Insurance Chapter Quiz Problems
A credit-based score that is highly predictive of future claims cost is an individual's (a) CLUE score. (b) insurance score. (c) loss ratio score. (d) underwriting score.
B
Under one doctrine, a person who understands the danger inherent in an activity cannot recover damages in the event of injury from the activity. This doctrine is the (a) contributory negligence doctrine. (b) assumption of risk doctrine. (c) comparative negligence doctrine. (d) fellow servant doctrine.
B
1.All of the following persons are insured's for personal liability insurance under the homeowners policy EXCEPT (a) children of the named insured under age 24 who are attending college full time and temporarily residing elsewhere. (b) foster children under the age of 21 who reside with the named insured. (c) nonresident employees of the named insured. (d) the spouse of the named insured if a resident of the same household.
C
A credit-based score that insurers claim is highly predictive of future claims costs is an individual's (a) combined ratio. (b) loss ratio. (c) insurance score. (d) underwriting score.
C
All of the following are additional coverages under Section I of the Homeowners 3 policy EXCEPT (a) the reasonable expenses of removing debris of covered property after an insured loss. (b) fire dept. service charges for which the insured is liable by contract or agreement. (c) windstorm damage to trees and shrubs. (d) losses incurred from the unauthorized use of a stolen credit card.
C
Which of the following statements about the business income coverage form is true? (a) Business income is defined as gross earnings before taxes. (b) Payroll is excluded unless it is specifically added. (c) The form covers loss of business income and extra expenses incurred as a result of the loss. (d) The form can be used by a manufacturing operation only.
C
Which of the following statements about surety bonds is (are) true? I. The surety has a legal right to recover a loss payment it makes on behalf of a defaulting principal. II. The obligee is the party who benefits from the bond if the principal fails to perform. (a) I only (b) II only (c) both I & II (d) neither I nor II
C
Which of the following statements is (are) true concerning the use of an individual's credit history as an insurance rating factor? I. Individuals with poor credit histories generally file more homeowners claims than do individuals with good credit histories. II. The use of credit history as a rating factor is controversial. (a) I only (b) II only (c) both I and II (d) neither I nor II
C
Laws under which businesses that sell liquor may be held liable for the negligence of those who consume the liquor are referred to as (a) proprietary function laws. (b) attractive nuisance laws. (c) assumption of risk laws. (d) dram-shop laws.
D
Which of the following statements about the Homeowners 3 policy is (are) true? I. Losses to the dwelling are always settled on an actual cash value basis. II. Coverage on personal property is limited to $5000. (a) I only (b) II only (c) both I and II (d) neither I nor II
D
Liability arising out of work performed by independent contractors is referred to as (a) contractual liability. (b) contingent liability. (c) care, custody, & control liab. (d) customer's liability.
B
1.In the ISO Commercial Crime Coverage form, theft is defined as the (a) unlawful taking of money, securities, or property to the deprivation of the insured. (b) unlawful taking of property from a person by someone who has caused or threatened to cause bodily harm or who has committed an unlawful act witnessed by the person. (c) unlawful taking of money or securities through the alteration of a negotiable instrument. (d) unlawful taking of property from inside the premises by someone who unlawfu
A
A defendant who is only slightly liable may be required to pay the full damages under which? (a) the joint and several liability rule (b) the collateral source rule (c) arbitration (d)res ipsa loquito
A
All of the following are covered for liability under a PAP EXCEPT (a) a nonowned van which is driven by the insured on a regular basis. (b) a trailer owned by named insured. (c) a borrowed auto used by the insured as a substitute auto. (d) a newly acquired auto which replaces a vehicle previously described in the policy.
A
All of the following are covered perils under the personal property coverage (Coverage C) of an unendorsed Homeowners 3 policy EXCEPT (a) earthquake. (b) theft. (c) windstorm. (d) explosion.
A
All of the following are elements of a negligent act EXCEPT (a) the existence of a no- fault law. (b) the failure to perform a legal duty to use reasonable care. (c) damages or injuries to a claimant. (d) proximate cause between the negligent act and the infliction of injury.
A
All of the following are examples of intentional torts EXCEPT (a) negligence. (b) trespass. (c) slander. (d) assault.
A
Damages awarded for losses that can be determined or measured are (a) special damages. (b) general damages. (c) punitive damages. (d) comparative damages.
