Free practice exam · no signup needed

Alaska Personal Lines Practice Exam

20 exam-style questions drawn from the same bank as our full Alaska Personal Lines course (Alaska Insurance Producer — Personal Lines — Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. A homeowner's dwelling is insured for $300,000 on an HO-3 with a 10% Ordinance or Law additional coverage. After a covered fire, the city requires the rebuild to meet a current code that adds $35,000 to reconstruction. How much, if any, of the code-upgrade cost does the policy pay before any endorsement?
$35,000 — full code-upgrade cost is automatically covered$0 — code upgrades are always excluded unless endorsed$30,000 — capped at 10% of Coverage A$17,500 — code upgrades share the additional-coverage limit 50/50
2. Which of the following best describes when UIM (underinsured motorist) coverage is triggered?
The at-fault driver carries no liability coverage at all under any policy in force at the time of the lossThe insured was operating a non-owned vehicle without permission of the title-holding owner at the timeThe at-fault driver has liability coverage, but its limits are less than the insured's damagesThe at-fault driver fled the scene and remains unidentified after exhaustive police-investigation efforts
3. A pro-rata cancellation refund is calculated by:
Returning premium proportional to the unexpired policy period, with no penaltyReturning nothing because cancellation forfeits the entire unearned portion under the no-refund minimum-premium clauseSubtracting a penalty from the unearned premium under the short-rate retention schedule for insured-initiated cancellationReturning a flat percentage of the original premium under the minimum-earned premium provision for substandard risks
4. An insured's laptop is stolen from a coffee shop. He has Coverage C on his HO-3 ($30,000 limit, $1,000 deductible, $1,500 special sublimit on electronics off-premises) AND a homeowners-rider scheduled-personal-property floater on the same laptop at $2,400 agreed value. The laptop's ACV is $2,400. Under standard 'other insurance' provisions, the floater is:
Primary — the HO-3 is excess over scheduled-property coverageVoid because of double coverage on the same itemPro-rated equally with the HO-3 Coverage CExcess — the HO-3 pays first up to its $1,500 sublimit
5. The National Flood Insurance Program is administered by:
Each state's department of insuranceThe Department of Housing and Urban DevelopmentFEMA (Federal Emergency Management Agency)The Federal Reserve
6. An insured carries UMPD (uninsured motorist property damage) with a $250 deductible. Her parked car is struck by a hit-and-run driver overnight. Under most policies, what is the most common issue with paying a UMPD claim for a phantom vehicle?
UMPD pays only when the insured carries no collision coverage on the policy at the time the parked-vehicle hit-and-run loss occurredMany policies exclude UMPD for hit-and-run unless there is physical contact AND the vehicle is identified, pushing the loss to collision insteadUMPD waives the standard property-damage deductible entirely whenever the insured vehicle was parked and unoccupied at the moment of the loss eventUMPD always pays first ahead of collision coverage regardless of physical contact requirements under the standard primary-UMPD rule for parked vehicles
7. A PAP insured has a 19-year-old son with three at-fault accidents in two years. The carrier offers to keep the policy in force IF the son is excluded by name. The parents sign a named-driver exclusion endorsement. Two months later the son borrows the family car (with permission), runs a stop sign, and injures a pedestrian. The PAP responds:
Liability is excluded for the son's operation; physical damage to the family car may still applyLiability and PIP still apply because the named insured (the parent) owns the vehicleNo coverage of any kind applies because the son is an excluded named driver on this policyCoverage applies, but the carrier may sue the parents to recover whatever it pays out
8. An insured suffers a covered loss of a $25,000 grand piano scheduled on a Personal Articles Floater at agreed value. After the loss the insurer:
Pays only the unscheduled Coverage C personal-property limit with no scheduled-property benefit applied to the destroyed grand pianoPays $1,500 — the unscheduled musical-instruments sublimit caps recovery even though the piano is scheduled on a personal-articles floaterPays actual cash value of $14,000 after applying standard depreciation to the scheduled instrument under the loss-settlement provisionPays the $25,000 agreed/scheduled amount without deducting depreciation or requiring proof of value at the time of loss
9. Under the federal Fair Credit Reporting Act, when an insurer takes an adverse action based on a consumer report, the insurer must:
Notify the consumer of the action and identify the consumer reporting agency that supplied the reportWait 30 days before taking the action under the FCRA pre-adverse-action holding period that applies to insurance underwriting decisions based on a consumer reportPay the consumer a fixed penalty under the FCRA private-cause-of-action damages provision for unauthorized release of personal credit data to a non-permitted userCancel the policy without notice under the federal Gramm-Leach-Bliley financial-privacy preemption applied to FCRA-triggered underwriting actions on existing policyholders
10. Which homeowners form provides open-peril coverage on BOTH the dwelling and personal property?
HO-8HO-5HO-3HO-2
11. Res ipsa loquitur ('the thing speaks for itself') is a doctrine that:
Bars all defenses to the negligence cause of action that the defendant might otherwise raise under contributory negligence, comparative fault, assumption of risk, statute of limitations, or any related affirmative defensePermits punitive damages automatically whenever the doctrine is successfully invoked, without any further showing of malice, fraud, gross negligence, or other heightened culpable mental state on the part of the defendant in the underlying tortImposes strict liability on the defendant for any covered occurrence under the policy regardless of fault, control, or the inherent nature of the underlying activity at issue in the lawsuit pleadingsPermits an inference of negligence from the circumstances of the loss when the defendant had exclusive control and the event ordinarily would not occur without negligence
12. Casualty insurance generally responds to which type of risk?
SpeculativePureNeitherBoth pure and speculative
13. An insured moves from one state to another mid-term and continues driving his PAP-insured vehicle. The most important agent action is to:
Notify the carrier promptly — rates, mandatory coverages (such as no-fault or UM minimums), and form availability differ by state, and the carrier may need to rewrite the policy in the new stateTake no further action with the carrier because the personal auto policy follows the insured into any new state of garaging automatically without any rate, form, or filing changes requiredChange only the mailing address of record with the carrier; the underlying rates, forms, mandatory coverages, and territory rating remain unchanged because the insured is the same regardless of garaging stateCancel the personal auto policy immediately and refund unused premium back to the insured, leaving the insured uninsured pending a new application with a state-licensed carrier in the destination state
14. Burglary is generally distinguished from robbery by:
Burglary involves a victim while robbery does not, since burglary requires an occupant on the premises but robbery can be committed against unattended property in a public area or commercial locationRobbery only occurs at night under the common-law nighttime requirement, while burglary can occur during daylight hours within commercial or residential premises that have been left unattendedBurglary involves only commercial property under the commercial crime form, while robbery applies to personal property taken from individuals on residential premises or in any public locationBurglary requires forcible entry into closed premises with visible signs of forced entry; robbery is the taking of property from a person by force or threat
15. An insured's friend borrows the covered auto with permission and is injured in a single-car wreck. The friend incurs $4,000 in medical bills. Under typical PAP med pay, the friend is:
Covered only if her own health insurance denies the claim firstCovered as an occupant of the covered auto, regardless of whether she is a resident relative of the named insuredNot covered — med pay is restricted to the named insured and resident relatives who are specifically listed on the policy declarations pageCovered only up to 50% of the med pay limit as a non-listed driver
16. Two homes on the same street suffer water damage from frozen pipes during a cold snap. Home A is insured under an HO-2 (broad form named peril) and Home B is insured under an HO-3 (special form). Both insureds maintained heat and met all policy conditions. A theft has NOT occurred. Which statement BEST describes coverage for the dwelling itself?
HO-3 covers it; HO-2 does not, because HO-2 limits named perils strictly to Coverage C personal property and provides no dwelling perils for freezing-lossNeither covers it — freezing is categorically excluded under all HO forms regardless of heat-maintenance compliance by the insured familyHO-2 covers it; HO-3 does not, because HO-3 lists freezing in its dwelling exclusions even when the heat-maintenance condition is metBoth cover it — HO-2 because freezing is a listed named peril for Coverages A/B/C; HO-3 because freezing is not excluded under open-peril A/B
17. An insured rents out a basement apartment for $1,200/month. A covered fire makes the apartment unlivable for two months. Coverage D responds with:
Additional Living Expense for the tenantFair Rental Value — the $2,400 of lost rent (less expenses that don't continue)Liability coverage to the tenantNothing — rental income is never covered under a homeowners policy
18. An insured drives for a rideshare company on weekends. Without an endorsement, the standard PAP typically:
Covers all rideshare activities seamlessly across all three phases of the rideshare driving period without any gap or coverage interruption regardless of whether the rideshare app is active or offExcludes coverage from the moment the rideshare app is activated until the passenger is dropped off (the for-hire/livery exclusion)Covers only the passenger phase under the PAP's transportation network company endorsement when the rideshare driver is actively transporting a paying passenger to the destinationCovers physical damage but not liability under the rideshare carve-out that preserves comp and collision while removing the bodily-injury and property-damage portions of the personal auto coverage
19. An insured's sterling silver flatware (worth $4,000) is stolen. The unendorsed HO-3 sublimit on theft of silverware, goldware, and pewterware is $2,500. What is paid (ignoring deductible)?
$4,000 — full replacement cost paid under Coverage C$1,000 — the money/bullion sublimit applies to silver$0 — theft of silver is categorically excluded by form$2,500 — special theft sublimit on silverware
20. An insured's laptop and luggage are stolen from a hotel room during a vacation. Coverage C is $100,000 and the loss is $4,000. How does the HO-3 respond?
Pays only actual cash value regardless of any replacement-cost endorsement on the policy, because the RCV provision suspends for off-residence-premises lossesPays up to 10% of Coverage C ($10,000) for property away from the residence premises — the $4,000 loss is covered in fullNo coverage — off-premises personal property is categorically excluded from Coverage C and routed to a scheduled-property floater for any reimbursementPays $1,000 — the standard flat-dollar off-premises sublimit applied regardless of the Coverage C personal-property limit selected at policy inception

Want a different set? Refresh the page for 20 new questions — the full course has 500+, each with a complete explanation, plus full-length timed exam simulations and an AI tutor.