Personal Lines Insurance Practice Exam
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Terms in this set (190)
Bobby, age 16, borrows his parents' D) Bobby is covered by his parents' policy
car without their permission and because he is a family member.
gets into an accident. Which of the
following statements about Explanation: Bobby is a family member and thus
coverage under the parents' automatically is covered under the family's PAP
personal auto policy is CORRECT? policy. Even though Bobby is using the car
without permission, the exclusion pertaining to
A) Bobby is covered by his parents' nonpermissive users does not apply to use of an
policy because he is included in the owned auto policy by resident family members.
definition of named insured.
B) Bobby is not covered for this Reference: 8.7.2 in License Exam Manual
accident because he used the car
without permission.
C) Bobby is not covered because it
was not his car.
D) Bobby is covered by his parents'
policy because he is a family
member.
,A parking valet at a hotel uses a C) subrogate against the parking valet
guest's car to do a personal errand
and damages the car in a collision. Explanation: Part-D coverage for Damage to Your
The guest has a personal auto Auto of the PAP contains a no benefit to bailee
policy (PAP). The insurance provision. This provision states that a carrier or
company will pay the claim and ____. other bailee for hire, such as a parking gar5age,
service station, or moving company will not
A) relieve the parking valet of legal directly or indirectly benefit from the PAP's
liability for the loss insurance. A bailee is an individual or entity that
B) subrogate against the named assumes possession of goods owned by another
insured for the purpose of transporting, servicing, or
C) subrogate against the parking storing them. When temporary custody is
valet assumed, the bailee becomes legally liable for
D) recover any additional loss from the goods.
the lienholder
Reference: 8.7.2 in the License Exam Manual
Who of the following are required A) All insurers that write the types of insurance
to be members of the Arizona that are protected by the fund in Arizona
Property and Casualty Insurance
Guaranty Fund? Explanation: All insurers that write types of
insurance that are protected by the fund are
A) All insurers that write the types required to be member insurers of the fund.
of insurance that are protected by Reference: State Supplement in the License Exam
the fund in Arizona Manual.
B) Foreign property and casualty
insurers only Reference: 4.4.16.3 in the License Exam Manual
C) lien property and casualty
insurers only
D) All insurers that write insurance
in Arizona, including life and health
insurers
,Which one of the following C) Single-family home
dwellings would a HO-3
Homeowners Form cover? Explanation: HO-3 Homeowners Form covers
owner-occupied single family dwellings.
A) Condominium Condominiums are covered by the HO-6. Office
B) Office building and apartment buildings would be covered by a
C) Single-family home commercial policy.
D) Apartment building
Reference: 7.4.1 in the License Exam Manual
Which on of the following would be A) Pain and suffering
classified as a general damage?
Explanation: Compensatory damages
A) Pain and suffering compensate an injured party for injuries
B) Lost wages sustained- nothing more. Their purpose is to
C) Medical bills make a person whole again in the position that
D) Damaged property existed before the loss or harm. Compensatory
damages are further categorized by: general
damages (which necessarily result from the act or
omission, such as emotional distress,
inconvenience, and pain and suffering) and
special damages (losses measured in exact sums
of money including medical bills, travel expenses
for medical care, prescription costs damaged
property, and lost wages).
Reference: 5.3.6 in the License Exam Manual
, Which of the following statements D) Personal property in a basement or outside in
about flood insurance is NOT the yard is covered
correct?
Explanation: Personal property in a basement or
A) There are two types of flood outside in the yard is NOT covered under flood
insurance programs available: insurance.
emergency and regular
B) A flood includes an overflow of Reference: 9.4 in the License Exam Manual
inland or tidal waters
C) Sewer backup into a dwelling is
not considered flood and is not
covered
D) Personal property in a basement
or outside in the yard is covered
Which of the following coverages is C) Longshore and harbor workers' compensation
NOT included in a insurance
boatowners/watercraft package
policy? Explanation: Boatowners/watercraft package
policies were developed by individual insurance
A) Medical payments companies and they combine property, liability,
B) Liability and medical payments insurance on an open
C) Longshore and harbor workers' peril basis. Longshore and harbor workers'
compensation insurance compensation insurance is found in personal
D) Property yacht policies, which are used to insure larger
vessels than those covered under boatowners
policies.
