personal lines exam prep questions with answers

personal lines exam prep questions with |\ |\ |\ |\ |\ |\




answers


Actual cash value is defined as..... - CORRECT ANSWERS
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✔✔replacement cost minus depreciation. |\ |\ |\




Fine arts are typically insured on an ______ ______ _____, whereby
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an insured, and insured agree, at time of insuring, on an amount
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of insurance to be paid at the event of a loss. - CORRECT
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ANSWERS ✔✔Agreed Value Basis |\ |\ |\




The owner of clothing to be cleaned would be a ______. The dry
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cleaner cleaning the clothes is the ______. - CORRECT ANSWERS
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✔✔Bailor, Bailee |\




The insurer has the right to take possession of damaged property
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after payment of loss. - CORRECT ANSWERS ✔✔True
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The ______ covered in a property policy are always in the insuring
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agreement. - CORRECT ANSWERS ✔✔Perils
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Additional living expense is an indirect loss, not a direct loss. -
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CORRECT ANSWERS ✔✔True |\ |\




When property is covered on a ___________ ____ _____, there is no
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deduction for depriciation. - CORRECT ANSWERS ✔✔Replacement
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Cost Basis
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, ____ _____ ________, cover risks of direct physical loss and the
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perils that are not named. - CORRECT ANSWERS ✔✔Open Peril
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Policies


The insuring agreement contains the insurer's promises to the
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insured. The insureds name is found in the ____________. -
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CORRECT ANSWERS ✔✔Declarations |\ |\




The insured is required to Personally make repairs to their
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property. - CORRECT ANSWERS ✔✔False-, The insured may
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choose who will make the repairs.
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____________ is a legal process against a third party, not the
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insured. - CORRECT ANSWERS ✔✔Subrogation
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______________ is a situation that occurs when two policies |\ |\ |\ |\ |\ |\ |\ |\ |\


covering the same property contain different coverages. -
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CORRECT ANSWERS ✔✔Nonconcurrency |\ |\




A property purchased ten years ago for $100,000 has a
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replacement value today of $200,000. it is depriciated 3% each
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year. what is todays actual cash value? - CORRECT ANSWERS
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✔✔$140,000


The _________ ______ states the procedure to be followed if the
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insured and insurer disagree on the amount of loss. - CORRECT
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ANSWERS ✔✔Appraisal Clause |\ |\