Poll Questions for Exam 2
Which rating factor does not apply in NC?
drivers age
The swimming pool at the Arthur's primary residence is insured under Homeowners coverage:
other structures
Is a sunfish sailboat covered under the homeowner policy
yes, because of the size, under 26'
Q-2 Matthew was involved in an auto accident, and the jury determined that Matthew was 10% at fault and the other party was 90% at fault. Matthew's total bodily injury (TBI) was $50,000. In a contributory negligence state, what will Matthew collect?
$0
Payment for Damage to Patrick's Vehicle? ACV of vehicle is 20,000. Repair Cost for vehicle is 12,000; Replacement Value of Vehicle is 30,000. Patrick has Physical Damage coverage on his vehicle.
$12,000, RC
ACV of SUV is 25,000. Repair cost for SUV is 15,000. What is PD Payment for SUV? Patrick's Limits are : 50/100/25
$15,000
Fred drives Jenny's car to the Bank. Fred's auto limits are 100/300/50. Jenny's limits are 50/100/25. Fred runs a light and hits another vehicle causing $80,000 BI to the other driver. What will Fred's policy pay for the BI to the other driver?
$30,000
Jim loses control of his vehicle and collides with a tree in an ice storm. The Actual Cash Value of the vehicle is $30,000 and the repair cost is $24,000. What should Jim's insurance company offer as a Total Loss Settlement.
$30,000
Q-2 Matthew was involved in an auto accident, and the jury determined that Matthew was 10% at fault and the other party was 90% at fault. Matthew's total bodily injury (TBI) was $50,000. In a comparative negligence state, what will Matthew collect?
$45,000, Matthew will collect.
Payment for Patrick's Medical Bills? Medical Expenses are $10,000; Patricks limits are MP $5,000; BI $50/100
$5,000
$300,000 home replacement cost, 80% coinsurance, $210,000 policy limit, fire loss to dwelling of $60,000 (RC); $50,000 (ACV) . What is the insured's recovery from the fire loss based on 80% coinsurance and $1,000 deductible?
$51,500
The current replacement value of the Arthur's primary home is $582,000. The market value is $545,991. What coverage A amount should be recommended?
$582,000
Kristen suffers BI of $125,000 when involved in an accident with a negligent motorist. Kristen's limits are $100/300/50 with a $100 UM/UIM limit. The negligent motorist has limits of $30/60/25.What will Kristen collect under her UIM coverage?
$70,000
Home replacement cost is $480,000, Homeowner coverage A limit is $400,000, $150,00 damage from Hurricane Rita, $1,000 flat and 2% named storm deductible. What is the deductible amount for the Hurricane Rita damage?
$8,000
Aggregate payment for BI to passengers in SUV? BI to passengers: A-20; B-60; C-10; Patrick's limits: 50/100/25
$80,000 (50 limit per person/per BI)
All of the following perils are covered under the flood policy except: - Coastal storm surge - Heavy rainfall - Mudflow - Backup of sewers not directly caused by flooding
- Backup of sewers not directly caused by flooding
Maximum building/contents limits for flood insurance on a residence are:
250,000/100,00
Which of the following is not covered under the Flood Policy? A-Additional living expense B-Furnace and water heaters C-Permanently installed carpeting D- Foundation walls
A- Additional living expense
The valuation for blanket personal property coverage under the unendorsed Homeowners Form 3 is:
ACV
Reinsurance facility recoupment fees apply to:
All drivers
Q-6 Smith Construction is building a residence and leaves a tractor on the premises over night. Fred, age 10, is playing on the tractor and releases the brake. The tractor rolls down hill and Fred is injured. What idea holds them liable?
Attractive Nuisance
Most states with a no fault law have a(n): A. excess plan B. Modified plan C. choice plan D. Add-on plan
B. Modified Plan
Which of the following property items is not covered by Flood insurance? A - Washer & dryer B - Curtains C - Outdoor furniture D - Computers and other electronic equipment
C - Outdoor furniture
which of the following is covered under the HO? A -Insured conducts quarterly trunk shows for women's sportswear in her home. B-Insured is a financial analyst and uses one room in his home as an office. C- Insured babysits her grandchild three days a week D-Insured is a residential contractor and works from home
C -Insured babysits her grandchild three days a week
All of the following are elements of negligence except: A. Damages or injury to claimant B. Failure to perform a legal duty C. Ability to pay damages D. Negligent act is proximate cause of damages
C. Ability to pay damages
No fault insurance (PIP) includes recovery for: A. property damages B. Pain & Suffering C. survivor benefits D. defense cost
C. Survivor Benefits
A property owner has the duty to warn, inspect for and eliminate property defects in the case of: trespassers, customers, social guests or all of the above?
