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All of the following items are examples of personal property, EXCEPT: Select one: A. Sports equipment B. Silverware C. A fishing boat D. Underground pipes - ✔✔Underground pipes Which one of the following statements regarding assets exposed to loss is true? Select one: A. Real property includes only tangible property.Correct. All real property is tangible property having a physical form that can be seen or touched. Personal property can include intangible property such as patents or copyrights. B. Earthquake damage to a swimming pool is an example of a personal property loss exposure. C. Personal property includes only tangible property. D. Hail damage to a motor vehicle is an example of a real property loss exposure. - ✔✔A. Real property includes only tangible property. Sophie was involved in an auto accident with another vehicle. The driver of the other vehicle was seriously injured. The individual spent 10 days in the hospital, missed 2 months of work, and continues to experience mental distress. The other vehicle was also damaged, with repair
costs of $5,000. It was determined that Sophie was liable for the damages because she ran a red light and caused the accident. Which one of the following damages would be considered general damages? Select one: A. Damages to the vehicle B. Hospital and medical bills C. Two months of lost wages D. Mental distress compensation - ✔✔D. Mental distress compensation SF Poultry learned that a number of individuals had become ill and hospitalized after eating chicken from one of its processing plants. The company did not advise the public or its distributors of the problem, and made no effort to recall the spoiled product. Over 50 individuals ended-up becoming ill from the spoiled chicken. SF Poultry was found liable in court. In addition to having to pay the medical and hospital bills for the injured individuals, damages were levied against SF Poultry to punish the company for its reckless and deceitful actions. These damages that were levied against SF Poultry are known as Select one: A. General damages. B. Punitive damages. C. Special damages. D. Necessary damages. - ✔✔B. Punitive damages. Which one of the following statements is true regarding automobile insurance rating? Select one: A. State regulators require that all insurers offer discounts on auto rates for passive restraints.
Rick and Jamie have chosen their first home and now are asking their insurance agent Franklin to help advise them as to appropriate and affordable insurance coverage. Which one of the following will most accurately reflect the best coverage choice for Rick and Jamie? Select one: A. As Rick and Jamie are buying and remodeling an older home, Franklin suggests an HO- 8 modified coverage form to provide appropriate coverage for a building with a comparatively high replacement cost. B. As Rick and Jamie will be buying a mansion, Franklin suggests an HO-5 comprehensive form as it provides the highest dollar amounts of any coverage available. C. As Rick and Jamie will be renting an apartment for a few years, Franklin suggests an HO- 2 broad form as they will not need any dwelling coverage. D. As Rick and Jamie are buying a residential condo, Franklin suggests the HO-3 special form as they will be needing limited dwelling cove - ✔✔As Rick and Jamie are buying and remodeling an older home, Franklin suggests an HO-8 modified coverage form to provide appropriate coverage for a building with a comparatively high replacement cost. In the auto insurance policy definitions, an eligible private passenger auto, pickup, or van of which the named insured becomes the owner during the policy period is a Select one: A. Temporary substitute vehicle. B. Newly acquired auto. C. Replacement auto. D. Trailer. - ✔✔B. Newly acquired auto.
Phil, a claim representative, was assigned a claim for an auto theft. He needs to determine the applicable Other Than Collision deductible for the auto. Which one of the following sections of the Personal Auto Policy will provide Phil with this information? Select one: A. Part E—Insured Duties Following an Accident or Loss B. Endorsements section of the Declarations page C. Part D—Damage to Your Auto Coverage D. Schedule of Coverages section of the Declarations page - ✔✔D. Schedule of Coverages section of the Declarations page Joel is a delivery driver for XYZ Auto Supply. He usually drives the company van, but one day, since he only had to deliver a small part, Joel used his own car that is insured with a Personal Auto Policy (PAP). While doing so, Joel was involved in a two-vehicle accident and a liability claim was made against Joel and XYZ Auto Supply. Which one of the following is an insured(s) under Joel's PAP in this situation? Select one: A. Joel only B. None C. Joel and XYZ Auto Supply D. XYZ Auto Supply only - ✔✔C. Joel and XYZ Auto Supply The medical payments coverage in the Personal Auto Policy (PAP) applies to Select one: A. Any person occupying a covered auto.
Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP), the insurer agrees to pay damages that the insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle. These damages are best identified as which one of the following? Select one: A. Medical expenses B. Lost wages C. Rehabilitation expenses D. Compensatory damages - ✔✔D. Compensatory damages Under the Personal Auto Policy (PAP), a branch falling from a tree and denting the hood of a covered auto is an example of Select one: A. A collision loss. B. An uninsured motorists loss. C. A liability loss. D. An other than collision loss. - ✔✔D. An other than collision loss. The Personal Auto Policy (PAP) provides physical damage coverage for a covered auto that is damaged when the car's driver loses control and overturns the car on a sharp curve. This coverage is called Select one: A. Falling object coverage. B. Collision coverage.