Reference: 9.8.1 in the License Exam Manual
Questions with Correct Answers Pass the Exam,
100% Verified () Graded A+
Save
Terms in this set (190)
Bobby, age 16, borrows his parents' D) Bobby is covered by his parents' policy
car without their permission and because he is a family member.
gets into an accident. Which of the
following statements about Explanation: Bobby is a family member and thus
coverage under the parents' automatically is covered under the family's PAP
personal auto policy is CORRECT? policy. Even though Bobby is using the car
without permission, the exclusion pertaining to
A) Bobby is covered by his parents' nonpermissive users does not apply to use of an
policy because he is included in the owned auto policy by resident family members.
definition of named insured.
B) Bobby is not covered for this Reference: 8.7.2 in License Exam Manual
accident because he used the car
without permission.
C) Bobby is not covered because it
was not his car.
D) Bobby is covered by his parents'
policy because he is a family
member.
,A parking valet at a hotel uses a C) subrogate against the parking valet
guest's car to do a personal errand
and damages the car in a collision. Explanation: Part-D coverage for Damage to Your
The guest has a personal auto Auto of the PAP contains a no benefit to bailee
policy (PAP). The insurance provision. This provision states that a carrier or
company will pay the claim and ____. other bailee for hire, such as a parking gar5age,
service station, or moving company will not
A) relieve the parking valet of legal directly or indirectly benefit from the PAP's
liability for the loss insurance. A bailee is an individual or entity that
B) subrogate against the named assumes possession of goods owned by another
insured for the purpose of transporting, servicing, or
C) subrogate against the parking storing them. When temporary custody is
valet assumed, the bailee becomes legally liable for
D) recover any additional loss from the goods.
the lienholder
Reference: 8.7.2 in the License Exam Manual
Who of the following are required A) All insurers that write the types of insurance
to be members of the Arizona that are protected by the fund in Arizona
Property and Casualty Insurance
Guaranty Fund? Explanation: All insurers that write types of
insurance that are protected by the fund are
A) All insurers that write the types required to be member insurers of the fund.
of insurance that are protected by Reference: State Supplement in the License Exam
the fund in Arizona Manual.
B) Foreign property and casualty
insurers only Reference: 4.4.16.3 in the License Exam Manual
C) lien property and casualty
insurers only
D) All insurers that write insurance
in Arizona, including life and health
insurers
,Which one of the following C) Single-family home
dwellings would a HO-3
Homeowners Form cover? Explanation: HO-3 Homeowners Form covers
owner-occupied single family dwellings.
A) Condominium Condominiums are covered by the HO-6. Office
B) Office building and apartment buildings would be covered by a
C) Single-family home commercial policy.
D) Apartment building
Reference: 7.4.1 in the License Exam Manual
Which on of the following would be A) Pain and suffering
classified as a general damage?
Explanation: Compensatory damages
A) Pain and suffering compensate an injured party for injuries
B) Lost wages sustained- nothing more. Their purpose is to
C) Medical bills make a person whole again in the position that
D) Damaged property existed before the loss or harm. Compensatory
damages are further categorized by: general
damages (which necessarily result from the act or
omission, such as emotional distress,
inconvenience, and pain and suffering) and
special damages (losses measured in exact sums
of money including medical bills, travel expenses
for medical care, prescription costs damaged
property, and lost wages).
Reference: 5.3.6 in the License Exam Manual
, Which of the following statements D) Personal property in a basement or outside in
about flood insurance is NOT the yard is covered
correct?
Explanation: Personal property in a basement or
A) There are two types of flood outside in the yard is NOT covered under flood
insurance programs available: insurance.
emergency and regular
B) A flood includes an overflow of Reference: 9.4 in the License Exam Manual
inland or tidal waters
C) Sewer backup into a dwelling is
not considered flood and is not
covered
D) Personal property in a basement
or outside in the yard is covered
Which of the following coverages is C) Longshore and harbor workers' compensation
NOT included in a insurance
boatowners/watercraft package
policy? Explanation: Boatowners/watercraft package
policies were developed by individual insurance
A) Medical payments companies and they combine property, liability,
B) Liability and medical payments insurance on an open
C) Longshore and harbor workers' peril basis. Longshore and harbor workers'
compensation insurance compensation insurance is found in personal
D) Property yacht policies, which are used to insure larger
vessels than those covered under boatowners
policies.
Reference: 9.8.1 in the License Exam Manual
