AINS 102 Questions with Complete 100% Verified Solutions 2024/2025, Exams of Business Administration

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AINS 102 Questions with Complete

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All of the following items are examples of personal property, EXCEPT: Select one: A. Sports equipment B. Silverware C. A fishing boat D. Underground pipes Underground pipes Which one of the following statements regarding assets exposed to loss is true? Select one: A. Real property includes only tangible property.Correct. All real property is tangible property having a physical form that can be seen or touched. Personal property can include intangible property such as patents or copyrights. B. Earthquake damage to a swimming pool is an example of a personal property loss exposure. C. Personal property includes only tangible property. D. Hail damage to a motor vehicle is an example of a real property loss exposure. A. Real property includes only tangible property. Sophie was involved in an auto accident with another vehicle. The driver of the other vehicle was seriously injured. The individual spent 10 days in the hospital, missed 2 months of work, and continues to experience mental distress. The other vehicle was also damaged, with repair costs of $5,000. It was determined that Sophie was liable for the damages because she ran a red light and caused the accident. Which one of the following damages would be considered general damages? Select one: A. Damages to the vehicle B. Hospital and medical bills C. Two months of lost wages D. Mental distress compensation D. Mental distress compensation SF Poultry learned that a number of individuals had become ill and hospitalized after eating chicken from one of its processing plants. The company did not advise the public or its distributors of the problem, and made no effort to recall the spoiled product. Over 50 individuals ended-up becoming ill from the spoiled chicken. SF Poultry was found liable in court. In addition

to having to pay the medical and hospital bills for the injured individuals, damages were levied against SF Poultry to punish the company for its reckless and deceitful actions. These damages that were levied against SF Poultry are known as Select one: A. General damages. B. Punitive damages. C. Special damages. D. Necessary damages. B. Punitive damages. Which one of the following statements is true regarding automobile insurance rating? Select one: A. State regulators require that all insurers offer discounts on auto rates for passive restraints. B. Most insurers base automobile rates on primary rating factors and do not consider any other factors in establishing rates. C. State regulators require that rates be adequate, reasonable, and not unfairly discriminatory. D. Drivers with lower-than-average loss exposure are charged higher rates. C. State regulators require that rates be adequate, reasonable, and not unfairly discriminatory. nsurers and other organizations that make insurance available to those who are unable to obtain coverage from the standard market are collectively called Select one: A. A reinsurance facility. B. The residual market. C. The secondary market. D. An automobile insurance plan. B. The residual market. Estelle and Richie are very conservative and want to purchase insurance to "cover everything" in order to lessen the worries of home ownership. Which one of the following ISO forms will provide them dwelling and personal property insurance with the broadest possible coverage? Select one: A. HO-2 Broad Form B. HO-3 Special Form C. HO-5 Comprehensive Form D. HO-8 Modified Form C. HO-5 Comprehensive Form Rick and Jamie have chosen their first home and now are asking their insurance agent Franklin to help advise them as to appropriate and affordable insurance coverage. Which one of the following will most accurately reflect the best coverage choice for Rick and Jamie?

Select one: A. As Rick and Jamie are buying and remodeling an older home, Franklin suggests an HO- 8 modified coverage form to provide appropriate coverage for a building with a comparatively high replacement cost. B. As Rick and Jamie will be buying a mansion, Franklin suggests an HO-5 comprehensive form as it provides the highest dollar amounts of any coverage available. C. As Rick and Jamie will be renting an apartment for a few years, Franklin suggests an HO- 2 broad form as they will not need any dwelling coverage. D. As Rick and Jamie are buying a residential condo, Franklin suggests the HO-3 special form as they will be needing limited dwelling cove As Rick and Jamie are buying and remodeling an older home, Franklin suggests an HO-8 modified coverage form to provide appropriate coverage for a building with a comparatively high replacement cost. In the auto insurance policy definitions, an eligible private passenger auto, pickup, or van of which the named insured becomes the owner during the policy period is a Select one: A. Temporary substitute vehicle. B. Newly acquired auto. C. Replacement auto. D. Trailer. B. Newly acquired auto. Phil, a claim representative, was assigned a claim for an auto theft. He needs to determine the applicable Other Than Collision deductible for the auto. Which one of the following sections of the Personal Auto Policy will provide Phil with this information? Select one: A. Part E — Insured Duties Following an Accident or Loss B. Endorsements section of the Declarations page C. Part D — Damage to Your Auto Coverage D. Schedule of Coverages section of the Declarations page D. Schedule of Coverages section of the Declarations page Joel is a delivery driver for XYZ Auto Supply. He usually drives the company van, but one day, since he only had to deliver a small part, Joel used his own car that is insured with a Personal Auto Policy (PAP). While doing so, Joel was involved in a two-vehicle accident and a liability claim was made against Joel and XYZ Auto Supply. Which one of the following is an insured(s) under Joel's PAP in this situation? Select one: A. Joel only B. None

