Download Wisconsin Property & Casualty Insurance Exam (448 questions) with precise answers and more Exams Insurance law in PDF only on Docsity!
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Insurance |! companies |! can |! use |! certain |! policy |! forms |! as |! long |! as |! they |! are |! filed |! with |! the |! Commissioner |! 30 |! days |! prior |! to |! use. |! For |! this |! reason, |! Wisconsin |! is |! known |! as |! a |! - |! Correct |! answer |! ✔file |! and |! use |! state Which |! of |! the |! following |! businesses |! would |! be |! eligible |! for |! a |! businessowners |! policy? |! - |! Correct |! answer |! ✔Business |! with |! revenue |! of |! $6 |! million |! or |! less A |! group |! of |! individuals |! who |! agree |! to |! share |! each |! other's |! losses |! is |! known |! as |! a |! - |! Correct |! answer |! ✔reciprocal |! company Dustin |! accidentally |! locked |! his |! keys |! in |! his |! car, |! so |! his |! neighbor |! Alana |! allows |! him |! to |! borrow |! her |! car |! to |! run |! an |! errand. |! Under |! the |! physical |! damage |! section |! of |! Dustin's |! personal |! auto |! policy, |! Alana's |! vehicle |! would |! be |! defined |! as |! - |! Correct |! answer |! ✔a |! nonowned |! auto What |! is |! the |! term |! for |! an |! individual |! who |! occupies |! a |! position |! of |! trust |! when |! handling |! the |! financial |! affairs |! of |! another? |! - |! Correct |! answer |! ✔Fiduciary
Insurers |! and |! rate |! service |! organizations |! are |! required |! to |! file |! all |! rates, |! supplementary |! rate |! information, |! and |! changes |! to |! rates |! within |! - |! Correct |! answer |! ✔ 30 |! days |! after |! they |! become |! effective. Which |! type |! of |! authority |! does |! an |! insurer |! give |! to |! its |! agents |! by |! means |! of |! the |! agent's |! contract? |! - |! Correct |! answer |! ✔Express An |! errors |! and |! omissions |! policy |! could |! be |! issued |! to |! cover |! the |! following |! occupations |! EXCEPT |! - |! Correct |! answer |! ✔veterinarians Which |! one |! of |! the |! following |! homeowners |! forms |! is |! used |! to |! cover |! tenants |! or |! renters? |! - |! Correct |! answer |! ✔HO- Aviation |! insurance |! provides |! coverage |! for |! liability |! arising |! from |! the |! operation |! of |! an |! aircraft. |! All |! the |! following |! statements |! are |! true |! EXCEPT |! - |! Correct |! answer |! ✔coverage |! is |! provided |! only |! for |! the |! owner The |! limit |! of |! liability |! under |! the |! dwelling |! under |! construction |! endorsement |! is |! provisional. |! If |! a |! loss |! occurs, |! the |! amount |! paid |! will |! be |! based |! on |! the |! - |! Correct |! answer |! ✔value |! of |! the |! partially |! completed |! home Coverage |! for |! workers' |! compensation |! may |! be |! obtained |! from |! all |! of |! the |! following |! EXCEPT |! - |! Correct |! answer |! ✔a |! commercial |! general |! liability |! policy WIP |! provides |! all |! of |! the |! following |! coverages |! EXCEPT: |! - |! Correct |! answer |! ✔flood.
