Exam (elaborations)
PERSONAL LINES INSURANCE PRACTICE EXAM WITH ALL ANSWERS CORRECT.
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PERSONAL LINES INSURANCE PRACTICE EXAM WITH ALL ANSWERS CORRECT.
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PERSONAL LINES INSURANCEPRACTICE EXAM WITH ALL ANSWERS
CORRECT
Bobby, bage b16, bborrows bhis bparents' bcar bwithout btheir bpermission band bgets
binto ban baccident. bWhich bof bthe bfollowing bstatements babout bcoverage bunder bthe
bparents' bpersonal bauto bpolicy bis bCORRECT?
A) bBobby bis bcovered bby bhis bparents' bpolicy bbecause bhe bis bincluded bin bthe
bdefinition bof bnamed binsured. b
B) bBobby bis bnot bcovered bfor bthis baccident bbecause bhe bused bthe bcar bwithout
bpermission. b
C) bBobby bis bnot bcovered bbecause bit bwas bnot bhis bcar. b
D) bBobby bis bcovered bby bhis bparents' bpolicy bbecause bhe bis ba bfamily bmember. b-
b bcorrect banswer-D) bBobby bis bcovered bby bhis bparents' bpolicy bbecause bhe bis ba
bfamily bmember.
Explanation: bBobby bis ba bfamily bmember band bthus bautomatically bis bcovered
bunder bthe bfamily's bPAP bpolicy. bEven bthough bBobby bis busing bthe bcar bwithout
bpermission, bthe bexclusion bpertaining bto bnonpermissive busers bdoes bnot bapply bto
buse bof ban bowned bauto bpolicy bby bresident bfamily bmembers.
Reference: b8.7.2 bin bLicense bExam bManual
,A bparking bvalet bat ba bhotel buses ba bguest's bcar bto bdo ba bpersonal berrand band
bdamages bthe bcar bin ba bcollision. bThe bguest bhas ba bpersonal bauto bpolicy b(PAP).
bThe binsurance bcompany bwill bpay bthe bclaim band b____.
A) brelieve bthe bparking bvalet bof blegal bliability bfor bthe bloss
B) bsubrogate bagainst bthe bnamed binsured
C) bsubrogate bagainst bthe bparking bvalet
D) brecover bany badditional bloss bfrom bthe blienholder b- b bcorrect banswer-C)
bsubrogate bagainst bthe bparking bvalet
Explanation: bPart-D bcoverage bfor bDamage bto bYour bAuto bof bthe bPAP bcontains
ba bno bbenefit bto bbailee bprovision. bThis bprovision bstates bthat ba bcarrier bor bother
bbailee bfor bhire, bsuch bas ba bparking bgar5age, bservice bstation, bor bmoving
bcompany bwill bnot bdirectly bor bindirectly bbenefit bfrom bthe bPAP's binsurance. bA
bbailee bis ban bindividual bor bentity bthat bassumes bpossession bof bgoods bowned bby
banother bfor bthe bpurpose bof btransporting, bservicing, bor bstoring bthem. bWhen
btemporary bcustody bis bassumed, bthe bbailee bbecomes blegally bliable bfor bthe
bgoods.
Reference: b8.7.2 bin bthe bLicense bExam bManual
Who bof bthe bfollowing bare brequired bto bbe bmembers bof bthe bArizona bProperty
band bCasualty bInsurance bGuaranty bFund?
A) bAll binsurers bthat bwrite bthe btypes bof binsurance bthat bare bprotected bby bthe
bfund bin bArizona
B) bForeign bproperty band bcasualty binsurers bonly
C) blien bproperty band bcasualty binsurers bonly
D) bAll binsurers bthat bwrite binsurance bin bArizona, bincluding blife band bhealth
binsurers b- b bcorrect banswer-A) bAll binsurers bthat bwrite bthe btypes bof binsurance
bthat bare bprotected bby bthe bfund bin bArizona
Explanation: bAll binsurers bthat bwrite btypes bof binsurance bthat bare bprotected bby
bthe bfund bare brequired bto bbe bmember binsurers bof bthe bfund. bReference: bState
bSupplement bin bthe bLicense bExam bManual.
Reference: b4.4.16.3 bin bthe bLicense bExam bManual
Which bone bof bthe bfollowing bdwellings bwould ba bHO-3 bHomeowners bForm
bcover?
A) bCondominium
B) bOffice bbuilding
C) bSingle-family bhome
D) bApartment bbuilding b- b bcorrect banswer-C) bSingle-family bhome
Explanation: bHO-3 bHomeowners bForm bcovers bowner-occupied bsingle bfamily
bdwellings. bCondominiums bare bcovered bby bthe bHO-6. bOffice band bapartment
bbuildings bwould bbe bcovered bby ba bcommercial bpolicy.
,Reference: b7.4.1 bin bthe bLicense bExam bManual
Which bon bof bthe bfollowing bwould bbe bclassified bas ba bgeneral bdamage?
