INS 22 Chapter 1 - Materials, Dumps, Questions Answers

QUESTION 0
Which one of the following types of real property do many families own?
a.  An automobile 
b.  A house  
c.  An apartment unit  
d.  A motor home  

QUESTION 1
All of the following items are examples of personal property, EXCEPT: 
a.  A diamond wedding ring
b.  A set of cookware
c.  A fishing boat
d.  A detached garage  

QUESTION 2 
Fire, windstorm, hail and theft are best described as examples of  
a.  Real property exposures
b.  Personal property exposures
c.  Causes of loss to property
d.  Consequences of property losses   

OBJECTIVE 1
QUESTION 0
All of the following are situations that could lead to a liability loss for a family, EXCEPT: 
a.  A guest slips on an icy sidewalk outside their home and breaks his leg.
b.  The father trips on a broom he left lying in the driveway and breaks his arm. 
c.  The daughter sideswipes a neighbor's car and dents its fender while driving her own car.
d.  The son throws a rock at a classmate who requires stitches for the injury to his head.  
 
QUESTION 1
Joe has a young tiger that he keeps as a pet in a backyard fence .  The tiger escapes and bites a
neighbor child who requires
stitches.  Joe argues that keeping the tiger violated no law and that he took every precaution to
restrain the tiger. 
Even if Joe is correct, he might face a claim for damages based upon which one of the
following?  
a.  Absolute liability 
b.  Negligence 
c.  Statutory liability  
d.  Intentional torts  

QUESTION 2
An individual's liability losses may  
a.  Not exceed the value of his or her real property.
b.  Not exceed the value of all of his or her assets, including both personal and real property.
c.  Not exceed the amount of his or her current income.
d.  Consume most of his or her present assets and future income.  

QUESTION 3
A claim for money damages because of injury to another party or damage to another party's
property is best described as 
a.  A tort.
b.  Errors and omissions.
c.  A liability loss.
d.  A property loss exposure.  

OBJECTIVE 2
QUESTION
All of the following statements are true regarding personal risk management, EXCEPT:  
a.  Many individuals and families consider insurance to be the only way to handle their loss
exposures. 
b.  Most individuals and families should expect their insurance agent to select insurance
coverages for them. 
c.  Identifying all of their loss exposures is difficult for most individuals and families.  
d.  Individuals and families should monitor and revise their risk management decisions.  
QUESTION 1
All of the following statements are true regarding insurance as a risk management technique,
EXCEPT:  
a.  Insurance companies can cover all losses to which individuals and families are exposed. 
b.  Insurance is just one of the risk management techniques available to individuals and
families. 
c.  Insurance offers an excellent risk management technique to cover many exposures of
individuals and families.  
d.  Insurance is available for property- liability and life - health exposures.  

Installing burglar alarms, storing vehicles in a garage, and maintaining vehicles in good working
order are all examples of
which one of the following?  
a.  Risk retention 
b.  Transfer of risk
c.  Loss control  
d.  Insuring loss exposures 

INS 22 Chapter 2 - Materials, Dumps, Questions Answers

ASSIGNMENT 1
OBJECTIVE 0
QUESTION 0
All of the following are identified as problems associated with automobile insurance, EXCEPT:  
a.  Large underwriting losses
b.  Irresponsible drivers
c.  Antilock braking systems
d.  High cost of automobile accidents  

QUESTION1
Which one of the following statements is true? 
a.  People who drive while under the influence of alcohol or drugs do not contribute
significantly to the fatality rate in the
U.S. 
b.  An individual has a right to decide whether or not to obtain automobile insurance and this
decision does not affect others
in any way. 
c.  Many states have tightened their drunk-driving laws and are imposing strict penalties for
first-time offenders.  
d.  Most drivers responsible for multiple accidents can be underwritten in the standard
market.  
 

