1.Which of the following statements about the uninsured motorists coverage of the
PAP is true? (Points : 1)
Unless higher amounts are purchased, the maximum
benefit is normally limited to $1,000.
A covered person's only recourse is to
sue the insurer if there is a disagreement over the amount of damages.
The
coverage applies only if the uninsured motorist is legally liable.
The
coverage usually applies only to property damage.
2. John
occasionally borrows the car of his friend, Sophie. Sophie has a PAP with
liability limits of 100/300/50. John also has a PAP, and his liability limits
250/500/50. John had an accident while using Sophie's car and was found to be
legally liable for $300,000 in bodily injury liability. How much will be paid by
each policy? (Points : 1)
Sophie's policy will pay $100,000, John's policy
will pay $200,000.
Sophie's policy will pay $50,000, John's policy will pay
$250,000.
Sophie's policy will pay $150,000, John's policy will pay
$150,000.
John's policy will pay the entire amount.
3. Which of
the following statements about the payment of defense costs by the PAP is (are)
true?
I. They are paid in addition to the policy limits.
II. They are
payable even after the limit of liability is exhausted. (Points : 1)
I
only
II only
both I and II
neither I nor II
4. Which of the
following statements concerning FAIR plans is (are) true?
I. All property is
eligible for coverage regardless of physical condition.
II. Losses and
expenses are shared by insurers who participate in a plan. (Points : 1)
I
only
II only
both I and II
neither I nor II
5. All of the
following are considered floods under the federal flood insurance program EXCEPT
(Points : 1)
the accumulation of surface water after a heavy rain.
the
overflow of tidal waters.
a mudslide caused by an accumulation of water after
a heavy rain.
wind-driven rain which enters a dwelling through storm-damaged
doors or windows.
6. All of the following are considered to be
uninsured vehicles for purposes of the uninsured motorists coverage of the PAP
EXCEPT (Points : 1)
a hit-and-run vehicle, the ownership of which cannot be
determined.
a vehicle insured by a company which becomes insolvent before a
claim can be paid.
a vehicle owned by an individual who purchased enough
enough liability insurance to satisfy the state's financial responsibility
law.
a vehicle owned by an individual who is insured, but for less than the
amount required by the state's financial responsibility law.
7. Which
of the following persons is (are) insured under the uninsured motorists coverage
of the PAP?
I. A pedestrian struck by a covered auto if he or she has no
insurance to pay medical expenses
II. The spouse of a named insured who is
killed by an uninsured motorist (Points : 1)
I only
II only
both I and
II
neither I nor II
8. All of the following are perils covered
under Dwelling Property 2 (broad form) EXCEPT (Points : 1)
flood.
freezing of a plumbing or heating system.
weight of ice, snow,
or sleet.
sudden and accidental damage from an artificially generated
electrical current.
9. Ted purchased a home. To finance the purchase,
he borrowed $140,000 from ABC Bank, pledging the home as collateral for the
loan. Shortly after purchasing the home, Ted lost his job. He could not find
another job and could not pay the mortgage each month. Ted set fire to the home.
The claims adjuster suspected arson, and an investigation proved that Ted
intentionally caused the loss. Under the mortgage clause of the Homeowners 3
policy, how will this loss be settled? (Points : 1)
The insurer will pay ABC
the value of its insurable interest and pay Ted the value of his insurable
interest.
The insurer will pay Ted the actual cash value of the loss as
intentional loss is not excluded.
The insurer will pay ABC the value of its
insurable interest and then attempt to recoup the loss payment from Ted.
The
insurer has no liability because the loss was intentional.
10. Perils
insured under Dwelling Property 1 (basic form) include which of the
following?
I. Earthquake
II. Smoke (Points : 1)
I only
II
only
both I and II
neither I nor II
PAP is true? (Points : 1)
Unless higher amounts are purchased, the maximum
benefit is normally limited to $1,000.
A covered person's only recourse is to
sue the insurer if there is a disagreement over the amount of damages.
The
coverage applies only if the uninsured motorist is legally liable.
The
coverage usually applies only to property damage.
2. John
occasionally borrows the car of his friend, Sophie. Sophie has a PAP with
liability limits of 100/300/50. John also has a PAP, and his liability limits
250/500/50. John had an accident while using Sophie's car and was found to be
legally liable for $300,000 in bodily injury liability. How much will be paid by
each policy? (Points : 1)
Sophie's policy will pay $100,000, John's policy
will pay $200,000.
Sophie's policy will pay $50,000, John's policy will pay
$250,000.
Sophie's policy will pay $150,000, John's policy will pay
$150,000.
John's policy will pay the entire amount.
3. Which of
the following statements about the payment of defense costs by the PAP is (are)
true?
I. They are paid in addition to the policy limits.
II. They are
payable even after the limit of liability is exhausted. (Points : 1)
I
only
II only
both I and II
neither I nor II
4. Which of the
following statements concerning FAIR plans is (are) true?
I. All property is
eligible for coverage regardless of physical condition.
II. Losses and
expenses are shared by insurers who participate in a plan. (Points : 1)
I
only
II only
both I and II
neither I nor II
5. All of the
following are considered floods under the federal flood insurance program EXCEPT
(Points : 1)
the accumulation of surface water after a heavy rain.
the
overflow of tidal waters.
a mudslide caused by an accumulation of water after
a heavy rain.
wind-driven rain which enters a dwelling through storm-damaged
doors or windows.
6. All of the following are considered to be
uninsured vehicles for purposes of the uninsured motorists coverage of the PAP
EXCEPT (Points : 1)
a hit-and-run vehicle, the ownership of which cannot be
determined.
a vehicle insured by a company which becomes insolvent before a
claim can be paid.
a vehicle owned by an individual who purchased enough
enough liability insurance to satisfy the state's financial responsibility
law.
a vehicle owned by an individual who is insured, but for less than the
amount required by the state's financial responsibility law.
7. Which
of the following persons is (are) insured under the uninsured motorists coverage
of the PAP?
I. A pedestrian struck by a covered auto if he or she has no
insurance to pay medical expenses
II. The spouse of a named insured who is
killed by an uninsured motorist (Points : 1)
I only
II only
both I and
II
neither I nor II
8. All of the following are perils covered
under Dwelling Property 2 (broad form) EXCEPT (Points : 1)
flood.
freezing of a plumbing or heating system.
weight of ice, snow,
or sleet.
sudden and accidental damage from an artificially generated
electrical current.
9. Ted purchased a home. To finance the purchase,
he borrowed $140,000 from ABC Bank, pledging the home as collateral for the
loan. Shortly after purchasing the home, Ted lost his job. He could not find
another job and could not pay the mortgage each month. Ted set fire to the home.
The claims adjuster suspected arson, and an investigation proved that Ted
intentionally caused the loss. Under the mortgage clause of the Homeowners 3
policy, how will this loss be settled? (Points : 1)
The insurer will pay ABC
the value of its insurable interest and pay Ted the value of his insurable
interest.
The insurer will pay Ted the actual cash value of the loss as
intentional loss is not excluded.
The insurer will pay ABC the value of its
insurable interest and then attempt to recoup the loss payment from Ted.
The
insurer has no liability because the loss was intentional.
10. Perils
insured under Dwelling Property 1 (basic form) include which of the
following?
I. Earthquake
II. Smoke (Points : 1)
I only
II
only
both I and II
neither I nor II
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