A
Duties of an insured after a covered collision loss include which of the following? I. Take reasonable steps to protect the vehicle from further damage. II. Admit fault if the insured believes he or she caused the collision. (a) I only (b) II only (c) both I and II (d) neither I nor II
A
Financial responsibility law defects include which of the following? I. Accident victims may not be fully compensated for their injuries. II. They apply only to PD losses, not to bodily injury claims. (a) I only (b) II only (c) both I & II (d)neither I nor II
A
HRC Company purchased an unendorsed ISO Commercial General Liability (CGL) policy. All of the following claims would be covered under the CGL policy EXCEPT (a) workers compensation liability. (b) property damage liability. (c) personal and advertising injury liability. (d) bodily injury liability.
A
In addition to the named insured, all of the following are insured's under the Commercial General Liability Policy EXCEPT (a)suppliers of products to the named insured's business. (b) employees acting within the scope of their employment. (c) real estate managers of named insured. (d) drivers of mobile equipment owned by insured business.
A
Ken fell asleep while driving late at night, crossed the center line and hit a car approaching from the other direction. The following losses occurred: — The driver of the other car suffered $30,000 in bodily injuries. — Ken's car sustained $5,000 in damages. — Ken incurred $5,000 in medical expenses. — The car that Ken hit was a total loss. Which of Ken's PAP coverages will cover the other driver's medical expenses? (a) BI liability (b) collision coverage (c) Med Pymts (d) PD liab
A
Liability arising out of all of the following are covered under the personal injury endorsement to the homeowners policy EXCEPT (a) bodily injury. (b) malicious prosecution. (c) slander. (d) invasion of privacy.
A
Section II of the homeowners policy contains exclusions applying to all of the following EXCEPT (a)activities of the named insured's minor children. (b)business activities. (c) transmission of a communicable disease. (d) intentional injuries.
A
The phrase "general liability" is used to refer to the legal liability of a business arising from all of the following EXCEPT (a) employee injuries. (b) products. (c) liability assumed by contract. (d) completed operations.
A
Under financial responsibility laws, proof of financial responsibility is required under all the following EXCEPT (a) the use of an auto by any driver with < 3 yrs of driving experience. (b) an automobile accident involving PD over a specified amount. (c) failure to pay a final judgment resulting from an auto accident. (d) conviction for certain serious traffic offenses, such as DWI.
A
Under which type of automobile insurance arrangement are all automobile insurers in a state assigned their proportionate share of high-risk drivers based on the total volume of auto business written in the state? (a) automobile insurance plan (b) unsatisfied judgment fund (c) reinsurance facility (d) specialty automobile plan
A
Which of the following statements about errors and omissions insurance is true? I. It is purchased by professionals to protect against claims arising for negligent acts, errors, and omissions. II. Claims arising from fraudulent and dishonest acts are covered. (a) I only (b) II only (c) both I and II (d) neither I nor II
A
Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true? (a) The amount of insurance on other structures is equal to a percent of the coverage on the dwelling. (b) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling rather than other structures. (c) Coverage applies even if the other structure is used for business purposes. (d) There is coverage for a private garage only if i
A
Which of the following statements about uninsured motorists coverage is true? (a) An innocent motorist must establish that the uninsured motorist is legally liable. (b) The amount of coverage in most states must be at least $300,000. (c) Property damage is covered in all states but bodily injury is not covered in all states. (d) The coverage is very expensive and beyond the means of all but wealthy insureds.
A
Which of the following statements about workers compensation insurance is (are) true? I. Under the workers compensation part of the policy, the insurer agrees to pay the benefits required by the workers compensation law of any state listed in the policy declarations. II. The employers liability part of the policy provides workers compensation benefits when employees are working in states other than those listed in the policy declarations. (a) I only (b) II only (c) both I and II (d) neither I no
A
Which of the following statements concerning directors and officers liability insurance (D&O) is true? I. D&O policies usually cover the personal liability of directors and officers. II. D&O policies exclude coverage for claims brought by employees and by stockholders. (a) I only (b) II only (c) both I and II (d) neither I nor II
A
A customer was injured when a furnace exploded following its faulty installation by a heating and cooling business. For the heating and cooling business, this is an example of (a) contingent liability. (b) completed operations liability. (c) products liability. (d) contractual liability.
B
A tort is defined as a (a) breach of contract which is punishable by a fine. (b) legal wrong for which the law allows a remedy in the form of money damages. (c) legal wrong against society which is punishable by fines. (d) legal wrong against society which is punishable by imprisonment or death.
