AUTO INSURANCE PRACTICE TEST EXAM QUESTIONS

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AUTO INSURANCE PRACTICE TEST EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All of the following are covered property under HO policy except

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Hovercraft Question 2: Which of the following losses is not excluded under the physical damge coverage of a personal auto policy?

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Dmg to vehicle being used as part of a share the expense carpool - any form of car pool is covered for test purposes.

Question 3: What type of coverage is provided by an inland marine policy?

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Open or all risk coverage - Inland marine policies have only a few limited exclusions.Question 4: Fraud is always intentional; misrepresentation may be either unintentional or intentional

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All of the following meet the definition of the insured under a HO 3 policy, except

Question 5: Impact between the covered auto and a deer. The policy states that losses caused by impact with bird, animal, or missile(something flying through the air like a rock) are not collision losses.

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Most liability claims are based on negligence that results in injury or dmg. An act of negligence is considered to be a tort. What does the term tort mean Question 6: The cost to rebuild or replace a home increases for all of the following reasons after

a catastrophe such as tornadoes or wildfire, except:

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Insurance policy issues - Insurance does not increase the cost to rebuild after a catastrophe; it just might not be enough to cover all of the increased costs.Question 7: A negligence act that causes bodiliy injury or property dmg that follows a sequence of uninterrupted, but related chain of events. - Proximate cause whether it is property or liability is what starts the chain of related events (without interruption/uninterrupted/unbroken) that ends in injury or dmg. In liability the proximate cause is negligence and in property the proximate cause must be an insured peril.

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Is the new standardized umbrella policy being used by insurers?

Question 8: Is intentionally set and remains within its intended limits.

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After a catastrophe, there is often a significant increase in the cost of labor or materials to replace

housing. This increase is known as:

Question 9: All of the following are considered intentional torts except;

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Ownership of a wild animal Question 10: Using a miscellaneous vehicle endorsement to the personal auto policy, a seperate policy considered a specialty policy designed specifically for motorcycles.

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Currently in CA there are 6 forms available under the homeowner series. Four are for homes and one each for tenants and Condo owners. WHich of the following is the correct grouping of these forms?

Question 11: The standard fire policy has 165 lines and the CA standard form fire policy has

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158 lines of text -Standard fire policy sometimes referred to as the New York standard fire policy Question 12: Under a standard (ISO) Homeonwers HO 3 real property and personal property are

covered for the perils of:

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All risk - coverage applies to real property, broad form named perils coverage applies to personal property(Odd numbers HO 3 and HO 5 cover structures(real property) open peril which is also known as all risk. Even numbers HO2, HO4, HO6 are Broad form. The exception to the even number rue is HO8 which is basic perils)

Question 13: $300

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The best description of a hazard is a/an Question 14: Lost wages, and future loss of earnings. - these are special specific dmgs as they have a specific economic value. This meas that most claims adjustors would come up with the same amount to be paid for these dmgs. Special dmgs/loss are also known as specific dmgs have actual economic value as they are based upon bills and numbers that can be identified and calculated. General dms will differ depending on various factos such as age, occupation, other awards for the same type of situation and expertise of the adjuster.

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Of the following which would best define proximate cause in relationship to liability insurance/

Question 15: Theft

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Libel, slander, false arrest, and invasion of privacy are considered to be intentioanl torts. Which type of liability insurance does the insured need to ensure the he/she has protection against possible claims for these types of torst?

Question 16: Inflation guard

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In all of the marketing systems the insurance company owns and controls the accounts, policy records and renewals. If the agency or agent and terminate their relationship that person losses all rights and interest in the accounts and related commissions, except in

Question 17: Notifying the police is a req under which of the following circumstances, as it applies to a personal auto policy?

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For hit and run accidents and thefts.Question 18: Personal Injury Liability - Personal injury is intentional or deliberate act or ommission that dmgs a person's reputation or mental state. - Personal Injury is endorese in residential and included in Commercial

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When an inunterrupted chain of events begins with an insured peril and ends in dmg, the peril is

considered to be:

Question 19: A tort is a civil wrong doing that violates the rights of another

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Which type of policy would provide both property and liablity coverage for the owner of a condminium as well as for assessments following dmg to the building and other structures.Question 20: Sam is involved in an accident with Fred. It is determined that Sam was 60% at fault for this accident in which he receives $5000 in dmgs. Fred was 40% at fault and received $1000 in dmgs. How much will Sam received under the Defense/doctrine of contributory negligence?

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$0 - by also being partly responisble for the accident nothing will be paid. Under contributory negligence if one party contributes even 1% any claim for dmgs is eliminated/barred entirely. The defense or doctrine used to counter contributory negligence is the defense known as last clear chance Question 21: Transportaton expenses - This is included in part D and applies to all collision and other tan collision claiims.

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A wrongful act other than a crime or breach of contract is an Question 22: Hull, protection and indemnity - Yacht policies for test purposes are structured and use the same terminology as ocean marine policies used to insure commercial watercraft.

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Associations organized to protect claimants, policyholders, annuitants, and creditors of financially

impaired insurers are known as: