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A series of multiple-choice questions and answers related to personal lines insurance. It covers various aspects of insurance, including coverage for family members, liability for bailees, flood insurance, and homeowners policies. Explanations for each answer, making it a valuable resource for studying personal lines insurance concepts.
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Study online at https://quizlet.com/_b0fhw A) All insurers that write the types of insurance that are protected by the fund in Arizona B) Foreign property and casualty insurers only C) lien property and casualty insurers only D) All insurers that write insurance in Arizona, including life and health insur- ers: A) All insurers that write the types of insurance that are protected by the fund in Arizona Explanation: All insurers that write types of insurance that are protected by the fund are required to be member insurers of the fund. Reference: State Supplement in the License Exam Manual. Reference: 4.4.16.3 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw B) Contractual liability C) Premises liability D) Vicarious liability: A) Absolute liability Explanation: The law imposes strict or absolute liability for specific situations or activities that pose threats to the safety of others. People who own dangerous animals are held to a higher standard of care. Absolute liability applies when a person is liable for a dangerous condition, regardless of the amount of care taken. Reference: 5.3.4 in the License Exam Manual
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Study online at https://quizlet.com/_b0fhw paid under the Coverage B-Other Structures? A) $ B) $10, C) $1, D) $6,000: A) $ Explanation: The attached garage is considered part of the dwelling, so the $10, is paid under Coverage A-Dwelling. Real property located on the described property and separated from the dwelling by clear space is covered by Coverage B-Other Structures. Reference: 6.4.3 in the License Exam Manual
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Study online at https://quizlet.com/_b0fhw D) Apartment building: A) Rare painting Explanation: Some items of property are very difficult to value after a loss has occurred. In this situation, the insured and insurer will agree on a value before the policy is issued. Antique furniture or fine arts will most likely have agreed values. If a loss occurs, the agreed value will be the amount the insured is guaranteed to receive. Reference: 4.4.10 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw Reference: 2.3.2.11 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw insurance. Reference: See State Supplement
Study online at https://quizlet.com/_b0fhw becomes the owner. Reference: 8.4 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw D) Flat: A) Pro rate Explanation: When the insurer cancels a policy, the premium refund is determined on a pro rata basis. Under this method, the premium refund equals the premium paid for the unexpired term of the policy. A short-rate method is used when the insured cancels the policy. A policy terminated by either the insured or insurer on its effective date results in a flat cancellation. The entire premium is returned to the policy holder. There is no premature method of determining how much premium is due. Reference: 3.4.3 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw A) damages to awnings, cabanas, or other equipment B) damage due to wear and tear C) road damages to tires D) flood damage: D) flood damage Explanation: Flood damage to a vehicle is not excluded under the Other than Collisions coverage. Reference: 8.12.1 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw results from any cause or loss Explanation: All homeowners forms cover losses caused by the escape of pollutants only if a result of a broad form named-peril cause of loss, not ANY cause of loss. Reference: 7.5.2.3 in the License Exam Manual
Study online at https://quizlet.com/_b0fhw D) conditional contract: C) contract of utmost good faith Explanation: The principle of utmost good faith imposes a higher degree of honesty on parties to an insurance contract. The insurer relies on the truthfulness on the application, and the insured relies on the company's promise and ability to provide coverage and pay claims. Both parties must know all material facts and relevant information, neither may attempt to conceal facts or deceive the other party. A unilateral contract is one in which only one party makes a legally enforceable promise. In a conditional contract, the insurer's consideration is a promise to pay only if a certain condition is met. If the condition is not met, the insurer does not have to pay. Reference: 2.3.2.3 on the License Exam Manual