B
All of the following are covered under the dwelling coverage (A) of the Homeowners 3 policy EXCEPT (a) any structure attached to the dwelling. (b) the land on which the insured dwelling is located. (c) materials and supplies intended for alteration or repair of the dwelling. (d) materials and supplies intended for construction of a detached garage.
B
All of the following losses are excluded under Part D (coverage for damage to your auto) of an unendorsed PAP EXCEPT (a) damage by vandals to a portable car telephone. (b) theft of a compact disc player which was permanently installed in the auto. (c) damage caused to a car's engine because the named insured forgot to use antifreeze. (d) damage by fire to a radar detector which overheated.
B
All of the following statements about the coverage for loss of use (Coverage D) under an HO-3 policy are true EXCEPT (a) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss. (b) Duration of payments for additional living expenses is limited to maximum of 15 days. (c) There is coverage for the fair rental value of any part of premises rented to others. (d) There is coverage if civil authorities prohibit the i
B
Common situations involving absolute liability include all of the following EXCEPT (a) blasting operations. (b) operating a motor vehicle. (c) work-related injuries under workers compensation. (d) crop dusting.
B
Crystal Clean, a dry cleaning business, was concerned that clothing left in its care by customers might be lost, damaged, or destroyed. What type of insurance can Crystal Clean purchase to address this liability exposure? (a) employers liability insurance (b) bailee's customer insurance (c) product liability insurance (d) general liability insurance
B
In addition to providing coverage in the United States, its territories and possessions, and Puerto Rico, where else does the PAP provide coverage? (a) in Mexico (b) in Canada (c) in both Mexico and Canada (d) anywhere in the world.
B
In the ISO Commercial Crime Coverage form, robbery is defined as the (a) unlawful taking of money, securities, or property to the deprivation of the insured. (b) unlawful taking of property from a person by someone who has caused or threatened to cause bodily harm or who has committed an unlawful act witnessed by the person. (c) unlawful taking of money or securities through the alteration of a negotiable instrument. (d) unlawful taking of property from inside the premises by someone who unlawfu
B
In the state where Susan lives, drivers whom private insurance companies do not want to cover are placed in a common pool, and each company pays its pro rata share of pool losses and expenses. A common policy is used for all high-risk drivers. Susan's state handles high-risk drivers through a(n) (a) auto insurance plan. (b) joint underwriting association. (c) pure no-fault plan. (d) specialty auto insurer.
B
Nancy was injured when she drove her car through a stop sign and was struck by Philip's car. Philip saw Nancy and could have stopped. However, he failed to do so since he had the right-of-way. Nancy can recover damages from Philip under which of the following legal doctrines? (a) vicarious liability (b) the last clear chance rule (c) contributory negligence (d)the assumption of risk doctrine
B
Reggie just purchased a home. A friend told him to consider insurance coverage for natural disasters when insuring the home. Losses from all of the following perils are covered under an unendorsed Homeowners 3 policy EXCEPT (a) tornadoes. (b) floods. (c) hurricanes. (d) forest fires.
B
The exterior walls, the roof, and the plumbing, heating and air conditioning systems of a residential condominium can be insured through the purchase of (a) condominium unit owners insurance. (b) condominium association coverage form. (c) dwelling property broad form. (d) condominium commercial unit-owners insurance.
B
Which homeowners policy is designed for the tenants of rented premises? (a) Homeowners 2 (b) Homeowners 4 (c) Homeowners 6 (d) Homeowners 8
B
Which of the following statements is (are) true concerning full reporting clause of the value reporting form? I. Failure to report accurately suspends coverage. II. If insurer is able to prove inventory was under- reported, recovery is limited to proportion of last value reported bears to the correct value that should have been reported. (a) I only (b) II only (c) both I & II (d) neither I or II
B
Which of the following property is covered under the personal property coverage (Coverage C) of the Homeowners 3 policy? (a) a pet iguana owned by the insured (b) a bicycle owned by a foster child living with the named insured (c) music CDs located in insured's auto (d) a stamp collection insured under a separate policy
B
Which of the following statements about commercial umbrella policy is (are) true? I.The policy is designed to cover only those loss exposures excluded by the underlying insurance contracts. II. The policy is excess over the required underlying coverages. (a) I only (b) II only (c)both I and II (d)neither I nor II
B
Which of the following statements about medical payments coverage to others is true? (a) Medical payments may be made for any resident of the named insured's household. (b) Medical expenses incurred within 3 years of an accident are covered. (c) Medical payments are made only if the insured is not legally liable. (d) Covered medical expenses are limited to emergency room charges.
