20-44 Personal Lines Practice Exam
Questions With fully Worked-Out
Solutions
What is the windshield deductible for Florida? - CORRECT ANSWER-No deductible
What is Arbitration? - CORRECT ANSWER-PROCEDURE in which an insurance
company and the insured or a vendor agree to settle a claim dispute by accepting a
decision based on a third party
What is Appraisal? - CORRECT ANSWER-A SURVEY that determines value (not
coverage) of property without legal action
What is the definition of Assignment? - CORRECT ANSWER-A transfer of legal rights
under, or interest in, an insurance policy to another party
How is assignment used or not used in insurance? - CORRECT ANSWER-One cannot
transfer policy to another without the company's written permission. Not valid without
insurers consent in writing.
What is the "Fair Credit Reporting Act"? - CORRECT ANSWER-A federal act aiming to
promote the fairness and accuracy of information contained in consumer reports
How do carriers use the Fair Credit Reporting Act for underwriting? - CORRECT
ANSWER-
What is the Terrorism Risk Insurance Act (Terrorist Act)? - CORRECT ANSWER-
Federal legislation enacted in 2002 to guarantee the availability of reinsurance coverage
against acts of terrorism.
What does TRIA include or exclude? - CORRECT ANSWER-1. an act of terrorism
Questions With fully Worked-Out
Solutions
What is the windshield deductible for Florida? - CORRECT ANSWER-No deductible
What is Arbitration? - CORRECT ANSWER-PROCEDURE in which an insurance
company and the insured or a vendor agree to settle a claim dispute by accepting a
decision based on a third party
What is Appraisal? - CORRECT ANSWER-A SURVEY that determines value (not
coverage) of property without legal action
What is the definition of Assignment? - CORRECT ANSWER-A transfer of legal rights
under, or interest in, an insurance policy to another party
How is assignment used or not used in insurance? - CORRECT ANSWER-One cannot
transfer policy to another without the company's written permission. Not valid without
insurers consent in writing.
What is the "Fair Credit Reporting Act"? - CORRECT ANSWER-A federal act aiming to
promote the fairness and accuracy of information contained in consumer reports
How do carriers use the Fair Credit Reporting Act for underwriting? - CORRECT
ANSWER-
What is the Terrorism Risk Insurance Act (Terrorist Act)? - CORRECT ANSWER-
Federal legislation enacted in 2002 to guarantee the availability of reinsurance coverage
against acts of terrorism.
What does TRIA include or exclude? - CORRECT ANSWER-1. an act of terrorism
