Personal Lines — Auto & Liability — Insurance Producer — Property & Casualty Practice Test

This Insurance Producer — Property & Casualty Personal Lines — Auto & Liability practice set has 70 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Personal Lines — Auto & Liability bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. Under Part A of the standard personal auto policy, the insurer agrees to pay damages for:

   • Bodily injury and property damage for which an insured is legally responsible from an auto accident — Correct answer
   • Damage to the insured's own vehicle from a collision, regardless of fault
   • Reasonable medical bills for the insured's passengers no matter who caused the accident
   • Repairs to the insured's home caused by a falling tree

   Explanation: Part A — Liability pays bodily injury (BI) and property damage (PD) the insured is legally liable for in an auto accident. It is a third-party coverage; damage to the insured's own car falls under Part D, and no-fault medical bills fall under Part B. (ISO Personal Auto Policy)

   Handbook: Personal Lines — Auto & Liability — Part A Liability Coverage

2. Under Part A Liability, in addition to paying damages the insurer also agrees to:

   • Defend the insured against any covered claim or suit seeking damages — Correct answer
   • Reimburse the insured for lost wages after every accident
   • Pay the insured a bonus for each claim-free policy year
   • Repair the other driver's vehicle even when the insured was not at fault

   Explanation: Part A includes the insurer's duty to defend the insured against a covered liability claim or suit, and the insurer pays defense costs in addition to the damages limit. Defense ends once the applicable limit is exhausted. (ISO Personal Auto Policy)

   Handbook: Personal Lines — Auto & Liability — Duty to Defend

3. Which group is generally an 'insured' for liability under the personal auto policy while using the covered auto?

   • The named insured, resident family members, and permissive users of the covered auto — Correct answer
   • Only the named insured listed on the declarations page
   • Any person in the world who drives any car for any reason
   • Only licensed drivers who are blood relatives of the named insured

   Explanation: Part A extends to the named insured and resident family members (for any auto) and to any person using the covered auto with permission (a permissive user). It is broader than just the named insured but is not unlimited. (ISO Personal Auto Policy)

   Handbook: Personal Lines — Auto & Liability — Who Is an Insured