C. Joel and XYZ Auto Supply D. XYZ Auto Supply only C. Joel and XYZ Auto Supply The medical payments coverage in the Personal Auto Policy (PAP) applies to Select one: A. Any person occupying a covered auto. B. Any insured who is also covered by workers compensation for the same accident. C. Anyone occupying a car not owned by any insured but driven by an insured. D. Anyone injured in an accident involving an insured. A. Any person occupying a covered auto. The Part B — Medical Payments Coverage of the Personal Auto Policy (PAP) contains an Other Insurance provision. If two automobile policies from different insurers cover the same owned vehicle, Select one: A. The insurer issuing the policy with the higher limits of liability will make the determination. B. The Other Insurance provision will address how to address the particular situation. C. The courts will decide how to assess the payment amounts. D. The first insurer to receive notice of the claim becomes primarily liable. B. The Other Insurance provision will address how to address the particular situation. Uninsured motorist (UM) coverage under the Personal Auto Policy (PAP) does not apply to a claim that the insured settles without the insurer's consent if such a settlement prejudices the insurer's right to recover payment. In this context, "prejudice" means Select one: A. To create rights where none existed before. B. To form opinions before hearing all of the facts. C. To injure or damage another party's rights. D. To put the insurer's interests ahead of the insured's interests. C. To injure or damage another party's rights. Under the uninsured motorists (UM) coverage in the Personal Auto Policy (PAP), the insurer agrees to pay damages that the insured is legally entitled to recover from the owner or operator of an uninsured motor vehicle. These damages are best identified as which one of the following? Select one: A. Medical expenses B. Lost wages C. Rehabilitation expenses D. Compensatory damages D. Compensatory damages

Under the Personal Auto Policy (PAP), a branch falling from a tree and denting the hood of a covered auto is an example of Select one: A. A collision loss. B. An uninsured motorists loss. C. A liability loss. D. An other than collision loss. D. An other than collision loss. The Personal Auto Policy (PAP) provides physical damage coverage for a covered auto that is damaged when the car's driver loses control and overturns the car on a sharp curve. This coverage is called Select one: A. Falling object coverage. B. Collision coverage. C. Other than collision coverage. D. Comprehensive coverage. B. Collision coverage. Personal auto policy endorsements can be categorized into two main categories. One of these categories is Select one: A. Endorsements that provide coverage for owners of high-value antique cars that result in higher premiums reflecting the valuable worth of such vehicles. B. Endorsements that can be added to either a homeowners or personal auto policy the address specific loss exposures not covered by an unendorsed PAP. C. Endorsements that provide coverage additions/modifications for customers who own vehicles other than cars, vans, or pickup trucks. D. Endorsements that provide higher coverage limits for navigation systems permanently installed in the vehicles and various media owned by the named insured. C. Endorsements that provide coverage additions/modifications for customers who own vehicles other than cars, vans, or pickup trucks. The Millers insure their dwelling under an HO-3 policy. They recently purchased a shed for their back yard where they will store tools, bicycles, and other sporting equipment. Which one of the following property coverages under Section I of the HO-3 policy would apply to the shed? Select one: A. Coverage A — Dwelling B. Coverage B — Other Structures

C. Coverage C — Personal Property D. Additional Coverage B. Coverage B—Other Structures The insuring agreement of a homeowners policy specifies that Select one: A. Five property coverages are provided by the policy. B. Defined words have special meanings when they are used within the policy. C. The insurer will provide policy coverage in return for the premium and compliance with policy provisions. D. Endorsements are available to modify the contract. C. The insurer will provide policy coverage in return for the premium and compliance with policy provisions. Alicia's house is insured under a HO-3 policy. When a fire damaged her garage, the claims representative told her that it would be covered under Coverage B — Other Structures. Under the HO-3 policy, Coverage B — Other Structures applies to structures Select one: A. On the residence premises that are not attached to the dwelling and are separated from the dwelling by clear space. B. Not on the residence premises but owned by the insured. C. On the residence premises and more than 100 feet from the dwelling. D. On the residence premises and attached to the residence premises by permanent structures. A. On the residence premises that are not attached to the dwelling and are separated from the dwelling by clear space. he HO-3 policy Coverage D provides coverage for Select one: A. The dwelling. B. Loss of Use. C. Other Structures. D. Personal property. B. Loss of Use. Sammy and Sally Oshua insure their home with an HO-3 policy. They own a cocker spaniel puppy. While a neighboring couple and their five-year-old daughter were visiting, the puppy bit the girl as she was playing with it. The child suffered a serious wound and the neighbors sued the Oshuas. Which one of the following statements is true? Select one: A. Defense costs are not covered for the Oshuas if the lawsuit is found to be groundless. B. In addition to paying up to the limit of liability, the insurer will pay defense costs associated

