Free practice exam · no signup needed

Nebraska Personal Lines Practice Exam

20 exam-style questions drawn from the same bank as our full Nebraska Personal Lines course (Nebraska 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. Which of the following is a typical duty of the insured under a casualty policy when a covered injury occurs on the premises?
Provide first aid only if a medical professional is present at the scene of the incident on the residence premisesTake steps to protect the injured person and provide reasonable first aid; cooperate with insurer's investigationRefuse to discuss the incident with anyone including emergency responders, third parties, or claim investigators on filePay the third party's medical bills personally before notifying the carrier or filing a claim under the casualty policy
2. An insured's dwelling is damaged by a covered fire. The dwelling is insured for $250,000 (= 100% of RC). Repair cost is $180,000. The HO-3 includes the standard replacement-cost loss-settlement provision (no holdback waiver). The insured tells the adjuster he plans to take the cash and NOT repair. The insurer will pay:
ACV of the damaged portion only, with the RC-vs-ACV difference paid ONLY upon completion of repairs$250,000 — the full Coverage A limit, paid as a valued-policy settlement once the insured elects total cash-out treatment$180,000 less a flat 30% holdback applied regardless of the insured's stated repair intent under the standard provision$180,000 in full RC because the insured met the 80% coinsurance threshold and elected cash-out under the partial-loss provision
3. A homeowners policy can also broaden coverage on small but valuable property classes by adding a:
Mortgage clauseScheduled Personal Property EndorsementStandard fire formLoss assessment endorsement
4. Comprehensive (Other Than Collision) on the PAP covers:
Mechanical breakdown of internal parts due to ordinary wear, manufacturer defect, or maintenance failure, written under the optional service-contract endorsement separately filed with the carrierWear and tear of the vehicle from normal long-term use, expressly written into the comprehensive coverage part of the PAP under the broadened maintenance and depreciation provisionOnly fire and theft losses, parallel to how the older basic-form auto coverage limited its perils to the narrowest catastrophic categories on the standard ISO physical-damage lineDamage other than collision — fire, theft, vandalism, glass, falling objects, contact with animals, flood, etc.
5. An insured carries 250/500 PAP and a $2,000,000 personal umbrella. She causes a multi-vehicle crash with $1,800,000 in injuries to the other driver and her passengers. The PAP will pay up to its $500,000 per-accident BI limit; the umbrella will pay:
$2,000,000 — the umbrella's full per-occurrence limit, paid regardless of any underlying allocation$1,800,000 — the umbrella absorbs the entire judgment under the 'follow-the-judgment' drop-down provision$1,300,000 — the excess above the PAP per-accident limit, up to the umbrella's $2MNothing — umbrellas exclude single-accident, mass-injury claims under the policy's aggregate-exposure exclusion
6. Subrogation is generally NOT available against:
An at-fault contractor performing repair work on the insured's premisesAn at-fault stranger who has no contractual relationship with the insuredAn at-fault commercial trucking company with its own primary liability coverageThe insured's own family member residing in the same household
7. An insured runs a small online tutoring business from a home office. She stores a $3,800 laptop, $1,200 monitor, and $900 in educational textbooks for business use. A fire destroys everything. The HO-3 Coverage C special-limit for property used primarily for business purposes ON the residence premises is typically $2,500. How does Coverage C respond?
$500 — the off-premises business sublimit$5,900 — full value, because the home office is on the residence premises$2,500 — the business-property special-limit on premises, regardless of actual value$0 — business property is fully excluded under HO forms
8. Marcus owns a 12-year-old recliner that cost $900 when new. It is destroyed by a covered fire. A new comparable recliner today retails for $1,100. The insurer's depreciation schedule rates upholstered furniture at 7% per year. Marcus's HO-3 settles Coverage C losses on an actual cash value basis with no replacement-cost endorsement. What is the most his insurer will pay before the deductible?
$176, replacement cost less 84% accumulated depreciation$132, the estimated salvage value of the destroyed recliner$900, the original purchase price Marcus paid when new$1,100, today's cost to replace the chair with a new one
9. Uninsured Motorists coverage on the PAP responds when the insured is injured by:
Any driver, regardless of whether they have insurance at the time of the auto collisionA driver who has no liability insurance, or in some states a hit-and-run driverA driver insured by the same company as the named insured under a separate auto policyAny pedestrian who is struck by a vehicle and sustains bodily injury during the accident
10. A homeowner's pool has no fence. A neighborhood child wanders into the yard and drowns. The state recognizes 'attractive nuisance' doctrine. The homeowner's HO-3 Coverage F is sued by the child's parents. The most likely outcome on the negligence question is:
Liability only if the parents prove the homeowner intended harm or acted with reckless indifference toward the child entering the unfenced rear yard areaNo liability — under the traditional 'limited duty to trespassers' rule, a homeowner owes only a duty not to willfully injure, which is not breached by maintaining an unfenced poolNo liability — the standard HO-3 contains an absolute exclusion for drowning losses suffered by any third party at a residential premises swimming poolLiability — attractive nuisance doctrine extends a duty of care to foreseeable child trespassers around dangerous conditions like swimming pools
11. The insured spends $1,200 on emergency tarping and board-up after a covered windstorm to prevent further damage. The HO-3 additional coverage for Reasonable Repairs:
Excludes emergency tarping and board-up entirely; only permanent reconstruction work is reimbursable under the additional-coverage extensionPays only after a written contractor estimate is reviewed and pre-approved by the insurer's claims department before the work is performedCaps at a flat $250 per loss for any emergency-repair activity, regardless of the actual mitigation cost incurred by the insuredPays the $1,200 — reasonable measures to protect property from further damage are covered as part of the loss
12. Under a typical PAP med pay coverage, which person is LEAST likely to be considered an 'insured' eligible for med pay benefits?
The named insured's resident spouse injured while occupying a friend's non-owned auto on a weekend out-of-town shopping tripA guest passenger in the covered auto injured during a single-vehicle wreck while the named insured was operating the vehicleThe named insured's adult son who lives in his own apartment and is injured while driving his own car, which is insured under a separate PAPThe named insured personally injured as a pedestrian struck by a car while crossing a public street near the residence premises
13. An insured has three vehicles on one PAP, each with $50,000 UIM limits. He is seriously injured by a UIM driver whose liability limits exhausted at $25,000. He believes he should be able to 'stack' the three UIM limits for a total of $150,000. In a state that prohibits intra-policy stacking, what is the most likely outcome?
He recovers up to $50,000 in UIM — the single per-person limit applicable to one vehicleHe recovers nothing — UIM only pays when the at-fault driver has zero liability coverageHe recovers up to $150,000 — UIM stacks automatically across vehicles on the same policyHe recovers $25,000 — UIM offsets dollar-for-dollar against the tortfeasor's limits
14. A homeowner files a claim. The insurer's adjuster recites the four-part rule for analyzing whether the loss is covered: 'Is there an insured, an insured peril, an insured property, at an insured location, within the policy period?' Which part of the policy is the adjuster applying?
The exclusionsThe insuring agreementThe declarationsThe conditions
15. Comparative negligence allows a plaintiff to recover damages reduced by:
The plaintiff's percentage of faultThe amount of insurance availableThe defendant's net worthThe age of the plaintiff
16. Under a standard NFIP Dwelling Form, what is the maximum building coverage available for a single-family residence?
$500,000Unlimited$100,000$250,000
17. An insured's friend borrows the car with permission and then lets HIS girlfriend (whom the named insured has never met) drive it. The girlfriend causes an at-fault accident. Coverage typically depends on:
Whether the first permittee (the friend) was physically present and seated as a passenger in the covered auto at the exact time of the at-fault loss, with continuous-presence supervision being the dispositive conditionWhether the named insured signed a notarized permission-to-loan form expressly authorizing delegation of operation to second-tier permittees, which is a contractual condition precedent to second-permittee coverage under every state's filed PAP formWhether the girlfriend has her own personal auto policy in force at the time of the wreck — if she carries any auto coverage of her own, the named insured's PAP excludes her absolutely as a second-permittee operator regardless of permissionWhether the named insured's permission could reasonably be implied to extend to a second-tier permittee — many policies cover the second permittee if the first had implied authority to delegate
18. A homeowner's tree falls on a neighbor's parked car during a windstorm. The neighbor's auto comprehensive coverage pays for the car at $14,000 ACV. The neighbor's auto insurer then sends a subrogation demand to the homeowner's HO-3 carrier. The homeowner believes 'subrogation is unfair — I already pay homeowners.' The homeowner's HO-3 will:
Forward the file to the state property guaranty association as a residual-market apportionment under the state's involuntary-pool ruleRefuse the subrogation demand because acts of nature are absolutely barred from subrogation under standard HO 'occurrence' definitionsPay the demand automatically because subrogation between two licensed insurers is unconditional under the inter-insurer arbitration agreementHonor the demand only if the homeowner had been negligent (e.g., knew the tree was dead and did nothing)
19. An HO-3 carries $300,000 Coverage A. A detached garage with no other structures coverage modification is destroyed; replacement cost is $40,000. What is the most the policy will pay for the garage?
$30,000 — the 10%-of-Coverage-A default sublimit$15,000 — the 5% default sublimit$40,000 — full replacement cost of the garage$3,000 — appurtenant structures sublimit
20. An insured's HVAC compressor stops working after 12 years of normal operation. A technician confirms the compressor failed from age and mechanical wear; there was no power surge, lightning, or external event. Replacement cost: $4,800. The insured files a claim under his HO-3. How does the policy respond?
Covered under Coverage C with a 10% sublimit for appliancesCovered, but only after the insured exhausts the manufacturer's warrantyExcluded — HO forms exclude mechanical breakdown, wear and tear, and inherent viceCovered — open-peril Coverage A covers all direct physical loss

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.