QUESTION2
All of the following classes of individuals are likely to have difficulty purchasing automobile
insurance at standard rates,
EXCEPT: 
a.  Young, unmarried male drivers
b.  Persons convicted of multiple traffic violations 
c.  Young, inexperienced female drivers
d.  Persons convicted of one minor traffic violation   

QUESTION3
All of the following factors have contributed to the high costs of automobile accidents, EXCEPT:
a.  Increases in auto repair costs
b.  Insurers' increasing underwriting costs
c.  Rising legal costs
d.  Higher costs associated with medical expenses

QUESTION4
Which one of the following statements best explains why drivers with no auto insurance create
problems for all drivers?  
Drivers with no insurance
a.  Are frequently the sources of auto insurance fraud .  The cost of fraud drives the cost of
insurance up for all auto owners.
b.  Are frequently associated with alcohol and drug abuse and accidents associated with those
abuses. 
c.  Have their losses paid through social services, increasing the costs of all automobile
insurance.
d.  Usually cannot pay for injuries and damage they have caused.  As a result, innocent
accident victims receive no
compensation.
 
QUESTION5
An underwriting loss occurs when 
a.  An insurer's losses and expenses for a given period are higher than its premium income for
the same period.
b.  An insurer's losses for a given period exceed its loss goals for the same period.
c.  An insurer is not able to pay for the losses incurred on its policies, and it must seek
compensation from its reinsurer. 
d.  An insurer is not able to pay for the losses incurred on its policies, and it must seek
compensation from its guaranteed
fund.
 

QUESTION 6
An underwriting loss occurs when an insurer's losses and
a.  Investment expenses are higher than its premium income for that period.
b.  Expenses are lower than its premium income for that period.
c.  Expenses are higher than its premium income for that period.
d.  Investment expenses are lower than its premium income for that period.
 

OBJECTIVE 1
QUESTION 0
Which one of the following is the most commonly used method of compensating auto accident
victims? 
a.  Financial responsibility laws 
b.  Tort liability system 
c.  Uninsured Motorist Coverage  
d.  Unsatisfied judgement funds  

Which one of the following statements regarding compulsory insurance laws is most accurate? 
a.  Such laws provide incomplete protection due to low minimum requirements.
b.  All accident victims are guaranteed compensation. 
c.  Accident victims are compensated immediately with no delay from the legal system.  
d.  Such laws encourage careless driving and increase the number of automobile accidents.  

QUESTION2
Under the tort liability system, injured accident victims must prove that 
a.  Another party was negligent 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.
 

QUESTION3
In evaluating the effectiveness of financial responsibility laws in providing protection against
irresponsible drivers, critics point
out that injured persons might still not be fully indemnified for their injuries because 
a.  The costs of auto accidents are increasing too rapidly for the financial responsibility laws to
keep pace.
b.  Financial responsibility laws require only minimum amounts of financial responsibility,
which might not fully compensate the injured person. 
c.  The legal system is continually eroding the effectiveness of the financial compensation laws
by generating compensation
for minor injuries.
d.  The insurance companies providing insurance that meet financial compensation laws are
unable to compensate accident
victims in a timely manner.

QUESTION 4
Compulsory insurance laws are considered to be superior to financial responsibility laws
because
a.  There are minimal delays in compensating the victim of an automobile accident through
effective use of compulsory auto
insurance .
b.  Compulsory insurance laws do not require that the victims of an automobile insurance
accident prove fault to receive
compensation. 
c.  States enforce compulsory insurance laws more effectively than financial responsibility laws.
d.  Motorists must provide proof of financial responsibility before an accident occurs, rather
than afterward.
QUESTION 5
Unsatisfied judgment funds are funds established in some states to compensate auto accident
victims  
a.  Who sustain bodily injury caused by an uninsured motorist and obtain compensation from
their own uninsured motorist
coverage. 
b.  Who are injured by a negligent driver who has liability insurance at the time of the accident.
c.  Who have obtained a court judgment that is uncollectible because the guilty party cannot
pay.
d.  Who are injured at work and able to collect workers compensation.

QUESTION 6
Uninsured motorists coverage, as an approach for compensating automobile accident victims,
has all of the following defects,
EXCEPT: 
a.  An injured person might not be fully compensated for his or her economic loss.
b.  The victim must prove that he or she has no other source of compensation before
coverage applies.
c.  The victim is paying for insurance to protect against the failure of others to act responsibly.
d.  For an injured person to collect payment under uninsured motorist coverage, the legal
responsibility of the uninsured
motorist for the accident must be established.