Which |! of |! the |! following |! coverages |! in |! the |! homeowners |! policy |! is |! used |! to |! protect |! Sam |! when |! a |! friend |! files |! suit |! after |! falling |! down |! basement |! stairs |! that |! Sam |! is |! repairing? |! - |! Correct |! answer |! ✔Coverage |! E—Personal |! Liability When |! the |! insurer |! and |! the |! insured |! cannot |! agree |! on |! the |! value |! of |! a |! loss, |! the |! matter |! is |! submitted |! to |! disinterested |! parties |! for |! resolution. |! Under |! a |! standard |! appraisal |! clause, |! how |! many |! parties |! are |! involved |! in |! determining |! the |! value |! of |! the |! loss? |! - |! Correct |! answer |! ✔ 3 Which |! of |! the |! following |! occurrences |! would |! be |! included |! under |! the |! definition |! of |! a |! personal |! injury? |! - |! Correct |! answer |! ✔A |! tenant |! is |! evicted |! by |! his |! landlord |! and |! sues |! the |! landlord |! for |! invasion |! of |! privacy |! and |! wrongful |! eviction. An |! insurance |! binder |! is |! best |! described |! as |! - |! Correct |! answer |! ✔temporary, |! short-term |! evidence |! of |! coverage The |! difference |! between |! Coverage |! E |! and |! Coverage |! F |! in |! the |! farm |! personal |! property |! coverage |! form |! is |! - |! Correct |! answer |! ✔insurance |! is |! scheduled |! under |! Coverage |! E |! but |! a |! blanket |! limit |! applies |! to |! Coverage |! F All |! of |! the |! following |! vehicles |! can |! be |! insured |! under |! an |! unendorsed |! personal |! auto |! policy |! EXCEPT |! - |! Correct |! answer |! ✔motorcycles Which |! one |! of |! the |! following |! dwellings |! would |! a |! HO-3—Homeowners |! Form |! cover? |! - |! Correct |! answer |! ✔Single-family |! home
Barbara |! is |! demonstrating |! a |! floor |! model |! of |! her |! company's |! product |! in |! its |! showroom |! when |! something |! goes |! wrong |! with |! the |! demonstration |! and |! the |! customer |! is |! injured. |! This |! is |! an |! example |! of |! what |! type |! of |! loss? |! - |! Correct |! answer |! ✔Premises |! liability The |! definition |! of |! actual |! cash |! value |! is |! - |! Correct |! answer |! ✔replacement |! cost |! minus |! depreciation An |! insured |! lives |! in |! a |! house |! covered |! by |! an |! $80,000 |! Special |! Form |! (DP-3) |! policy. |! While |! the |! insured |! is |! on |! vacation, |! someone |! breaks |! into |! the |! house |! and |! steals |! $5,000 |! in |! electronic |! equipment. |! The |! damage |! to |! the |! door |! is |! estimated |! at |! $800. |! What |! coverage |! is |! provided |! by |! the |! DP-3 |! policy? |! - |! Correct |! answer |! ✔$ All |! of |! the |! following |! items |! are |! covered |! under |! Coverage |! A |! of |! a |! businessowners |! policy |! EXCEPT |! - |! Correct |! answer |! ✔computers |! and |! photocopiers Janet, |! an |! employee |! of |! Carla's |! Computer |! Repair, |! is |! injured |! while |! playing |! baseball |! for |! the |! company-sponsored |! softball |! team. |! Under |! which |! policy |! would |! Janet |! find |! coverage |! for |! her |! injuries? |! - |! Correct |! answer |! ✔Health |! insurance Paul |! purchased |! Utility |! Services—Time |! Element |! Coverage |! for |! his |! bicycle |! shop. |! Of |! the |! following, |! which |! statement |! best |! describes |! the |! type |! of |! coverage |! Paul |! purchased |! with |! this |! endorsement? |! - |! Correct |! answer |! ✔Payment |! for |! loss |! of |! business |! income |! for |! any |! type |! of |! utility |! interruption