with the lawsuit. C. Because the child is a minor, the insurer will pay the damages regardless of legal liability. D. Because the dog was on the Oshuas' property, they are not covered for injury to the child. B. In addition to paying up to the limit of liability, the insurer will pay defense costs associated with the lawsuit. Under Coverage E — Personal Liability of the HO-3 policy, the insurer's obligation to defend ends Select one: A. When policy limits are exhausted by the claim expenses. B. When the cost of defense exceeds the personal liability limits. C. When the liability limit for the occurrence is exhausted by payment of a settlement or judgment. D. When the costs of defense limits are exhausted. C. When the liability limit for the occurrence is exhausted by payment of a settlement or judgment. Coverage F — Medical Payments to Others in the homeowners policy applies to bodily injury to a residence employee in all of the following situations, EXCEPT: Select one: A. The residence employee is away from the insured location but is working B. The residence employee is on the insured location but is not working C. The residence employee is on the insured location and is working D. The residence employee is away from the insured location and is not working D. The residence employee is away from the insured location and is not working The medical payments coverage in a homeowners policy covers certain medical expenses incurred by Select one: A. Regular household residents other than residence employees. B. Insureds. C. Nonresidents of the insured's household. D. A person uninvited to the insured's home. C. Nonresidents of the insured's household. Sota owns and lives in a house insured under an unendorsed Dwelling Property 3 — Special Form (DP-3) with a Coverage A — Dwelling limit of $200,000. Burglars caused $2,500 in damage to Sota's front door while breaking in, and stole $12,000 worth of personal property. Sota made a claim for $14,500. How much of this loss, if any, will be covered by Sota's DP-3 policy? Select one: A. Nothing B. $2,500, less any applicable deductible C. $12,000, less any applicable deductible D. $14,500, less any applicable deductible

B. $2,500, less any applicable deductible Marcus is buying insurance for his recent home purchase that will be covered by a DP-3 policy. In reading his policy, which one of the following will Marcus find is true? Select one: A. Marcus needs to add an endorsement to the DP-3 to cover personal property damage. B. The DP-3 provides named perils coverage for the dwelling and personal property. C. Marcus wants to add a theft endorsement to his DP-3 to cover personal property damage caused by burglars. D. The DP-3 excludes coverage for theft of property that isn't part of the covered structure. D. The DP-3 excludes coverage for theft of property that isn't part of the covered structure. The "Write Your Own" (WYO) flood insurance program allows Select one: A. Insureds to tailor flood coverage to their own specific needs. B. Participating Insurers write flood insurance using National Flood Insurance Program guidelines. C. Insureds to carry flood coverage regardless of the property's location. D. Insureds to purchase flood coverage without an agent or representative. B. Participating Insurers write flood insurance using National Flood Insurance Program guidelines. Westgrove is in the initial phase of its community's participation in the National Flood Insurance Program (NFIP), during which property owners are allowed to purchase limited amounts of insurance at subsidized rates. This is known as Select one: A. The regular program. B. The emergency program. C. The "Write-Your-Own" flood insurance program. D. A beachfront or windstorm plan. B. The emergency program. Which one of the following types of personal inland marine forms is designed for frequent travelers? Select one: A. Personal Articles Standard Loss Settlement Form B. Personal Effects Form C. Tenant Homeowners Form D. Personal Property Form B. Personal Effects Form The Personal Effects Form is specifically designed for Select one:

A. Frequent travelers. B. Homeowners. C. Salespersons. D. Financial institutions. A. Frequent travelers. he ownership and use of watercraft create various unique categories of loss exposures. Which one of the following is true regarding small boat policies used to cover many of these exposures? Select one: A. Most are written on a replacement cost basis. B. Coverage is included for Jet Skis and WaveRunners. C. They usually include the boat, motor, equipment and trailer. D. They cover boats up to 36 feet in length. C. They usually include the boat, motor, equipment and trailer. Michael owns a large sailboat. He occasionally hires a small crew to help him operate the boat, so he can spend more time with his guests. Which one of the following would be the most appropriate way for Michael to cover injuries to the crew? Select one: A. Homeowners policy B. Boatowners and yacht policy C. Workers compensation policy D. Personal auto policy B. Boatowners and yacht policy All of the following usually are excluded by a personal umbrella policy, EXCEPT: Select one: A. Workers compensation B. Intentional injury C. Aircraft D. Bodily injury D. Bodily injury Personal umbrella policies usually cover the insured's liability for personal injury. Under the Personal Umbrella Liability Policy, which one of the following is included under the definition of personal injury? Select one: A. Assault and battery intentionally committed B. False arrest C. Abandonment D. Professional liability

B. False arrest Christina and Carlos Thomas have decided to place their auto insurance needs with the Windspring Group, a type of insurance arrangement called peer-to-peer insurance. Which one of the following will the Thomas family experience with this situation? Select one: A. The Thomas' peer-to-peer group began on a local level and now has proven it can easily and quickly achieve a countrywide presence. B. Peer-to-peer insurance offers the novel insurance approaches of self-selection of pool members and how to manage excess funds. C. Because of the limited but consistent growth of peer-to-peer insurance, a majority of states have approved the diverse regulatory requirements. D. Because of the consistent and reliable pool of funds, reinsurance will not usually be needed for this type of insurance. B. Peer-to-peer insurance offers the novel insurance approaches of self-selection of pool members and how to manage excess funds. Alex and his marketing team are evaluating various new insurance platforms to provide research to serve their customers better. Which one of the following best describes what the team has accurately discovered? Select one: A. These platforms' differentiation is providing a specialized, tech-driven, and individual customer response. B. Providing smart devices to insured homeowners will not prevent losses, but rather lower claim payments. C. Tech-driven insurance platforms offer very different types of property insurance than traditional insurers. D. Startups do best when they quickly break into a new market and exclusively focus on established customers. A. These platforms' differentiation is providing a specialized, tech-driven, and individual customer response. The Transportation Network Driver Coverage (No Passenger) endorsement Select one: A. Specifies that coverage does not apply to Part C — Uninsured Motorists Coverage. B. Provides coverage when the insured is logged into a transportation network platform until the driver accepts a passenger's request. C. Provides coverage without passengers while the driver is logged into a transportation network platform. D. Adds a transportation network platform definition.

C. Provides coverage without passengers while the driver is logged into a transportation network platform. Which one of the following is correct regarding the Transportation Network Driver Coverage (No Passenger) endorsement and the Limited Transportation Network Driver Coverage (No Passenger) Endorsement to the personal auto policy? Select one: A. They both end coverage when an insured accepts a passenger's request. B. They both exclude coverage when a passenger is occupying the vehicle. C. They both provide the same coverage, but one requires more premium. D. They both provide coverage until a passenger enters the vehicle. B. They both exclude coverage when a passenger is occupying the vehicle. Erin makes custom draperies in the basement of her home. Initially, she made these draperies for herself and family members, but she began to sell these draperies to a broader audience. Which one of the following exposures would likely be covered under an unendorsed homeowners policy should Erin's home be destroyed by a covered peril? Select one: A. The loss of customer data Erin stored on her computer B. The cost to replace her sewing equipment C. The loss of income from drapery sales while the home is rebuilt D. The cost of materials purchased to aid in increasing sales B. The cost to replace her sewing equipment Winona now has a picture framing business she conducts from her home, but has never amended her unendorsed homeowners policy to reflect the business exposures. If her home were damaged or destroyed by a covered cause of loss, which one of the following would be covered? Select one: A. Disks with information on current customers B. Framed pictures awaiting customer pickup C. Framed pictures of Winona's grandchildren D. Boxes of frames for future jobs C. Framed pictures of Winona's grandchildren Which one of the following is a primary basis for a property to be eligible for coverage under beachfront and windstorm plans? Select one: A. The property must be located in a designated coastal area which has not experienced any flooding within the past 100 years. B. The property must be certified by FEMA, eligible for flood insurance and located in a designated coastal area.

C. The property must be ineligible for coverage in the voluntary market and must be located within at least 10 miles of a flood plain. D. The property must be ineligible for coverage in the voluntary market and must be located in designated coastal areas. D. The property must be ineligible for coverage in the voluntary market and must be located in designated coastal areas. Beachfront and windstorm plans are state-sponsored insurance plans whose primary purpose is to Select one: A. Provide flexible coverage to fill gaps in the National Flood Insurance Program's flood coverages. B. Provide a state-based alternative to the federally operated flood insurance programs. C. Restrict construction and limit land use in coastal areas exposed to heavy windstorm losses. D. Provide property insurance in coastal areas exposed to heavy windstorm losses. D. Provide property insurance in coastal areas exposed to heavy windstorm losses. Because they interview the applicant first, see the property or operations to be insured, and evaluate the loss exposures, the most important primary source of information for the underwriters is the Select one: A. Risk control representative. B. Property-valuation guide supplier. C. Financial and credit-reporting service. D. Producers. D. Producers. Applications and questionnaires for personal liability insurance should be carefully evaluated to look for issues that can increase potential loss frequency and severity, such as Select one: A. Stairways in good repair and free of obstructions. B. Poor housekeeping and maintenance of premises or an unfenced pool. C. Swimming pools surrounded by fences and well-lit porches. D. The removal of dead trees and bicycles stored in a garage. B. Poor housekeeping and maintenance of premises or an unfenced pool. As an insurance agent, Lucy uses various ways to keep in touch with customers. Based on her experience, she knows that this will help improve customer retention. Which one of the following would be considered cross-selling? Select one: A. Sending e-newsletters explaining loss exposures

B. Sending out "Getting to Know You" surveys C. Offering to quote other lines of coverage D. Completing an annual policy review C. Offering to quote other lines of coverage Which one of the following is a way in which cross-selling benefits customers? Select one: A. Lower costs B. Reduction of coverage gaps C. Improved retention D. Increased profitability B. Reduction of coverage gaps An insurance policy is an agreement between the insured and the insurer. Insureds purchase insurance so that Select one: A. Covered claims will be paid and their financial situation will be restored.. B. All claims will be paid and defended regardless of legal merit. C. They can improve their financial situation in the event of a covered loss. D. They can retain and budget for losses below the policy limits. A. Covered claims will be paid and their financial situation will be restored. Property insurers are subject to the possibility of many claims occurring from a single event and straining their resources. This type of event is called Select one: A. A catastrophe. B. A simulation. C. An occurrence. D. An accident. A. A catastrophe. Installing burglar alarms, storing vehicles in a garage, and maintaining vehicles in good working order are all examples of which one of the following? Select one: A. Risk retention B. Transfer of risk C. Risk control D. Insuring loss exposures C. Risk control A family rents its vacation home to others for several months each year. A fire caused extensive damage to the home just before the rental season began one year, and the family was unable to

collect any rent on the property until it was repaired. This inability to collect rent is an example of which one of the following outcomes of loss? Select one: A. Lost income B. Increased expenses C. Reduction in value of property D. Special damages A. Lost income Which one of the following is a form of compensatory damages? Select one: A. Exemplary damages B. Special damages C. Punitive damages D. Real damages B. Special damages All of the following could lead to a liability loss for a family, EXCEPT: Select one: A. The father trips on a broom he left lying in the driveway and breaks his arm. B. The son, who is 13 years old, throws a rock at a classmate who requires stitches for an injury to his head. C. A guest slips on an icy sidewalk in front of the family's home and breaks his leg. D. The daughter, who is 16 years old, sideswipes a neighbor's car and dents its fender while driving her own car. A. The father trips on a broom he left lying in the driveway and breaks his arm. Under the tort liability system, injured accident victims must prove that Select one: A. Another party was at fault before they can collect damages. B. They are unable to purchase insurance from another source before they can collect damages. C. The insurance limits they have purchased are equal to or greater than the state minimum limits before they can collect damages. D. They have met the financial responsibility laws of the state before they can collect damages. A. Another party was at fault before they can collect damages. Which one of the following is used by the majority of states to compensate auto accident victims? Select one: A. Personal injury protection coverage B. Tort liability system

C. Uninsured motorist coverage D. Unsatisfied judgment funds B. Tort liability system All of the following are true of the HO-3 Special Form, EXCEPT: Select one: A. The HO-3 meets the property and liability coverage needs of most families. B. The HO-3 can be modified for special needs through available endorsements. C. The HO-3 is designed for owners who occupy their dwelling or choose to rent it. D. The HO-3 is typically used as a basis for understanding other HO coverage forms. C. The HO-3 is designed for owners who occupy their dwelling or choose to rent it. Which one of the following is true regarding the use of technology in home risk management? Select one: A. Technology is more prevalent, abundant, and useful in homes than in automotive environments. B. Smart devices in the home have reaffirmed the need for existing claims data to assess risk. C. Sensors are generally regarded as useful in loss prevention, but not in loss reduction. D. Data gathered from sensors is used by insurers for personalized pricing and claims handling. D. Data gathered from sensors is used by insurers for personalized pricing and claims handling. All of the following will be shown under the Schedule of Coverages section on the Declarations page of the Personal Auto Policy (PAP), EXCEPT: Select one: A. Deductibles B. Endorsements C. Premiums D. Limits of insurance B. Endorsements The timeframe, beginning with the inception date, during which insurance coverage applies, is known as the Select one: A. Expiration date. B. Policy period. C. Coverage date. D. Rating period. B. Policy period. Under the liability coverage in the Personal Auto Policy (PAP), the insurer agrees to pay Select one: A. Judgments for bodily injury intentionally caused by the insured.

