Personal Lines Insurance Producer Examination

1.The Chen family has an HO-3. A windstorm tears shingles off the roof of their house. Which statement about this loss is correct?

2.A storm drops a tree onto the Morales roof and punches a hole through it. Their homeowners policy is in force. Which coverage pays to repair the roof?

3.A guest at the Patel house is bitten by the family's dog and needs stitches. The Patels are legally responsible. Which coverage is the primary response?

4.Thieves break into the Okonkwo apartment and take a laptop the family owns. They have an HO-4 renters policy. Which coverage applies to the laptop?

5.The river behind the Alvarez house overflows, and floodwater ruins the first-floor drywall. They have a standard HO-3 and no flood endorsement. What is the result?

6.A supply line inside the Rossi kitchen wall bursts while the family is home and soaks the cabinets. The water did not come from outside. Which statement is correct on a standard HO-3?

7.An earthquake cracks the foundation of the Nguyen house. The family has a standard homeowners policy and no earthquake endorsement. How does the policy respond?

8.Lena rents an apartment and buys an HO-4. A toaster fire burns her sofa and also scorches the landlord's cabinets. For Lena's policy, which statement is right?

9.Marco owns a condominium unit and carries an HO-6. A small fire ruins his furniture and the hardwood floor he installed inside the unit. Which description of the HO-6 is accurate?

10.The Brooks family wants open-perils coverage on both their house and their furniture. Which homeowners form matches that request?

11.Wind collapses a detached shed in the Walsh backyard. The shed is not used for business, and the wind loss is covered. Which coverage applies?

12.A covered kitchen fire makes the Diaz house unlivable for three weeks. The family pays for a hotel and meals they would not otherwise have bought. Which coverage applies to those extra costs?

13.A neighbor's child trips on a loose step at the Grant house and needs a small urgent-care visit. The Grants want the bill paid without a lawsuit about fault. Which coverage fits?

14.While moving a piano, the Kim family cracks their own drywall. No guest is hurt and no guest property is damaged. They ask whether Coverage E or F will fix the wall. What is correct?

15.A burglar steals an unscheduled necklace from the Harris bedroom. The homeowners policy has a special theft limit for jewelry. How does the policy treat the theft?

16.The Ortiz family owns a ring worth far more than the homeowners special theft limit. They want broader coverage for that listed ring. What is the usual approach?

17.Cash kept in a desk is stolen during a break-in at the Bennett house. This policy has a special limit for money. Which statement is correct?

18.A ten-year-old sofa is destroyed in a covered fire. The insurer settles the sofa on an actual-cash-value basis. What does actual cash value mean here?

19.The Reeves family has replacement-cost coverage on contents. A covered loss destroys a dresser, and they have not bought a new one. They want the full replacement cost paid in cash now. What often applies?

20.A covered windstorm causes $6,200 of damage to the Ellis roof. The homeowners deductible is $1,000, and the dwelling limit is far above the loss. How much does the policy pay?

21.The Petrov family's cat knocks a lamp off a table and the lamp shatters. No named peril for contents is involved. They have an HO-3, and the house itself is undamaged. How is the lamp treated?

22.A visitor slips on a wet kitchen floor at the Shah house, breaks a wrist, and later wins a lawsuit. The insured is legally responsible, and the medical bills are large. Which coverage is meant for that legal responsibility?

23.Hail damages the roof of a detached garage behind the Navarro home. The garage is not rented out, and the hail loss is covered. Which coverage pays to repair that roof?

24.Jordan rents a house and has an HO-4. A covered fire destroys Jordan's clothing and books. The landlord insures the building on a separate policy. What does Jordan's HO-4 pay?

25.A pipe inside Priya's condominium unit bursts and ruins cabinets she upgraded and dishes she owns. She has an HO-6. Which loss belongs on her HO-6?

26.Smoke from a covered cooking fire stains the walls of the Okada house and ruins clothing in a closet. No one is injured. Which pairing is right?

27.A break-in takes unscheduled watches worth $6,000 from the Hassan home. Other stolen property in the same loss has already met the deductible. The special theft limit for watches is $1,500, and Coverage C is $80,000. What is payable for the watches?

