Louisiana Personal Lines Producer Series 107 Practice Test

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• A homeowner's policy provides liability coverage up to $500 for all of the following scenarios except:
• Which of the following is not covered under supplementary payments coverage of the liability section of the personal automobile policy?
• When will no existing insurance license be revoked?
• In general practice, can the Commissioner of Insurance inspect the business records of a company or agency for any valid reason?
• Under a homeowners policy, which of the following is NOT covered by personal injury coverage?
• Which type of insurance is specifically designed to cover damages to a home caused by perils listed in a policy?
• Which endorsement ensures that the contents are not valued on an actual cash value basis?
• What is flood insurance, and how does it relate to homeowners insurance?
• Which factor can lead to higher premiums based on an applicant's profile?
• What does "negotiated pricing" in health insurance involve?
• Coinsurance penalizes policy owners who?
• What does it mean if a policy is "non-renewed"?
• What is "uninsured motorist coverage" in auto insurance?
• Which method is commonly used to determine the amount of property coverage needed in homeowners insurance?
• What principle states that a loss should restore the insured to their approximate financial condition prior to the loss?
• When does a policyholder typically receive a premium refund?
• What does a no-fault insurance policy entail?
• Which type of insurance would typically cover professional liability lawsuits?
• According to the law of agency, who is considered the principal?
• Which activity is considered an unfair claims settlement practice?
• What does the term "underwriting" refer to in insurance?
• In an insurance policy, what does "named insured" refer to?
• What can make a contract invalid?
• Why is it important to accurately disclose information on an insurance application?
• What is the definition of a deductible in an insurance policy?
• What is the difference between "collision" and "comprehensive" coverage in auto insurance?
• The type of insurer that is unincorporated, solely for the benefit of its members, and not for profit is known as?
• Which of the following actions is NOT considered an unfair method of competition in insurance?
• What is the primary purpose of liability insurance?
• Which of the following vehicles is NOT considered a covered vehicle under a personal automobile policy?
• Which of the following is not included in homeowners policies?
• Any of the following may be an unfair claims practice EXCEPT?
• In the event of a loss, what does "other insurance" specify in a dwelling fire policy?
• Under an HO-3 policy, coverage C-personal property applies to all of the following circumstances EXCEPT when?
• What is the main purpose of insurance?
• What is the primary purpose of liability insurance?
• What is the primary purpose of the Fair Credit Reporting Act?
• What must an insurance producer do to avoid accusations of misrepresentation?
• What type of auto insurance is designed to cover damages to your own vehicle regardless of fault?
• If a homeowner wants to purchase coverage for a home built in 1850 with hand-carved features, which policy should they consider?
• What type of events does homeowners insurance typically cover?
• What is a "policyholder"?
• What is the purpose of a deductible in an insurance policy?
• What happens if the commissioner of insurance finds a producer engaging in unfair practices?
• What is one of the primary functions of property insurance?
• What does a subrogation clause allow an insurer to do?
• What does the practice of "risk pooling" in insurance aim to achieve?
• Dwelling forms may be endorsed to exclude coverage for which of the following?
• Supplemental coverage to a homeowners policy for listed articles is referred to as?
• What type of insurance policy is characterized by identifying several items, each with its own description and limit?
• Which of the following is an example of an unfair trade practice?
• What does the term "policy term" refer to in insurance?
• What does the term "premium" refer to in insurance?
• Which of the following would be covered under the uninsured motorist section of a personal automobile policy?
• What is an "endorsement" in the context of an insurance policy?
• In insurance terminology, what does the term "deductible" refer to?
• What might a high co-pay indicate about a specific health insurance plan?
• Which situation is considered a collision loss in insurance?
• In health insurance, what would likely trigger a co-pay?
• What is an example of a direct loss?
• In a homeowners policy, which of the following would not be contained by the conditions?
• Which of the following is NOT typically covered by a standard homeowners insurance policy?
• What is included in standard homeowners insurance coverage?
• What is covered by national Flood Insurance Program (NFIP) policies?
• What is liability coverage in personal lines insurance?
• Which of the following reflects a major function of coinsurance in insurance policies?
• What does the right to appeal denial of claims entail for policyholders?
• Which principle is the foundation of the insurance contract relationship?
• What is the role of the Louisiana Department of Insurance?
• Under homeowners insurance, which coverage typically protects against personal liability for injuries occurring on the insured's property?
• What happens during the "grace period" in an insurance policy?
• What is "personal liability" coverage in a homeowners policy?
• What is a key requirement for maintaining a Personal Lines Producer license in Louisiana?
• In section 2 of homeowners policy, which of the following is considered exclusive?
• No-fault auto insurance is also defined as what type of coverage?
