MASSACHUSETTS PERSONAL LINES EXAM QUESTIONS

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MASSACHUSETTS PERSONAL LINES EXAM QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: What does Massachusetts Automobile Insurance policy cover?

Answer:

Medical Payments: paying for injuries arising out of an auto event, regardless of fault

Question 2: foreign insurer

Answer:

insurer with an office out of state Question 3: A homeowner, at the time of loss, must be insured for at least ____ % of replacement cost in order to collect the full replacement cost of a partial loss

Answer:

80%

Question 4: Personal Injury

Answer:

may be added as an endorsement Question 5: How much notice is required for the cancellation policy of coverage under a dwelling policy?

Answer:

10

Question 6: Liberalization Clause

Answer:

changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium

Question 7: Reciprocity of Licensure

Answer:

permits nonresident licensure for all nonresidents of the state whose home is in good standing, licensed as resident, submitted the proper request

Question 8: Coinsurance clause purpose

Answer:

encourage the insured to insure the property closer to its value

Question 9: Endorsement M-0099-S

Answer:

• is a mandatory endorsement
• adds $500 minimum collision deductible
• causes the limits of insurance to comply with the minimum limits of any state in which the vehicle is

being operated Question 10: the MA automobile insurance policy does not automatically provide coverage for

Answer:

non-owned trailers

Question 11: Specific Coverage

Answer:

one location is insured for a specific amount of insurance on the structure and contents

Question 12: Combined single

Answer:

is a single dollar limit of liability applying to the total of damages for bodily injury and property damage combined resulting from one accident or occurrence

Question 13: How long do rating organization's licenses remain in effect?

Answer:

• years

Question 14: Domestic Insurer

Answer:

insurer's home office is in this state

Question 15: DP-1 and DP-2 policy forms

Answer:

loss or damage from falling objects is covered except for damage to awnings, fences, outdoor equipment, outdoor radio and tv antennas.damage to the interior of the building is covered only if the exterior has been damaged first

Question 16: Automatic Increase in Insurance Endorsement

Answer:

is used to provide at the annual renewal date of the policy, an automatic increase in the Coverage A and B limits of insurance to help offset inflation

Question 17: comprehensive automobile insurance

Answer:

covers property and liability everything other than you crashing into someone

Question 18: auto policy - casualty

Answer:

if you crash into someone damage to OTHERS not covering your car

Question 19: What is not considered a flood?

Answer:

sewage backup

Question 20: Coverage B: Other Structures

Answer:

-protects other, unattached, dwellings on the property.-covers landscaping as well as buildings, but not the land.-does not cover other structures used for business purposes.Question 21: Under the HO-4 and HO-6 homeowners policy forms, property is insured against

Answer:

BROAD form perils (provide the same level of coverage as Coverage C in the HO-2 and HO-3)

Question 22: retention

Answer:

in casualty (liability) insurance, it is the portion of a claim not paid by insurance (property insurance calls this a deductible)

Question 23: Homeowners Insurance

Answer:

-for your own home you live in -equivalent to property/liability coverage Question 24: Substitute Transportation will reimburse the insured for transportation expenses

if:

Answer:

the insured's auto is out of service due to collision damage and the auto is covered for collision Question 25: Any person who violates a cease and desist order of the Commissioner after it has

become final must:

Answer:

pay a fine to the state not to exceed $10,000 for each violation, which may be recovered in a civil action.Question 26: Does the homeowners policy cover a collapse cause by foundation cracks?

Answer:

NO The foundation cracks would take years to cause collapse, meaning there would have been plenty of time to fix them