B. Defense costs incurred by the insurer. C. Judgments in excess of the liability limits. D. Costs incidental to claims not covered by the policy. B. Defense costs incurred by the insurer. Miguel, an insured has a Personal Auto Policy (PAP) that includes medical payments coverage. The insured crashed his car while trying to be the first car to pull away from a stop at a red light when the light turned green. In this scenario, Miguel Select one: A. Would not be eligible for medical payments under the Personal Auto Policy (PAP) if he was found at fault because of this accident. B. Would not be eligible for medical payments under the Personal Auto Policy (PAP) because he is being reckless. C. Would be eligible for medical payments under the Personal Auto Policy (PAP) because he wasn't caught speeding at the scene. D. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the named insured and an occupant of a covered auto. D. Would be eligible for medical payments under the Personal Auto Policy (PAP) as the named insured and an occupant of a covered auto. The medical payments coverage in the Personal Auto Policy (PAP) applies to Select one: A. Anyone injured in an accident involving an insured. B. Any person occupying a covered auto. C. Anyone occupying a car not owned by any insured but driven by an insured. D. Any insured who is also covered by workers compensation for the same accident. B. Any person occupying a covered auto. Jill is insured by a Personal Auto Policy (PAP). Several witnesses saw her run a red light and collide with a car that clearly had the right of way. Jill was at fault for the accident. Although the other car sustained damage, its driver drove off and neither the car nor the driver was ever identified. Jill sustained injuries in the accident and made an uninsured motorists (UM) coverage claim under her PAP. Jill will Select one: A. Not be able to recover under her UM coverage because the driver of the other car was not at fault for the accident. B. Be able to recover under her UM coverage because the other car was a hit-and-run vehicle. C. Not be able to recover under her UM coverage because the other car was a hit-and-run vehicle. D. Not be able to provide the other driver with UM coverage under her PAP because he or she has never been identified.

A. Not be able to recover under her UM coverage because the driver of the other car was not at fault for the accident. Larry drove his car and was involved in a two-car accident caused by the other driver, who was uninsured. The at-fault driver offered Larry a substantial amount of money in satisfaction of his damages. Larry accepted the money in settlement of his losses and released the other driver from further liability. Larry later submitted an uninsured motorists claim under his Personal Auto Policy (PAP). The uninsured motorists claim would be Select one: A. Denied because coverage under these circumstances is excluded. B. Paid for damages accruing after the settlement with the at-fault driver. C. Paid in addition to the money paid by the at-fault driver. D. Denied because the at-fault driver can be considered self-insured under the circumstances. A. Denied because coverage under these circumstances is excluded. Under the Personal Auto Policy (PAP), a branch falling from a tree and denting the hood of a covered auto is an example of Select one: A. A collision loss. B. An other than collision loss. C. A liability loss. D. An uninsured motorists loss. B. An other than collision loss. Which one of the following causes of loss is covered under the other than collision (OTC) section of the Personal Auto Policy (PAP)? Select one: A. Overturn from the driver losing control B. Falling objects C. Hitting another car D. Hitting a tree B. Falling objects The Miscellaneous Type Vehicle Endorsement covers all of the following, EXCEPT: Select one: A. Motorcycles B. Antique Cars. C. Motor Homes D. Golf carts B. Antique Cars

Steve and Amy were about to purchase their first home. During the process, they were advised that they needed to purchase a HO-3 insurance policy. The HO-3 policy would provide Steve and Amy with coverage for all of the following, EXCEPT: Select one: A. The contents of the house B. Personal Liability C. Their cars D. The house C. Their cars David and Colleen insure their house under a HO-3 policy. One evening, while they were entertaining some friends at their home, the railing of the deck collapsed and one of their guests fell to the ground below. The individual suffered a serious leg injury which required surgery and two days in the hospital. Which one of the following coverages under David and Colleen's HO- 3 policy would cover the expenses for the injured individual? Select one: A. Coverage A — Dwelling B. Coverage B — Other Structures C. Coverage D — Loss of Use D. Coverage E — Personal Liability D. Coverage E—Personal Liability Josh has just built a large kennel in his backyard for his pet dogs. The kennel includes a heated shed and access to a large fenced area. Josh wants to make sure he has adequate insurance limits under his homeowners policy so that he can replace the kennel if it is damaged. Which one of the coverage limits should Josh check on his homeowners policy to determine whether his coverage on the kennel is adequate? Select one: A. Coverage A — Dwelling B. Coverage B — Other Structures C. Coverage C — Personal Property D. Coverage D — Loss of Use B. Coverage B—Other Structures In the HO-3 policy, Coverage A — Dwelling coverage applies to three broad categories of covered property. One of these broad categories is Select one: A. Structures attached to the dwelling. B. Structures separated by a clear space.

