Insurance Alabama exam with corrrect answers, Exams of Insurance law

Download Insurance Alabama exam with corrrect answers and more Exams Insurance law in PDF only on Docsity! Insurance Alabama exam Another way of describing a multi-line policy is call it a _______ policy? - verified answer; Package If your house is insured for $100,000, then your HO-3 homeowners policy automatically provides coverage for up to what amount for loss of use? - verified answer; $30,000 Though they can be raised, the standard Homeowners limits for coverage E Personal Liability and coverage F for Med Pay to other are which of the following? - verified answer; 100,000 and 1,000 You are driving with PAP liability limits of 30/60/25 when you run a stop sign and hit Calvin and his wife Clara in their sedan. You are hurt, both vehicles are damaged and both Calvin and Clara are injured. Calvin in the amount of $20,000 and Clara in the amount of $40,000, which section of your policy pays for injuries? - verified answer; Part B- Medical Payments When the basic perils are applied to Homeowners, we lose ______ and ______ and add the peril of ______. - verified answer; Sprinkler leakage, sinkhole collapse, and theft Assume that you hire ABC contractors to build you a garage. Two weeks after it's completion you drive into the garage and begin to exit your car when the garage collapses. You arm is broken. Your iPhone is destroyed and your car is damaged. ABC's completed operations coverage will pay for all of the following except? - verified answer; Your garage The collision coverage of a personal auto policy covers with two perils? - verified answer; Collision and upset Under the law of agency, the producer is a ______ and the insurance company is the _____. - verified answer; Agent, principal Which of the following would not be eligible for a business owners policy - verified answer; Credit union Equipment breakdown coverage written with no endorsements pay for losses on what basis? - verified answer; Replacement cost basis You have med pay limits of $10,000 when you carelessly drive off the road while talking on your cell phone. You sustain injuries of $2,000, passenger A suffers injuries of $8,000 and passenger B is injured in the amount of $12,000. What will your company pay in med pay benefits to the 3 of you? - verified answer; $20,000 You.....2,000 A.....$8,000 B.....$10,000 the $10,000 per person reduces his claim of $12,000 $20,000 Your $10,000 diamond engagement ring is scheduled on a personal articles floater for $10,000. If it is stolen, how will your company pay - verified answer; Personal articles floater will pay $10,000 David cuts off three fingers off his right hand while testing a chain saw in the tool rental department of Calvin's hardware. This would result in what type of liability claim? - verified answer; Premises liability Calvin's hardware was insured under a CGL with company A in 2010. Company B in 2011 and company C in 2012. Assume that a customer is negligently injured in Calvin's store in 2010 and a claim is filed in 2013. If company A pays the loss, what do you know about the company A CGL? - verified answer; It was occurrence triggered If you negligently injure another driver in the amount of $50,000, while driving with PAP liability insurance, he could collect $50,000 on a UMBI claim against his own company. What action can be taken against you? - verified answer; His company will subrogate against you for $50,000 With property and casualty insurance, insurance interest is the extent of your financial interest at the time of ______. - verified answer; Loss Though it can be raised, the standard deductible for an HO—3 is which of the following? - verified answer; $250 Assume that you insure your $200,000 home for $200,000 under a HO-3. When your home, your auto and detached garage are destroyed by fire the damages are all as follows - verified answer; House: $200,000 Detached garage: $15,000 Automobile: $12,000 Personal property: $85,000 Additional living expenses: 35,000 Disregarding any deductible how much will the company pay? $335,000 Which of the following is true concerning property and casualty contract - verified answer; Property is a two party contract, casualty is a third party contract Your pit bull, Crowbar attacks. And kills cream puff, a world champion Cockapoo. Cream puffs owner sues you for $200,000 the judge awards him $120,000 and your defense cost amount of $25,000. All you have for liability coverage is your HO-3 with standard limits. How much will your company pay out on this loss - verified answer; $125,000 Insurance address what kind of risk - verified answer; Pure risk what is section 2 of a the homeowners policy - verified answer; Liability The transportation reimbursement benefits which can be provided under damage to your auto coverage of the PAP utilize a time of deductible of - verified answer; 24 hours If your house and the attached garage are insured for $100,000 how much coverage exists on the garage - verified