B
Which of the following statements about monetary damages awarded by a court is (are) true? I. The purpose of general damages is to provide benefits for medical expenses or loss of earnings. II. The purpose of punitive damages is to punish the tortfeasor so that others are deterred from committing the same wrongful act. (a) I only (b) II only (c) both I and II (d)neither I nor II
B
Which of the following statements about the businessowners policy is (are) true? I. It is designed primarily to meet the insurance needs of large manufacturing firms. II. It is a package policy designed to meet the basic property and liability needs of an insured in a single contract. (a) I only (b) II only (c) both I and II (d) neither I nor II
B
Which of the following statements about uninsured motorists coverage is true? (a) The coverage usually applies only to PD. (b) The coverage applies only if the uninsured motorist is legally liable. (c) Unless higher amounts are purchased, the max benefit is normally limited to $1,000. (d) A covered person's only recourse is to sue the insurer if there is a disagreement over the amount of damages.
B
All of the following are considered uninsured vehicles under uninsured motorists coverage of the PAP EXCEPT (a) a vehicle owned by an individual that is insured, but for less than the amount required by the state's financial responsibility law. (b) a hit-and-run vehicle, the ownership of which cannot be determined. (c) a vehicle upon which enough liability insurance has been purchased to satisfy the state's financial responsibility law. (d) a vehicle insured by a company which becomes insolv
C
All of the following are exclusions under the medical payments coverage of the PAP EXCEPT (a) injuries incurred while riding a motorcycle. (b) injuries incurred while an auto is being used without the presumption that permission would have been granted to use the auto. (c) injuries incurred in an auto while it is used in a share- the-expense car pool. (d) injuries incurred during the course of employment if workers compensation benefits are available.
C
All of the following are general exclusions under Section I of the Homeowners 3 policy EXCEPT (a) losses due to earthquake. (b) losses due to the failure of insured to use all reasonable means to save & preserve property after a loss. (c) losses resulting from a power failure caused by an insured peril on the residence premises. (d) losses due to radiation from a nuclear power plant.
C
All of the following are major rating factors for determining private passenger automobile insurance premiums EXCEPT (a) gender (b) age (c) race (d) marital status.
C
All of the following losses are covered under Section II of an unendorsed Homeowners 3 policy EXCEPT (a) The homeowner accidentally dropped a bowling ball, injuring another bowler's foot. (b) A baby sitter slipped and fell at the insured's home, breaking her ankle and incurring medical expenses. (c) The insured slandered a city council member at a city council meeting. (d) The insured's dog bit a veterinarian while the dog was at the veterinary clinic.
C
All of the following statements about liability coverage under the Businessowners Policy are true EXCEPT (a) Liability arising out of personal injury is covered as part of the insuring agreement. (b) Medical payments coverage is provided. (c) The insured is defined in such a way as to exclude employees acting within the scope of their employment. (d) Coverage is included for the legal costs of defending the insured.
C
All of the following statements about the termination provisions of the PAP are true EXCEPT (a) The insured can cancel the policy for any reason. (b) The insurer can cancel a newly written policy for any reason if it has been in force for less than 60 days. (c) The insurer can cancel the policy after it has been in force for 60 days only if the insured has three or more traffic violations. (d) The insurer can refuse to renew the policy at its annual anniversary date as long as proper notice is g
C
Amber believes that her auto insurance premium is too high. All of the following will reduce Amber's auto insurance premium EXCEPT (a) Amber could raise her physical damage deductible. (b) Amber could move from the city where she lives to a rural area outside the city. (c) Amber could increase the amount of liability insurance that she carries. (d) Amber could improve her driving record.
C
Factors that affect the cost of homeowners policies include which of the following? I. Construction II. Deductible amount (a) I only (b) II only (c) both I & II (d) neither I or II
C
In the context of a surety agreement, the party who agrees to answer for the debt, default, or obligation of another party is called the (a) principal. (b) obligee. (c) surety. (d) fidelity.