A |! difference |! in |! conditions |! contract |! is |! - |! Correct |! answer |! ✔a |! policy |! issued |! to |! cover |! what |! is |! normally |! excluded |! in |! other |! property |! insurance |! contracts Adam's |! Appliances |! sustains |! a |! fire |! loss |! and |! has |! the |! following |! losses: |! damage |! to |! the |! building |! is |! $15,000, |! damage |! to |! contents |! is |! $7,000, |! debris |! removal |! is |! $5,000, |! and |! damage |! to |! valuable |! papers |! and |! records |! is |! $15,000. |! What |! will |! his |! businessowners |! policy |! pay, |! assuming |! his |! limits |! are |! adequate? |! - |! Correct |! answer |! ✔$37, he |! Commissioner |! of |! Insurance |! is |! appointed |! by |! the |! governor |! for |! how |! long |! of |! a |! term? |! - |! Correct |! answer |! ✔Indefinite What |! does |! the |! liberalization |! clause |! do |! to |! a |! property |! policy? |! - |! Correct |! answer |! ✔Broadens |! coverage A |! property |! owner |! wants |! to |! insure |! both |! the |! rental |! property |! and |! any |! of |! the |! tenant's |! belongings |! if |! they |! are |! stolen. |! Which |! policy |! would |! you |! recommend |! and |! why? |! - |! Correct |! answer |! ✔DP-3 |! Special |! Form |! and |! a |! separate |! tenants |! policy |! to |! cover |! personal |! property Which |! one |! of |! the |! following |! types |! of |! property |! is |! NOT |! covered |! by |! a |! dwelling |! policy? |! - |! Correct |! answer |! ✔Dwellings |! with |! three |! apartments Joan |! and |! Steven |! have |! applied |! for |! automobile |! insurance |! with |! ABC |! Auto |! Insurers. |! The |! ABC |! agent |! asked |! Joan |! and |! Steven |! if |! their |! resident |! 18-year- old |! son, |! Henry, |! has |! had |! any |! moving |! traffic |! violations |! in |! the |! past |! 2 |! years. |! Both |! answer |! no. |! The |! fact |! is |! that |! Henry |! had |! 4 |! speeding |! tickets, |! but |! never |!
told |! his |! parents. |! Once |! the |! company |! found |! out |! about |! Henry's |! record, |! they |! declined |! the |! application |! citing |! misrepresentation |! as |! the |! reason. |! Did |! Joan |! and |! Steve |! misrepresent |! Henry's |! driving |! record? |! - |! Correct |! answer |! ✔No. |! They |! answered |! to |! the |! best |! of |! their |! knowledge. Which |! of |! the |! following |! minimum |! liability |! limits |! must |! an |! auto |! insurance |! policy |! contain |! to |! satisfy |! financial |! responsibility |! requirements |! in |! Wisconsin? |! - |! Correct |! answer |! ✔$25,000 |! per |! person, |! $50,000 |! per |! accident, |! $10,000 |! for |! property |! damage. Which |! of |! the |! following |! losses |! could |! be |! covered |! under |! a |! crime |! insurance |! policy? |! - |! Correct |! answer |! ✔Theft |! committed |! by |! a |! hotel |! maid All |! of |! the |! following |! are |! homeowners |! Section |! II |! additional |! coverages |! EXCEPT |! - |! Correct |! answer |! ✔first |! aid |! provided |! to |! the |! insured In |! insurance, |! a |! waiver |! is |! best |! considered |! as |! - |! Correct |! answer |! ✔the |! voluntary |! surrender |! of |! a |! known |! right Sandy |! and |! Stewart |! had |! a |! fire |! loss, |! and |! the |! insurance |! company |! reimbursed |! them |! for |! their |! damaged |! personal |! property. |! They |! believed |! that |! they |! did |! not |! get |! enough |! for |! this |! property |! because |! the |! settlement |! was |! based |! on |! actual |! cash |! value. |! Which |! endorsement |! would |! have |! provided |! a |! better |! loss |! settlement? |! - |! Correct |! answer |! ✔Personal |! property |! replacement |! cost |! endorsement
