Auto insurance Practice test Questions And Answers

Auto insurance Practice test Questions And Answers What type of coverage is provided by an inland marine policy? - ANS Open or all risk coverage - Inland marine policies have only a few limited exclusions. Any person who transacts insurance without a valid license is: - ANS Guilty of a misdemeanor, Subject to a fine not exceeding $50,000 and/or imprisonment, Subject to imprisonment in county jail for a period not exceeding one year. For homes subject to the state & defensible space req, the total amount of defensible space req around the home is - ANS 100 ft Notifying the police is a req under which of the following circumstances, as it applies to a personal auto policy? - ANS For hit and run accidents and thefts. Under a yacht policy, protection and indemnity provides coverage for: - ANS Liability if the insured vessel strikes a marina and injures a dock worker. Which of the following is a principal rating factor for a personal automonile policy? - ANS The number of miles the drives each year. This is the second principal rating factor that must be used according to the Code. The cost to rebuild or replace a home increases for all of the following reasons after a catastrophe such as tornadoes or wildfire, except: - ANS Insurance policy issues - Insurance does not increase the cost to rebuild after a catastrophe; it just might not be enough to cover all of the increased costs. Withholding, rather than misstating, a material fact on an insurance application is an act of which of the following? - ANS Concealment How you would compute the combined ratio is to: - ANS Add the loss and expense ratios Absolute liability is imposed on a risk: - ANS When there is negligence whether proven or not The measure of loss potential which is used for pricing of insurance is known as: - ANS An exposure unit Which part of the policy is said to personalize it? - ANS Declarations According to California Insurance Law, who is legally allowed to cancel an insurance policy? - ANS Either the insured or insurer When a premium is based solely on an underwriter evaluation of an individual applicant's loss potential this is known as: - ANS judgment rating. What is is about a liability policy that causes the need for inland marine coverage? - ANS The exclusion for care, custody, and control Which of the following coverages must be offered to all insureds that purchase residential property insurance policies in CA? - ANS Earthquake coverage The Ca FAIR plan makes it possible for people that are unable to obtain insurance in the voluntary market to qualify for coverage through this program. Which type of insurance is obtained through the Fair Plan? - ANS Real and personal property at a fixed location in areas designated In order for a rate to remain in effect it must be: - ANS Reasonable, not excessive: Adequate, not inadeqaute: Equitable, not unfairly discriminatory Which of the following events may be covered by insurance? - ANS Owning a home - This is a pure risk and only pure risk can be insured A type of auto insurance that car owners can buy to protect themselves againts lossess that can arise when the amont of compensation received from a total loss does not fully cover the amount the insured owes on the vehicle financing or lease agreement would be: - ANS Gap insurance An all risk or open peril policy: - ANS Protects against any peril except those specifically excluded An insured duties after a loss are described in the homeowners Section 1 conditions, The incorrect statement concerning the insured duties would be? the insured must - ANS Submit to questions under oath while not in the presenc of any other insured. (This question has two possible incorrect answers so you have to determine which is most incorrect. The insured must protect property always, but must submit to examination under oath only if the insurer requests it.)