C. Additional living expense. D. Personal property that is owned. A. Structures attached to the dwelling. Under Section II — Liability Coverage of a homeowners policy all of the following are the insured's duties after an occurrence, EXCEPT: Select one: A. Submit a sworn statement of loss for damage to property of others if making a claim under that coverage B. Make voluntary payments to the claimant C. Forward legal documents to the insurer D. Provide claims assistance to the insurer B. Make voluntary payments to the claimant Tomas has an HO-3 policy covering his home. A neighbor jumped Tomas's fence to use his yard as a shortcut to a store, tripped over a small shovel left on the lawn, and was injured. The neighbor sued Tomas. Tomas's insurer defended and won the lawsuit on the theory that the neighbor was a trespasser to whom no duty was owed by Tomas. The insurer's defense included $20,000 in legal fees. Who is responsible for these fees? Select one: A. Tomas's HO-3 insurer is responsible for the legal fees. B. The insurer is responsible for the legal fees only if Tomas is not able to pay them. C. Tomas and the insurer share responsibility for the legal fees. D. Tomas is, because liability coverage is not triggered absent a finding of liability. A. Tomas's HO-3 insurer is responsible for the legal fees. Coverage F — Medical Payments to Others in the homeowners policy applies to bodily injury to a residence employee in all of the following situations, EXCEPT: Select one: A. The residence employee is away from the insured location and is not working B. The residence employee is on the insured location and is working C. The residence employee is away from the insured location but is working D. The residence employee is on the insured location but is not working A. The residence employee is away from the insured location and is not working The medical payments coverage in a homeowners policy covers certain medical expenses incurred by Select one: A. Nonresidents of the insured's household. B. Insureds..

C. A person uninvited to the insured's home. D. Regular household residents other than residence employees. A. Nonresidents of the insured's household The Jordans own a small ranch, and keep several ponies on the property for their personal use. Mr. and Mrs. Jordan are concerned that their children's friends and visiting relatives could be injured when riding the family's ponies. What coverage would the unendorsed DP-3 policy provide for this loss exposure? Select one: A. No coverage. B. Full coverage, up to the policy limits C. Medical expenses only, up to $2, D. 20% of the Coverage A limit A. No coverage Which one of the following is true when comparing the DP-3 and the HO-3 policies? Select one: A. Like the HO-3, the DP-3's Coverage C — Personal Property includes coverage for money. B. Like the HO-3, grave markers are covered by the DP-3's Coverage B — Other Structures. C. Coverage D and Coverage E in the DP-3 are similar to the HO-3's Loss of Use Coverage. D. Coverage A — Dwelling is provided to both the HO-3 and DP-3 at the residence premises. C. Coverage D and Coverage E in the DP-3 are similar to the HO-3's Loss of Use Coverage. The "Write Your Own" (WYO) flood insurance program allows Select one: A. Insureds to tailor flood coverage to their own specific needs. B. Insureds to purchase flood coverage without an agent or representative. C. Insureds to carry flood coverage regardless of the property's location. D. Participating Insurers write flood insurance using National Flood Insurance Program guidelines. D. Participating Insurers write flood insurance using National Flood Insurance Program guidelines. With respect to new flood insurance policies and endorsements that increase coverage on existing flood insurance policies, the National Flood Insurance Program (NFIP) generally requires a waiting period of Select one: A. 14 days. B. 30 days C. 60 days. D. 90 days. B. 30 days.

Roger and Sarah sold their house and plan to travel around the world for one year. They placed their furniture and appliances in storage and will take luggage and cameras on their trip. Sarah will travel with her diamond engagement ring. Jeff, their insurance agent, canceled their homeowners policy soon after the house was sold. Which one of the following types of personal inland marine forms should Jeff recommend to Roger and Sarah to protect the items they placed in the storage facility? Select one: A. A Personal Articles Standard Loss Settlement Form B. A Personal Property Form C. A Personal Effects Form D. A Tenant Homeowners Form B. A Personal Property Form Roger and Sarah sold their house and plan to travel around the world for one year. They placed their furniture and appliances in storage and will take luggage and cameras on their trip. Sarah will travel with her diamond engagement ring. Jeff, their insurance agent, canceled their homeowners policy soon after the house was sold. Which one of the following types of personal inland marine forms should Jeff recommend to Roger and Sarah to best protect Sarah's diamond ring during the trip? Select one: A. Personal Articles Standard Loss Settlement Form B. Personal Property Form C. Personal Property Replacement Cost Loss Settlement Endorsement D. Tenant Homeowners Form A. Personal Articles Standard Loss Settlement Form Which one of the following can be covered for physical damage and liability coverage by a Personal Auto Policy (PAP)? Select one: A. Boat under 26 feet B. Boat trailer C. Boat being transported by personal auto D. Jet ski B. Boat trailer Which one of the following could be covered by a Personal Auto Policy (PAP)? Select one: A. A canoe B. A boat trailer

