PERSONAL LINES INSURANCE PRACTICE EXAM

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PERSONAL LINES INSURANCE PRACTICE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Under an auto policy, Other than Collision coverage would apply to which of the following situations?

• All of the car's tires are stolen.
• An insured has her car parked at an airport, and a suitcase is stolen from the car.
• The car rolls over after hitting a patch of ice.
• An insured breaks a window to gain access because the keys were left inside.

Answer:

• All of the car's tires are stolen.

Explanation: Other than Collision coverage protects against all accidental damage not due to collision, upset, and other specified exclusions. Therefore, the car rolling over on the icy road would not be covered, nor would the loss of personal property, such as a suitcase. Breakage of glass would be covered only if the breakage were due to a collision and not intentionally caused by the insured.

Reference: 8.12.1 in the License Exam Manual

Question 2: Comprehensive coverage pays for all of the following damages EXCEPT

• overturning of the auto
• explosion
• glass breakage

• hitting a deer

Answer:

• overturning of the auto

Explanation: Comprehensive coverage pays for loss to a covered auto or its equipment for any cause except collision, overturn, or upset.

Reference: 8.12.1 on the License Exam Manual

Question 3: All of the following are excluded under collision or Other than Collision coverages

EXCEPT

• damages to awnings, cabanas, or other equipment
• damage due to wear and tear
• road damages to tires
• flood damage

Answer:

• flood damage

Explanation: Flood damage to a vehicle is not excluded under the Other than Collisions coverage.

Reference: 8.12.1 in the License Exam Manual

Question 4: The insured rear-ends another vehicle that is stopped at a red light. The driver of the car struck by the insured is badly injured. The insured, his daughter and her friend were in the car and were also injured. Part B of the insured's personal auto policy will pay medical

expenses for all of the following EXCEPT:

• the insured.
• the occupant of the car struck by the insured.
• the insured's daughter's friend.
• the insured's daughter.

Answer:

• the occupant of the car struck by the insured.

Explanation: Part B of the personal automobile policy (PAP) provides coverage for medical payments incurred in an auto accident without regard to fault. Covered persons include the insured, family members, and any passengers in the insured's vehicle. It does not provide liability coverage for injuries sustained by passengers in another auto involved in an incident with the insured.

Reference: 8.8.1 in the License Exam Manual

Question 5: Which of the following individuals is NOT an insured under Section I of the homeowners policies?

• Resident relative of the insured
• The spouse of the named insured
• Person younger than 21 who is in the care of the named insured
• Person hired by the insured to perform work on the insured premises

Answer:

• Person hired by the insured to perform work on the insured premises

Explanation: The definition of who is an insured under homeowners policies, while quite broad, is not all-inclusive and would not be extended to include people hired by the insured to perform work on the insured's premises. Those individuals should look to their own commercial policies for protection.

Reference: 7.3.2 in the License Exam Manual

Question 6: The scheduled personal property endorsement provides a separate schedule of insurance for all of the following categories EXCEPT

• musical instruments
• camera equipment
• snowboarding equipment
• jewelry

Answer:

• snowboarding equipment

Explanation: 9 major categories of valuable property may be covered on the scheduled personal property endorsement under the homeowners policy. Snowboarding equipment is not one of them.When an insured separately schedules property in one or more of the categories, the coverage is provided on an open perils basis with no deductible.

Reference: 9.7.1.1 in the License Exam Manual

Question 7: If a producer moves, he must report his new address to the director within how many days after moving?

• 90

B) 120

• 60

• 30

Answer:

• 30

Explanation: If a producer changes his address (business or residential) or name, the producer must notify the director within 30 days of the date of the change.

Reference: See State Supplement

Question 8: Which on of the following would be classified as a general damage?

• Pain and suffering
• Lost wages
• Medical bills
• Damaged property

Answer:

• Pain and suffering

Explanation: Compensatory damages compensate an injured party for injuries sustained- nothing more.Their purpose is to make a person whole again in the position that existed before the loss or harm.Compensatory damages are further categorized by: general damages (which necessarily result from the act or omission, such as emotional distress, inconvenience, and pain and suffering) and special damages (losses measured in exact sums of money including medical bills, travel expenses for medical care, prescription costs damaged property, and lost wages).

Reference: 5.3.6 in the License Exam Manual

Question 9: Which of the following statements about flood insurance is NOT correct?

• There are two types of flood insurance programs available: emergency and regular
• A flood includes an overflow of inland or tidal waters
• Sewer backup into a dwelling is not considered flood and is not covered
• Personal property in a basement or outside in the yard is covered

Answer:

• Personal property in a basement or outside in the yard is covered

Explanation: Personal property in a basement or outside in the yard is NOT covered under flood insurance.

Reference: 9.4 in the License Exam Manual