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Free Personal Lines Producer Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Personal Lines Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A falling object damages a house. Which homeowners form is the broad named-perils form that expressly adds falling objects to the basic perils?

    1. A. HO-2 broad form
    2. B. HO-3 special form
    3. C. HO-5 comprehensive form
    4. D. HO-8 modified form

    Answer: A

    Explanation: "number of other perils, including falling objects;" The falling-object peril is a named broad-form addition.

    Reference: A Regulator's Introduction to the Insurance Industry — Box 4.1, p. 39

  2. 2An at-fault driver injures a pedestrian. Which part of the driver's auto policy addresses the driver's liability for that person's injury?

    1. A. Property damage liability
    2. B. Bodily injury liability
    3. C. Collision coverage
    4. D. Medical payments coverage

    Answer: B

    Explanation: "Bodily injury liability insurance. This coverage applies to injuries that you" Bodily injury liability addresses injuries the driver causes to others.

    Reference: A Shopping Tool for Auto Insurance — Liability Coverages, p. 4

  3. 3An insurer pools many independent, similar homes and finds aggregate loss results become more predictable as the pool grows. Which principle explains this?

    1. A. Principle of indemnity
    2. B. Principle of insurable interest
    3. C. Law of large numbers
    4. D. Doctrine of subrogation

    Answer: C

    Explanation: "Law of Large Numbers The concept that as the number of exposures increases, the closer actual results will approach the probable results" A larger pool makes aggregate experience more predictable.

    Reference: A Regulator's Introduction to the Insurance Industry — Glossary, p. 209

  4. 4A homeowner wants to see the policy's initial promise of coverage and the perils described, before applying exclusions or endorsements. Which policy part should the producer show?

    1. A. Declarations page
    2. B. General conditions
    3. C. Insuring agreement
    4. D. Exclusions section

    Answer: C

    Explanation: "The insuring agreement summarizes the policy coverages." The insuring agreement summarizes coverages and describes the covered-peril basis.

    Reference: Understanding Your Homeowners or Renter's Policy — The Policy

  5. 5After finding a violation of the Connecticut insurance laws, what remedial relief may the Insurance Commissioner order in addition to other authorized action?

    1. A. Restitution with interest
    2. B. A producer appointment with conditions
    3. C. An automatic policy renewal
    4. D. A premium-tax credit

    Answer: A

    Explanation: Conn. Gen. Stat. § 38a-8 grants "the power to order restitution of any sums obtained in violation of any provision of this title" plus statutory interest. That remedy addresses money wrongfully obtained through the violation.

    Reference: Chapter 697 - General Provisions — Conn. Gen. Stat. § 38a-8

  6. 6What minimum type size must a Connecticut premium finance agreement use?

    1. A. Six-point type
    2. B. Eight-point type
    3. C. Ten-point type
    4. D. Twelve-point type

    Answer: B

    Explanation: Conn. Gen. Stat. § 38a-167 requires that the agreement "be dated, signed by or on behalf of the insured, and the printed portion thereof shall be in at least eight-point type."

    Reference: Chapter 698 - Insurers — Conn. Gen. Stat. § 38a-167

  7. 7What is a stated purpose of the Connecticut FAIR Plan?

    1. A. To finance all personal insurance premiums
    2. B. To reinsure every admitted insurer
    3. C. To make basic insurance available subject to program conditions
    4. D. To replace the automobile assigned risk plan

    Answer: C

    Explanation: Regs. Conn. State Agencies § 38a-328-1 states that the program's purpose is "To make basic insurance available, subject to the conditions hereinafter stated."

    Reference: Rcsa 38A 328 Fair Plan — Regs. Conn. State Agencies § 38a-328-1

  8. 8An automobile insurer charges two otherwise equivalent Connecticut applicants different rates solely because of race. How is this treated?

    1. A. Permitted territorial rating
    2. B. Unfair discrimination
    3. C. A lawful careful-driver credit
    4. D. A surplus lines placement

    Answer: B

    Explanation: Conn. Gen. Stat. § 38a-358 prohibits an automobile insurance decision based "On the race, religion, nationality or ethnicity of the applicant or named insured." A race-based rate distinction is impermissible.

    Reference: Chapter 700 - Property and Casualty Insurance — Conn. Gen. Stat. § 38a-358(1)

  9. 9An owner wants a form that covers the dwelling against perils unless the form excludes them, while contents remain on a narrower basis. Which form fits?