Customers
Which motorized vehicle would be covered under the Homeowners policy?
Riding lawnmower
Which peril is excluded under the Personal Auto Policy (PAP)?
Road damage to tires
Liability losses that can be documented are: special, general, punitive or comparative?
Special
Q-5 Matthew needs knee surgery on his right knee. Dr. Jones, an orthopedic surgeon, performs the knee surgery in the hospital. When Matthew wakes up, he finds both knees are bandaged. The burden of proof regarding negligence in this case will be on:
The doctor and the Hospital
In N.C., Auto Liability is based on
Tort liability
All Companies Charge the Same Rate for Primary Flood Insurance?
True, it is federally set
Accidental overflow of water from a broken washing machine hose is a covered peril under the Homeowners policy?
True, this event is a covered peril.
Elevation certificate is required for
Property in high risk areas only
The Johnson family decides to rent their home for one week to delegates attending the Republican National Convention. Does the Johnson's HO policy provide liability coverage for the rental during the RNC?
Yes, because it is a RARE occasion
During a recreational softball game, the insured under a Homeowners policy accidental releases the softball bat , during his turn at the plate, and hits a teammate in the dug-out . Is this accident covered under Homeowners medical payments?
Yes, because it is not the insured individual that was hurt.
A neighbor's child falls from a swing set on the insured premises. Is bodily injury to the child covered under the HO policy?
Yes, because they are not insured under the HO policy of that home and the family does not have control over that child.
A residence employee slips and falls on the premises. Is this accident covered under the Medical Payments of the Homeowners Policy?
Yes, because they are working for the homeowner.
Q-1 Michael and Ed are deer hunting. Michael sees bush movement and fires his rifle, hitting and injuring Ed. Is Michael guilty of negligence?
Yes, he is ngeligent
Q-1 Michael and Ed are deer hunting. Michael sees bush movement and fires his rifle, hitting and injuring Ed. In NC would Michael be able to use contributory negligence as a defense?
Yes, he would be able to use contributory negligence as a defense.
Fred's vehicle is struck by an uninsured driver running a red light. Fred's medicals and loss of income are $90,000. Fred's auto policy has limits of $100/300/50, including UM/UIM. Will Fred's policy cover his medicals and loss of income?
Yes, it will cover medicals and loss of income.
Jeff drives his personal car to post office for his employer. Will Jeff's insurance protect him and his employer?
Yes, it will protect both
Will the jewelry ($8,000) and silver ($5,500) be covered for the full value under blanket personal property of the Homeowners in the event of fire?
Yes, the jewelry will be covered under the blanket personal property of the homeowners coverage.
Primary flood risk is determined by
Flood map
Q-3 Tom is running from East Deck to the Friday Building and runs across the street against the pedestrian red light. Jessica sees Tom but fails to stop because she has a green light. In NC, what can Tom recover from Jessica for his bodily injury?
Full recovery for bodily injury damages. Due to Last Clear Chance
The Arthur's primary home was built in 1995 at a cost of $381,961.The 2019 market value of the home excluding the lot is $545,991. The 2020 replacement cost is $582,000. What HO form do you recommend?
HE 7
The Arthur's beach house was built in 2004 at a cost of $229,600. 2019 market value is $350,000 excluding the lot. The 2020 replacement cost is $408,960. What HO form do you recommend, subject to Insurance Company approval?
HO 3 &/or HE 7
A problem with the U.S. tort liability system is
High expense of judicial system
An ATV is stolen from the garage on the Residence Premises. Is the theft of the ATV covered under the HO ?
No, ATV theft is not covered under HO
While driving her company car, Janet is involved in an at fault auto accident. BI to the other motorist is $100,000 and damage to her company car is $5,000. Does Janet's personal auto policy provide coverage for the accident?
No, Janet's personal auto policy doesn't provide coverage. It would have to be an add-on of non-owned personal auto/borrowed autos.
Is a Jet Ski covered under the Homeowners policy for liability coverage?