• How many hours of pre-licensing education are required for the Personal Lines Producer license in Louisiana?
• The Louisiana insurance code prohibits all of the following practices except?
• Which aspect of health insurance payments often complicates the patient experience?
• In homeowner forms, coverage E - personal liability applies to which situation?
• Which factor is typically not covered under a health insurance policy?
• What must a candidate do to obtain a Personal Lines Producer license in Louisiana?
• What is a co-pay in the context of health insurance?
• What factors typically influence the cost of insurance premiums?
• How do co-pays function in terms of visits to healthcare professionals?
• Which statement correctly describes the relationship between deductible and co-pay?
• Which coverage under a personal auto policy compensates for damage to the insured vehicle caused by a deer?
• A liability policy has a person limit of $25,000, a per accident limit of $50,000 for bodily damage, and a property damage limit of $25,000. What type of insurance is this?
• Under a mobile home policy, coverage for personal liability applies to which of the following situations?
• What is the primary purpose of an insurance policy?
• Before a policy can be issued by an insurer, it first has to be approved by whom?
• Which section of an insurance policy clarifies the meanings of certain terms used?
• A dwelling policy should be used to insure which type of property?
• Which of the following is not a basic peril on all homeowner forms?
• What is the importance of consumer protection laws in insurance?
• An insurer may take into account whether the applicant is male or female when determining?
• What is the significance of "named perils" in an insurance policy?
• What does a deductible refer to in health insurance?
• What is the purpose of a "rider" in an insurance policy?
• What type of insurance is considered "personal lines"?
• What must a party have before applying for insurance?
• What type of insurance policy typically covers an individual's personal liability for injuries to others?
• The broad theft coverage endorsement on a dwelling policy includes coverage for all of the following EXCEPT?
• In a dwelling policy, what refers to a property that has no inhabitants?
• What level of agent authority is given when the principal gives the agent authority in writing?
• All of the following would be covered under coverage A of a dwelling policy EXCEPT?
• Which is NOT covered by other-than-collision coverage on an automobile policy?
• What must a binder for a new homeowners policy include?
• Defamation includes all of the following conduct by a producer except?
• If Lia provides transportation for her client to their business lunch and the client closes the car door on her own hand, what type of coverage would this fall under?
• All of the following incidental businesses would be eligible under a dwelling policy except?
• What is "loss of use" coverage in homeowners insurance?
• What type of insurance covers loss of income due to business interruptions?
• Which of the following does NOT cover the insured for bodily injury under uninsured motorist coverage?
• In terms of liability, what does 'negligence' typically refer to?
• What type of risks does "property insurance" cover?
• What would be considered a component of rate?
• Under a standard fire policy, what occurs if the insured and the insurer cannot agree on the amount of loss?
• All of the following are considered unfair trade practices except:
• Under a personal automobile policy, what does part A-liability coverage provide?
• A producer found to have engaged in an unfair method of competition may?
• How might a producer demonstrate ethical sales practices in insurance?
• What does it mean if a health insurance plan has no co-pay requirement?
• What type of coverage is typically excluded in dwelling and homeowners policies?
• How does a higher deductible typically affect health insurance premiums?
• What does "underinsurance" mean in personal lines insurance?
• Difference in conditions policies are usually written for which of the following?
• What is the primary purpose of the Louisiana Personal Lines Producer license?
• Mutual companies are owned by which of the following?
• The insured chose not to purchase physical damage coverage on a snowmobile. Which method of handling risk does this describe?
• How often must continuing education requirements for insurance licensing be fulfilled?
• What type of insurance policies does a Personal Lines Producer primarily deal with?
• Which of the following best describes "uninsured motorist coverage"?
• Why is the "insurable interest" requirement significant in insurance?
• What does the term "exclusion" mean in an insurance policy?
• What is the "risk" assessment in insurance underwriting?
• What does the principle of indemnity refer to in insurance contracts?
• In liability insurance, what is typically not included in supplementary payments?
• Damage caused by more than one peril at the same time is referred to as?
• What is an "insurance binder"?
• Which of the following illustrates the concept of negligence?
• In an auto insurance context, what does comprehensive coverage typically protect against?
• Why is an insurance contract considered a contract of utmost good faith?
• A property policy may become void for any of the following actions by the insured except?
• What does a typical homeowners policy not include?
• What type of agents represent multiple insurance carriers in the insurance industry?
• What kind of insurance would you generally use to cover your personal belongings for full replacement value?
• What document establishes the terms and conditions of an insurance policy?
• What is "coverage A" in a typical homeowners policy?
• What peril is covered under the ensuring agreement of the standard fire policy?
• What type of coverage is designed to protect personal property when it is outside the insured home?
