PERSONAL LINES FINAL EXAM

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PERSONAL LINES FINAL EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -78 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A financial device for transferring or shifting risk from an individual or entity to

a large group with the same risk is the definition of:

• Avoidance
• Retention
• Transfer
• Insurance

Answer:

• Insurance

Question 2: The definition of Risk is:

• Uncertainty regarding loss
• A chance of gain
• Uncertainty regarding gain or profit
• Intended unforseen damage to property for gain or profit

Answer:

• Uncertainty regarding loss

Question 3: A temporary license is given to which of the following?

• Employee of a disabled producer
• Next of kin of producer who is retiring
• Spouse of producer who has been terminated
• Anyone approved by the Commissioner

Answer:

• Employee of a disabled producer

Question 4: 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):

• 8 foot boat with a 25 horsepower inboard-outboard motor owned by the insured
• 42 foot sailboat with no auxiliary power owned by the insured
• 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

• 8 foot boat with 26 horsepower outboard motor rented by the insured

Answer:

• 8 foot boat with a 25 horsepower inboard-outboard motor owned by the insured

Question 5: A neighbor is bitten by your Labrador retriever and sues you for $100,000. Which of the following HO forms would cover the loss?

A. HO2

B. HO3

C. HO4

• All of the Above

Answer:

• All of the above

Question 6: The Commissioner of Insurance does not require a state licensing examination for

which of the following:

• A resident producer
• A sole proprietor who is 19 years of age
• A Corporation desiring a producer's license
• A limited insurance agent selling travel accident insurance

Answer:

• A limited insurance agent selling travel accident insurance

Question 7: When coverage is provided under the DP-3 policy, which of the following statements regarding other structures coverage is CORRECT?

• It is included within the limit for Coverage A
• It is provided in addition to the limit for Coverage A
• It is not provided except by endorsement
• It is provided only when Coverage B is selected

Answer:

• It is provided in addition to the limit for Coverage A

Question 8: What does the liberalization clause do?

• Limits coverage
• Expands coverage
• Excludes certain coverages
• Makes you vote Republican

Answer:

• Expands coverage

Question 9: Which of the following individuals shall be exempt from taking a state insurance examination?

• An individual who desires to solicit property insurance only
• A temporary licensee
• A person who was formerly licensed 4 years ago in another state
• An individual who would like to solicit liability insurance

Answer:

• A temporary licensee

Question 10: How soon does flood insurance take effect?

• 30 days
• 31 days
• 60 days
• Immediately

Answer:

• 30 days

Question 11: A sudden, unintended, and unexpected event is known as:

• Negligence
• Warranty
• Accident
• Occurrence

Answer:

• Accident