Guarantee ExamFX, Idaho Personal Lines Simulation Exam

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Guarantee ExamFX, Idaho Personal Lines Simulation Exam Questions and Answers Updated Latest (Verified Answers)

• 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 ANS 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.ANS A van used in the delivery business. 1 / 4

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• 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.ANS 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. 2 / 4

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ANS Named peril coverage.

5.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 / 4

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3.Part C - Uninsured Motorist 4.Part D-Damage to Your Auto ANS 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 ANS Conditions 7.*A trucking company has a $1 million umbrella policy in place. The busines- sowner 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

• $300,000
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