C. Other than collision coverage. D. Comprehensive coverage. - ✔✔B. Collision coverage. Personal auto policy endorsements can be categorized into two main categories. One of these categories is Select one: A. Endorsements that provide coverage for owners of high-value antique cars that result in higher premiums reflecting the valuable worth of such vehicles. B. Endorsements that can be added to either a homeowners or personal auto policy the address specific loss exposures not covered by an unendorsed PAP. C. Endorsements that provide coverage additions/modifications for customers who own vehicles other than cars, vans, or pickup trucks. D. Endorsements that provide higher coverage limits for navigation systems permanently installed in the vehicles and various media owned by the named insured. - ✔✔C. Endorsements that provide coverage additions/modifications for customers who own vehicles other than cars, vans, or pickup trucks. The Millers insure their dwelling under an HO-3 policy. They recently purchased a shed for their back yard where they will store tools, bicycles, and other sporting equipment. Which one of the following property coverages under Section I of the HO-3 policy would apply to the shed? Select one: A. Coverage A—Dwelling B. Coverage B—Other Structures C. Coverage C—Personal Property D. Additional Coverage - ✔✔B. Coverage B—Other Structures
A. The dwelling. B. Loss of Use. C. Other Structures. D. Personal property. - ✔✔B. Loss of Use. Sammy and Sally Oshua insure their home with an HO-3 policy. They own a cocker spaniel puppy. While a neighboring couple and their five-year-old daughter were visiting, the puppy bit the girl as she was playing with it. The child suffered a serious wound and the neighbors sued the Oshuas. Which one of the following statements is true? Select one: A. Defense costs are not covered for the Oshuas if the lawsuit is found to be groundless. B. In addition to paying up to the limit of liability, the insurer will pay defense costs associated with the lawsuit. C. Because the child is a minor, the insurer will pay the damages regardless of legal liability. D. Because the dog was on the Oshuas' property, they are not covered for injury to the child. - ✔✔B. In addition to paying up to the limit of liability, the insurer will pay defense costs associated with the lawsuit. Under Coverage E—Personal Liability of the HO-3 policy, the insurer's obligation to defend ends Select one: A. When policy limits are exhausted by the claim expenses. B. When the cost of defense exceeds the personal liability limits. C. When the liability limit for the occurrence is exhausted by payment of a settlement or judgment.
D. When the costs of defense limits are exhausted. - ✔✔C. When the liability limit for the occurrence is exhausted by payment of a settlement or judgment. Coverage F—Medical Payments to Others in the homeowners policy applies to bodily injury to a residence employee in all of the following situations, EXCEPT: Select one: A. The residence employee is away from the insured location but is working B. The residence employee is on the insured location but is not working C. The residence employee is on the insured location and is working D. The residence employee is away from the insured location and is not working - ✔✔D. The residence employee is away from the insured location and is not working The medical payments coverage in a homeowners policy covers certain medical expenses incurred by Select one: A. Regular household residents other than residence employees. B. Insureds. C. Nonresidents of the insured's household. D. A person uninvited to the insured's home. - ✔✔C. Nonresidents of the insured's household. Sota owns and lives in a house insured under an unendorsed Dwelling Property 3—Special Form (DP-3) with a Coverage A—Dwelling limit of $200,000. Burglars caused $2,500 in damage to Sota's front door while breaking in, and stole $12,000 worth of personal property. Sota made a claim for $14,500. How much of this loss, if any, will be covered by Sota's DP-3 policy?
Westgrove is in the initial phase of its community's participation in the National Flood Insurance Program (NFIP), during which property owners are allowed to purchase limited amounts of insurance at subsidized rates. This is known as Select one: A. The regular program. B. The emergency program. C. The "Write-Your-Own" flood insurance program. D. A beachfront or windstorm plan. - ✔✔B. The emergency program. Which one of the following types of personal inland marine forms is designed for frequent travelers? Select one: A. Personal Articles Standard Loss Settlement Form B. Personal Effects Form C. Tenant Homeowners Form D. Personal Property Form - ✔✔B. Personal Effects Form The Personal Effects Form is specifically designed for Select one: A. Frequent travelers. B. Homeowners. C. Salespersons.
D. Financial institutions. - ✔✔A. Frequent travelers. he ownership and use of watercraft create various unique categories of loss exposures. Which one of the following is true regarding small boat policies used to cover many of these exposures? Select one: A. Most are written on a replacement cost basis. B. Coverage is included for Jet Skis and WaveRunners. C. They usually include the boat, motor, equipment and trailer. D. They cover boats up to 36 feet in length. - ✔✔C. They usually include the boat, motor, equipment and trailer. Michael owns a large sailboat. He occasionally hires a small crew to help him operate the boat, so he can spend more time with his guests. Which one of the following would be the most appropriate way for Michael to cover injuries to the crew? Select one: A. Homeowners policy B. Boatowners and yacht policy C. Workers compensation policy D. Personal auto policy - ✔✔B. Boatowners and yacht policy All of the following usually are excluded by a personal umbrella policy, EXCEPT: Select one: A. Workers compensation
D. Because of the consistent and reliable pool of funds, reinsurance will not usually be needed for this type of insurance. - ✔✔B. Peer-to-peer insurance offers the novel insurance approaches of self-selection of pool members and how to manage excess funds. Alex and his marketing team are evaluating various new insurance platforms to provide research to serve their customers better. Which one of the following best describes what the team has accurately discovered? Select one: A. These platforms' differentiation is providing a specialized, tech-driven, and individual customer response. B. Providing smart devices to insured homeowners will not prevent losses, but rather lower claim payments. C. Tech-driven insurance platforms offer very different types of property insurance than traditional insurers. D. Startups do best when they quickly break into a new market and exclusively focus on established customers. - ✔✔A. These platforms' differentiation is providing a specialized, tech- driven, and individual customer response. The Transportation Network Driver Coverage (No Passenger) endorsement Select one: A. Specifies that coverage does not apply to Part C—Uninsured Motorists Coverage. B. Provides coverage when the insured is logged into a transportation network platform until the driver accepts a passenger's request. C. Provides coverage without passengers while the driver is logged into a transportation network platform.
D. Adds a transportation network platform definition. - ✔✔C. Provides coverage without passengers while the driver is logged into a transportation network platform. Which one of the following is correct regarding the Transportation Network Driver Coverage (No Passenger) endorsement and the Limited Transportation Network Driver Coverage (No Passenger) Endorsement to the personal auto policy? Select one: A. They both end coverage when an insured accepts a passenger's request. B. They both exclude coverage when a passenger is occupying the vehicle. C. They both provide the same coverage, but one requires more premium. D. They both provide coverage until a passenger enters the vehicle. - ✔✔B. They both exclude coverage when a passenger is occupying the vehicle. Erin makes custom draperies in the basement of her home. Initially, she made these draperies for herself and family members, but she began to sell these draperies to a broader audience. Which one of the following exposures would likely be covered under an unendorsed homeowners policy should Erin's home be destroyed by a covered peril? Select one: A. The loss of customer data Erin stored on her computer B. The cost to replace her sewing equipment C. The loss of income from drapery sales while the home is rebuilt D. The cost of materials purchased to aid in increasing sales - ✔✔B. The cost to replace her sewing equipment
A. Provide flexible coverage to fill gaps in the National Flood Insurance Program's flood coverages. B. Provide a state-based alternative to the federally operated flood insurance programs. C. Restrict construction and limit land use in coastal areas exposed to heavy windstorm losses. D. Provide property insurance in coastal areas exposed to heavy windstorm losses. - ✔✔D. Provide property insurance in coastal areas exposed to heavy windstorm losses. Because they interview the applicant first, see the property or operations to be insured, and evaluate the loss exposures, the most important primary source of information for the underwriters is the Select one: A. Risk control representative. B. Property-valuation guide supplier. C. Financial and credit-reporting service. D. Producers. - ✔✔D. Producers. Applications and questionnaires for personal liability insurance should be carefully evaluated to look for issues that can increase potential loss frequency and severity, such as Select one: A. Stairways in good repair and free of obstructions. B. Poor housekeeping and maintenance of premises or an unfenced pool. C. Swimming pools surrounded by fences and well-lit porches. D. The removal of dead trees and bicycles stored in a garage. - ✔✔B. Poor housekeeping and maintenance of premises or an unfenced pool.
As an insurance agent, Lucy uses various ways to keep in touch with customers. Based on her experience, she knows that this will help improve customer retention. Which one of the following would be considered cross-selling? Select one: A. Sending e-newsletters explaining loss exposures B. Sending out "Getting to Know You" surveys C. Offering to quote other lines of coverage D. Completing an annual policy review - ✔✔C. Offering to quote other lines of coverage Which one of the following is a way in which cross-selling benefits customers? Select one: A. Lower costs B. Reduction of coverage gaps C. Improved retention D. Increased profitability - ✔✔B. Reduction of coverage gaps An insurance policy is an agreement between the insured and the insurer. Insureds purchase insurance so that Select one: A. Covered claims will be paid and their financial situation will be restored.. B. All claims will be paid and defended regardless of legal merit. C. They can improve their financial situation in the event of a covered loss.