Which |! of |! the |! following |! is |! NOT |! one |! of |! the |! requirements |! for |! a |! building |! to |! be |! eligible |! for |! coverage |! under |! a |! flood |! insurance |! policy? |! - |! Correct |! answer |! ✔Building |! is |! owner-occupied Knowingly |! lying |! on |! an |! application |! to |! obtain |! coverage |! would |! be |! an |! example |! of |! - |! Correct |! answer |! ✔fraud What |! are |! the |! two |! flood |! insurance |! programs |! that |! are |! available? |! - |! Correct |! answer |! ✔Emergency |! program |! and |! the |! regular |! program Abby's |! beauty |! parlor |! suffers |! a |! loss |! caused |! by |! lightning. |! Her |! parlor |! sustains |! $10,000 |! of |! building |! damage |! and |! $5,000 |! personal |! property |! loss. |! Her |! fire |! department |! also |! charged |! her |! $1,000. |! To |! meet |! current |! building |! codes, |! her |! cost |! to |! repair |! her |! building |! was |! an |! additional |! $2,000. |! What |! will |! her |! BOP |! pay, |! assuming |! that |! her |! limits |! are |! adequate? |! - |! Correct |! answer |! ✔$18, Items |! of |! property |! that |! are |! difficult |! to |! value |! after |! a |! loss |! has |! occurred, |! such |! as |! antique |! furniture |! or |! fine |! arts, |! may |! be |! insured |! on |! - |! Correct |! answer |! ✔an |! agreed |! value |! basis Which |! of |! the |! following |! damages |! is |! covered |! Under |! Part |! D—Coverage |! for |! Damage |! to |! the |! Insured's |! Auto? |! - |! Correct |! answer |! ✔Freezing What |! is |! the |! maximum |! limit |! of |! coverage |! on |! any |! habitational |! risk |! for |! basic |! property |! coverage |! under |! the |! Wisconsin |! Insurance |! Plan |! against |! loss |! of |! damage |! due |! to |! burglary |! and/or |! theft? |! - |! Correct |! answer |! ✔$20,
Builders |! risk |! coverage |! that |! is |! written |! with |! the |! Causes |! of |! Loss—Basic |! Form |! will |! cover |! loss |! caused |! by |! - |! Correct |! answer |! ✔hail Who |! are |! the |! members |! of |! the |! Wisconsin |! Insurance |! Plan |! (WIP)? |! - |! Correct |! answer |! ✔All |! licensed |! resident |! agents. What |! is |! the |! purpose |! of |! the |! coinsurance |! clause? |! - |! Correct |! answer |! ✔Ensure |! that |! property |! is |! insured |! to |! a |! certain |! value Which |! of |! the |! following |! policy |! provisions |! restricts |! certain |! risks |! from |! coverage? |! - |! Correct |! answer |! ✔Exclusions Joe's |! Plumbing |! has |! leased |! a |! fleet |! of |! vans |! to |! be |! used |! by |! his |! plumbers |! while |! going |! from |! job |! to |! job. |! Which |! of |! the |! following |! endorsements |! is |! especially |! important |! in |! this |! situation? |! - |! Correct |! answer |! ✔Additional |! insured—lessor Form |! SR-22 |! is |! used |! for |! what |! purpose? |! - |! Correct |! answer |! ✔To |! certify |! to |! the |! Motor |! Vehicle |! Department |! that |! a |! driver |! has |! insurance |! coverage |! that |! at |! least |! meets |! the |! minimum |! limits |! required. Which |! of |! the |! following |! items |! may |! be |! covered |! under |! Coverage |! C—Personal |! Property |! of |! a |! homeowners |! policy? |! - |! Correct |! answer |! ✔Personal |! property |! of |! the |! insured |! located |! anywhere |! in |! the |! world The |! furniture |! Harold |! purchased |! 10 |! years |! ago |! was |! destroyed |! in |! a |! fire. |! The |! furniture |! cost |! $9,000 |! when |! new |! and |! has |! depreciated |! by |! $5,000. |! It |! would |!