A) bPain band bsuffering
B) bLost bwages
C) bMedical bbills
D) bDamaged bproperty b- b bcorrect banswer-A) bPain band bsuffering
Explanation: bCompensatory bdamages bcompensate ban binjured bparty bfor binjuries
bsustained- bnothing bmore. bTheir bpurpose bis bto bmake ba bperson bwhole bagain bin
bthe bposition bthat bexisted bbefore bthe bloss bor bharm. bCompensatory bdamages
bare bfurther bcategorized bby: bgeneral bdamages b(which bnecessarily bresult bfrom
bthe bact bor bomission, bsuch bas bemotional bdistress, binconvenience, band bpain band
bsuffering) band bspecial bdamages b(losses bmeasured bin bexact bsums bof bmoney
bincluding bmedical bbills, btravel bexpenses bfor bmedical bcare, bprescription bcosts
bdamaged bproperty, band blost bwages).
Reference: b5.3.6 bin bthe bLicense bExam bManual
Which bof bthe bfollowing bstatements babout bflood binsurance bis bNOT bcorrect?
A) bThere bare btwo btypes bof bflood binsurance bprograms bavailable: bemergency band
bregular
B) bA bflood bincludes ban boverflow bof binland bor btidal bwaters
C) bSewer bbackup binto ba bdwelling bis bnot bconsidered bflood band bis bnot bcovered
D) bPersonal bproperty bin ba bbasement bor boutside bin bthe byard bis bcovered b- b
bcorrect banswer-D) bPersonal bproperty bin ba bbasement bor boutside bin bthe byard bis
bcovered
Explanation: bPersonal bproperty bin ba bbasement bor boutside bin bthe byard bis bNOT
bcovered bunder bflood binsurance.
Reference: b9.4 bin bthe bLicense bExam bManual
Which bof bthe bfollowing bcoverages bis bNOT bincluded bin ba bboatowners/watercraft
bpackage bpolicy?
A) bMedical bpayments
B) bLiability
C) bLongshore band bharbor bworkers' bcompensation binsurance
D) bProperty b- b bcorrect banswer-C) bLongshore band bharbor bworkers'
bcompensation binsurance
Explanation: bBoatowners/watercraft bpackage bpolicies bwere bdeveloped bby
bindividual binsurance bcompanies band bthey bcombine bproperty, bliability, band
bmedical bpayments binsurance bon ban bopen bperil bbasis. bLongshore band bharbor
bworkers' bcompensation binsurance bis bfound bin bpersonal byacht bpolicies, bwhich
bare bused bto binsure blarger bvessels bthan bthose bcovered bunder bboatowners
bpolicies.
, Reference: b9.8.1 bin bthe bLicense bExam bManual
An binsured bowns ba bpet blion bthat bis bcaged bon bthe bhomeowner's bproperty. bThe
bowner btakes bgreat bcare bto bwarn bneighbors bof bthe bpossible bdanger bby bposting
bsigns, bfencing bthe byard, band blocking bthe bcage bat ball btimes. bWhen ba
bneighbor's bchild bmanages bto bopen bthe bcage band bis bbitten, bwhat btype bof
bliability bwould bapply bto bthe blion bowner?
A) bAbsolute bliability
B) bContractual bliability
C) bPremises bliability
D) bVicarious bliability b- b bcorrect banswer-A) bAbsolute bliability
Explanation: bThe blaw bimposes bstrict bor babsolute bliability bfor bspecific bsituations
bor bactivities bthat bpose bthreats bto bthe bsafety bof bothers. bPeople bwho bown
bdangerous banimals bare bheld bto ba bhigher bstandard bof bcare. bAbsolute bliability
bapplies bwhen ba bperson bis bliable bfor ba bdangerous bcondition, bregardless bof bthe
bamount bof bcare btaken.
Reference: b5.3.4 bin bthe bLicense bExam bManual
Which bof bthe bfollowing bterms bis bused bto bdescribe ban bempty bbuilding bthat bis
bnot bbeing bused?
A) bVacated
B) bAbsent
C) bUnoccupied
D) bVacant b- b bcorrect banswer-D) bVacant
Explanation: bA bbuilding bthat bis bnot bcurrently bin buse band bdoes bnot bhave
benough bfurnishings bto bfunction bin bits bnormal bcapacity bis bconsidered bvacant. bA
bbuilding bis bunoccupied bif bno bone bis bcurrently bin bit, bbut bfurnishings bare bpresent
band bthe boccupants bintended bto breturn, bas bis bthe bcase bwhen bthe bresidents bare
bout bof btown bon bvacation.
Reference: b4.4.15 bin bthe bLicense bExam bManual
Which bof bthe bfollowing bstatements babout bumbrella bpolicies bis bNOT bcorrect?
A) bThey bprovide bcoverage babove bthe blimits bof bunderlying bpolicies.
B) bThey bare bwritten bonly bfor bcommercial brisks.
C) bLosses bthat bare bexcluded bby bthe bunderlying bpolicy bbut bcovered bby bthe
bumbrella bare bsubject bto bthe bumbrella's bretention blimit.
D) bIf bthe binsured bfails bto bkeep bthe bunderlying bcoverage bin bforce, bthe bumbrella
bpolicy bwill bnot bcover bthe bamount bof bloss bthat bwould bhave bbeen bpaid bby bthe
bunderlying bpolicy. b- b bcorrect banswer-B) bThey bare bwritten bonly bfor bcommercial
brisks.
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