Exam (elaborations)
ACA 1 study questions with complete solutions graded A+
- Module
- Institution
ACA 1 study questions with complete solutions graded A+
[Show more]
Seller
Follow
Sakayobako30
Reviews received
Content preview
ACA 1 studyFrank owned a home that was destroyed by a hurricane. Both ABC and XYZ Banks were listed as
additional interests on his homeowner policy. The insurance company will make a payment to: - correct
answer ✔✔ALL LISTED INTERESTS
The Insurer s responsibility to pay for a property loss may be conditioned on the insured having used
reasonable means to avoid the loss, to protect the property against further loss, and to give the insurer
proof of the loss is defined as? - correct answer ✔✔.
Conditional Contract
A policy condition, either based on information in the insured s application or inserted by the insurer, is
defined as: - correct answer ✔✔Warranty
Property insurance policies usually contain a(n) __________ clause, stating the insured cannot dump
damaged property on the insurer and demand its full value: - correct answer ✔✔ABANDONMENT
Insurance applies separately to each insured as if other insureds did not exist. This is defined as: - correct
answer ✔✔SEVERABILITY
The __________ states that when there is an unbroken connection between an occurrence and damage
that grows out of the occurrence, then the resultant damage is all a part of the occurrence. - correct
answer ✔✔DOCTRINE OF PROXIMATE CAUSE
States that if the insurer adopts a revision which would broaden coverage without additional premium
within some period of time prior to the policy period or during the policy period, the insured receives
the benefit of such broadened coverage. - correct answer ✔✔liberalization
A(n) __________ is one wherein economic loss would be suffered from an adverse happening to the
subject: - correct answer ✔✔insurable interest
,The Loss Settlement Valuation that subtracts an allowance for depreciation is defined as? - correct
answer ✔✔actual cash value
The following are basic characteristics of a property or liability insurance contract, except: - correct
answer ✔✔loss settlement contract
As to required proof for future accidents by purchase of auto liability insurance, the insurer must make a
filing (Form SR-22) certifying that coverage is in effect, and this certification must remain on file for
__________ years: - correct answer ✔✔3
Which of the following is not one of the "Thresholds" in the "No-Fault" law? - correct answer
✔✔TEMPORARY INJURY OF THE INSURED
Personal Injury Protection, or PIP, has a __________ per person, per accident limit. - correct answer
✔✔10,000
Under Mechanical Breakdown Coverage, new cars are eligible for service up to: - correct answer ✔✔36
MONTHS/36,000 MILES
The Business Automobile Policy includes all of the following coverage forms except: - correct answer
✔✔The Trailer Interchange Coverage Form
Frank has a not-at-fault accident, he has basic PIP, no deductible and Med pay of $5,000. How much will
his Med Pay contribute to medical bills of $15,000? - correct answer ✔✔.
$5,000
Used to insure businesses engaged in selling, servicing, repairing, parking or storing automobiles: -
correct answer ✔✔Garage Coverage Form
Jeremy has a not at fault accident. If he has PIP with a $1,000 deductible, how much can he expect his
PIP coverage to pay toward his medical bills that total $3,000? - correct answer ✔✔$1,600
,The following examples are referred to as __________ liability limits: 25/50/25 or 10/20/10 - correct
answer ✔✔Split
If financial responsibility doesnt exist at the time of an accident, which of the following things must
happen to avoid penalties? - correct answer ✔✔LEGALLY CALID CLAIMS OF OTHERS MUST BE SATISIFED
UP TO 10/20/10 AND THE OWNER AND OPERATOR MUST PROVIDE CERTIFICATION OF FUTURE
RESPONSIBILITY FOR FUTURE ACCIDENTS
Which of the following are characteristics of Homeowner's Insurance? - correct answer ✔✔A.
Protects against economic loss to residences and household property, and legal liabilities
B.
Owner-occupants of 1-4 family dwellings
C.
Renters who maintain residential occupancy in any type of building
An insured who wishes to purchase flood insurance, but is not located in a flood zone may do so by
purchasing a: - correct answer ✔✔Preferred Risk Flood Policy
A lender has an insurable interest in a home and finds protection in the: - correct answer ✔✔Mortgagee
Clause
On a Homeowner's Policy, covers items that are not permanately attached to the dwelling. This is
defined as: - correct answer ✔✔Other Structures
When the basic liability limits provided by the policy are insufficient for an insureds needs, two coverage
forms are used to provide the additional amounts of coverage: - correct answer ✔✔A.
Excess Liability
B.
Umbrella
C.
BOTH A AND B
, Which of the following forms is "all-risk" on the dwelling policy? - correct answer ✔✔DP-3, or the Special
form
Which of the following is not one of the rating factors for a Homeowner's Policy? - correct answer
✔✔Age & Gender of Insured
All of the following are eligible for a Homeowner's Policy, except? - correct answer ✔✔A business condo
owned by a local insurance company
Which of the following is not covered under Coverage C, Personal Property? - correct answer ✔✔A fish
dies because he has been left alone for a week without food
Jeremy owns a home that is recently damaged due to a hurricane. The repair estimate is averaged at
$25,000 and Jeremy decides to stay in a hotel becuase most of the damage is to his bedroom and
kitchen. Under a Homeowner's Policy, what coverage will pay for the hotel room bill? - correct answer
✔✔Loss of Use
Protects against loss of business income that results from damage to covered property from a covered
cause of loss. - correct answer ✔✔BUSINESS INCOME INSURANCE COVERAGE
Under Commercial Property Policies, Florida law requires an insurer to give the insured at least
__________days advance written notice of non-renewal. - correct answer ✔✔45 DAYS
The Commercial Property Contract includes all of the following, except: - correct answer ✔✔A.
Common Policy Conditions
B.
Commercial Property Conditions
C.
Coverage Form
D.
*COMMERCIAL LOSS SCHEDULE*
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Sakayobako30. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £16.27. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now