    1. A. HO-2 broad form
    2. B. HO-3 special form
    3. C. HO-5 comprehensive form
    4. D. HO-6 condominium form

    Answer: B

    Explanation: "The special form (HO-3) extends dwelling coverage to all perils except flood, earthquake, war, nuclear accident and others specified." HO-3 insures the dwelling for perils except named exclusions; HO-5 also extends that approach to contents, so the described form is HO-3.

    Reference: A Regulator's Introduction to the Insurance Industry — Box 4.1, pp. 39–40

  10. 10An at-fault driver hits a neighbor's fence. Which auto coverage addresses liability for repairing the fence?

    1. A. Collision coverage
    2. B. Medical payments coverage
    3. C. Property damage liability
    4. D. Uninsured motorist coverage

    Answer: C

    Explanation: "Property damage liability insurance. This coverage pays for damages" Property damage liability addresses damage the driver causes to another person's structures.

    Reference: A Shopping Tool for Auto Insurance — Liability Coverages, p. 4

Topics in this practice bank

These topics describe the available practice for Personal Lines Producer. Review the examination outline and its sources for scope and allocation details.

  • General Knowledge — I. TYPES OF PROPERTY POLICIES (10 scored questions)
    • A. Homeowners
    • A. Homeowners / 1. HO-2
    • A. Homeowners / 2. HO-3
    • A. Homeowners / 3. HO-4
    • A. Homeowners / 4. HO-5
    • A. Homeowners / 5. HO-6
    • A. Homeowners / 6. HO-8
    • B. Dwelling policies
    • B. Dwelling policies / 1. DP-1
    • B. Dwelling policies / 2. DP-2
    • B. Dwelling policies / 3. DP-3
    • C. Inland marine
    • C. Inland marine / 1. Personal Articles floaters
    • D. National Flood Insurance Program
    • E. Others
    • E. Others / 1. Earthquake
    • E. Others / 2. Mobile Homes
    • E. Others / 3. Watercraft
    • E. Others / 4. Windstorm
  • General Knowledge — II. TYPES OF CASUALTY POLICIES (13 scored questions)
    • A. Automobile: personal auto
    • A. Automobile: personal auto / 1. Liability
    • A. Automobile: personal auto / 1. Liability / a. Bodily Injury
    • A. Automobile: personal auto / 1. Liability / b. Property Damage
    • A. Automobile: personal auto / 1. Liability / c. Split Limits
    • A. Automobile: personal auto / 1. Liability / d. Combined Single Limit
    • A. Automobile: personal auto / 2. Medical Payments
    • A. Automobile: personal auto / 3. Physical Damage (collision; other than collision; specified perils)
    • A. Automobile: personal auto / 4. Uninsured motorists
    • A. Automobile: personal auto / 5. Underinsured motorists
    • A. Automobile: personal auto / 6. Who is an insured
    • A. Automobile: personal auto / 7. Types of Auto
    • A. Automobile: personal auto / 7. Types of Auto / a. Owned
    • A. Automobile: personal auto / 7. Types of Auto / b. Non-owned
    • A. Automobile: personal auto / 7. Types of Auto / c. Hired
    • A. Automobile: personal auto / 7. Types of Auto / d. Temporary Substitute
    • A. Automobile: personal auto / 7. Types of Auto / e. Newly Acquired Autos
    • A. Automobile: personal auto / 7. Types of Auto / f. Transportation Expense and Rental Reimbursement Expense
    • A. Automobile: personal auto / 8. Exclusions
    • B. Umbrella/Excess liability
  • General Knowledge — III. PROPERTY AND CASUALTY INSURANCE TERMS AND RELATED CONCEPTS (28 scored questions)
    • A. Insurance
    • A. Insurance / 1. Law of Large Numbers
    • B. Insurable interest
    • C. Risk
    • C. Risk / 1. Pure vs. Speculative Risk
    • D. Hazard
    • D. Hazard / 1. Moral
    • D. Hazard / 2. Morale
    • D. Hazard / 3. Physical
    • E. Peril
    • F. Loss
    • F. Loss / 1. Direct
    • F. Loss / 2. Indirect
    • G. Loss Valuation
    • G. Loss Valuation / 1. Actual cash value
    • G. Loss Valuation / 2. Replacement cost
    • G. Loss Valuation / 3. Market value
    • G. Loss Valuation / 4. Stated value
    • G. Loss Valuation / 5. Salvage value
    • H. Proximate cause
    • I. Deductible
    • J. Indemnity
    • K. Limits of liability
    • L. Coinsurance/Insurance to value
    • M. Occurrence
    • N. Cancellation
    • O. Nonrenewal
    • P. Vacancy and unoccupancy
    • Q. Liability
    • Q. Liability / 1. Absolute
    • Q. Liability / 2. Strict
    • Q. Liability / 3. Vicarious
    • R. Negligence
    • S. Binder
    • T. Endorsements