QUESTION 7
Underinsured motorist coverage is 
a.  Coverage that provides additional limits of protection when a negligent driver's insurance
limits are not enough to pay
for the damages.
b.  An expansion of the perils and coverage limits that are provided by uninsured motorist
coverages.
c.  Available only in states that have financial responsibility laws.
d.  Coverage that stacks on top of the lower uninsured motorist coverage limits.

OBJECTIVE 2
QUESTION 0
Which one of the following statements is true regarding no- fault automobile insurance? 
a.  Under a no-fault system, an injured person does not need to establish fault, but must prove
negligence in order to collect
payment for damages. 
b.  No-fault laws generally apply only to injuries and not to damage to property.  
c.  No-fault laws typically provide no benefits for loss of earnings for an injured person.  
d.  An injured party must sue to obtain medical expenses above a particular monetary threshold
in all no-fault plans.  

QUESTION 1
Which one of the following would best describe a pure no- fault system? 
a.  A person retains full rights to sue a negligent party for injuries. 
b.  A person retains full rights to pursue an uninsured motorist claim. 
c.  A person seeks compensation for injuries from his or her own policy and cannot seek
damages from a negligent party.  
d.  A person's right to seek damages for injuries from a negligent party is limited, but not
eliminated.  

QUESTION 2
How will the insurance companies pay the bodily injury expenses resulting from the accident
between Marsha and the other
driver?
a.  Each insurer will pay for the other driver's damages.
b.  Each insurer will pay for its own policyholders damages.
c.  The insurers must determine which driver was greater than 50 percent at fault. That insurer
will compensate both parties.
d.  The insurers must determine what percentage each driver was at fault. The insurers will
compensate each driver based on
those percentages.

QUESTION 3
What type of no-fault law applies in Marsha's state? 
a.  Modified no- fault
b.  Pure no-fault
c.  Add -on no-fault
d.  Personal injury protection

QUESTION 4
All of the following are arguments presented by those who favor no- fault laws, EXCEPT: 
a.  They eliminate the need to determine fault which can be difficult.
b.  They avoid delays in making claim payments due to the lengthy legal process.
c.  They eliminate inequities in claim payments.
d.  They increase amounts paid for claim investigation and legal costs. 

QUESTION 5
The no- fault insurance in Marsha's state includes a  
a.  Deductible.
b.  Unsatisfied judgment fund.
c.  Monetary threshold.
d.  Verbal threshold.

QUESTION 6
A personal injury protection (PIP) endorsement is an endorsement to an auto insurance policy
that describes 
a.  The no-fault benefits to be paid to the insured.
b.  Benefits to be paid to an insured for an at-fault accident.
c.  Benefits to an insured when he or she is outside the covered vehicle.
d.  The no-fault benefits to be paid to persons not covered. 

OBJECTIVE 3
QUESTION 0
A plan for insuring high- risk drivers in which all auto insurers doing business in the state are
assigned their proportionate share
of high- risk drivers based on the total volume of automobile insurance written in a state is  
a.  A joint underwriting association.
b.  A reinsurance facility.
c.  Excess and surplus lines.
d.   An automobile insurance plan.

QUESTION 1
Some specialty insurers provide auto insurance to high - risk drivers. The auto insurance policies
from these specialty insurers
generally have 
a.  Premiums that are substantially higher than premiums charged in the standard market.
b.  Premiums that are subsidized by all insurers writing automobile insurance in the state
according to an assessment
representing their proportionate share of losses and expenses.
c.  Limits of insurance coverage that are lower than the state's compulsory insurance laws.
d.  Collision insurance coverage with a low deductible when the vehicle has a loss payee.
 

QUESTION 2
Which one of the following statements is accurate with regard to state automobile insurance
plans? 
a.  Most plans demand higher limits than those required by the state's financial responsibility
laws.
b.  Applicants must show evidence that they have been denied auto liability insurance within
a certain number of days.
c.  Applicants are eligible for coverage regardless of offenses committed or the number of
violations of state or local laws.
d.  Premiums for liability coverage are usually comparable to those available in the standard
market. 

QUESTION 3
All of the following statements are true of Joint Underwriting Associations (JUAs), EXCEPT: 
a.  All auto insurers in the state must issue policies for their proportionate share of high- risk
drivers.
b.  A servicing insurer receives applications, issues policies, collects premiums, and settles
claims.
c.  All auto insurers in the state accept their proportionate share of underwriting losses and
expenses.
d.  The JUA sets the insurance rates and approves the policy forms to be used for high - risk
drivers. 