• Which type of insurance is focused primarily on covering damages resulting from a breach of contract?
• What will typically happen if a patient has not met their deductible for a service?
• How does the claims process generally work in insurance?
• What element of an insurance contract indicates that each party is giving something of value?
• Which payroll is NOT included in an unendorsed dwelling basic form (DP-1)?
• All of the following are considered unfair insurance trade practices except for which?
• Under automobile medical payments, what does the insured pay for?
• In what scenario might a patient pay both a deductible and a co-pay?
• What does the term "coverage" refer to in an insurance policy?
• Which insurance clause states that if the insured broadens coverage, it does not require an additional premium?
• Who is responsible for reporting a producer's change of address to the commissioner's department of insurance?
• Which coverage protects against personal injury within a rental unit?
• When a contract is terminated by the insurer or the insured before its normal expiration, what is this called?
• Which one of the following losses would be covered under the standard fire policy?
• What is "premium financing" in insurance?
• Of the following conditions, which would void the coverage of a standard fire policy?
• The primary function of a personal umbrella liability insurance policy is to provide coverage for what?
• How is strict liability best defined?
• Which agency regulates insurance producers in Louisiana?
• Why might an individual choose a health plan with a high deductible?
• What is the primary function of a deductible in a health insurance plan?
• Which of the following is a common exclusion found in an auto insurance policy?
• Which term describes the situation where both parties of a contract may not receive the same value?
• Which of the following is a common reason for implementing a co-pay?
• What determines the market value of a property in an insurance policy?
• What is something that increases the probability of loss called?
• Which process ensures that both parties in an insurance contract are aware of material facts?
• What does "subrogation" mean in insurance?
• What is "personal property" in homeowners insurance?
• What factor do insurance companies consider when determining co-pay amounts?
• Why is the homeowners policy considered a multi-line policy?
• A client's perspective of a producer's actions demonstrates what kind of authority?
• What is a "policy limit" in an insurance contract?
• What is the primary purpose of a "health insurance policy"?
• Which of the following is considered a peril in property insurance?
• If an insured hits a deer on the roadway, under which coverage part of the personal automobile policy is the damage covered?
• What is the main function of a "Certificate of Insurance"?
• What kind of policy typically covers personal liability for an individual's family?
• Which type of coverage limits apply to an insured's property at any location?
• What type of policy covers damage caused by riots or civil disturbances?
• In what situation would an insurance policy typically be voided?
• An HO-4 can be issued to which of the following?
• What is the primary purpose of liability insurance?
• When dealing with insurance policies, what does the term "premium" refer to?
• What is the primary purpose of liability insurance?
• Which of the following describes the characteristic of an aleatory contract?
• What scenario would be covered under liability on a personal auto policy?
• Which payroll is NOT excluded under a dwelling policy?
• What does "full coverage" typically refer to in auto insurance?
• Loss settlement that takes a deduction for depreciation is known as?
• What does it mean when a policy has a "co-insurance" clause?
• An unforeseen loss that occurs at a specific time and place is known as?
• Who is not eligible to receive benefits under the medical payments provision of a homeowners policy?
• What information is typically required on an insurance application?
• Which of the following situations would typically not be covered by a standard homeowners policy?
• Which type of insurance provides coverage for rental properties?
• What is the primary purpose of personal property coverage within a homeowners policy?
• What is an accurate statement regarding earthquake endorsements attached to a homeowner's policy?
• What may cause a producer to be guilty of misrepresentation?
• What is one of the duties an insured must perform to comply with the conditions section of their insurance policy following a loss?
• What coverage part in a homeowners policy includes building materials on the premises used to repair the covered property?
• Which of the following would not be covered by a personal automotive liability policy?
• To qualify for a Louisiana resident insurance producer’s license, an applicant must meet all of the following requirements EXCEPT?
• What is a primary component of a homeowners insurance policy?
• Which type of insurance policy would cover a homeowner’s personal belongings while traveling?
• What does "actual cash value" mean in insurance?
• Which term describes a property that does not contain furnishings, contents, or occupants?
• What is the difference between "Actual Cash Value" (ACV) and "Replacement Cost" in insurance?
• What type of hazard is created by an insured storing flammable substances in their home?
• What type of construction uses materials that can withstand fire for at least two hours?
• Before receiving an insurance license, what must an applicant do?
• Which component of a homeowner’s policy covers personal property within the home?
• What does a deductible represent in an insurance policy?
• Which of the following is a common reason for policy cancellation by an insurer?
• Which rights do policyholders have concerning their insurance policy?
• What is a Personal Lines Producer in Louisiana?
• An insured saves newspapers and keeps them neatly stacked in the family room, near the fireplace. What are these newspapers considered?