28.A covered fire destroys ordinary furniture at the Feldman house. The actual cash value is $2,400, no special limit applies, and the deductible is $500. The contents limit is much higher. How much is payable?

29.After a covered hailstorm, the Cho roof is open and the family cannot live at home for ten days. They spend $1,800 on a short-term rental they would not otherwise have needed. Which coverage is designed for that cost?

30.During a backyard game, the Duarte child hits a ball through a neighbor's window. The insured is legally responsible, and the glass costs $450. No one is hurt. Which coverage responds?

31.The Park family is comparing forms and asks how an HO-3 differs from an HO-5 on personal property. Which answer is correct?

32.An upstairs washing-machine hose in the Quinn house suddenly splits and ruins the ceiling below. The water did not come from a river, a lake, or surface flooding. How does a standard homeowners policy treat this?

33.A dinner guest at the Yusuf house cuts a hand on a broken glass. The urgent-care bill is $275. Nobody sues. The host wants a coverage that can pay a guest's small medical cost without proving fault. Which coverage is that?

34.Fire burns a hole in an exterior wall of the Stein house. The HO-3 is in force, and fire is not excluded. Which coverage repairs the wall?

35.Sam lives in a rented duplex and owns a couch, a bed, and clothing, but not the building. Which policy form matches Sam's household?

36.An earthquake shifts the chimney on the Vogel house. The family has a standard HO-3 and no earthquake endorsement. There is no flood. What is true?

37.A covered fire destroys an unscheduled bracelet worth $4,000 at the Cole house. The policy's special limit for theft of jewelry is $1,500. Does that theft limit cap this fire loss?

38.Wind knocks down a backyard fence at the Abebe home. The fence is not attached to the house, and the wind loss is covered. Which coverage applies?

39.A sudden burst pipe causes $3,500 of covered damage to the Nunez dwelling. The deductible is $500, and the Coverage A limit is $300,000. How much is paid?

40.The Iqbal family asks which of these forms insure the dwelling on an open-perils basis. Which answer is correct?

41.A visitor is injured at the March home and wins a $40,000 judgment because the insured was negligent. The homeowners liability limit is $100,000. This policy does not apply the property deductible to that judgment. What does Coverage E pay toward it?

42.A burglar takes $900 in cash from a drawer at the Silva house. The special limit for theft of money is $200. Other stolen goods in the same break-in have already met the deductible. The cash is not scheduled. What is payable for the cash?

43.On the Brandt family's HO-3, a fire destroys the dining table. Fire is a named peril for contents. This question is only about the table. How is the table covered?

44.A covered loss destroys the Kwon family's refrigerator. A new one costs $1,200, and depreciation is $400. The insurer uses actual cash value, and no deductible remains on this item. What is the actual cash value?

45.Adeyemi owns one condominium unit, carries an HO-6, and asks an agent to insure a neighboring unit the household does not own. What should the agent explain?

46.The named insured at the Pappas house trips on the home sidewalk and pays $600 for personal medical care. No one else is involved. The insured asks Coverage F to pay that bill. What is correct?

47.A covered fire at the Moreau house causes $90,000 of dwelling damage and $4,000 of additional living expense. The deductible is $1,000, and the limits are high enough. Which description is right?

48.Ice tears a section of siding off the Lang family's HO-3 house. Assume the cause is not excluded. Which statement is correct?

49.Nora backs her car into a concrete post in a parking garage. The post is unharmed, and no one is hurt. Collision is in force with a $500 deductible, and the bumper repair is $2,000. What is paid for her car?

50.A deer runs into Luis's car. The body work is $3,400. He has comprehensive with a $200 deductible. Which own-damage result is correct?

51.Helena runs a red light and hits another car. That driver is injured, that car is damaged, and Helena's car is damaged too. Which part of her personal auto policy pays the other driver's injury and car damage?

52.A driver with no liability insurance hits Tom's car and injures Tom. That driver is at fault. Tom has uninsured motorist coverage. Which statement is correct?

53.An at-fault driver carries only a small liability limit. Maya's injuries from the crash cost more than that limit. She has underinsured motorist coverage. When does that coverage apply?

54.A personal auto policy shows split limits of 50/100/25. What do those three numbers mean on this policy?