$15,000; |! damage |! to |! fixtures |! installed |! by |! the |! insured, |! $2,000; |! damage |! to |! property |! belonging |! to |! customers, |! $1,000; |! and |! smoke |! damage |! to |! the |! ceiling |! and |! walls, |! $8,000. |! How |! much |! will |! the |! insured's |! Building |! and |! Personal |! Property |! Coverage |! Form |! pay |! for |! this |! loss? |! - |! Correct |! answer |! ✔$18,000 |! The |! tenant's |! policy |! will |! pay |! for |! all |! of |! the |! loss |! except |! for |! the |! damage |! to |! the |! ceiling |! and |! walls, |! which |! are |! part |! of |! the |! building |! owned |! by |! the |! landlord. Which |! of |! the |! following |! would |! NOT |! be |! covered |! by |! Coverage |! A |! in |! the |! HO- 6? |! - |! Correct |! answer |! ✔A |! garage-like |! building |! the |! condominium |! complex |! provides |! for |! common |! storage, |! in |! which |! the |! insured |! keeps |! the |! family's |! bicycles Which |! of |! the |! following |! statements |! about |! the |! businessowners |! policy |! (BOP) |! is |! NOT |! correct? |! - |! Correct |! answer |! ✔Tenants |! improvements |! are |! not |! covered |! under |! a |! BOP An |! insured |! speeds |! through |! a |! residential |! neighborhood, |! almost |! striking |! several |! children. |! Under |! the |! insurance |! definition |! of |! negligence, |! such |! an |! insured |! would |! be |! held |! - |! Correct |! answer |! ✔not |! legally |! liable Which |! one |! of |! the |! following |! statements |! about |! workers' |! compensation |! insurance |! is |! NOT |! correct? |! - |! Correct |! answer |! ✔Every |! type |! of |! employment |! is |! subject |! to |! workers' |! compensation |! laws. The |! insurer |! retains |! certain |! rights |! under |! the |! conditions |! section |! of |! a |! workers' |! compensation |! policy. |! Which |! of |! the |! following |! is |! one |! of |! those |! conditions? |! - |! Correct |! answer |! ✔The |! insurer |! retains |! the |! right |! to |! inspect |! the |! insured's |! workplace |! for |! insurability |! at |! any |! time.
For |! a |! loss |! to |! be |! covered |! under |! the |! TRIA, |! the |! cause |! of |! the |! loss |! must |! - |! Correct |! answer |! ✔be |! certified |! as |! an |! act |! of |! terrorism Which |! of |! the |! following |! is |! NOT |! a |! determining |! factor |! in |! work-related |! injuries? |! - |! Correct |! answer |! ✔Pay |! grade An |! insured |! has |! a |! $40,000 |! Dwelling |! Special |! Form |! (DP-3) |! policy. |! After |! hosting |! an |! afternoon |! party, |! the |! insured |! discovers |! that |! the |! family's |! credit |! cards |! and |! ATM |! cards |! are |! missing. |! If |! the |! cards |! are |! used, |! what |! coverage |! is |! provided |! under |! Coverage |! C—Personal |! Property, |! and |! why? |! - |! Correct |! answer |! ✔$0. |! Coverage |! C |! excludes |! coverage |! for |! credit |! cards. All |! of |! the |! following |! are |! optional |! property |! coverages |! under |! the |! businessowners |! policy |! EXCEPT |! - |! Correct |! answer |! ✔personal |! property |! off |! premises Jonathan |! and |! Mary |! have |! 2 |! sons. |! Steve |! lives |! at |! home |! and |! the |! other |! son, |! Stan, |! lives |! in |! an |! apartment |! across |! town. |! Jonathan |! wants |! to |! buy |! a |! car |! for |! Stan |! so |! he |! can |! get |! a |! job |! after |! his |! college |! classes. |! Jonathan |! titles |! the |! car |! in |! both |! his |! name |! and |! Stan's |! name |! and |! wants |! to |! add |! the |! car |! to |! his |! automobile |! policy. |! Which |! endorsement |! will |! provide |! this |! coverage? |! - |! Correct |! answer |! ✔Joint |! ownership |! coverage Which |! of |! the |! following |! forms |! is |! NOT |! eligible |! to |! be |! written |! as |! part |! of |! a |! commercial |! package |! policy? |! - |! Correct |! answer |! ✔Dwelling |! property |! coverage |! forms
