ACA EXAM 2024-2025 WITH
ACTUAL CORRECT QUESTIONS
AND VERIFIED DETAILED
ANSWERS FREQUENTLY TESTED
QUESTIONS AND SOLUTIONS
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Joe has 10/20/10 liability limits, and he borrows Sue's car. Sue has 15/30/15 of liability. Joe injures a
pedestrian while driving Sue's car and the pedestrian's medical bills due from liability total $22,00. (PIP
and Med Pay are exhausted) How much is paid from Liability?
Sue's policy pays $15,000 & Joe's policy pays $7,000
If Jack has an accident that is his fault, Jack has liability insurance with 10/20/10 limits, Extended PIP
with no deductible, & Med Pay of $2,000... what is the maximum potential payment to a guest
passenger, who suffers injury and does not own an auto, has no auto insurance and has $42,000 in
medical expenses?
$22,000 (PIP $10,000; Med Pay $2,000; BI $10,000)
Your insured with Part A Liability Limits of 15/60/20 and Part C - UM Limits of 10/20 stacked with three
autos, has an accident with third party who was at fault and has Part A Liability Limits of 10/20/10 and
Part C - UM of 10/20 stacked with two autos. What is the maximum amount for injuries ti just your
insured from just the at-fault driver's PAP?
$10,000
Which of the following statements is false concerning No-Fault Auto Insurance?
Negligence must be established
UM coverage under the PAP pays for:
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,bodily injury to the insured caused by a hit and run driver
Lender's interests in REAL property are protected with a Mortgage clause, how are lender's interests
protected in personal property - such as automobiles?
Loss payee clause
An insured buys mechanical breakdown coverage on this NEW car. For what length of time and mileage
will he have coverage?
36 Months / 36,000 Miles
An insured has a Personal Auto Policy for his car, but uses a company car regularly. What endorsement
should his agent recommend to make sure the insured's PAP would respond if necessary?
Extended non-owned
While driving on the Pennsylvania Turnpike, William's auto has a collection with a deer that jumps in
front of his car. In order for coverage to be afforded, William's Personal Auto Policy must have:
Other than Collision coverage
All of the following are true of Named Non-owner Coverage EXCEPT:
An individual with a company auto would never have a need for Named non-owner coverage
An auto accident results in liability claims of $15,000 for property damage and bodily injury of $17,500
to a single person. Which policy affords more coverage?
A split limit policy of 25/50/15
Your insured has purchased the minimum split limit policy that meets Financial Responsibility Law in
Florida, He causes the following bodily injuries to passengers in his car:
Carl - $12,000
Jeanne - $10,000
Charlie - $10,000
How much will his policy pay?
$20,000 for the total BI portion of accident
An insured has a basic PIP with no deductible, in an accident he incurs medical bills of $8,000, $1,000 in
lost wages, and $500 in replacement services how much will PIP portion of policy pay?
$7,500
An insured has 3 vehicles but only insures 2 of them. He and his wife are injured in an accident while
occupying the uninsured auto. Which of the following is true concerning PIP coverage?
There is no coverage for either, since the vehicle is uninsured
An insured's golf clubs are stolen from the trunk of his car. Which Policy would respond?
Homeowner's is the place to look for coverage
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,If a person must furnish a SR-22, and does not own an auto, what should they purchase?
A Named Non-owned policy
An insured borrows his neighbor's utility trailer to pick up his Christmas tree. Which of the following best
describes the coverage from the insured PAP if he has an accident?
His PAP will extend liability to the trailer and physical damage will extend $1,500 of coverage for
damages to the borrowed trailer.
An insured took his TV to a shop for repairs, on the way, he stopped suddenly and the TV fell of the seat,
breaking the TV. How will his PAP respond?
The PAP will not respond
An insured has 25/50/25 limits and injured another person. The injured person on a tort claim for
$30,000 against the insured and the insured's attorney charged $7,500 to defend the insured. How
much is paid by the insured's insurance company?
$32,500, the policy limit and the attorney's fees for defense
Which of the following is FALSE concerning Uninsured Motorist coverage (UM)?
Can purchase UM without purchasing liability
An insured has an accident and his car was rendered inoperable. The body shop loaned him a temporary
replacement vehicle. If he has an accident, how will his own PAP respond?
His PAP would respond since he has coverage for temporary use of a vehicle while his auto is being
repaired
On an auto policy, the Company may cancel for any reason (except discrimination) during the first:
60 days
An insured has "stacked" UM with 25/50 limits on each of 2 vehicles that he owns. How much UM
coverage is available to the insured in the event of an accident with a hit & run driver?
50/100
Which of the following is "defined motor vehicle" under Florida No-Fault law?
9,500 pound SUV
A property policy covers "fire" as a peril. A small fire starts, fortunately, the fire department quickly
arrives and puts out the fire. Unfortunately, there is water damage due to the water from the fire hoses.
This water damage would be covered because
Fire was the proximate cause of damage
The coverage for damage due to an aircraft under the care, custody, or control of the insured while the
plane is in for storage or service is:
Hangarkeepers liability
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, Under the commercial property form, what length of time must expire before a building is considered
"vacant" -- thereby suspending some coverages, while reducing payment on others?
60 days
A florist wanted coverage on business contents, which vary in amount over the course of a year. Which
form best covers this situation?
The value reporting endorsement
A community applied to be part of the National Flood Insurance Program. Until they are approved, what
is the status of the community of the community?
They are in the emergency program
Both commercial property and liability were combined into one policy, thus saving money on
underwriting expense. What is this combination called?
A package policy
What is the smallest amount of liability insurance under the business-owners policy (BOP)?
$300,000
Which of the following would be excluded under a personal articles floater on an "all risks" basis?
Insects destroy a valuable postage stamp worth $500
A ship loaded with lumber encountered a terrible storm, and some of the lumber was thrown overboard
to save the ship - this action is called:
Jettison
A contracted was concerned some of his tools, such as a welder, could be stolen from the job site. What
inland marine form is best suited for this exposure?
The contractors equipment floater
All of the following are exclusions under the Personal Inland Marine Policy EXCEPT:
Theft from and "off site" location
An Umbrella Policy may be broader than the underlying policies and respond as primary coverage. When
the Umbrella is primary, there is an amount to be paid by the insured - this is called:
The self-insured retention
If a person does not own an auto, but must provide Auto Liability, for what would he ask his agent?
A named non-owned policy
Which of the following is false concerning flood insurance?
To be insured for flood, a new building must be 25% complete, have the walls up - roof not required to
qualify
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