No, Jet Skis are not covered under homeowner policy
Jerry is a painting contractor operating out of his home. Jerry left a ladder standing against a house that he was painting . The ladder falls and injures a neighbor visiting the premises. Will Jerry's Homeowner policy provide coverage?
No, because of business rules, unless he has an endorsement for running his business out of his home.
The insured under the Homeowners Policy becomes irate and attacks the umpire following a Little League baseball game . Does Liability Coverage Under the HO policy apply to this situation ?
No, does not protect against purposeful acts
Will the Arthur's jewelry ($8,000) and silver ($5,500) be covered for the full value under blanket personal property of the Homeowners in the event of theft?
No, in the event of theft it will not be covered for full value.
Fred leaves his car at an auto repair shop for faulty brakes to be repaired. While road testing, the mechanic has an accident and injures another motorist. Is the mechanic covered under Fred's policy?
No, the mechanic is not covered
The broadest insuring agreement under the Homeowner policy is
Open perils
Martha rents a snowmobile at a ski resort and accidentally collides with a skier. Martha is sued for $200,000 by the injured skier. Will Martha's Homeowner policy provide coverage?
Yes, the snowmobile is covered under the homeowner policy because it is being rented
Which policyholder needs Loss Assessment coverage?
Owner of a condominium (NOT, single family home, secondary home or apt tenant)
Which policyholder needs more than 10% coverage A for Ordinance or Law Coverage?
Owner of a home built in 1955
Q-1 Michael and Ed are deer hunting. Michael sees bush movement and fires his rifle, hitting and injuring Ed. In SC (comparative negligence state), Ed's potential recovery would be:
Percentage of damages
The Arthur's own silver, jewelry, and watercraft exceeding the special PP limits. What form can be used to insure these items to full value?
Personal Articles Floater
Which dog is most dangerous?
Pit Bull
Which of the following is covered in the basement? Drywall Carpeting Wall covering including paint Furniture
Drywall
The garage at the Arthur's primary residence is insured under Homeowners coverage :
Dwelling
NC facility rates for "Clean" drivers are:
Equal to standard rates
Litigation is more likely to occur in NF States that utilize a verbal as opposed to a dollar threshold
False
PD Law suit in NF states can be filed only if claim exceeds a dollar or verbal threshold
False, PD suits are permitted w/out regard to a threshold
You must live in a Special Flood Hazard Area (SFHA) to be eligible for flood insurance?
False, as long as your community is compliant you are eligible.
A standard flood insurance policy automatically includes building and contents coverage
False, building and contents coverage must be added
Flood is a covered peril under the Homeowners policy?
False, flood isnt covered under HO
Storm surge (flooding) from a hurricane is covered under the Homeowners Policy.
False, flooding is not covered under homeowners insurance
All homes in a SFHA in the U.S. must carry Flood Insurance?
False, must be homes with mortgages with a bank
Flood Insurance policy becomes effectively immediately after completing the application and paying the premium?
False, there is a 30-day wait period
Individuals and families who do not have flood insurance will be eligible for federal grants to rebuild following a federally designated natural disaster?
False, you must have flood insurance to be eligible for federally funded grants
Richard has financial problems and hires someone to burn his house down. Amount of insurance on the home is $250,000 with a mortgage clause to Fidelity Bank. Mortgage is $225,000. How will the loss be settled?
Insurance company pays $0 to Richard and $225,000 to the bank
Residual Mkt. Plan in which a few servicing carriers administer policies?
Joint Underwriting Assn. (JUA)
All of the following are arguments for NF insurance except: - lower auto premiums with NF - difficult to determine fault in auto accident - inequity in tort system - high tort litigation expense
Lower auto premiums with NF
The Homeowners Insured's dog bites a neighbor's child. Is bodily injury from the dog bite covered under the Homeowners policy?
Yes because it is not an insured individual of the home
Q-4 Emily is a sales representative for Parkway Distributors, a pharmaceutical company. She is involved in an accident while driving her personal car on a sales call. Can Parkway Distributors be held liable for injury to others caused by Emily's negligence?
Yes, Parkway Distributors can be held liable.
Q-6 Smith Construction is building a residence and leaves a tractor on the premises over night. Fred, age 10, is playing on the tractor and releases the brake. The tractor rolls down hill and Fred is injured. Is Smith Construction liable for injury to Fred?
Yes, Smith Construction is liable.