QUESTION 4
Jon is a 17-year- old driver with six speeding tickets and an at -fault accident.  Jon has chosen
insurance as his preferred
method to meet financial responsibility laws.  Jon's application for standard insurance was
declined. 
All of the following programs would help Jon secure insurance coverage (if available in his
state), EXCEPT: 
a.  A reinsurance facility
b.  A modified no- fault system
c.  An automobile insurance plan
d.  A specialty insurer 

QUESTION 5
Insurers and other organizations that make insurance available to those who cannot obtain
coverage from the standard market
are called 
a.  A reinsurance facility.
b.  The residual market.
c.  The involuntary market.
d.  An automobile insurance plan.

OBJECTIVE 4
QUESTION 0
Why do states restrict an insurer's right to cancel or nonrenew automobile insurance policies? 
a.  To prohibit insurers from canceling a standard insurance policy and rewriting the coverage in
a substandard market for a
higher premium
b.  To enforce the practice of requiring insurers to obtain all of the premium for an automobile
insurance policy in advance of
providing the coverage
c.  To protect the public from actions that are thought to be unfair to policyholders
d.  To encourage insurers to raise rates in order to maintain an adequate flow of premiums

QUESTION 1
Which one of the following reflects the basic objective of underwriting?
a.  To select only the best insureds with no losses so that business will be profitable for the
insurer
b.  To protect insureds from financial hardships since state government requires auto insurance
in order to operate a vehicle
legally in the state
c.  To select insureds whose losses will not exceed those anticipated in the rates and will thus
be profitable for the
insurer
d.  To set low rates for insurance that will attract insureds
QUESTION 2
Which one of the following statements is true regarding cancellation of an auto insurance
policy?
a.  An insurer cannot cancel a policy for material misrepresentation of relevant information on
the application.
b.  Insurers can usually cancel a new policy that has been in force for less than a certain
number of days (such as sixty
days).
c.  In most states a verbal notice of cancellation is sufficient, provided notice is given 90 days
prior to the cancellation.
d.  Submission of a false or fraudulent claim can be used as grounds for cancellation only in rare
instances. 

OBJECTIVE 5
QUESTION 0
Which one of the following would be a primary rating factor in determining the premium for
Marsha Stevens' automobile
insurance?
a.  The commuting use of the vehicle
b.  The accident
c.  The vehicle is a truck
d.  Marsha lives in a no- fault state

QUESTION 1
Marsha received a renewal notice for her auto insurance policy, and she noticed that her
premium had decreased.  Why might
this occur?

a.  Trucks are considered to be safer than private passenger vehicles.  Some insurers are
providing new discounts for trucks.
b.  Marsha's insurance company was able to recover the amount paid to her for her damages in
the accident from the other
party.
c.  The circumstances of the accident placed Marsha in a safe -driver category, lowering her
premiums.
d.  Competition among insurers for automobile business is intense among insurers.  Marsha's
insurance company might be
competing against other insurers.

QUESTION 2
The primary factors that most states and companies use for determining the cost of personal
auto insurance include all of the
following, EXCEPT: 
a.  Territory
b.  Driver age
c.  Use of the auto
d.  Vehicle horsepower 

QUESTION 3
Which of the following statements is true regarding automobile rating?
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.

INS 22 Chapter 3 Dumps, Questions Answers, Materials

ASSIGNMENT 2

OBJECTIVE 0QUESTION 0

While Jean was teaching Cindy to drive her van, Cindy (driving under a learner's permit)
negligently struck a school bus.  Both Jean and Cindy were sued by parents of the injured
children.  Six children were injured with medical expenses averaging $100,000 for each child.   
What is the total limit that the Montclairs' insurer will pay for the injured childrens' medical
expenses?
a.  Nothing
b.  $30,000
c.  $300,000
d.  $600,000

QUESTION 1

An insured under a personal auto policy with liability limits of $100,000/$300,000/$25,000 is

responsible for an auto accident that resulted in $90,000 in damages for bodily injury.  The
defense costs incurred by the insurer to defend the insured were $20,000.  What amount did
the insurer pay as a result of the accident?  
a.  $20,000
b.  $90,000
c.  $100,000
d.  $110,000