Tim |! purchased |! an |! auto |! policy |! for |! his |! new |! car. |! There |! are |! no |! other |! insureds |! listed |! on |! the |! declarations. |! Tim |! is |! considered |! the |! - |! Correct |! answer |! ✔named |! insured Which |! of |! the |! following |! is |! NOT |! a |! reason |! an |! insurer |! can |! cancel |! an |! automobile |! policy |! before |! the |! term |! expires? |! - |! Correct |! answer |! ✔Its |! contract |! with |! the |! agent |! has |! ended. Coverage |! C |! of |! the |! commercial |! general |! liability |! policy |! will |! cover |! reasonable |! medical |! expenses |! incurred |! within |! how |! many |! years |! of |! the |! accident? |! - |! Correct |! answer |! ✔ 1 If |! the |! insured's |! car |! is |! struck |! by |! a |! boulder |! that |! falls |! from |! the |! side |! of |! a |! mountain, |! what |! coverage |! would |! pay |! for |! the |! damage? |! - |! Correct |! answer |! ✔Other |! than |! Collision All |! of |! the |! following |! statements |! about |! a |! loss |! sustained |! crime |! insurance |! form |! are |! true |! EXCEPT |! - |! Correct |! answer |! ✔losses |! that |! occur |! after |! the |! policy |! expiration |! are |! covered Who |! does |! a |! surety |! bond |! protect? |! - |! Correct |! answer |! ✔Obligee Marita's |! car |! was |! damaged |! in |! an |! accident, |! so |! she |! rents |! a |! car |! to |! drive |! while |! hers |! is |! in |! the |! shop. |! Under |! the |! liability |! section |! of |! Marita's |! personal |! auto |! policy, |! the |! rental |! car |! is |! defined |! as |! - |! Correct |! answer |! ✔a |! covered |! auto
Which |! one |! of |! the |! following |! bonds |! is |! purchased |! to |! protect |! an |! employer |! from |! the |! actions |! of |! dishonest |! employees? |! - |! Correct |! answer |! ✔Fidelity What |! is |! the |! actual |! cause |! of |! a |! loss? |! - |! Correct |! answer |! ✔Peril Which |! of |! the |! following |! statements |! about |! umbrella |! policies |! is |! NOT |! correct? |!
- |! Correct |! answer |! ✔They |! are |! written |! only |! for |! commercial |! risks. Guides |! to |! insurance |! companies' |! financial |! integrity |! and |! claims-paying |! ability |! are |! published |! regularly |! by |! rating |! services. |! All |! of |! the |! following |! are |! rating |! services |! EXCEPT |! - |! Correct |! answer |! ✔Lloyd's |! of |! London A |! self-insured |! retention |! (SIR) |! in |! a |! personal |! umbrella |! policy |! functions |! like |! - |! Correct |! answer |! ✔a |! deductible Under |! the |! CGL |! form, |! insured |! contracts |! include |! all |! of |! the |! following |! EXCEPT |! - |! Correct |! answer |! ✔assumption |! of |! an |! architect's |! liability |! for |! any |! injury |! or |! damage |! arising |! out |! of |! the |! insured's |! rendering |! or |! failure |! to |! render |! professional |! services When |! a |! loss |! occurs, |! the |! Causes |! of |! Loss—Special |! Form |! requires |! the |! insurance |! company |! to |! - |! Correct |! answer |! ✔pay |! for |! all |! losses |! not |! specifically |! excluded |! or |! limited |! by |! the |! policy
