PERSONAL LINES FINAL EXAM 130 QUESTIONS &
CORRECT ANSWERS LATEST 2025
What part of the policy lists the rules, duties, and obligations of the insured and
insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions - ANSWER-C) Conditions
The directive that states the violation committed and requires an agent to stop
the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order - ANSWER-D) cease and desist order
Extended Coverage (EC) include all of the following perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - ANSWER-D) vandalism
,A device which is used to minimize small nuisance claims, lower insurance
premiums, and reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - ANSWER-Deductible
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - ANSWER-A) Inherent vice
The policyholder has a liability of $300,000 and caused an accident injuring one
person in the amount of $250,000 and another person in the amount of
$150,000. What limit of coverage applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000 - ANSWER-B) $300,000
Eligible vehicles are described in the Personal Auto Policy. Which of the following
vehicles is NOT eligible?
A) A newly acquired sedan
B) an owned SUV
,C) A van used as a temporary substitute
D) a truck used to make deliveries - ANSWER-D) a truck used to make deliveries
What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
C) $250
D) $500 - ANSWER-B) $200
In order for an insurer to meet their obligation to an insured, "insurable interest"
must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss - ANSWER-A) At the time the
loss occurs
A customer's response to a question to the best of their knowledge or belief is
called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation - ANSWER-D) Representation
In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
, A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy - ANSWER-D) Not available on an auto policy
The purpose of the FAIR plan is to:
A) give the federal government a major role in providing insurance
B) Make property insurance available for high risk property owners.
C) Require complete disclosure of the reasons for cancellations
D) Force all insurance companies to participate in an insurance pool. - ANSWER-B)
make property insurance available for high risk property owners.
Which type of watercraft is insurable on a yacht policy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat - ANSWER-C) sailboat
Which of the following is NOT a direct loss?
A) fire damage
B) water damage as a result of putting out the fire
C) Hotel expenses as a result of moving out because of the fire
D) smoke damage resulting from the fire - ANSWER-C) hotel expenses as a result
of moving out because of the fire
CORRECT ANSWERS LATEST 2025
What part of the policy lists the rules, duties, and obligations of the insured and
insurer?
A) Declarations Page
B) Insuring Agreement
C) conditions
D) exclusions - ANSWER-C) Conditions
The directive that states the violation committed and requires an agent to stop
the illegal acitivity is called:
A) show cause order
B) subpoena
C) tort
D) cease and desist order - ANSWER-D) cease and desist order
Extended Coverage (EC) include all of the following perils, EXCEPT:
A) wind
B) riot
C) smoke
D) vandalism - ANSWER-D) vandalism
,A device which is used to minimize small nuisance claims, lower insurance
premiums, and reduce morale hazards is called:
A) arbitration
B) deductible
C) valued policy
D) coinsurance - ANSWER-Deductible
All of the following perils are covered, in a PERSONAL ARTICLES FLOATER (PAF),
EXCEPT:
A) inherent vice
B) flood
C) Earthquake
D) theft - ANSWER-A) Inherent vice
The policyholder has a liability of $300,000 and caused an accident injuring one
person in the amount of $250,000 and another person in the amount of
$150,000. What limit of coverage applies to the loss?
A) $150,000
B) $300,000
C) $250,000
D) $400,000 - ANSWER-B) $300,000
Eligible vehicles are described in the Personal Auto Policy. Which of the following
vehicles is NOT eligible?
A) A newly acquired sedan
B) an owned SUV
,C) A van used as a temporary substitute
D) a truck used to make deliveries - ANSWER-D) a truck used to make deliveries
What is the deductible in an UNINSURED MOTORIST CLAIM?
A) $100
B) $200
C) $250
D) $500 - ANSWER-B) $200
In order for an insurer to meet their obligation to an insured, "insurable interest"
must exist:
A) At the time the loss occurs
B) At the time the application is made for the insurance
C) At the time of application or at the time of loss
D) at the time of application and at the time of loss - ANSWER-A) At the time the
loss occurs
A customer's response to a question to the best of their knowledge or belief is
called:
A) warranty
B) Material fact
C) Misrepresentation
D) Representation - ANSWER-D) Representation
In Virginia, A NAMED DRIVER EXCLUSION (NDE) is:
, A) available on all auto policies
B) Only available by endorsement
C) Required to exclude drivers on the policy
D) Not available on an auto policy - ANSWER-D) Not available on an auto policy
The purpose of the FAIR plan is to:
A) give the federal government a major role in providing insurance
B) Make property insurance available for high risk property owners.
C) Require complete disclosure of the reasons for cancellations
D) Force all insurance companies to participate in an insurance pool. - ANSWER-B)
make property insurance available for high risk property owners.
Which type of watercraft is insurable on a yacht policy?
A) barge
B) cruise ship
C) sailboat
D) chartered fishing boat - ANSWER-C) sailboat
Which of the following is NOT a direct loss?
A) fire damage
B) water damage as a result of putting out the fire
C) Hotel expenses as a result of moving out because of the fire
D) smoke damage resulting from the fire - ANSWER-C) hotel expenses as a result
of moving out because of the fire