QUESTION 2

Jean Montclair lent her van to a church member, Lindsey, who was transporting a group of
teenagers to a church sponsored picnic.  While on the way to the picnic, the van overturned,
injuring one of the teenagers.  The parent of the injured teenager has sued Jean, Lindsey, and
the church for the teenager's injuries and future disability.  Who is insured for liability under the
Montclairs' personal auto policy for this accident? 

a.  Jean only

b.  Jean and Lindsey only
c.  Lindsey and the church only
d.  Jean, Lindsey, and the church

QUESTION 3

The state where Joe works has a law that requires vehicles in that state to have $10,000 in
personal injury protection insurance.  This is not a requirement in Joe's state of residence. What
will occur if Joe is involved in an accident in the state where he works?

a.  The law will not apply to Joe, because he is not a resident.
b.  Joe will not be in compliance with the law, and he will be personally responsible for the
required coverage.
c.  Joe's personal auto policy will provide the coverage if Joe is unaware of the law and
unknowingly failed to purchase it.
d.  Joe's personal auto policy will automatically provide the coverage.

QUESTION 4

Joe, Jean, and Cindy were going out to dinner with Jeff and Tracy Oliver.  Everyone was packed
into the Olivers' sports utility vehicle.  Jeff ran a stop sign and hit another vehicle, injuring
everyone in the Olivers' vehicle.  Each of the five passengers in the Olivers' vehicle incurred
$1,000 in medical expenses. What, if anything, will the Montclairs' personal auto insurer pay for
medical expenses as a result of the accident?    

a.  Nothing, because Jeff Oliver was at fault in the accident

b.  Nothing, if the Olivers have at least $1,000 per person in medical expense coverage
c.  $3,000
d.  $5,000

QUESTION 5

Which one of the following amounts will Larry's insurer pay as a result of this accident?  

a.  $24,000
b.  $36,000
c.  $44,000
d.  $76,000

QUESTION 6

What dollar amount will Ella's insurer pay for Part A - Liability Coverage as a result of the
accident?

a.  $10,000
b.  $15,000
c.  $20,000
d.  $25,000

QUESTION 7

Assume that the driver of the compact car had $25,000 in damages, and he was able to collect
$20,000 for those damages from Ella's policy.  What amount, if anything, would the driver of
the compact car be able to collect from the uninsured motorist coverage provided by his own
personal automobile policy?

a.  Nothing
b.  $1,000
c.  $5,000
d.  $25,000 (or the coverage limit, whichever is less)
QUESTION 8

What dollar amount, if anything, will Ella's insurer pay for Part B- Medical Payments Coverage
as a result of the accident?
a.  Nothing
b.  $1,000
c.  $2,000
d.  $3,000

OBJECTIVE 1QUESTION 0

Joe's name was the only one listed on the declarations page of the policy.  Jean became
concerned when she saw the declaration page, because she thought that Joe's and Jean's
names should both appear because each of them owns vehicles.  Can the personal auto policy
show both Joe and Jean as named insureds? 

a.  No, the primary named insured should appear on the declarations page.
b.  No, each individual should have his or her own policy.
c.  Yes, the policy can be written in a husband's and wife's names by using an additional named
insured endorsement.
d.  Yes, the policy can be written in either spouse's name, or in both husband's and wife's
names.

QUESTION 1 

All of the following information is provided on the declarations page of an automobile

insurance policy, EXCEPT:

a.  A description of the insured autos

b.  A schedule of coverages
c.  The name of the insurance company providing the coverage
d.  A schedule of policy conditions

QUESTION 2

Which of the following statements regarding the declarations page of an automobile insurance
policy is (are) true?

a.  The declarations page shows the name of the policyholder or named insured and the
named insured's mailing address.
b.  The usual annual policy period is the time during which the policy provides coverage that
normally starts at 12:01 p.m. standard time.
c.  The declarations page lists any exclusions that are attached to the policy.
d.  All of the above

OBJECTIVE 2QUESTION 0 

Under the definitions provided in the Montclairs' personal auto policy, does Cindy qualify as a
"family member"? 

a.  No, Cindy is not a ward or foster child.

b.  No, Cindy has not been adopted by the Montclairs.
c.  Yes, as long as she is a resident of the household.
d.  Yes, as long as she is an operator of a vehicle owned by the household.