answer; $100,000 Which of the following is a homeowners basic peril - verified answer; Theft Flood coverage begins ____ days after your application is received - verified answer; 30 days Another word for risk is - verified answer; Exposure An important commercial property coverage for. Bubba's bowling alley is which of the following? - verified answer; Business income coverage Under the PAP damage to your auto coverage, claims are paid on the basis of which of the following - verified answer; Actual cash value Assume your personal auto policy has underinsured limits of 100/300/100. You are injured by a negligent driver with minimum state limit of 30/60/25 you are injured to the extent of $110,000. How much will your underinsured motorist coverage pay? - verified answer; $70,000 If your house is insured for $100,000 then your homeowners policy automatically provides coverage for up to what amount on your detached garage shed? - verified answer; $10,000 An employee covered by a fidelity bond is which of the following - verified answer; Principal Your client was covered with an HO-2 when you upgrade him to an HO-3 how has the upgrade affected his coverage? - verified answer; Coverage A was broad forms peril and now it is special forms peril You have your $250,000 house covered for $250,000 under an HO-5. All of the following are true concerning your coverage except: - verified answer; Personal property losses are settled in replacement cost basis You are driving with PAP liability limits of 30/60/25 when you run a stop sign and hit Calvin and his wife Clara in their sedan. You are hurt, both vehicles are damaged and both Calvin and Clara are injured. Calvin in the amount of $20,000 and Clara in the amount of $40,000 how much will your policy pay for the injuries sustained by both Calvin and Clara, - verified answer; $50,000 A wheel falls of a commercial aircraft and through the roof of your home. Which of the following best describes the event? - verified answer; It is both and accident and occurrence Which is the correct format of a personal auto policy? - verified answer; Part A- liability, Part B-Med Pay, part C- uninsured and underinsured motorist, coverage D- damage to your auto Your weird artist friend, Vincent Van Gone is in your apartment when he trips over you is in your apartment when he trips over your Pekingese dog and sprains his wrist. Your HO-4 covers the $500 for urgent care clinic charged to wrap his wrist under coverage F. When Vincent sues you for the injury, the two weeks he is unable to work and pain and suffering, a jury awards him $5,000. Your company will now pay Vincent? - verified answer; $4,500 Building A is unoccupied and identical building B is vacant. Which is A higher risk? - verified answer; Building B is the higher risk Your house is hit by lightning and catches fire. Soon, your fire spreads to the smiths house next door. Though the firefighters save the Smith house, they do significant damage with there axes and fire hoses. The smiths must live in a motel for 60 days while there house is renovated. Which of smiths losses is an indirect loss? - verified answer; The additional cost of living in a motel Assume that you lease your television which has an ACV of $800, a replacement cost of $1200, your 12 year old son throws a brick through the screen in a fit of hormonal rage. How would you HO-3 with its $250 deductible address the loss, of at all? - verified answer; Your HO-3 would not pay as this was an intentional act You are insured under an HO-3 and own a gun collection worth $5,000. If your entire collection is stolen, the most you could collect under your policy is which of the following - verified answer; $2500 Which of the following types of property's is not subject to a special dollar limit under coverage C of homeowners - verified answer; Audio/visual equipment Written changes to property and casualty policies are called - verified answer; Endorsements You are driving with person auto liability limits of 50/100/50 and med pay limits of $10,000 you run a red light and cause an accident. You sustain $1,000 in injuries; your neighbor sustains injuries of $1,500 as a passenger in your car: and the other driver suffers $2,500 in injuries. How does your personal auto policy respond to these losses? - verified answer; Part A liability covers the other driver; part B-med pay pays you and your passenger P and C companies tend to exclude losses that are any of the following except: - verified answer; Manageable If Calvin gets a new roof when his 10 year old roof is destroyed by hail, the loss was settled on what basis - verified answer; Replacement cost Your precious 6 year old son takes your car keys off the tv while you are napping through a Sunday afternoon baseball game he starts your car and throws it into reverse. He simultaneously destroys the car stops the car and wipes out the mailbox if you have collision coverage under your personal auto policy will your company pay - verified answer; Yes Assume