55.Evan's teenage daughter lives with him and is at fault in a crash while driving the family car listed on his personal auto policy. Which statement fits the usual personal auto approach?

56.Nina lets a neighbor use her car for an afternoon to move a sofa. The neighbor has permission and injures another person in a crash. Which statement is the usual result?

57.A stranger steals the Farah family's minivan and, while fleeing, hits a parked truck. The stranger had no permission. Is that stranger an insured driver on the family's personal auto policy?

58.The Berg family already has collision on the cars listed on their personal auto policy. They buy an additional car on Monday. Which description of the first days is fair?

59.The Okafor family's sedan is stolen from a grocery lot and is not recovered. They have comprehensive coverage. Which coverage applies to the loss of the car?

60.Hail dents the hood and roof of the Pereira family's parked car. No other vehicle is involved. Comprehensive has a $250 deductible, and the repair is $1,250. What is paid?

61.A garage fire spreads to the Holtz family's car parked inside and destroys it. They have comprehensive. Which own-damage coverage responds to the burned car?

62.A flash flood submerges the Demir family's car on the street and ruins the engine. They have comprehensive and no separate flood policy on the car. Which auto coverage applies?

63.Omar hits a guardrail. The owner's claim is $1,800, and the property-damage liability limit is $25,000. Omar's repair is $2,200. Collision has a $500 deductible and a high enough limit. Which payments are right?

64.A hit-and-run driver flees, and no liability insurance can be found for that driver. The crash injures a covered resident relative. The policy includes uninsured motorist coverage. Which coverage matches the injury?

65.Keller's policy uses 50/100/25, so the property-damage liability limit is $25,000. Keller causes $18,000 of damage to another person's car and no bodily injury. What does liability pay for that car?

66.Petrova's car injures one pedestrian. Covered bodily injury damages are $70,000. Split limits are 50/100/25, and no other person is hurt. How much bodily injury liability is payable for this person?

67.Gould injures two people in another car. One has $40,000 of bodily injury damages and the other has $30,000. Limits are 50/100/25. What total bodily injury liability is payable?

68.Rios slides on ice into a curb. The repair bill is $900. The collision deductible is $1,000, and comprehensive does not apply. What does collision pay?

69.Blake's car is stolen and the comprehensive settlement is $8,000. The comprehensive deductible is $500, and the limit is high enough. What is paid?

70.A rolling shopping cart dents a door on Aden's parked car. The repair is $750. Collision has a $250 deductible. No other person has a claim, and hail is not involved. What is paid for the door?

71.Morgan's spouse lives in the household and is not listed by name, but the personal auto policy treats resident family members as insureds. The spouse uses the listed car and causes a liability loss. What is the usual result?

72.The at-fault driver's liability limit is paid in full and is too small for Esposito's injuries. Esposito carries underinsured motorist coverage. Which description is correct?

73.A parent lets a visiting cousin use the family car for a grocery trip. The cousin lives in another town, is not a resident relative, and has permission. The cousin damages another car. Which statement is the usual one?

74.Frey swerves to avoid a dog, misses the dog, and strikes a mailbox. The mailbox owner has a property claim, and Frey's car is damaged. Which pairing is right?

75.Fire in a parking lot destroys Conte's car. The comprehensive loss is $5,000, the comprehensive deductible is $500, and the limit is adequate. What is paid for the car?

76.The Singh household already has liability coverage on the personal auto policy and then buys an additional car. They ask about the first two weeks. What is a fair description?

77.An at-fault driver with no liability insurance injures a covered member of the Novak household. The household has uninsured motorist bodily injury coverage. The dents in the car are a separate question. Which coverage matches the injury?

78.Hart causes a crash that damages both cars. Hart's repair is $4,300. The collision deductible is $500, and the collision limit is high enough. What is paid for Hart's car?

79.A rock flung from a truck cracks Bell's windshield. The cars do not collide. Comprehensive has a $100 deductible, and the glass bill is $400. What is paid for the glass?

80.Malik sees 50/100/25 on an auto quote and asks whether those figures are the required minimum for every driver. What should be said?

81.Crowe's family car hits a neighbor's fence and causes $2,200 of damage. The property-damage liability limit is $25,000. On this policy, liability has no deductible. What is paid?