QUESTION 1

Which one of the following would qualify as a temporary substitute vehicle under a personal
automobile policy? 

a.  A van rented by an insured during a household move

b.  A trailer borrowed from a neighbor to transport a horse
c.  A company car used by an employee to run an errand for the employer
d.  A car rented by an insured while her own insured auto is being repaired

QUESTION 2

In the auto insurance policy definitions, "Your covered auto" includes which of the following
classes of vehicles that can be covered?

a.  A trailer owned by the insured

b.  A temporary substitute auto or trailer
c.  A newly acquired auto
d.  All of the above

QUESTION 3

In the auto insurance policy definitions, an eligible private passenger auto, pickup, or van of
which the named insured becomes the owner, or which the named insured leases during the
policy period is a

a.  Temporary substitute vehicle.

b.  Newly acquired auto.
c.  Replacement auto.
d.  Trailer.

OBJECTIVE 3QUESTION 0

Joe Montclair commutes into the city in his truck, and he provides a ride to two co-workers who
live near him.  Every other week, the co-workers take turns buying the gasoline for Joe's truck. 
Does this activity create a public livery, which would exclude liability coverage from the
Montclairs' policy?  

a.  No, Joe is involved in a share-the-expense car pool arrangement.

b.  No, as long as Joe does not report the money for the gasoline as taxable income.
c.  Yes, coverage is excluded for Joe's truck as long as Joe receives compensation from his co-
workers in the form of gasoline expenses.
d.  Yes, coverage is excluded, but only while the co-workers are in the vehicle.

QUESTION 1

Assume that the following happened:

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. Larry later filed an uninsured motorists
claim.
Which one of the following would be the outcome?  

a.  UM Coverage would be denied because coverage under these circumstances is excluded.
b.  UM Coverage would pay in addition to the money paid by the at-fault driver.
c.  UM Coverage would not apply because the at-fault driver was self-insured.
d.  UM Coverage would pay damages not included in the payment from the at-fault driver.

QUESTION 2

For purposes of this question, assume that Larry submitted an uninsured motorists claim after
the accident and the insurer paid it without exhausting policy limits.  Two months later, Larry
continued to experience pain in his shoulder that intensified. Larry returned to his doctor for
more tests.  The test revealed muscle and tendon injuries.  Larry is sure that these injuries
resulted from the accident.  Larry submitted a claim for the additional costs associated with the
shoulder injuries.  The adjuster handling the claim found that these injuries are often associated
with golfing, and Larry might have incurred these injuries through his years of playing golf. 
Larry and the adjuster are unable to come to an agreement regarding the additional uninsured
motorists claim.  How can this be resolved? 

a.  Through a proportional sharing between Larry's personal health care insurer and the
personal automobile insurer
b.  By negotiation between Larry's medical provider and the personal automobile insurer
c.  Through arbitration
d.  Through subrogation

QUESTION 3

Which of the following describes the damages that can be included as compensatory damages?

a.  Damages awarded by courts to punish wrongdoers

b.  Payment for pain and suffering
c.  Costs associated with defense of tort
d.  Cost of bail bonds

QUESTION 4

Which one of the following statements is true regarding public or livery conveyances and the
automobile policy coverage provided under the personal automobile policy?

a.  The public livery conveyance exclusion eliminates coverage for ordinary business use of a car
such as for newspaper or pizza delivery, or for use by a traveling sales representative.
b.  Liability insurance applies to an insured's ownership or operation of the vehicle while it is
being used as a public or livery conveyance.
c.  The public or livery conveyance exclusion applies to share-the-expense car pools.
d.  A public or livery conveyance is one that is indiscriminately offered to the public.