    • U. Blanket vs. Specific
    • V. Burglary, Robbery, Theft, and Mysterious Disappearance
    • W. Warranties
    • X. Representations
    • Y. Concealment
    • Z. Deposit Premium/Audit
    • AA. Certificate of Insurance
    • BB. Damages
    • BB. Damages / 1. Compensatory
    • BB. Damages / 1. Compensatory / a. General
    • BB. Damages / 1. Compensatory / b. Special
    • BB. Damages / 2. Punitive
    • CC. Compliance with Provisions of Fair Credit Reporting Act
  • General Knowledge — IV. PROPERTY AND CASUALTY POLICY PROVISIONS AND CONTRACT LAW (24 scored questions)
    • A. Declarations
    • B. Insuring agreement
    • C. Conditions
    • D. Exclusions
    • E. Definition of the insured
    • F. Duties of the insured after a loss
    • G. Obligations of the insurance company
    • H. Mortgagee rights
    • I. Proof of loss
    • J. Notice of claim
    • K. Appraisal
    • L. Other Insurance Provision
    • M. Subrogation
    • N. Elements of a contract
    • O. Sources of underwriting information
    • P. Fair Credit Reporting Act
    • Q. Privacy Protection (Gramm Leach Bliley)
    • R. Policy Application
    • S. Terrorism Risk Insurance Act (TRIA)
    • T. Cancellation and nonrenewal provisions
    • U. Supplementary payments
    • V. Loss settlement provisions including consent to settle a loss
    • W. Territory
  • Connecticut Specific — I. CT STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, ACCIDENT AND HEALTH, PROPERTY, AND CASUALTY INSURANCE (18 scored questions)
    • A. Responsibilities of the Insurance Commissioner
    • A. Responsibilities of the Insurance Commissioner / 1. General duties and powers
    • A. Responsibilities of the Insurance Commissioner / 2. Examination of records
    • A. Responsibilities of the Insurance Commissioner / 3. Hearings/notice of hearings
    • A. Responsibilities of the Insurance Commissioner / 4. Penalties and fines
    • A. Responsibilities of the Insurance Commissioner / 5. Cease and desist orders
    • B. Definitions
    • B. Definitions / 1. Insurance transaction
    • B. Definitions / 2. Insurer
    • B. Definitions / 3. Reinsurance
    • B. Definitions / 4. Domestic, foreign, and alien companies
    • B. Definitions / 5. Authorized and unauthorized companies / admitted and nonadmitted companies
    • B. Definitions / 6. Stock and mutual companies, and reciprocals
    • B. Definitions / 7. Risk retention group
    • B. Definitions / 8. Certificate of authority
    • C. Licensing
    • C. Licensing / 1. Purpose
    • C. Licensing / 2. Licensing Requirements
    • C. Licensing / 2. Licensing Requirements / a. Producer
    • C. Licensing / 2. Licensing Requirements / b. Agent
    • C. Licensing / 2. Licensing Requirements / c. Broker
    • C. Licensing / 2. Licensing Requirements / d. Resident/Nonresident
    • C. Licensing / 2. Licensing Requirements / e. Temporary license
    • C. Licensing / 3. Agent appointment/termination of contract
    • C. Licensing / 4. Obtaining a license
    • C. Licensing / 4. Obtaining a license / a. Qualifications
    • C. Licensing / 4. Obtaining a license / b. Licenses fees and application
    • C. Licensing / 4. Obtaining a license / c. Written examinations
    • C. Licensing / 4. Obtaining a license / d. Exemptions/exceptions
    • C. Licensing / 4. Obtaining a license / e. License denial
    • C. Licensing / 5. Maintaining a license
    • C. Licensing / 5. Maintaining a license / a. Continuing education
    • C. Licensing / 5. Maintaining a license / b. Change of address/name change
    • C. Licensing / 5. Maintaining a license / c. Fees/renewal
    • C. Licensing / 5. Maintaining a license / d. License expiration
    • C. Licensing / 5. Maintaining a license / e. Suspension or revocation of licenses
    • D. Agent responsibilities
    • D. Agent responsibilities / 1. Fiduciary capacity
    • D. Agent responsibilities / 1. Fiduciary capacity / a. Premium accountability
    • D. Agent responsibilities / 2. Disclosure
    • D. Agent responsibilities / 3. Commissions and compensation/ charges for extra services
    • E. Filing and approval of policy forms
    • F. Connecticut Insurance Guaranty Association Act
    • F. Connecticut Insurance Guaranty Association Act / 1. Brokered Transactions Guaranty Fund
    • G. Marketing practices
    • G. Marketing practices / 1. Responsibilities of the insurer
