Wednesday

Question 1

The limit of liability for medical payments to others under an HO-3 is written on what basis?
- Per person
- Per accident

Answer 1

Per person

Question 2

What is the name for an insurer authorized to write insurance policies in a particular state?
- Admitted
- Foreign
- Non-Admitted
- Domestic

Answer 2

An admitted insurer is an insurer that is authorized to transact insurance in a state by that state’s insurance department, as evidenced by a certificate of authority to transact business.

Question 3

Transportation expenses resulting from a Collision or OTC loss will be paid up to what amount under Part D of the PAP?
- $750
- $1,000
- $450
- $250

Answer 3

• $450

Question 4

An individual faces the risk of economic loss in the event of property damage because of which of the following insurance concepts?
- Principle of indemnity
- Insurable interest

Answer 4

A person has insurable interest in property when they have a chance of a financial loss if the property is damaged.

Question 5

Which of the following is covered under a Personal Auto Policy?
- Liability for damage caused by a vehicle designed mainly for off road use
- A vehicle driven with permission by an unlicensed driver
- Intentional damage done by the insured
- Use of a non-owned vehicle used without permission

Answer 5

• A vehicle driven with permission by an unlicensed driver

The policy defines insured as used in Part A, as the named insured or another person using the covered auto with permission, even if not licensed.

Question 6

Which of the following is true regarding the HO-4 and HO-6 forms?
- The amount of insurance on the dwelling containing personal property is 10% of the Coverage C amount of insurance
- Both forms provide open perils coverage on the personal property
- All losses are paid on a replacement cost basis
- Both forms are used to insure the personal property and personal liability of the insured, but not necessarily the structure itself

Answer 6

• Both forms are used to insure the personal property and personal liability of the insured, but not necessarily the structure itself

Question 7

For the SDIP’s point system, the Bureau must obtain records of convictions for moving traffic violations from the DMV at least how frequently?
- Every year
- Every 3 years

Answer 7

Every year

Question 8

When an applicant intentionally fails to make a material fact known, it is best known as:
- Misrepresentation
- Concealment

Answer 8

Concealment

Question 9

Under a Personal Auto Policy, property damage caused by an uninsured motorist is:
- Subject to a $100 deductible
- Not covered

Answer 9

Subject to a $100 deductible