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Personal Lines Agent — Information & Free Practice

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Personal Lines Agent

Provider
Pearson VUE
Format
Four-option multiple-choice; general and state-specific content scored together
Exam questions
80 scored questions; up to 16 additional unscored pretest questions
Time limit
1 hour, 45 minutes
Passing score
Scaled score of 70 on the 0–100 reporting scale
Exam fee
$45.00 per examination attempt
Examination outline
  • I. TERMS AND CONCEPTS .............................................. 11
    • A. Risk
    • B. Hazard
    • C. Peril
    • D. Economic Loss
    • E. Indemnity
    • F. Insurable Interest
    • G. Deductible
    • H. Direct loss vs. Indirect loss (loss of use)
    • I. Named peril vs. Open peril
    • J. Specific vs. blanket coverage
    • K. Property loss valuation
    • K.1. Actual Cash Value
    • K.2. Replacement cost
    • K.3. Functional replacement cost
    • K.4. Salvage value
    • L. Mortgagee/loss payee
    • M. Misrepresentation, breach of warranty, concealment
    • N. Negligence, liability, and supplementary payments
    • O. Bodily injury, property damage, personal injury
    • P. Accident/Occurrence
    • Q. Liability Limits: single and split
    • R. Certificate of Insurance
    • S. Binder
    • T. Endorsement
    • U. Liberalization clause
    • V. Major classes of policy provisions
    • V.1. Declarations
    • V.2. Definitions
    • V.3. Insuring agreements
    • V.4. Exclusions/Waiver
    • V.5. Conditions
    • W. Insurance
    • X. Application
    • Y. Subrogation
    • Z. Adhesion
    • AA. Consent to Rate
  • II. PERSONAL INSURANCE COVERAGES...................... 30
    • A. Standard Fire Policy ............................................... 5
    • A.1. Perils and losses covered and excluded
    • A.2. Inception/expiration
    • A.3. Limitations on amount payable
    • A.3.a. Policy limit
    • A.3.b. Actual Cash Value
    • A.3.c. Cost to repair or replace
    • A.3.d. Pro rata liability
    • A.3.e. Interest of the insured
    • A.4. Insurer’s options in the loss settlement
    • A.5. Concealment, misrepresentations, fraud
    • A.6. Requirements in the event of loss
    • A.7. Appraisal
    • A.8. Subrogation
    • A.9. Suit against the company
    • A.10. Abandonment
    • A.11. Waiver
    • B. Basic (DP-1), Broad (DP-2), and Special (DP-3) dwelling property forms ......................................... 4 (The candidate should be able to compare the major features of these forms.)
    • B.1. General nature and eligibility
    • B.2. Coverage items and other coverages
    • B.3. Property excluded
    • B.4. Perils covered and excluded
    • B.5. Other conditions and provisions (e.g., loss settlement subrogation)
    • B.6. Personal Liability and Theft Coverages
    • C. Homeowner’s policies (including amendatory endorsements) ........................................................ 15 Ref: This section is based on the North Carolina Rate Bureau Forms as adapted from the HO-2011 program of the Insurance Services Offices.
    • C.1. Eligibility and forms available
    • C.2. Definitions
    • C.3. Section I (The candidate should be able to analyze and compare the several Homeowners policies with respect to the following items.)
    • C.3.a. Coverage items and additional coverages
    • C.3.b. Property limited or excluded
    • C.3.c. Perils covered and excluded
    • C.3.d. Relationship among amounts of insurance
    • C.3.e. Loss settlement
    • C.3.f. Other conditions
    • C.4. Section II
    • C.4.a. Liability insuring agreement and exclusions
    • C.4.b. Medical payments insuring agreement and exclusions
    • C.4.c. Additional coverages
    • C.4.d. Section II conditions
    • C.5. Conditions applicable to Sections I and II
    • C.6. Frequently Used Homeowner endorsements
    • C.6.a. Scheduled personal property (personal articles floater) Ref: HO-04-61
    • C.6.b. Personal injury Ref: HO-32-82
    • C.6.c. Personal property replacement cost Ref: HO-04-90
    • C.6.d. Permitted incidental occupancies Ref: HO-04-42
    • C.6.e. Watercraft Ref: HO-24-75
    • C.6.f. Water Back Up and Sump Discharge or Overflow Ref: HO-04-84
    • C.6.g. Refrigerated property coverage Ref: HO-04-98
    • C.7. North Carolina amendatory endorsements (mandatory)
    • C.7.a. Special provisions HO-32-32
    • C.7.b. Home day care business liability exclusions and limited property coverage HO-32-96
    • D. Other personal policies .......................................... 1
    • D.1. Mobile Homeowners Policy
    • E. Flood Insurance ...................................................... 3 (The candidate is not responsible for differences in the Flood Program’s treatment of personal exposures and commercial exposures.)
