto Policy. Which of the following
statemetns is CORRECT concerning coverage if J causes and accident?
SOLUTIONS 2025 GRADED A+
✔✔The legal doctrine that holds that the parties to a contract to a contract may
exchange unequal consideration is called:
A. Adhesion
B. Aleatory
C. Alienation
D. Unilateral - ✔✔B. Aleatory
✔✔When an insurer sues a negligent third party to recover a loss paid to an insured,
the company is exercising its right of
A. Assignment
B. Arbitration
C. Estoppel
D. Subrogation - ✔✔D. Subrogation
✔✔Which of the following is not covered by the Personal Auto Policy?
A. A portable GPS
B. A factory installed stereo system
C. Medical expenses the insured incurs due to an accident
D. Physical damage caused by hitting a dear - ✔✔A. A portable GPS
✔✔Pure risk means:
A. Lose only
B. Win only
C. Win, lose
D. None of the above - ✔✔A. Lose only
✔✔All of the following are examples of types of insurance that a limited insurance agent
would solicit EXCEPT:
A. Baggage coverage
B. Travel accident insurance
C. Personal articles coverage
D. Title insurance - ✔✔C. Personal articles coverage
✔✔The Property & Casualty Guarantee Association applies to:
A. Risk Retention Groups
B. Admitted insurers
, C. Alien companies
D. Non-admitted insurers - ✔✔B. Admitted insurers
✔✔Which of the following is true about additional coverage?
A. They are automatically included only if Medical Payments Coverage is purchased
B. They are included for a minimum premium
C. They are included at no extra cost
D. They are optional on the part of the insured - ✔✔C. They are included at no extra
cost
✔✔The insured would have Liability coverage under the Homeowner's policy while
operating which of the following boats? (Assume ther are no endorsements attached to
the policy):
A. 8 foot boat with a 25 horsepower inboard-outboard motor owned by the insured
B. 42 foot sailboat with no auxiliary power owned by the insured
C. 15 foot boat powered by a 50 horsepower outboard motor that was purchased by the
insured before the inception date and not reported to the insurer
D. 8 foot boat with 26 horsepower outboard motor rented by the insured - ✔✔A. 8 foot
boat with a 25 horsepower inboard-outboard motor owned by the insured
✔✔Both the structure and the contents of a mobile home can be insured by purchasing:
A. An unendorsed HO3
B. A businessowners policy
C. An unendorsed DP3 policy
D. Either a Mobile Home package policy or an HO2 or HO3 with the Mobile
Homeowner's endorsement - ✔✔D. Either a Mobile Home package policy or an HO2 or
HO3 with the Mobile Homeowner's endorsement
✔✔A deductible is a usual feature in which of the following automobile coverages?
I. Physical Damage
II. BI and PD Liability
III. Medical Payments
A. I only
B. II only
C. III only
D. I and III - ✔✔A. I only
✔✔J drives L's car. Both J and L have a Personal Auto Policy. Which of the following
statemetns is CORRECT concerning coverage if J causes and accident?