your personal auto policy has limits of 100/300/50. What does the number 100 represent if you negligently cause an accident - verified answer; The most your company will pay for bodily injury you do to any one person If your company continues your building and business personal property coverage in the event of vacancy and the building sustains a $100,000 dollars loss due to fire, how much will you company pay for the loss? - verified answer; 85,000 Wall to wall carpeting would be covered by homeowners coverage - verified answer; Coverage A The garage covers form of a commercial auto policy is designed for which of the following - verified answer; Auto dealership Betting on gluepot to win the fifth race at the tracks what kind of risk - verified answer; Speculative risk Any ambiguities found in p and c policy will be resolved in a favor of the policy owner because p and c policies are which of the following - verified answer; Contracts of adhesion You are driving with PAP liability limits of 30/60/25 when you run a stop sign and hit Calvin and his wife Clara in their sedan. You are hurt, both vehicles are damaged and both Calvin and Clara are injured. Calvin in the amount of $20,000 and Clara in the amount of $40,000 which section of your policy pays for the damage to your car - verified answer; Part D collision If your company continues your building and business personal property coverage in the even of vacancy which of the following perils is still covered - verified answer; Riot The dollar limit on watercraft under a homeowners policy is which of the following - verified answer; $1500 Dave just purchased a 19'6" triton bass boat with a trailer he plans to keep his $22,000 boat in his garage and tow it back and fourth in the lake You should recommend that Dave insure his boat by purchasing with of the following - verified answer; A boat owners policy Which of the following is not a broad form peril? - verified answer; Volcanic action You have an at fault accident while driving your car with three additional passengers your personal autos policy med pay limits are $5,000 if everyone is hurt what is the maximum that your company will pay out in med pay claims - verified answer; $20,000 When an insurance company promises to "make you whole" following a loss they are promising to ________you. - verified answer; Indemnify Harry buys a power saw from Calvin's hardware when he opens the box a saw blade that is improperly packaged cuts his hand severely. If Calvin is legally responsible the $3750 worth of medical bills can be paid by Calvin's - verified answer; Products liability coverage You are insured under an HO-3 and owns a $5,000 gun collection if your entire collection is destroyed in a fire the most you could collect under your policy is which of the following - verified answer; $5,000 Which of the following is not a basic peril - verified answer; Collapse Minimum limits of liability coverage in state A are 30/60/25 a person driving with limits of 25/50/10 would be considered which to the following - verified answer; Uninsured motorists If you elect to have coverage for the peril of terrorism with your commercial property coverage you will pay a premium up charge of how much - verified answer; 3% The primary intent of homeowners medical payments coverage is to avoid - verified answer; Avoid lawsuits Assume your personal auto policy has limits of 100/300/50 what does the number 100 represent if you negligently cause an auto accident - verified answer; The most your company will pay for bodily injury you do to any one person. Which of the following is true concerning collision and other than collision coverage in a personal auto policy - verified answer; Collision is named peril and other than collision is open perils All of the following are true concerning commercial general liability coverages A,B, and C except - verified answer; Coverage B is necessary for businesses engaged in advertising You are driving with PAP liability limits of 30/60/25 when you run a stop sign and hit Calvin and his wife Clara in their sedan. You are hurt, both vehicles are damaged and both Calvin and Clara are injured. Calvin in the amount of $20,000 and Clara in the amount of $40,000. Which section Of your policy pays for injuries sustained by Calvin and Clara - verified answer; Part A liability A company chartered in New York doing business in California could be described as a _____________ ___________company. - verified answer; Admitted, foreign A area rug would be covered by homeowners coverage - verified answer; C One night your carelessly drive off the road and hit a tree. You suffer a concussion, a broken arm, a chipped tooth, and you are off of work for two weeks recovering from the concussion. Your PAP medical payments will cover expenses for all of the following except - verified answer; Your loss of two weeks of income Under damage to your auto of the personal auto policy you may purchase all of the following except: - verified answer; Collision