AINS 22 AND CPCU 553 COMPREHENSIVE
STUDY GUIDE 2025 TO 2026 CHAPTERS 1 6 7 8
11 12 HOMEOWNERS PERSONAL AUTO POLICY
LIABILITY COVERAGE AND SMART EXAM
REVIEW
-Policy contains 3 additional termination provisions
1. Insurer may choose to deliver the cancelation notice rather than mail it
2. If policy is canceled, insured has right to refund
3. Effective date of cancellation stated in the notice becomes the end of
policy period
Part F - General Provisions
8. Transfer of Insured's Interest in the Policy
9. Two or More Auto Policies -CORRECT ANSWER-8. Transfer of
Insured's Interest in the Policy
-states that the named insured's rights and duties under the policy cannot
be assigned to another
party without the insurer's written consent
9. Two or More Auto Policies
- Provisions prevents staking
Selected Endts -
Miscellaneous Type Vechile Endorsement -
Snowmobile Endorsement
Trailer/Camper Body Coverage
,Extended Non-owned Coverage -CORRECT ANSWER-Miscellaneous
Type Vechile Endorsement -
Covers motor homes, motorcycles, and other
vehicles with fewer than four wheels that are
designed for off public road use
Snowmobile Endorsement-coverage for snowmobiles other than vehicles
propelled by an airplane-type propellers or fans
Trailer/Camper Body Coverage-trailers or camper bodies, including related
facilities or equipment
Selected Endts -
Extended Non-owned Coverage
Named Non-Owner Coverage
Auto Loan/Lease Coverage -CORRECT ANSWER-Extended Non-owned
Coverage - provides liability, medical payments for driver of vehicles
furnished or made available for regular use of named insured
Named Non-Owner Coverage- provides liability, medical payments,
uninsured, and underinsured motorists coverages for drivers who do not
own an auto but regularly driver another
person's auto
Auto Loan/Lease Coverage- Amends physical damage coverage for leased
vehicles or vehicles with outstanding loan amounts to include an unpaid
amount due on the lease or loan
Selected Endts -
Limited Mexico Coverage -
Excess Electronic Coverage -
,Coverage for Damage to Your Auto - -CORRECT ANSWER-Limited
Mexico Coverage - Provides excess liability coverage over Mexican auto
insurance for an individual who is involved in an accident in Mexico within
25 miles of border on a
trip that is 10 days or less
Excess Electronic Coverage - Increases the $1,000 limit that applies to
electronic equipment installed in the vehicles in location not intended for
that purpose by the auto manufacturer
Coverage for Damage to Your Auto - Covers each described vehicle for a
stated amount of insurance as indicated in the endorsement schedule that
applies to collision and OTC losses
Rating Factors -CORRECT ANSWER--for liab cov. factors include: age,
sex, marital status, driving record, vehicle use, annual mileage, territory of
garage, and liab limits selected. Some states use number of years of driving
experience instead of age
- For physical damage, factors include: all of the above, plus the year, make,
and model of the insured vehicle, and the deduct selected
A couple is expecting their first child and is considering the implications the
premature death of the primary wage earner would have on the child's
future. The primary wage earner's ability to provide income for this child is
best described as -CORRECT ANSWER-An asset exposed to loss.
In the context of assets exposed to loss, long-term illness and loss of
employment are best described as examples of -CORRECT ANSWER-
Causes of loss.Long-term illness and loss of employment are examples of
causes of loss that can occur to assets.
For a personal loss exposure to be present -CORRECT ANSWER-The
possibility of loss must exist
, In the context of assets exposed to loss, elements such as fire, wind, hail,
and theft are best described as examples of -CORRECT ANSWER-Causes
of loss.
Brian recently purchased a home in a wind-prone area along the coast. He
is considering the possibility that a hurricane may cause wind damage to
his new property. This possibility is best described as a -CORRECT
ANSWER-Loss exposure.
A couple's retirement investment portfolio is an example of -CORRECT
ANSWER-An asset exposed to loss
A couple meets with a financial adviser to review their insurance needs and
investment choices. In the course of the discussion, a variety of topics are
covered, including the impact of a long-term illness of the primary wage
earner. In this context, the long-term illness is best described as -
CORRECT ANSWER-A cause of loss.
