Insurance 4A

Question 1

The HO-6 policy provides full replacement cost coverage if it is rendered a total loss by fire, EXCEPT:

Answer 1

The structure portion occupied by the insured as a residence.

Question 2

Which of the following is included in the declarations page of the homeowner policy?

Answer 2

The address of the insured location

Question 3

In New Hampshire, if a dwelling or homeowner policy is cancelled or non renewed by the insurer, the insurer is required to send advance notice to the insured at least:

Answer 3

45 days in advance

Question 4

Who pays for the services of the arbitrators under uninsured motorist coverage?

Answer 4

both the insured and the insurer split the cost.

Question 5

Fit and Trim finds replacement treadmills that generate and actually return energy to the power grid. The cost is 15% higher than standard equipment. Which of the following, if any, would pay the increase?

Answer 5

Increased cost of loss and related expenses for “green” updates.

Question 6

Mr. Owens owns 50% of a building that is worth $600,000 and is insured for at total of $500,000. What is the maximum that Mr. Owens can collect in case of a total loss to the building?

Answer 6

$500. He has an insurable interest of 50% and can only collect $250 or half.

Question 7

Which of the commercial causes of loss forms provide theft coverage?

Answer 7

The special form

Question 8

What type of coverage is included in a personal auto policy without having to issue an endorsement?

Answer 8

Transportation expenses, are part of the physical damage coverage.

Question 9

George Wilson has a personal auto policy. Select the coverage that would apply when a deer leaps onto Mr. Wilson’s car and causes extensive damage.

Answer 9

Contact with birds and animals is considered to be Comprehensive,

Question 10

You’re at a party and run out of soft drinks. Your car is at the front of the driveway so you borrow a friend’s car which is parked at the end of the driveway nearest the street. From your coverage perspective this car is known as a:

Answer 10

Non-owned auto, coverage is provided by the personal auto policy on an excess basis.

Question 11

The commercial auto policy form provides for “worldwide liability coverage” for private passenger autos that the insured:

Answer 11

Hires, leases, rents or borrows without a driver.

Question 12

In legal terms, the written explanation of how a loss occurred is called a:

Answer 12

Statement

Question 13

If the company decides to rebuild or repair the property destroyed or injured, it must begin to do so within _____ days after adjusting the loss, and must prosecute the work with reasonable diligence until it is completed.

Answer 13

20

Question 14

With Commercial Property Insurance, replacement cost coverage may be written for:

Answer 14

Buildings, personal property of the insured and others.

Question 15

Robert boards his dog at a kennel while he is on vacation. While at the kennel, the dog bites a meter reader. How would Robert’s HO-3 policy respond to the meter reader’s request for repayment of his emergency room costs?

Answer 15

The insurer will pay under the Medical Payments to Others provision.

Question 16

How would an insured’s PAP coverage apply when renting a private passenger auto while on vacation when they have purchased insurance coverage from the rental company?

Answer 16

The insureds PAP provides excess liability coverage when the insured drives non-owned autos

Question 17

Steve has removed the rear seat in the company car and installed stereo equipment and two speakers. The maximum the physical damage will pay for damage to the items in an accident is:

Answer 17

$1000

Question 18

Name a loss that may not be determined by an adjuster?

Answer 18

use of a rental car

Question 19

Unless otherwise provided by law, every insurer must establish procedures to commence an investigation of any notice of a claim filed by an insured or claimant not later than _____ working days from receipt of the notice of a claim.

Answer 19

5

Question 20

An insured suffers a partial fire loss to his residence. Under the HO-3 policy what coverage is available for temporary, alternate living quarters?

Answer 20

Loss of use expenses

Question 21

To satisfy the financial responsibility law in New Hampshire the owner of a vehicle must carry limits of:

Answer 21

25/50/25

Question 22

When an insured is fulfilling the duty of proving a loss by taking an inventory of the damaged property, who pays the expenses incurred by the insured?

Answer 22

The insured

Question 23

What is the loss assessment limit provided by Section II of the homeowner policy?

Answer 23

$1000

Question 24

Dan parks his car on a hill in front of his house. His 7-year-old daughter gets into the car and releases the parking brake. The car rolls down a hill and does $2,000 damage to the property of others. What part of his policy might respond to pay the claim?

Answer 24

Property damage

Question 25

Under which of the following losses would the basic personal auto policy not provide transportation expenses?

Answer 25

The engine dies in the insureds car and he must rent a car.

Question 26

When a motor vehicle is a total loss, what method is used to determine its value?

Answer 26

Fair value of the car in the local area.

Question 27

Which of the following statements is true regarding personal auto coverage?

Answer 27

Medical Payments coverage pays the insured and others without regard to fault