Personal Lines Exam Questions And Answers 100% Pass
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Course
Personal Lines
Institution
Personal Lines
Personal Lines Exam Questions And
Answers 100% Pass
Foreign - answerIf an insurer is incorporated in Rhode Island, but primarily does business in New York,
what type of insurer would it be considered in New York?
An agreement between the insurance company and the reinsurer - answerPolicyholder ...
Personal Lines Exam Questions And
Answers 100% Pass
Foreign - answer✔If an insurer is incorporated in Rhode Island, but primarily does business in New York,
what type of insurer would it be considered in New York?
An agreement between the insurance company and the reinsurer - answer✔Policyholder A's insurer is
providing coverage on too many homes subject to wind losses. As a result, the company decides to
reinsure those policies to share the high risk of wind loss. The reinsurance contract can best be
described as which of the following?
Stockholders - answer✔Dividends issued by Stock insurers are paid to:
The policy is a contract of adhesion - answer✔When an insurance policy is not clear, the court will
usually interpret in favor of the insured because of which characteristic?
Retaining the risk - answer✔Self-insurance is an example of which of the following type of risk
management?
Peril - answer✔A potential cause of loss, such as fire, explosion, flood, or theft is considered to be a(n):
A contract of indemnity - answer✔An insurance contract is considered which type of contract because it
restores the insured to the same financial condition as before the loss?
Admitted - answer✔An insurer that is authorized to do business in a particular state is said to be:
Enhancement - answer✔Is not a risk management technique
Warranty - answer✔A statement indicating the liability of the manufacturer for product deficiencies.
Pure risk - answer✔The uncertainty of loss from fire, wind or hail is a type of:
Aleatory - answer✔Is a kind of contract that is defined as an unequal exchange in value.
Misrepresentation - answer✔When writing an application for car insurance, Producer M asked her
client, B, if he had been convicted of driving while intoxicated in the past 10 years. B answered "no",
although he had been convicted of a DWI last year. B is guilty of what?
Foreign Company - answer✔Ohio Casualty is doing regular business in Indiana. Within the state of
Indiana, Ohio Casualty would be considered a(an):
If an individual is denied coverage, they can request a copy of the report. - answer✔Under the Fair
Credit Reporting Act, what is true?
Additional Coverages part of a property insurance policy provides - answer✔Coverage that supplements
the basic coverages in the insuring agreement which is automatically included without an additional
premium.
Personal lines 60 days and Commercial lines 30 days - answer✔What describes the 'Loss Payment'
condition regarding how long an insurer has to pay for a loss after receiving the proof of loss and having
reached an agreement with the insured?
What is considered a hostile fire? - answer✔An uncontrolled campfire in the woods
Consequential Loss - answer✔Indirect loss
Nonrenewal - answer✔Term used to describe an insurance company terminating an insurance
relationship at the end of the policy period.
Cancellation - answer✔Termination of an insurance policy, by either the insured or the insurer before
the expiration date
The perils that are not insured against - answer✔What is not included in the Declarations of a Property
Policy?
Water damage resulting from a burst pipe - answer✔Example that best describes a direct loss
Mortgage Clause - answer✔If a home has a mortgage, the lenders 'insurable interest' would be covered
under what policy condition?
Loss Payable Clause - answer✔What clause protects the interests of the loss payee?
Description of a hostile fire - answer✔A fire caused by a spark escaping from a fireplace and igniting a
carpet.
Insuring Agreement - answer✔The insuring agreement is the company's commitment of protection to
the insured. It specifies the types of property covered, and the perils insured against.
Consequential Loss - answer✔A secondary loss that occurs as a result of a direct loss from a covered
peril.
Proximate Cause - answer✔Primary cause of loss, or the first event in the unbroken chain of events.
Nonrenewed - answer✔When an insurer determines that it does not wish to continue coverage for an
insured it may choose not to renew the policy upon the expiration of the policy term.
Pro Rata Liability - answer✔This provision is found in the policy in the Other Insurance condition, and
provides for claim settlement to be proportioned to the amount of other insurance.
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