All of the following are a type of asset exposed to loss due to health and
disability loss exposures, EXCEPT: -CORRECT ANSWER-Employment
income
Savings
Employer-provided benefits
Social Security income
Which one of the following is the primary risk to financial assets for a
retiree? -CORRECT ANSWER-That the assets allocated for retirement
will be insufficient
STUDY GUIDE 2025 TO 2026 CHAPTERS 1 6 7 8
11 12 HOMEOWNERS PERSONAL AUTO POLICY
LIABILITY COVERAGE AND SMART EXAM
REVIEW
-Policy contains 3 additional termination provisions
1. Insurer may choose to deliver the cancelation notice rather than mail it
2. If policy is canceled, insured has right to refund
3. Effective date of cancellation stated in the notice becomes the end of
policy period
Part F - General Provisions
8. Transfer of Insured's Interest in the Policy
9. Two or More Auto Policies -CORRECT ANSWER-8. Transfer of
Insured's Interest in the Policy
-states that the named insured's rights and duties under the policy cannot
be assigned to another
party without the insurer's written consent
9. Two or More Auto Policies
- Provisions prevents staking
Selected Endts -
Miscellaneous Type Vechile Endorsement -
Snowmobile Endorsement
Trailer/Camper Body Coverage
,Extended Non-owned Coverage -CORRECT ANSWER-Miscellaneous
Type Vechile Endorsement -
Covers motor homes, motorcycles, and other
vehicles with fewer than four wheels that are
designed for off public road use
Snowmobile Endorsement-coverage for snowmobiles other than vehicles
propelled by an airplane-type propellers or fans
Trailer/Camper Body Coverage-trailers or camper bodies, including related
facilities or equipment
Selected Endts -
Extended Non-owned Coverage
Named Non-Owner Coverage
Auto Loan/Lease Coverage -CORRECT ANSWER-Extended Non-owned
Coverage - provides liability, medical payments for driver of vehicles
furnished or made available for regular use of named insured
Named Non-Owner Coverage- provides liability, medical payments,
uninsured, and underinsured motorists coverages for drivers who do not
own an auto but regularly driver another
person's auto
Auto Loan/Lease Coverage- Amends physical damage coverage for leased
vehicles or vehicles with outstanding loan amounts to include an unpaid
amount due on the lease or loan
Selected Endts -
Limited Mexico Coverage -
Excess Electronic Coverage -
,Coverage for Damage to Your Auto - -CORRECT ANSWER-Limited
Mexico Coverage - Provides excess liability coverage over Mexican auto
insurance for an individual who is involved in an accident in Mexico within
25 miles of border on a
trip that is 10 days or less
Excess Electronic Coverage - Increases the $1,000 limit that applies to
electronic equipment installed in the vehicles in location not intended for
that purpose by the auto manufacturer
Coverage for Damage to Your Auto - Covers each described vehicle for a
stated amount of insurance as indicated in the endorsement schedule that
applies to collision and OTC losses
Rating Factors -CORRECT ANSWER--for liab cov. factors include: age,
sex, marital status, driving record, vehicle use, annual mileage, territory of
garage, and liab limits selected. Some states use number of years of driving
experience instead of age
- For physical damage, factors include: all of the above, plus the year, make,
and model of the insured vehicle, and the deduct selected
A couple is expecting their first child and is considering the implications the
premature death of the primary wage earner would have on the child's
future. The primary wage earner's ability to provide income for this child is
best described as -CORRECT ANSWER-An asset exposed to loss.
In the context of assets exposed to loss, long-term illness and loss of
employment are best described as examples of -CORRECT ANSWER-
Causes of loss.Long-term illness and loss of employment are examples of
causes of loss that can occur to assets.
For a personal loss exposure to be present -CORRECT ANSWER-The
possibility of loss must exist
, In the context of assets exposed to loss, elements such as fire, wind, hail,
and theft are best described as examples of -CORRECT ANSWER-Causes
of loss.
Brian recently purchased a home in a wind-prone area along the coast. He
is considering the possibility that a hurricane may cause wind damage to
his new property. This possibility is best described as a -CORRECT
ANSWER-Loss exposure.
A couple's retirement investment portfolio is an example of -CORRECT
ANSWER-An asset exposed to loss
A couple meets with a financial adviser to review their insurance needs and
investment choices. In the course of the discussion, a variety of topics are
covered, including the impact of a long-term illness of the primary wage
earner. In this context, the long-term illness is best described as -
CORRECT ANSWER-A cause of loss.
All of the following are a type of asset exposed to loss due to health and
disability loss exposures, EXCEPT: -CORRECT ANSWER-Employment
income
Savings
Employer-provided benefits
Social Security income
Which one of the following is the primary risk to financial assets for a
retiree? -CORRECT ANSWER-That the assets allocated for retirement
will be insufficient