C
Insured's under Section I of the Homeowners 3 policy include which of the following? I. A spouse of the named insured if living in the same household II. The named insured's children who are under age 24 and who are temporarily away at college (a) I only (b) II only (c) both I and II (d) neither I nor II
C
Shareholders and employees harmed by the negligent acts and deceptive statements of company leaders may file lawsuits against the company leaders. Such claims are covered under which type of insurance? (a) employment practices liability insurance (b) employee benefit liability insurance (c) directors and officers liability insurance (d) general liability insurance
C
The Building & Personal property coverage form provides several optional coverages. Under 1 of them no deduction is taken for depreciation when settling a loss. This is (a) extra expense. (b) agreed value. (c) replacement cost. (d) inflation guard.
C
The Homeowners 3 policy limits the coverage provided on certain personal property (e.g. coins and silverware). This personal property can be adequately insured by (a) lowering the deductible which applies to personal property losses. (b) storing the property away from the home at another location. (c) adding a schedule to the policy listing the property with specific amounts of insurance. (d) adding an appraisal clause to the policy.
C
The inventory at Frank's business fluctuates. Frank's property insurance requires periodic reporting of inventory values. Frank believes he can save money by under-reporting the inventory. Last period, Frank reported $200,000 when the value was really $400,000. Shortly after filing the report, when the value was $500,000, the inventory was destroyed. How much will Frank's insurer pay, assuming no deductible? (a) nothing, as underreporting voids coverage (b) $200,000 (c) $250,000 (d) $400,0
C
The term used to describe plans in which automobile insurers participate to make insurance available to drivers unable to obtain coverage in the standard market is the (a) foreign market. (b) fair market. (c) residual (shared) market. (d) high-premium market.
C
Which of the following about buying homeowners insurance is true? (a) There is no reason to carry insurance greater than 80% of a dwelling's replacement cost. (b) Deductions for depreciation will be increased if a personal property replacement cost endorsement is purchased. (c) Premiums often can be reduced substantially by selecting a higher deductible. (d) There is little reason to compare costs since lack of competition results in little price variation in companies.
C
Which of the following exposures is covered under a Commercial General Liability Policy with no endorsements? (a) pollution liability (b) employment-related practices liability (c) personal injury liability (d) aircraft liability
C
Which of the following is considered to be a collision loss under Part D (coverage for damage to your auto) of the PAP? (a) The covered auto hits a deer. (b) The covered auto is wrecked by a thief after it is stolen. (c) The covered auto is damaged when it slid off an icy road and hit a fence. (d) The covered auto is damaged when struck by a rock thrown by a child.
C
Which of the following losses is generally covered under a commercial umbrella policy? (a) liability arising out of workers compensation laws (b) liability arising out of pollution (c) liability arising out of infringement of a copyright (d) cost of recalling defective products
C
Which of the following losses would be covered under the medical payments coverage of HO-3? (a) injuries to another person arising out of the insured's negligent operation of a vehicle (b) medical payments resulting from the transmission of a communicable disease (c) injury to a resident employee at the insured's home (d) workers comp medical payments
C
Which of the following persons is (are) covered for liability insurance under the PAP? I. A family member who drives a covered auto. II. A family member who drives a friend's auto. (a) I only (b) II only (c) both I and II (d) neither I nor II
C
Which of the following situations would be covered under the liability section of the PAP? I. An attendant at a parking lot is sued by a pedestrian who is injured when the attendant has an accident while parking an auto. II. The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car. (a) I only (b) II only (c) both I and II (d)neither I nor II
C
A situation in which a person is held legally liable even though fault or negligence cannot be proven is an example of (a) general damages. (b) comparative negligence. (c) an intentional tort. (d) absolute liability.
D
All of the following are arguments for no-fault automobile insurance laws EXCEPT (a) It is often difficult to determine fault under the tort liability system. (b)A large portion of each premium dollar is used for purposes other than compensating accident victims for their losses. (c)The tort system fails to compensate many innocent victims of automobile accidents. (d)Seriously injured accident victims tend to be overcompensated, while those with small economic losses are inadequately indemnified
D
All of the following are considered insured locations for medical payments to others (Coverage F) EXCEPT (a) a new vacation home purchased by an insured during the policy period. (b) a motel room where an insured is temporarily residing. (c) a hall rented by the insured for her daughter's graduation party. (d) farmland owned by the insured.
D
All of the following are coverage options under the physical damage insurance of the Business Auto Coverage Form EXCEPT (a) comprehensive coverage. (b) specified causes-of-loss coverage. (c) collision coverage. (d) property damage liability coverage.
D
All of the following are covered under the building and personal property coverage form EXCEPT (a) the insured's stock & inventory when located inside insured premises (b) equipment used to service insured premises. (c) the insured's use of interest in improvements and betterments. (d) property away from premises that is not owned by or in the care of the insured.