    • G. Marketing practices / 2. Unfair claims practices
    • G. Marketing practices / 3. Unfair trade practices
    • G. Marketing practices / 3. Unfair trade practices / a. Rebating
    • G. Marketing practices / 3. Unfair trade practices / b. Misrepresentation
    • G. Marketing practices / 3. Unfair trade practices / c. False advertising
    • G. Marketing practices / 3. Unfair trade practices / d. Defamation
    • G. Marketing practices / 3. Unfair trade practices / e. False financial statements
    • G. Marketing practices / 3. Unfair trade practices / f. Controlled business
    • G. Marketing practices / 3. Unfair trade practices / g. Boycott, coercion, intimidation
    • G. Marketing practices / 3. Unfair trade practices / h. Unfair discrimination
    • G. Marketing practices / 3. Unfair trade practices / i. Coercion of borrower
    • G. Marketing practices / 3. Unfair trade practices / j. Illegal inducement
    • G. Marketing practices / 3. Unfair trade practices / k. Misrepresentation on applications
    • G. Marketing practices / 3. Unfair trade practices / l. Twisting
    • G. Marketing practices / 4. Return of premium
    • H. Connecticut Insurance Information and Privacy Protection Act
  • Connecticut Specific — II. STATE STATUTES, RULES AND REGULATIONS COMMON TO PROPERTY AND CASUALTY INSURANCE ONLY (3 scored questions)
    • A. Premium Financing
    • B. Insurance Contracts
    • B. Insurance Contracts / 1. Renewal, Nonrenewal, Cancellation: Commercial, Homeowners, Personal Auto and Casualty Policies
    • B. Insurance Contracts / 1. Renewal, Nonrenewal, Cancellation: Commercial, Homeowners, Personal Auto and Casualty Policies / a. Illegal declination, nonrenewal, and cancellation
    • B. Insurance Contracts / 2. Binders
    • C. Surplus Lines
  • Connecticut Specific — III. STATE STATUTES, RULES AND REGULATIONS PERTINENT TO PROPERTY INSURANCE ONLY (4 scored questions)
    • A. Connecticut Insurance Placement Facility / FAIR Plan
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 1. Purpose
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 2. Definitions
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 3. Procedures
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 4. Eligibility
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 5. Coverages Available
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 6. Limits of Coverage
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 7. Effective Date of Coverage
    • A. Connecticut Insurance Placement Facility / FAIR Plan / 8. Binding Authority of Agents or Borders
    • B. Standard Fire Policy
    • C. Flood Insurance
  • Connecticut Specific — IV. STATE STATUTES, RULES, AND REGULATIONS PERTINENT TO CASUALTY INSURANCE ONLY (5 scored questions)
    • A. Auto Insurance
    • A. Auto Insurance / 1. Required coverages
    • A. Auto Insurance / 2. Limits
    • A. Auto Insurance / 3. Rates/rating information
    • A. Auto Insurance / 4. Uninsured/underinsured Motorist law
    • A. Auto Insurance / 4. Uninsured/underinsured Motorist law / a. Option for additional coverage
    • A. Auto Insurance / 4. Uninsured/underinsured Motorist law / b. Insurer insolvency
    • A. Auto Insurance / 5. Connecticut Motor Vehicle Financial Responsibility law
    • A. Auto Insurance / 5. Connecticut Motor Vehicle Financial Responsibility law / a. Proof of financial responsibility defined
    • A. Auto Insurance / 5. Connecticut Motor Vehicle Financial Responsibility law / b. Persons required to show proof
    • A. Auto Insurance / 5. Connecticut Motor Vehicle Financial Responsibility law / c. Penalty for noncompliance
    • A. Auto Insurance / 5. Connecticut Motor Vehicle Financial Responsibility law / d. Methods of satisfying financial responsibility
    • B. Connecticut Auto Insurance Assigned Risk Plan
    • B. Connecticut Auto Insurance Assigned Risk Plan / 1. Purpose
    • B. Connecticut Auto Insurance Assigned Risk Plan / 2. Definitions
    • B. Connecticut Auto Insurance Assigned Risk Plan / 3. Eligibility
    • B. Connecticut Auto Insurance Assigned Risk Plan / 4. Insured’s participation
    • B. Connecticut Auto Insurance Assigned Risk Plan / 5. Insurer’s participation
    • B. Connecticut Auto Insurance Assigned Risk Plan / 6. Coverage and options
    • B. Connecticut Auto Insurance Assigned Risk Plan / 7. Collection of placement fee

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