Exam (elaborations)
Guarantee ExamFX, Idaho Personal Lines Simulation Exam
- Course
- Institution
Guarantee ExamFX, Idaho Personal Lines Simulation Exam
[Show more]
Content preview
GuaranteeExamFX,
Idaho
Personal
Lines
Simulation
Exam
In
the
last
72
hours,
there
were
3
instances
of
volcanic
eruptions
that
damaged
a
property
covered
by
a
dwelling
policy.
How
many
deductibles
will
the
insured
have
to
pay
before
the
policy
covers
the
damages
caused
by
the
eruptions?
1.
Zero
2.
One
3.
Two
4.
Three
-
correct
answer-one
In
a
personal
auto
policy
(PAP),
a
covered
auto
includes
all
of
the
following
EXCEPT
1.
A
trailer
owned
by
the
insured.
2.
A
farm
implement
being
towed
behind
the
insured's
pickup.
3.
A
nonowned
temporary
substitute
vehicle.
4.
A
van
used
in
the
delivery
business.
-
correct
answer-A
van
used
in
the
delivery
business.
Which
of
the
following
would
NOT
be
covered
as
a
loss
under
Coverage
D
of
a
homeowners
policy?
1.
An
insured
has
an
apartment
in
his
home.
The
tenant's
negligence
started
a
fire,
and
the
apartment
was
not
fit
to
live
in
for
4
months
while
repairs
were
being
completed.
2.
After
a
fire
in
a
building
next
to
the
insured's
home,
the
insured
could
not
occupy
his
home,
and
had
to
stay
at
a
motel
for
one
week.
3.
An
insured's
home
is
damaged
by
fire.
The
insured
incurs
expenses
for
living
in
a
motel
and
having
meals
in
a
restaurant
while
repairs
are
made.
4.
An
insured
leased
a
dwelling
for
5
years.
Two
years
later,
the
property
owner
died,
and
the
new
property
owners
wanted
to
make
the
property
their
principal
residence,
so
the
lease
was
canceled.
-
correct
answer-An
insured
leased
a
dwelling
for
5
years.
Two
years
later,
the
property
owner
died,
and
the
new
property
owners
wanted
to
make
the
property
their
principal
residence,
so
the
lease
was
canceled.
An
insurance
policy
form
that
lists
specific
covered
perils
provides
1.
Special
peril
coverage.
2.
Blanket
coverage.
3.
Named
peril
coverage.
4.
Open
peril
coverage.
-
correct
answer-Named
peril
coverage.
An
insured
is
injured
while
driving
his
own
car.
Which
of
the
following
coverages
will
pay
for
the
loss?
1.
Part
A-Liability
2.
Part
B
-
Medical
Payments
3.
Part
C
-
Uninsured
Motorist
4.
Part
D-Damage
to
Your
Auto
-
correct
answer-Part
B
-
Medical
Payments An
insured
believes
that
his
insurer
is
not
properly
fulfilling
its
obligations
regarding
his
policy.
What
section
of
the
policy
will
give
the
insured
more
information
about
specific
duties
of
the
insurer?
1.
Obligations
2.
Conditions
3.
Endorsements
4.
Definitions
-
correct
answer-Conditions
*A
trucking
company
has
a
$1
million
umbrella
policy
in
place.
The
businessowner
agrees
to
maintain
a
200/500/100
limit
on
auto
liability,
and
a
personal
liability
of
$400,000.
After
a
car
accident,
the
business
is
sued.
Injuries
are
awarded
to
a
single
injured
party
in
the
amount
of
$300,000.
It
turned
out
that
the
business
actually
carried
only
100/250/50
auto
liability
limits.
What
is
the
total
amount
the
umbrella
policy
will
pay?
1.
$100,000
2.
$50,000
3.
$200,000
4.
$300,000
-
correct
answer-$100,000
If
an
insurance
policy
has
the
additional
coverage
provision,
how
does
it
affect
the
policy
premium?
1.
Premium
will
be
calculated
on
a
pro
rata
basis
based
on
the
amount
of
additional
coverage.
2.
There
is
no
additional
premium.
3.
Premium
will
be
recalculated
when
a
specific
loss
covered
by
this
provision
occurs.
4.
Additional
premium
will
be
assessed.
-
correct
answer-There
is
no
additional
premium.
An
insured
has
$5,000
of
medical
coverage
under
a
personal
auto
policy
at
the
time
of
a
covered
accident.
The
insured
and
3
passengers
are
injured.
The
insured's
medical
expenses
are
$8,000.
The
first
passenger's
total
$4,000;
the
second
passenger's
total
$6,500;
and
the
third
passenger's
total
$1,200.
How
much
will
the
policy
pay
under
the
medical
payments
coverage?
1.
$5,000
2.
$8,000
3.
$15,200
4.
$19,700
-
correct
answer-$15,200
Each
of
the
following
may
be
insured
under
an
HO-3
homeowners
policy
EXCEPT
1.
The
owner-occupant
of
a
condominium
unit.
2.
An
occupant
of
a
dwelling
under
a
life
estate
arrangement
when
dwelling
coverage
is
at
least
80%
of
the
current
replacement
cost.
3.
One
co-owner
when
each
distinct
portion
of
a
two-family
dwelling
is
occupied
by
co-owners.
4.
The
intended
owner-occupant
of
a
dwelling
under
construction.
-
correct
answer-The
owner-occupant
of
a
condominium
unit.
The
declarations
section
in
a
homeowners
policy
provides
all
of
the
following
information
EXCEPT
1.
Basic
underwriting
information. 2.
Amount
of
deductible
applied
to
a
loss.
3.
Insured
locations.
