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Personal Lines Latest Correctly Answered Questions 100% Pass Guaranteed
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Personal Lines Latest Correctly Answered Questions100% Pass Guaranteed
Which of the following is true about cancellations of an insurance policy
A- By the insurance company at any time
B- By the insurance company after it gives the insured 5 days notice
C- By the insured at any time after giving advance written notice to the company
D- By the insured after they give the insurance company at least 10 days written notice -
Answer C- By the insured at any time after giving advance written notice to the company
Which of the following individuals represents the insurance company when selling an
insurance policy?
A- Adjuster
B- Broker
C- Producer
D- Insurer - Answer C- Producer
A temporary insurance contract pending the issuance of a policy is called:
A- Endorsement
B- Certificate of Insurance
C- Binder
D- None of the Above - Answer C- Binder
The public assumes an agent has what type of authority when quoting insurance?
A- Implied
B- Authorized
,C- Express
D- Apparent - Answer D- Apparent - quoting would be an action in this circumstance
Which of the following types of risk management would sprinklers in a building be?
A- Avoidance
B- Reduction
C- Transfer
D- Retention - Answer B- Reduction
Which of the following is NOT one of the responsibilities of a producer to the insurer?
A- A fiduciary duty (trust)
B- To forward premiums to the insured in a timely manner
C- To report material facts that may affect underwriting
D- To recommend only high rate policies - Answer D- To recommend only high rate
policies
Indemnity insurance requires that the insured has insurable interest to collect. When
does the insured need to have this interest?
A- When applying for the insurance
B- When the loss occurs
C- At policy issuance
D- During the policy duration -Answer B- At the time of the loss
Federal law known as the _____________________ safeguards consumer privacy.
A- Fraudulent Insurance Act
B- Privacy Protection Act
C- Fair Credit Reporting Act
D- None of the above - Answer C- Fair Credit Reporting Act
,Which of the following parts of a policy contains the insurance company's promise to
pay the insured for covered losses?
A- Insuring Agreements
B- Conditions
C- Declarations
D- Exclusions - Answer A- Insuring Agreements
What is the purpose of a deductible?
A- To reduce the Moral hazard by making the insured pay for part of each loss.
B- To reduce the expense of claims for the insurance company
C- Reduce the cost of insurance by omitting small claims
D- All of the above - Answer D- All of the above
The tendency of a person to be dishonest, thus increasing the likelihood of a loss is
called a type of what?
A- Physical hazard
B- Legal hazard
C- Emotional hazard
D- Moral hazard - Answer D- Moral hazard
An agent's total authority comes from three distinct sources. One authority is formed
when the insurance company provides business cards, letterhead and signs. Which type
of authority is this?
A- Implied Authority
B- Apparent Authority
C- Fiduciary Authority
D- Express Authority - Answer D- Express Authority (from the company represented)
Which of the following types of insurance puts the insured in the same economic
, position that existed prior to the loss?
A- Adhesion
B- Underwriting
C- Indemnity
D- Insurability - Answer C- Indemnity
The conditions section of an insurance contract identifies which of the following:
A- The insured's duties
B- The location of the property
C- The amount of coverage
D- The policy period - Answer A- The insured's duties
Which of the following is NOT a characteristic of a legal contract:
A- Consideration
B- Indemnity
C- Legal Purpose
D- Agreement - Answer B- Indemnity
A producer who can represent one, or more than one insurance company, and who also
represents members of the insurance buying public is classified as:
A- Broker
B- Independent Agent
C- Solicitor
D- Both A and B - Answer D- Both A and B
A warranty is defined as which of the following?
A- What a reasonable and prudent buyer can expect
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