Paul's |! bicycle |! shop |! is |! covered |! by |! a |! businessowners |! policy. |! Pete, |! a |! customer, |! is |! injured |! when |! he |! slips |! on |! the |! wet |! floor. |! Where |! would |! Paul |! find |! coverage |! in |! his |! policy? |! - |! Correct |! answer |! ✔Medical |! expenses The |! principle |! that |! restores |! someone |! to |! the |! condition |! he |! enjoyed |! before |! a |! loss |! is |! - |! Correct |! answer |! ✔indemnity Which |! one |! of |! the |! following |! coverages |! is |! NOT |! available |! under |! the |! commercial |! package |! policy? |! - |! Correct |! answer |! ✔Workers' |! compensation A |! contractor |! built |! a |! home |! for |! a |! family. |! Four |! months |! after |! the |! family |! moved |! into |! the |! home, |! the |! kitchen |! sink |! fell |! on |! a |! family |! member's |! foot |! and |! broke |! it. |! This |! is |! an |! example |! of |! what |! type |! of |! loss? |! - |! Correct |! answer |! ✔Completed |! operations Actual |! loss |! of |! business |! income |! payments |! by |! an |! insurer |! may |! include |! the |! following |! EXCEPT |! - |! Correct |! answer |! ✔amount |! required |! to |! repair |! property |! damage |! that |! caused |! suspension |! of |! business Common |! exclusions |! with |! a |! liability |! policy |! would |! typically |! include |! all |! of |! the |! following |! EXCEPT |! - |! Correct |! answer |! ✔injuries |! or |! damages |! caused |! intentionally |! by |! the |! insured If |! an |! agent |! is |! unable |! to |! place |! business |! with |! an |! admitted |! insurer |! or |! a |! company |! licensed |! to |! do |! business |! in |! the |! state, |! where |! would |! he |! look |! to |! place |! this |! type |! of |! risk? |! - |! Correct |! answer |! ✔Surplus |! lines |! market
A |! fire, |! inland |! marine, |! or |! other |! property |! insurance |! form |! can |! be |! confusing |! and |! may |! be |! considered |! improper |! if |! it |! does |! not |! include |! all |! of |! the |! following |! clauses |! EXCEPT |! - |! Correct |! answer |! ✔time |! limit |! the |! insurer |! has |! to |! pay |! a |! loss Coverage |! E |! in |! the |! dwelling |! policy |! provides |! coverage |! for |! - |! Correct |! answer |! ✔additional |! living |! expense What |! part |! of |! the |! personal |! auto |! policy |! covers |! losses |! caused |! by |! malicious |! mischief, |! vandalism, |! hail, |! or |! floods? |! - |! Correct |! answer |! ✔Other |! than |! Collision For |! an |! insurance |! contract |! to |! be |! legally |! binding, |! both |! parties |! to |! the |! contract |! must |! be |! considered |! competent. |! Which |! of |! the |! following |! would |! NOT |! be |! used |! to |! determine |! competency? |! - |! Correct |! answer |! ✔Individual |! is |! over |! age |! 80. Which |! one |! of |! the |! following |! statements |! regarding |! personal |! liability |! coverage |! is |! CORRECT? |! - |! Correct |! answer |! ✔It |! is |! added |! by |! endorsement |! to |! the |! dwelling |! policy, |! but |! automatically |! included |! in |! the |! homeowners |! policy. An |! insured |! has |! a |! $70,000 |! dwelling |! policy |! (DP-1 |! basic) |! with |! a |! $500 |! deductible. |! While |! the |! insured |! is |! on |! vacation, |! burglars |! enter |! the |! house |! and |! steal |! several |! items. |! The |! total |! loss |! is |! estimated |! to |! be |! $5,000. |! How |! much |! of |! that |! loss |! will |! be |! paid |! under |! the |! policy? |! - |! Correct |! answer |! ✔ 0
