PERSONAL LINES EXAMFX STUDY SESSION EXAM

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PERSONAL LINES EXAMFX STUDY SESSION EXAM

QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -72 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: $6,000 would be paid under other-than-collision coverage

Answer:

An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered?

Question 2: hazards

Answer:

Events or conditions that increase the chances of an insured loss occurring are referred to as

Question 3: Specific definitions as to their meaning as used in the policy

Answer:

words or terms that appear in an insurance policy in bold face print include

Question 4: other insurance

Answer:

What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk?

Question 5: the completed application is submitted

Answer:

In insurance, an offer is usually made when

Question 6: any change in business name

Answer:

An individual licensed as an agent must notify the Texas Department of Insurance, on a monthly basis, of all of the following EXCEPT

Question 7: other than collision coverage

Answer:

rental reimbursement is only available if the policy includes which coverage

Question 8: uninsured motorist coverage

Answer:

in the personal auto policy, owned trailers being towed by an insured auto are automatically

Question 9: other than collision coverage

Answer:

Rental reimbursement is only available if the policy includes which coverage?

Question 10: Owned or leased by the resident of the mobile home

Answer:

The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other structures on land

Question 11: Property and Casualty Insurance Guaranty Association

Answer:

Which of the following was created to pay benefits due to insured's after their insurance companies have been declared insolvent?

Question 12: 2 years

Answer:

with in how many years of loss may an insured bring a lawsuit against an insurer, according to the dwelling policy?

Question 13: The promise to pay covered losses

Something of value exchanged between parties The premium amount paid at the time of application

Answer:

What is the consideration in a policy?Question 14: accident insurance, because it pays medical expenses regardless of fault

Answer:

in a personal auto policy, the medical payments coverage is similar to

Question 15: First named insured

Answer:

Which of the following would be named on the declarations page of a property or liability policy?

Question 16: replacement cost

Answer:

which method of loss valuation is contrary to the basic concept of indemnity

Question 17: transportation/permission to move endorsement

Answer:

An insured covered under a Mobile Homeowners Policy wants to move the location of the covered mobile home. Which of the following must the insured obtain from the insurer?Question 18: The trust that a client places in the producer in regard to handling premiums

Answer:

Which of the following is an example of a producer's fiduciary duty?

Question 19: Renewal dates

Answer:

What type of information would be found in a policy's insuring agreement?

Question 20: State property and casualty guaranty association

Answer:

A mechanism for assisting the policyholders of bankrupt insurers?

Question 21: The policy will not be affected.

Answer:

An individual applies for a life policy. two years ago he suffered from a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

Question 22: warranty

Answer:

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?Question 23: The hearing must be held within 10 days of receiving a request, unless both parties agree to a later date.

Answer:

An agent receives an Emergency Cease and Desist Order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violations stated in the Emergency Cease and Desist Order. He wants to contest the charges in a court hearing. Which of the following is true?

Question 24: assigned risk

Answer:

A recent college graduate bought a new car and is trying to get automobile insurance on it as required by the lienholder. After being rejected by several insurance companies due to his driving record, he finally talked to an agent who can get him coverage. His agent called him a residual market risk. From which type of automobile insurance plan can the applicant purchase insurance?

Question 25: It provides errors and omissions coverage for an agency

Answer:

Which of the following statements is NOT true regarding a personal umbrella liability policy?

Question 26: market value

Answer:

The insured's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house is something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this property?