D
All of the following may give rise to imputed negligence EXCEPT (a) employer-employee relationships. (b) joint business ventures. (c) vicarious liability laws. (d) attractive nuisance situations.
D
All of the following statements about Part D (coverage for damage to your auto) of the PAP are true EXCEPT (a) Coverage may be purchased with or without collision insurance. (b) Losses are paid regardless of fault. (c) Coverage applies to a nonowned auto occasionally driven by an insured. (d) A newly acquired auto is covered only if the named insured asks the company to insure it within 48 hours of acquisition.
D
All of the following statements about shopping for auto insurance are true EXCEPT (a) Adequate liability insurance is the most important consideration. (b) Consideration should be given to dropping Physical Damage insurance on an older car with a low value. (c) To obtain the lowest premium, an applicant should review his or her eligibility for all discounts offered. (d) Price comparisons are of little value since insurers tend to charge the same premiums.
D
All the following are in the common policy declarations page of a commercial package policy EXCEPT (a) a description of the insured property. (b) the policy period. (c) the premium paid. (d) the policy cancellation provisions.
D
All the following causes of loss are included in the causes-of-loss basic form policy EXCEPT (a) fire. (b) lightning. (c) explosion. (d) flood.
D
Dennis was involved in an accident. He believes the damage to his auto is $6,000. His insurer believes the damage is only $3,500. Which PAP provision is designed to handle disputes between the insurer and the insured over the amount of the loss? (a) other insurance provision (b) agreed amount endorsement (c) coinsurance provision (d) appraisal provision
D
Francis opened a store and knows customers who come to the store may be injured on the premises and hold her responsible. Under common law, customers are considered (a) aliens. (b) licensees. (c) trespassers. (d) invitees.
D
In the context of a surety agreement, the party who agrees to perform certain acts or fulfill certain obligations is called the (a) fidelity. (b) obligee. (c) surety. (d) principal.
D
James, injured in an auto accident caused by another motorist's negligence received severe facial lacerations. After dismissal from the hospital he still had severe back pain. In payment for his pain and suffering, and disfigurement, James will receive (a) punitive damages. (b) special damages. (c) imputed damages. (d)general damages
D
Last National Bank believed it had been properly authorized to transfer $250,000 to the off-shore account of one of its corporate customers. The authorization was fraudulent, however, and the transferred funds were stolen. Under which commercial crime coverage insuring agreement would such a loss be covered? (a) Money Orders and Counterfeit Currency (b) Forgery or Alteration (c) Outside the Premises (d)Funds Transfer Fraud
D
Section I of the Homeowners 3 policy provides coverage for all of the following EXCEPT (a) loss of use. (b) personal property. (c) other structures. (d) medical payments.
D
Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPT (a) paying the claim in cash. (b) replacing the property. (c) repairing the property. (d) paying the claim with insurance company stock.
D
Which of the following statements about the appraisal clause in the Homeowners 3 policy is true? (a) The appraiser for each party is selected by a judge. (b) A binding settlement can be reached only if the umpire agrees with both appraisers. (c) Both the insured and the insurer must agree that the appraisal process be used. (d) Appraisal expenses are shared by the insured and the insurer.
D
Which of the following statements about the factors affecting automobile insurance rates is true? (a) Because the chance of accidents due to mechanical malfunctions or poor maintenance is increased, the cost of collision coverage increases as a car gets older. (b) Because of high speeds in rural areas, rural drivers tend to pay more for insurance than city drivers. (c) Young unmarried male drivers tend to have fewer accidents than young married male drivers in the same age category. (d) People w
D
Which of the following statements about the medical payments coverage of the PAP is true? (a) The amount of the benefit typically is $100,000. (b) Covered expenses must be incurred within 6 months of the accident. (c) Covered expenses include the cost of funeral services. (d) The benefit limit applies on a per-accident basis rather than on a per-person basis.
D
Which of the following statements is (are) true regarding renters insurance? I. Renters insurance is needed if you rent a house, but not needed if you rent an apartment. II. The ISO renter's policy provides "all-risks" coverage on the insured's personal property
D
XYZ, Inc. would suffer serious financial consequences if either of 2 major customers shut down & could not purchase XYZ products. Which of the following types of consequential loss protection would provide protection against this exposure? (a) leasehold interest (b) extra expense (c) marine insurance (d) business income from dependent properties
D