QUESTION 5

Sandra Hine, who is covered by a Personal Automobile Policy was injured along with her
neighbors, who were riding as guests in her car, in an automobile accident.  Tragically, the
neighbor's daughter was killed in the accident.  All of the following expenses would generally be
paid under Sandra's personal automobile policy's medical payments coverage, EXCEPT:

a.  Medical services rendered within five years of the accident

b.  Funeral service expenses
c.  Medical expenses for injuries sustained by Sandra's neighbor riding in the car
d.  Surgical expenses for Sandra's neighbor

INS 22 DUMPS QUESTIONS MATERIALS CH: 4

ASSIGNMENT 3OBJECTIVE 0QUESTION

In the insuring agreement of Part D-Coverage for Damage to Your Auto of the personal auto
policy the insurer promises to pay for  
a.  Any unintended accident caused by a declared driver
b.  Direct and accidental loss to a covered auto

c. All accidents not caused by an insured driver

d.  All losses within the deductible amount

QUESTION 1According to Part D-Coverage for Damage to Your Auto of a personal auto policy,
the insurer's limit of liability for a physical damage loss to a covered auto is   
a.  The "blue book" value of the vehicle taking into consideration the odometer reading and the
vehicle condition.
b. The estimated value as established by at least two auto appraisers.
c. The lower of the cost to repair the vehicle or the total loss value.
d.  The lower of the actual cash value or the amount necessary to repair or replace the
property with other property of like kind and quality.

QUESTION 2

Jessie received a radar detector from his brother for Jessie's birthday. The radar detector had
cost his brother $250.   Jessie discovered one morning that his car had been broken into and
the radar detector, his radio, CD player, and CD's were all gone.  
Disregarding the application of any deductibles, what amount will Jessie's insurer pay for the
radar detector?   
a. Nothing

b. Actual cash value

c.  The amount necessary to replace the item with property of like   kind and quality
d.  $250

QUESTION 3

following a minor covered accident, Jessie's vehicle was in the body shop having a fender
repaired.  The vehicle was in the shop for five days. During those five days, Jessie used public
transportation at a cost of $5.00 per day.  
What amount will Jessie's insurance company pay for his transportation expenses while his
vehicle was in the shop?   
a. $0
b.  $20.00

c. $60.00
d.  $75.00

QUESTION 4

Jessie and his girlfriend flew to California for a vacation.  While they were there, they rented a
car.  Jessie waived all of the optional coverages that were offered to him at the car rental
agency. While driving the rented car, Jessie was at fault in an accident.  The repairs to the
rented car will cost $2000.  What amount will Jessie's insured pay for the loss?  
a. $450
b.  $1,500

c. $2,000
d.  Nothing

QUESTION 5

Jessie loaned his vehicle to his girlfriend.  While she was using the vehicle, she allowed another
friend, Tanya, to run an errand.  Tanya promised to be back in ten minutes.  Hours later, Tanya
had still not returned. Tanya borrowed Jessie's vehicle to make a delivery of cocaine.  She was
stopped on the highway, the cocaine was discovered, Tanya was arrested, and Jessie's vehicle
was confiscated.  Jessie has tried without success to recover his vehicle. The vehicle was
eventually sold by the government at public auction.   What amount will Jessie's insurer pay for
the loss?  
a. Nothing
b.  $9,500
c.  $10,000
d.  The amount of the outstanding loan to the loss payee

QUESTION 6

John has a personal auto policy with both collision and other than collision coverages. John was
working out at the gym. When he finished, he found that his car had been stolen from the
parking lot.  The police recovered John's car five days later, but it had been damaged.  John's
auto was in the shop ten days for repairs. For what number of days will John's insurer pay him
for transportation expenses?  
a. 5
b.  10
c.  13

d. 15

OBJECTIVE 1QUESTION 0

Bob has a personal auto policy with collision and other than collision coverages.  Bob went to
work early one morning and failed to see his neighbor's boat and trailer parked on the street
across the road from Bob's driveway.  Bob backed into the boat, breaking the rear window of
Bob's car.  The boat and trailer were not damaged. Bob thought he might call a friend about
replacing the window.  He made several calls, but never got a reply.  Bob then checked with
several friends who had auto body shops to see if he could find a used window.  When Bob
finally turned the claim in to his personal auto insurance company, several months had passed,
and rain had ruined the upholstery of the back seat of his car.    Which of the Duties After an
Accident or Loss in the Personal Auto Policy Conditions has Bob failed to comply with?  
a. Cooperation with the insurer
b.  Prevent further damage

c. Permit inspection and appraisal

d.  Proof of loss

QUESTION 1

A person seeking coverage under the personal automobile insurance policy must comply with
which of the following general duties after an accident or loss in order to receive payment
under all of the coverages of the policy?
a. The person must provide prompt notice to the state insurance department regarding the
accident or loss.
b. The person must agree to submit to a physical examination at the insured's own expense.
c. The person must authorize the insurer to obtain medical reports and   other pertinent
records.

d. The person must submit the state required regulatory compliance norms to the insurer
within a reasonable amount of time.