    • E.1. National Flood Insurance Program
    • E.1.a. Background and purpose
    • E.1.k. Programs
    • E.1.k.4) Emergency
    • E.1.k.5) Regular
    • E.1.k.6) Who needs flood insurance
    • E.1.l. Flood maps and zone determinations
    • E.1.m. Policies available
    • E.1.n. Definitions
    • E.1.o. General rules
    • E.1.p. Rating
    • E.1.q. Claims handling process
    • E.1.r. Write your own company
    • E.3. Excess flood insurance
    • E.4. Private flood insurance
    • F. Watercraft/yacht ...................................................... 1
    • F.1. Hull coverage
    • F.2. Liability (protection and indemnity) coverage
    • G. Personal umbrella liability ..................................... 1
    • G.1. General nature
    • G.2. Underlying coverages
    • G.3. Self-Insured retention
  • III. PERSONAL AUTO POLICY (NORTH CAROLINA RATE BUREAU FORM) ................................................. 15
    • A. General nature and eligibility
    • B. Definitions
    • B.1. Named insured
    • B.2. An insured
    • B.3. Covered automobile
    • B.3.a. Non-owned
    • B.3.b. Temporary substitute
    • C. Standard coverages, parts A through D (The candidate should have knowledge of the insuring agreement, exclusions, and other items of the coverage listed below.)
    • C.1. Liability
    • C.2. Medical payments
    • C.3. Uninsured motorists/underinsured motorists
    • C.4. Damage to your auto (physical damage)
    • C.5. Insured’s duties
    • C.6. General provisions
    • D. Other coverages available
    • D.1. Towing and labor Ref: NC 03 03
    • D.2. Extended transportation expenses Ref: NC 03 02
    • D.3. Extended non-owned coverage Ref: NC 03 06
    • D.4. Coverage for Damage to Your Auto Ref: NC 03 15
  • IV. NORTH CAROLINA STATUTES AND REGULATIONS PERTINENT TO PERSONAL LINES ............................. 24
    • A. Contract of Insurance Ref: Article 1 (G.S. 58-1-10)
    • B. Commissioner of Insurance Ref: Article 2 (G.S. 58-2-5, 40, 50, 60, 65, 69, 70, 75, 155, 160, 161, 162, 163, 180, 185, 195, 200); 11 NCAC, Chapter 19, Section .0103
    • C. General Regulations for Insurance Ref: Article 3 (G.S. 58-3-10, 15, 25, 40, 115, 120, 130, 135, 140, 145)
    • D. Licensing of Agents, Limited Representatives, and Adjusters Ref: Article 33 (G.S. 58-33-1, 5, 10, 17, 20, 26, 31, 32, 40, 46, 50, 56, 60, 66, 70, 75, 76, 80, 82, 83, 85, 95, 100, 105, 110, 115, 120, 125, 130, 132, 135); 11 NCAC, Chapter 4, Section .0423
    • E. Insurance Information & Privacy Protection Act Ref: Article 39 (G.S. 58-39-5 through 58-39-120)
    • F. Regulation of Credit Insurance Ref: Article 57 (G.S. 58-57-65)
    • G. Unfair Trade Practices Ref: Article 63 (G.S. 58-63-15, 20, 50)
    • H. False Pretenses and Cheats Ref: Article 19 (G.S. 14-100)
    • I. Continuing Education Ref: 11NCAC, Chapter 6A, Section .0800; 11 NCAC, Chapter 4, Section .0423
    • J. North Carolina Rate Bureau Ref: Article 36 (G.S. 58-36-1, 15, 20, 25, 30, 45, 55, 65, 75, 80)
    • K. North Carolina Motor Vehicle Reinsurance Facility Ref: Article 37 (G.S. 58-37-1,5, 25, 30, 35, 50, 55, 60)
    • L. General Regulations of Business Ref: Article 43 (G.S. 58-43-5, 10)
    • M. Fire Insurance Policies Ref: Article 44 (G.S. 58-44-1, 5, 30)
    • N. Essential Property Insurance for Beach Area Property Ref: Article 45 (G.S. 58-45-1, 5, 10, 15, 35)
    • O. Fair Access to Insurance Requirements Ref: Article 46 (G.S. 58-46-1, 5, 10, 15)
    • P. Post Assessment Insurance Guaranty Association Ref: Article 48 (G.S. 58-48-5, 10, 25, 35)
    • Q. Motor Vehicle Liability Policy Defined Ref: (G.S. 20-279.21); 11 NCAC, Chap. 4, Section .0415
    • R. Cancellation or Nonrenewal of Motor Vehicle Policy Ref: (G.S. 20-310)
    • S. Consumer Division Ref: II NCAC, Chapter 4, Subsections .0120, .0121, .0122, .0415, .0423, .0429
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