4.
Policy
exclusions.
-
correct
answer-Policy
exclusions.
What
part
of
the
insurance
contract
describes
the
covered
perils
and
the
nature
of
coverage
of
the
contractual
agreement
between
the
insurer
and
the
insured?
1.
Conditions
2.
Insuring
agreement
3.
Exclusions
4.
Declarations
-
correct
answer-Insuring
agreement
An
insured
is
at
fault
in
an
auto
accident,
damaging
the
insured's
own
car.
The
damage
to
the
car
is
covered
by
1.
The
other
driver's
liability
coverage.
2.
The
insured's
comprehensive
coverage.
3.
Uninsured
motorist
coverage.
4.
The
insured's
collision
coverage.
-
correct
answer-The
insured's
collision
coverage.
An
insured
has
decided
to
never
drive
another
vehicle
and
wants
to
transfer
his
auto
insurance
policy
to
his
wife.
What
does
the
insured
need
to
transfer
the
policy?
1.
The
written
consent
of
all
other
insureds
covered
by
the
policy
2.
The
written
consent
of
the
insurer
3.
An
auto
policy
cannot
be
transferred.
4.
Nothing,
because
the
wife
is
automatically
included
as
an
insured
-
correct
answer-The
written
consent
of
the
insurer
Which
of
the
following
risks
would
be
eligible
for
coverage
under
a
dwelling
policy
form?
1.
A
single-family
dwelling
that
is
located
on
farm
premises
2.
A
duplex
that
is
occupied
by
two
families,
each
of
which
have
a
bedroom
rented
to
a
boarder
3.
A
single-family
dwelling
occupied
by
a
single
person
who
operates
a
business
of
buying
and
selling
firearms
in
the
basement
4.
A
single-family
dwelling
that
contains
a
beauty
shop
that
employs
three
full-time
operators
-
correct
answer-A
duplex
that
is
occupied
by
two
families,
each
of
which
have
a
bedroom
rented
to
a
boarder
What
does
HO
personal
property
coverage
NOT
cover?
1.
The
resident's
son's
personal
property
2.
Personal
property
of
roomers
not
related
to
the
insured
3.
The
spouse's
personal
property
4.
The
insured's
personal
property
in
another
country
-
correct
answer-Personal
property
of
roomers
not
related
to
the
insured
When
insurance
is
written
on
a
dwelling
form,
which
of
the
following
types
of
property
would
be
insured
under
Coverage
B
(Other
Structures)?
1.
Building
equipment
and
outdoor
equipment
2.
A
garage
separated
from
the
dwelling
3.
Materials
and
supplies
used
for
construction
or
repair
of
the
dwelling 4.
A
laundry
room
attached
to
the
dwelling
-
correct
answer-A
garage
separated
from
the
dwelling
A
home
is
insured
for
$200,000
under
an
HO-3.
Last
week,
the
owner
purchased
a
new
home
and
began
to
move
his
personal
property
to
the
new
residence.
Last
night,
vandals
did
$8,000
of
damage
to
the
property
that
had
been
moved
to
his
new
residence.
Disregarding
any
deductible,
how
much
will
the
HO-3
pay?
1.
$0
2.
$1,000
3.
$4,000
4.
$8,000
-
correct
answer-$8,000
under
coverage
c
any
property
left
at
another
premises
is
limited
to
10%
of
the
8,000.
but
in
the
process
of
moving
its
fully
covered
All
of
the
following
are
additional
coverages
under
a
homeowners
policy
EXCEPT
1.
Payment
for
reasonable
repairs
and
debris
removal
following
a
covered
loss.
2.
Outbuildings.
3.
Fire
department
service
charge.
4.
Coverage
for
trees,
shrubs,
and
other
plants.
-
correct
answer-Outbuildings.
Officers
who
manage
stock
insurance
companies
are
1.
Appointed
by
the
Department
of
Insurance.
2.
Elected
by
the
stockholders.
3.
Hired
through
an
application
process.
4.
Appointed
by
other
company
officials.
-
correct
answer-Elected
by
the
stockholders.
*
If
a
fire
erupts
in
the
kitchen
and
spreads
to
the
upstairs
bedroom,
resulting
in
the
destruction
of
furniture,
what
type
of
loss
has
occurred?
1.
Direct
2.
Indirect
3.
Consequential
4.
Proximate
-
correct
answer-Direct
loss
refers
to
any
direct
physical
damage
to
buildings
and
personal
property.
Considering
the
fire
was
the
initial
cause
of
loss
and
spread
to
the
bedroom,
damages
would
be
considered
a
direct
loss
of
the
fire.
*
Under
Coverage
B
-
Other
Structures,
a
homeowners
policy
provides
coverage
for
other
structures
on
the
residence
premises.
Which
of
the
following
statements
is
NOT
true
of
this
coverage?
1.
A
detached
garage
may
be
covered
if
rented
to
others
as
a
private
garage.
2.
Other
structures
may
not
be
used
to
store
business
property
of
others,
even
though
business
is
not
conducted
from
the
structure.
3.
Any
loss
paid
under
Coverage
B
reduces
the
Coverage
A
limit
of
liability.
4.
Other
structures
covered
under
Coverage
B
must
be
set
apart
from
the
dwelling
by
clear
space.
-
correct
answer-Any
loss
paid
under
Coverage
B
reduces
the
Coverage
A
limit
of
liability.
The
automatic
limit
for
Coverage
B
is
10%
of
the
limit
of
liability
that
applies
to
Coverage
A.
Use
of
this
coverage
does
not
reduce
the
Coverage
A
limit
of
liability.
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 or Stuvia-credit 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 lizmwikali72. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now