82.Peck is at fault in a crash and Peck's car is a total loss. Collision will address the car, subject to its deductible. Which statement about the car payment is correct?

83.While Soto's car is parked and empty, hail breaks the rear window. The comprehensive deductible is $50, and the glass costs $350. What is paid?

84.A driver who has liability insurance causes a crash. That limit is paid in full and still leaves unpaid damages for Ivers, who bought underinsured motorist coverage. Which coverage addresses the shortfall?

85.Keene told a former roommate not to use the car. The roommate takes the keys anyway and causes a liability crash. Which statement fits?

86.The Lind family policy already includes comprehensive. On Thursday they buy an additional car, and a tree branch falls on it the next day, before they call the agent. Which statement is acceptable?

87.Voss injures three pedestrians. Each has $40,000 of bodily injury damages. Split limits are 50/100/25. What total bodily injury liability is payable?

88.Hahn hits a deer on Monday and, in a separate event the next week, hits a fence post. No one else has a claim in either event. Which matching is correct?

89.Meyer injures a bicyclist and damages the bicycle. Bodily injury damages are $20,000, and the bicycle damage is $1,000. Limits are 50/100/25. What does liability pay for those two items?

90.A neighbor takes the Ruiz family's car from the driveway at night without asking and then crashes it. Which statement is correct about that neighbor as a driver?

91.River water floods Paul's car up to the seats. Comprehensive is in force with a $1,000 deductible. The covered flood loss is $6,000, and the limit is high enough. What is paid?

92.A crash report shows the at-fault driver never bought liability insurance. A covered occupant in the Trent car is injured. The household has uninsured motorist coverage. What applies to that injury?

93.While parallel parking, Duffy taps the car behind. That owner's damage is $700 and is within the property-damage limit. Duffy's bumper repair is $1,100, and the collision deductible is $200. What is paid for Duffy's bumper?

94.Salim's parent lives in the home and drives the family car to a pharmacy. The parent causes a crash that injures another driver. Which statement is right?

95.Someone steals the tires and rims from Ng's car overnight and leaves the car on blocks. Comprehensive has a $250 deductible. The covered parts loss is $1,000. What is paid?

96.Cobb is stopped and is rear-ended by a driver who is fully at fault and has liability insurance. Cobb is not hurt. If Cobb uses Cobb's own collision coverage for the car, which statement is true?

97.The Howell family has personal auto liability and a personal umbrella. A covered auto liability loss is larger than the auto liability limit. What is the umbrella's role?

98.The Brennan personal umbrella has a retention. A liability loss is not covered by the underlying homeowners or auto policy, but the umbrella covers it, so the retention applies. What does the retention do?

99.The Larsen household does not operate a business. They want higher liability limits for the home and the family cars. Which policy is built for that role?

100.A visitor is injured by a loose deck railing at the Ortega home. Homeowners liability pays its full limit, and the personal umbrella also covers the liability loss. What can the umbrella do?

101.A liability claim is covered by the Webb family's personal auto policy and by their umbrella. The auto limit is not exhausted. Which statement fits the usual structure?

102.Poon rents an apartment, has an HO-4 and a personal auto policy, and does not run a business. Can a personal umbrella sit above those two policies?

103.River water floods the Hoyt basement and ruins the drywall. The family asks their personal umbrella, which is a liability policy, to pay for new drywall. What is the right response?

104.A covered at-fault crash causes $180,000 of bodily injury to one person. The Vasquez auto policy's per-person liability limit of $100,000 is paid. The personal umbrella covers the loss, and its limit is high enough. What can the umbrella pay toward the rest?

105.Which household is in the personal-lines auto category?

106.A guest falls on icy steps at the Potter house and is awarded $250,000. Homeowners personal liability pays its $100,000 limit. The umbrella covers this liability and has a $1,000,000 limit. How much can the umbrella pay on the remainder?

107.The Ibrahim umbrella covers a $15,000 liability loss that the underlying homeowners and auto policies do not cover. The retention is $1,000, and the umbrella limit is far higher. What does the insured bear, and what can the umbrella pay?

108.Which loss belongs on personal lines rather than on a business policy?