ARIZONA ADJUSTER - PROPERTY CASUALTY EXAM

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SIMULATOR - SERIES 13-36

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -88 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: Which of the following claims would not be covered by the liability Section II of a Homeowner's Policy?The insured's neighbor files a claim for damage to his house caused by the named insured's dog.The named insured files a claim for damage to his house caused by his dog.An insured accidentally runs over his neighbor with a golf cart at the local country club.An insured's dog attacks and damages his neighbor's golf cart.

Answer:

The correct answer is: The named insured files a claim for damage to his house caused by his dog..Section II is liability coverage while a claim for damage to a named insured's house is a property claim.Question 2: Telemarketers who transmit pre-recorded messages to consumers who have not

agreed to accept such messages will be fined up to:

$10,000 aggregate.$10,000 per call.$16,000 per call.$16,000 aggregate.

Answer:

The correct answer is: $16,000 per call.

Beginning September 1, 2009 the penalty for transmitting pre-recorded messages to those who have not agreed to them is

$16,000 per call Question 3: Name the coverage that applies to the extra cost the insured incurs to make temporary repairs and speed up the permanent repairs or replacement of damaged covered equipment under an Equipment Breakdown policy.

Answer:

This is called expediting expense coverage.Question 4: Which of the following is not a type of rate approval by the insurance regulators of the various states?Mandatory Competition.Prior Approval.File and Use.Use and File.

Answer:

Mandatory Competition is correct.State departments of insurance approve policy forms, endorsements and rates using four broad methods.They are: prior approval; file and use; use and file; and, open competition.Question 5: All of the following events are considered acts of terrorism, EXCEPT: Acts of riot and civil commotion.Acts considered dangerous to human life, property or infrastructure.Acts resulting in damage within or outside the United States.Acts committed by an individual or individuals acting on behalf of any foreign person or foreign interest.

Answer:

Acts of riot and civil commotion. is correct.Acts of riot and civil commotion are not covered by the Act. These are perils that are covered by property insurance policies.Question 6: Which of the following would NOT meet the definition for coverage to apply under the uninsured motorist coverage in Arizona?The insured was struck as a pedestrian by an uninsured motorist.One who has coverage in excess of the financial responsibility requirement.An uninsured motorist that causes an accident resulting in bodily injury without making contact with that person.An uninsured motorist makes contact with the claimant's vehicle.

Answer:

In Arizona, there must be contact with the uninsured motorist and the claimant, or the claimant's vehicle.

Unless the claimant can provide additional and confirming testimony, facts and/or evidence that another unidentified vehicle caused the accident.Question 7: The "other insurance clause" is included in insurance policies to deal with: Excessive policies.Conditional coverages.Inadequate coverages.Duplicate policies.

Answer:

Duplicate policies. is correct.Occasionally more than one policy is issued covering the same coverage on the same risk. This clause spells out the method of determining the liability of each.Question 8: Under Coverage A-Bodily Injury and Property Damage, coverage is provided for an "occurrence". Under Personal and Advertising injury the coverage now applies: Per Occurrence as in Coverage A.Per accident not per occurrence.Per offense.Per lawsuit.

Answer:

The correct answer is: Per offense..

Personal and Advertising Injury Liability coverage applies per "offense" not per occurrence.Question 9: Which of the following is not paid under personal auto medical payments?Hospital medical expenses.Funeral expenses.Pain and suffering.Prescriptions.

Answer:

Pain and suffering is correct.Pain and suffering is not covered under the personal auto medical payments coverage.Question 10: The insured has a barn on his premises. The dwelling is insured for $200,000 under a DP-2 dwelling policy. How much coverage applies to the barn?

$20,000.

$10,000.

Nothing.

$5,000.

Answer:

The correct answer is: Nothing.

Farm property is not eligible under the dwelling policy. The barn is farm property and cannot be covered, however the dwelling can be insured under a DP-2 form.Question 11: Which of the following is correct in order for the additional coverage of collapse to be available in the special BOP?The collapse must be such that the building can not be used as intended.The remaining part of the structure standing must be demolished.The remaining part of the structure must be judged unsound to rebuild on.The building must be leaning, settling or in danger of collapsing.

Answer:

The correct answer is: The collapse must be such that the building can not be used as intended.The definition of collapse in the policy is the "abrupt falling down or caving in of the structure or part of the structure" and it must render the building as unusable as intended.Question 12: Which of the following perils is covered for earth movement under the DP-2 dwelling form?Earthquake.Subsidence.Landslide.None of the responses are correct.

Answer:

The correct answer is: None of the responses are correct.

The dwelling forms exclude virtually all forms of earth movement. Earthquake coverage can be added by endorsement.Question 13: In commercial property insurance, what does the Ordinance or Law coverage endorsement provide?Covers loss due to government seizure of property.Covers the additional costs of rebuilding/repairing/upgrading, after a covered loss, to comply with a law or ordinance.Covers the loss of rent after to the imposition of a new zoning law.Covers the insured's expenses of complying with local ordinances or laws.

Answer:

Covers the additional costs of rebuilding/repairing/upgrading, after a covered loss, to comply with a law or ordinance is correct.An unendorsed commercial property policy would deny coverage for items the insured did not have before the loss, in order to uphold the principle of indemnity. Sometimes, however, a local law or