QUESTION 2

Additional duties required under Part D-Coverage for Damage to Your Auto, include all of the
following, EXCEPT:
a.  Provide proof of insurance

b. Prevent further loss

c.  Notify police
d.  Permit inspection and appraisal

OBJECTIVE 2QUESTION
If an insured deliberately leaves his or her auto in an urban area, unlocked, with the keys in the
ignition, and later claims that the car has been stolen, the insurer discovering these facts will  

a. Invoke the automatic termination provision in the policy.

b. Deny coverage for the claim on the basis of the fraud condition.

c. Subrogate against the insured.

d. Invoke the appraisal provision in the policy.

QUESTION 1

An insurer's right to recover payment from a negligent third party is   

a.  Appraisal.
b. Assignment.
c. Adherence.
d. Subrogation.

QUESTION 2  

Under the Personal Auto Policy, when can legal action be brought against the insurer?
a. Only when coverage has been denied
b.  Only when insurance subrogation attempts have failed
c.  Only when the liability of the insured is involved
d.  Only when the insured has fully complied with all of the policy terms

QUESTION 3

If the insurer makes a loss payment to a person who has a right to recover damages from a
negligent third party, the insurer has what legal right against that third party?
a. A legal right of estoppels
b.  A legal right of salvage
c.  A legal right of subrogation

d. A legal right of loss mitigation

OBJECTIVE 3QUESTION 0

Lori has a company automobile with insurance coverage provided by her employer's business
auto insurance. Lori cares for her elderly grandmother, Nell, at least one day each weekend,
and one evening during the week.  Lori wants to help Nell live independently in her own home
as long as she is able.  However, Nell's memory is beginning to fade. When Lori runs errands for
Nell or takes her to the store and the doctor's office, Nell insists that Lori drive Nell's car to
"keep it running" and to keep down the mileage on Lori's car. Lori is afraid that Nell might have
allowed the insurance coverage on her car to lapse, or the limits of liability might be very low.    
What coverage can Lori purchase to provide insurance for herself when she drives Nell's car?

a.  A personal auto policy covering her company car

b.  Miscellaneous Type Vehicle endorsement attached to a personal auto policy
c.  Extended Non-Owned Coverage for Named Individual endorsement attached to a personal
auto policy
d.  Named Non-Owner Coverage endorsement attached to a personal auto policy

 QUESTION 1  

The Underinsured Motorists coverage endorsement can be added to the personal auto policy to
provide coverage to the insured and passengers when a negligent driver has auto liability limits
a.  Equal to or greater than the insured's underinsured limits but not adequate to pay for the
injuries caused by the accident.
b. That have been cancelled.
c. That are lower than the limits provided by the underinsured motorists coverage of the
insured person.

d. Supplemented by a personal umbrella policy.

QUESTION 2

Dirk has a restored 1968 Mustang.  Dirk has spent a lot of money and time bringing the car back
to a like-new condition.  Dirk has insured the Mustang under a personal auto policy with
collision and other than collision coverages included.  How can Dirk establish the value of the
Mustang with his insurer?  
a. Request a Coverage for Damage to Your Auto (maximum limit of liability) endorsement be
added to the personal auto policy

b. Request a Customizing Equipment endorsement be added to the personal auto policy

c.  Request an Extended Coverage for Named Individuals endorsement be added to the
personal auto policy
d.  Request a Miscellaneous type Vehicle endorsement be added to the personal auto policy

 
QUESTION 3

What endorsement could be used to modify the grandparents' PAP so that it would provide
liability coverage while Cindy is operating the ATV?
a. Miscellaneous type vehicle endorsement

b. Customizing equipment coverage endorsement

c.  Named non-owner coverage endorsement
d.  Extended non-owned coverage for named individual endorsement