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Personal Lines Practice Test Questions and Answers Fully Solved
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Personal Lines Practice Test
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Personal Lines Practice TestWhich word describes an insurance company incorporated outside of the state in which
it is doing business? - answer Foreign
All of the following are examples of conduct of an agent that is regulated by Department
of Insurance EXCEPT - answer misappropriation or conversion of funds by an
insurance agent
Which of the following standards is an agent violating by providing insurance to an
insured at a lower or higher premium than another insured in identical circumstances? -
answer Unfair Discrimination
Which of the following makes use of market value in determining loss valuation? -
answer Property is evaluated for what it sells for at the time of the loss.
the company cannot afford to insure its risks - answer All of the following are reasons a
company would decide to self-insure EXCEPT
calls from or on behalf of political campaigns or organizations and charities - answer
Which of the following is EXEMPT from the Telemarketing Sales Rule that established
the National Do Not Call Registry?
10 - answerHow many business days does a business have to honor a requested email
opt-out according to the 2003 CAN-SPAM Act?
The applicant is seeking a transaction greater than $150,000. - answerThe Fair Credit
Reporting Act permits consumer reporting agencies to include applicant information
about bankruptcies MORE than 10 years old under which of the following
circumstances?
subsidies, loss sharing or excess coverage - answerThe Terrorism Risk Insurance Act
and the National Flood Insurance Program are similar by providing which of the
following?
financial institutions must have a privacy policy in place - answerThe Gramm-Leach-
Bliley Act was enacted to protect consumer's right to privacy and made mandatory
which of the following?
Avoidance - answerWhat method of risk management is being utilized when a person
chooses not to drive because of the risk of having an automobile accident?
, Coverage is triggered for smoke damage to siding caused by repeated acts by insured's
neighbor. - answerWhich is TRUE when the insured's limits of insurance apply per
occurrence?
less depreciation - answerWith what method are losses settled on an actual cash value
(ACV) basis?
Theft - answerWhich of the following property crimes also includes the unlawful taking
of property by stealth?
Nonpayment of premiums - answerWhat is generally accepted as a condition for which
an insurer is allowed to cancel a policy?
Insurable interest in the property - answerWhich of the following gives a mortgagee
rights at the time of loss?
the benefit can exceed the policy limitations when the deductible is paid. - answerThe
following is true regarding deductibles EXCEPT
premiums cost less for vacant or unoccupied property due to lower risk. - answerWhich
is FALSE regarding vacancy and unoccupancy
the loss is produced by an unnatural and broken series of events. - answerWhich is
FALSE regarding proximate cause
Morale Hazard - answerWhich type of hazard is an example of a person who increases
the chance of loss through carelessness or by irresponsible actions?
Negligence - answerAbsolute liability can be imposed by law and exist in the absense of
which of the following?
Cost of damages - answerAll of the following are used to establish negligence EXCEPT
it is a written or verbal agreement confirming the policy. - answerAll of the following is
TRUE regarding a certificate of insurance EXCEPT
Promise - answerWhich is another term for offer and acceptance?
Arbitration includes other disagreements besides disputes of value. - answerHow does
the arbitration condition differ from the appraisal condition?
Someone who is incarcerated - answerAll of the following would be considered to be
incompetent to enter into a contract EXCEPT
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