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PERSONAL LINES FINAL EXAM WITH ALL ANSWERS.
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PERSONAL LINES FINAL EXAM WITH ALL ANSWERS.
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PERSONAL LINES FINAL EXAM WITHALL ANSWERS
Statements made in the application are considered:
b b b b b b
A. Warranties
b
B. Representations
b
C. Possible Concealments
b b
D. None of the Above - correct answer-B. Representations
b b b b b bb b b
The definition of Risk is:
b b b b
A. Uncertainty regarding loss
b b b
B. A chance of gain
b b b b
C. Uncertainty regarding gain or profit
b b b b b
D. Intended unforseen damage to property for gain or profit - correct answer-A.
b b b b b b b b b b bb b
Uncertainty regarding loss
b b b
A financial device for transferring or shifting risk from an individual or entity to a large
b b b b b b b b b b b b b b b
group with the same risk is the definition of:
b b b b b b b b b
A. Avoidance
b
B. Retention
b
C. Transfer
b
D. Insurance - correct answer-D. Insurance
b b bb b b
Hazards include which of the following:
b b b b b
1. Unintended oily rags stacked in a corner
b b b b b b b
2. A homeowner's carelessness because he has insurance
b b b b b b b
, A. 1 only
b b
B. 2 only
b b
C. Both 1 & 2
b b b b
D. Neither 1 or 2 - correct answer-C. Both 1 & 2
b b b b b bb b b b b b
The mortgage condition in a property policy:
b b b b b b
1. Guarantees that the lending institutions may act for itself in paying a premium
b b b b b b b b b b b b b
2. Guarantees claim payments will be divided as the interests of the insurance and
b b b b b b b b b b b b b
mortgagee appear
b b
A. 1 only
b b
B. 2 only
b b
C. Both 1 & 2
b b b b
D. Neither 1 nor 2 - correct answer-C. Both 1 & 2
b b b b b bb b b b b b
Which of the following situations does NOT create an insurable interest?
b b b b b b b b b b
A. Being named in someone's will as an heir
b b b b b b b b
B. Holding a mortgage or lien on property
b b b b b b b
C. Having custody or control of someone else's property
b b b b b b b b
D. Owning property - correct answer-A. Being named in someone's will as an heir
b b b bb b b b b b b b b b
The plumbing in Mrs. Ward's home suddenly burst and the ceilings were damaged
b b b b b b b b b b b b
by water. Which of the following homeowner forms would cover the loss?
b b b b b b b b b b b b
A. HO1
b
B. HO2
b
C. HO4
b
D. HO7` - correct answer-B. HO2
b b bb b b
Nicole has a Personal Auto policy with limits of 10/20/10 for liability coverage. She
b b b b b b b b b b b b b
causes an accident that results in $12,000 bodily injury damages to the other driver
b b b b b b b b b b b b b b
and $5,000 in property damage to the other driver's car. How much would Nicole's
b b b b b b b b b b b b b b
policy pay for the the BI and PD losses?
b b b b b b b b b
A. $15,000
b
B. $17,000
b
C. $10,000
b
D. $12,000 - correct answer-A. $15,000
b b bb b b
Sally Smith calls her agent, Hubert Dufus, to purchase flood insurance. Agent Dufus
b b b b b b b b b b b b
explains to Ms. Smith that flood coverage can be purchased directly through the
b b b b b b b b b b b b b
NFIP or through him. Should Ms. Smith choose to purchase coverage through Agent
b b b b b b b b b b b b b
Dufus it is called the:
b b b b b
A. Write your own program
b b b b
B. Create flood insurance program
b b b b
C. Flood insurance is not available through private insurers
b b b b b b b b
D. None of the Above - correct answer-A. Write your own program
b b b b b bb b b b b b
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