C. A sail boat D. Small boat equipment B. A boat trailer Marcia and Harold Regan are speaking with their agent Jose about their current coverages and anticipated needs for the future. Harold wants to learn more about the costs and details of a personal umbrella policy. The primary reason for Jose selling a personal umbrella policy to Marcia and Harold is to provide Select one: A. Broad coverage with no exclusions. B. High property coverage limits. C. Worldwide coverage. D. High liability coverage limits. D. High liability coverage limits. Which one of the following policies is designed to provide bodily injury, personal injury, and property damage liability coverage in case of a catastrophic claim, lawsuit or judgment? Select one: A. Homeowners policy B. Personal auto policy C. Watercraft policy D. Personal umbrella policy D. Personal umbrella policy Christina and Carlos Thomas have decided to place their auto insurance needs with the Windspring Group, a type of insurance arrangement called peer-to-peer insurance. Which one of the following will the Thomas family experience with this situation? Select one: A. Because of the consistent and reliable pool of funds, reinsurance will not usually be needed for this type of insurance. B. Because of the limited but consistent growth of peer-to-peer insurance, a majority of states have approved the diverse regulatory requirements. C. The Thomas' peer-to-peer group began on a local level and now has proven it can easily and quickly achieve a countrywide presence. D. Peer-to-peer insurance offers the novel insurance approaches of self-selection of pool members and how to manage excess funds. D. Peer-to-peer insurance offers the novel insurance approaches of self-selection of pool members and how to manage excess funds. Alex and his marketing team are evaluating various new insurance platforms to provide research to serve their customers better. Which one of the following best describes what the team has

accurately discovered? Select one: A. Providing smart devices to insured homeowners will not prevent losses, but rather lower claim payments. B. Tech-driven insurance platforms offer very different types of property insurance than traditional insurers. C. These platforms' differentiation is providing a specialized, tech-driven, and individual customer response. D. Startups do best when they quickly break into a new market and exclusively focus on established customers. A company that uses a mobile application or website to connect riders with drivers and arrange transportation in a personal auto for a fee is called a Select one: A. Personal auto company. B. Transportation network company. C. Livery conveyance. D. Limited transportation network. B. Transportation network company. Telematics devices track driving habits and then Select one: A. Perform sophisticated modeling techniques to make that information relevant. B. Transmit that information wirelessly to a computer. C. Divide auto insurance applicants into homogeneous classes. D. Classify each insured auto for its principal use. B. Transmit that information wirelessly to a computer. Erin makes custom draperies in the basement of her home. Initially, she made these draperies for herself and family members, but she began to sell these draperies to a broader audience. Which one of the following exposures would likely be covered under an unendorsed homeowners policy should Erin's home be destroyed by a covered peril? Select one: A. The cost of materials purchased to aid in increasing sales B. The loss of customer data Erin stored on her computer C. The cost to replace her sewing equipment D. The loss of income from drapery sales while the home is rebuilt C. The cost to replace her sewing equipment Winona now has a picture framing business she conducts from her home, but has never amended her unendorsed homeowners policy to reflect the business exposures. If her home were damaged

or destroyed by a covered cause of loss, which one of the following would be covered? Select one: A. Framed pictures awaiting customer pickup B. Disks with information on current customers C. Boxes of frames for future jobs D. Framed pictures of Winona's grandchildren D. Framed pictures of Winona's grandchildren Most beachfront and windstorm plans provide coverage for which one of the following exposures in addition to windstorm? Select one: A. Erosion B. Fire C. Flood D. Hail D. Hail Which one of the following is the most common cause of ignition in wildfires? Select one: A. Campfires B. Arson C. Downed electrical lines D. Lightning strikes D. Lightning strikes Charles is an underwriter evaluating a submission for personal umbrella insurance. He goes to the applicant's property and notices a broken lock on the pool gate. Charles is performing which one of the following? Select one: A. A personal inspection B. Policy file completion C. Underlying policy review D. An audit A. A personal inspection Increasingly, insurers are able to assess drivers' skill and ability through Select one: A. Occupation. B. Restraints. C. Telematics. D. Area of operation.

C. Telematics. For an agent, all of the following are advantages of cross-selling, EXCEPT: Select one: A. Improved customer retention B. Increased profitability C. Enhanced ability to compete strictly on price D. Ease of additional growth C. Enhanced ability to compete strictly on price Which one of the following statements is correct with respect to an agency's or brokerage's cost of writing new business? Select one: A. The cost of writing new business has no direct impact on an organization's bottom line. B. Acquisition costs in the insurance industry are low compared to other industries. C. There are no expenses involved in writing new business aside from the cost of employees' time. D. It is less cost-effective to write a new piece of business than to renew an existing policy. D. It is less cost-effective to write a new piece of business than to renew an existing policy. Joey, while driving, was involved in a two-car accident. Joey sustained a severe injury from the accident. The other party, who was at fault, did not maintain an auto insurance policy for the vehicle. Which one of the following would provide coverage for Joey when the other driver does not have an automobile liability policy? Select one: A. Underinsured motorist coverage (UIM) B. Personal injury protection (PIP) C. Collision D. Uninsured motorist (UM) D. Uninsured motorist (UM) Insurers handling catastrophe claims should be prepared for Select one: A. Mortgagees that are eager to abbreviate their procedures. B. Claimants who are aggressive in their pursuit of settlement. C. Claimants who are not eager to assert their rights. D. News media eager to promote aggressive behavior. B. Claimants who are aggressive in their pursuit of settlement.